U.S. Physical Therapy Announces the Acquisition of an Eight-Clinic Physical Therapy Practice

Rhea-AI Summary

U.S. Physical Therapy (NYSE: USPH) has announced the acquisition of a physical therapy and hand therapy practice with eight clinic locations in Pennsylvania. The practice generates approximately $5.5 million in annual revenues. USPH acquired a 70% interest in the company, with current owners retaining a 30% ownership stake.

USPH, founded in 1990, operates 687 outpatient physical therapy clinics across 42 states. The company provides preventative and post-operative care for orthopedic-related disorders, sports injuries, neurological injuries, and worker rehabilitation. Additionally, USPH manages 40 physical therapy facilities for third parties and offers industrial injury prevention services.

Positive

• Acquisition of an eight-clinic practice generating $5.5 million in annual revenue
• Expansion of USPH's presence in Pennsylvania
• 70% ownership stake in the acquired practice
• Diversification of services with addition of hand therapy practice

Negative

• None.

Insights

Financial Analyst

U.S. Physical Therapy's acquisition of a 70% stake in an eight-clinic practice in Pennsylvania is a strategic move that expands their footprint and revenue stream. With the target practice generating $5.5 million in annual revenue, this deal could potentially add $3.85 million to USPH's top line, assuming full integration. This acquisition aligns with USPH's growth strategy, bringing their total clinic count to 695. The retention of 30% ownership by current owners suggests a smooth transition and potential for knowledge transfer. However, investors should consider the integration costs and potential synergies. The impact on USPH's financials will depend on the acquisition price and financing terms, which weren't disclosed. Overall, this move strengthens USPH's market position in Pennsylvania and demonstrates their commitment to expansion in a fragmented industry.

Healthcare Industry Analyst

This acquisition by U.S. Physical Therapy (USPH) reflects the ongoing consolidation trend in the fragmented physical therapy market. With 687 clinics across 42 states, USPH is leveraging its scale to absorb smaller practices, potentially improving operational efficiencies and negotiating power with insurers. The addition of hand therapy services from the acquired practice diversifies USPH's offering, which could attract more referrals and patients. The company's multi-faceted approach, including clinic ownership, management services and industrial injury prevention, positions it well in the evolving healthcare landscape that emphasizes preventative care and cost-effective treatments. However, investors should monitor how effectively USPH integrates these new clinics and whether they can maintain quality of care across their expanding network. The success of this strategy will be important as the healthcare industry continues to shift towards value-based care models.

HOUSTON--(BUSINESS WIRE)-- U.S. Physical Therapy, Inc. (the “Company”) (NYSE: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, announced the acquisition of a physical therapy and hand therapy practice with eight clinic locations located in Pennsylvania which currently generates approximately $5.5 million in annual revenues. The Company acquired a 70% interest in the Company with the current owners retaining a 30% ownership interest.

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 687 outpatient physical therapy clinics in 42 states. The Company's clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. In addition to owning and operating clinics, the Company manages 40 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups. The Company also has an industrial injury prevention business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.

More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information included on that website is not incorporated into this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903249244/en/

U.S. Physical Therapy, Inc.

Carey Hendrickson, Chief Financial Officer

email: chendrickson@usph.com

Chris Reading, Chief Executive Officer

(713) 297-7000

Three Part Advisors

Joe Noyons

(817) 778-8424

Source: U.S. Physical Therapy, Inc.

FAQ

What is the annual revenue of the acquired practice by U.S. Physical Therapy (USPH)?

The acquired physical therapy and hand therapy practice in Pennsylvania generates approximately $5.5 million in annual revenues.

How many clinic locations does the newly acquired practice by USPH have?

The newly acquired practice by U.S. Physical Therapy (USPH) has eight clinic locations in Pennsylvania.

What percentage of ownership did U.S. Physical Therapy (USPH) acquire in the new practice?

U.S. Physical Therapy (USPH) acquired a 70% interest in the new practice, with the current owners retaining a 30% ownership interest.

How many outpatient physical therapy clinics does U.S. Physical Therapy (USPH) operate as of this acquisition?

As of this acquisition, U.S. Physical Therapy (USPH) operates 687 outpatient physical therapy clinics across 42 states.