U.S. Physical Therapy (NYSE:USPH) is pursuing growth through clinic openings, acquisitions, and a newer hospital-alliance strategy that CEO Chris Reading said could expand patient volumes and improve reimbursement. Speaking at an investor event, Reading said the company operates in 45 states with just under 800 locations, with about one-third of business from Medicare and roughly 10% from workers' compensation. The company typically opens 25 to 30 clinics organically and acquires 30 to 70 annually, often at single-digit multiples of trailing 12-month EBITDA. Reading highlighted a 10-year partnership with NYU Langone that has expanded its New York network to 60 locations, providing higher, more predictable reimbursement through flat per-visit payments. The injury-prevention business, launched in 2017, has grown to about $120 million in revenue and more than $20 million in EBITDA, representing roughly 15% of company revenue with margins about twice those of the physical therapy segment. U.S. Physical Therapy had approximately $220 million in debt and expects EBITDA of more than $100 million for the year.
U.S. Physical Therapy, Inc.Hospital alliances like NYU Langone expand patient volumes and improve reimbursement.
