U.S. Physical Therapy (USPH), one of the largest providers of outpatient physical therapy in the United States, has announced a new acquisition for Harrisburg, Pennsylvania-based Madden and Gilbert Physical Therapy, LLC.
Madden and Gilbert Physical Therapy, LLC operates six physical therapy clinics in South Central Pennsylvania. It generates more than $7.5 million in annual revenue and has approximately 71,000 patient visits per year. USPH is acquiring a 70% interest in the clinic valued at $11.5 million, implying a $15.71 million value for Madden and Gilbert Physical Therapy. The practice’s founders will retain the other 30%. This deal expands USPH’s presence in Pennsylvania.
In a letter addressed to shareholders from CEO Chris Reading, USPH claimed it had a record year in 2021 of earnings and patient volume despite “ever-changing” challenges. Operating income increased $18.2 million, or by 34.8%, and “physical Therapy revenue grew by 17.4% despite a Medicare rate reduction of 3.5%.” Overall revenue increased by 17% to $495 million.
There’s no doubt COVID-19 had a major impact on the outpatient physical therapy market, but it seems like despite the headwinds, major operators have learned to adapt to this new environment.
