When compared to other healthcare sectors that have experienced a slowdown in M&A activity, Rehabilitation has shown signs of resiliency. According to data from the LevinPro HC database, 20 transactions have been announced year-to-date as of July 11, 2025. This figure represents virtually the same number of announcements from the 21 deals recorded in the same period of 2024 (46 for the year) and the 26 deals observed in the first half of 2023 (51 for the year).
In 2025, disclosed spending totals $60.35 million across three deals. In 2024, there were six transactions with a disclosed price, totaling $166.85 million; $113.6 million was disclosed in the first half of the year.
Private equity firms and their portfolio companies represent a significant portion of acquirers in the Rehabilitation market. Out of the 20 Rehabilitation deals reported since the start of the year, 60% (12 deals) of the transactions were completed by a private equity firm or a portfolio company.
By comparison, in 2024, 28% (13 deals) in the Rehabilitation market were completed by private equity and their portfolio companies, and 53% (27 deals) in 2023.
Since the halfway point of the year has come, we wanted to take a look at some of the notable buyers and transactions of the year.
Notable Rehabilitation Transactions of 2025
1. The deal with the largest purchase price in 2025, so far, is Sila Realty Trust, Inc.’s acquisition of one inpatient rehabilitation facility in Knoxville, Tennessee for $35.12 million. The facility is a 57-bed facility offering programs to provide care and therapy for neurological rehabilitation, stroke rehabilitation, brain injuries, spinal cord injuries, amputation and orthopedics. The approximately 70,000-square-foot facility is fully leased to Knoxville Rehabilitation Hospital, LLC, a joint venture between the University of Tennessee Medical Center, Lifepoint Health and an affiliate of Community Health Systems, Tennova Healthcare. The price of the facility is $501.71 per square foot.
2. Additionally, Sila acquired a Dover, Delaware-based rehabilitation facility for $23.5 million. The 34-bed facility offers inpatient and outpatient care programs from physical and occupational therapies to speech and cognitive treatments. The approximately 42,000-square-foot facility is fully leased to a joint venture between Bayhealth Medical Center, Inc. and a subsidiary of Post Acute Medical.
3. U.S. Physical Therapy, Inc. acquired a 65% interest in a three-location physical therapy practice in Wyoming. According to the original deal press release from March 3, 2025, the practice currently generates approximately $4.3 million in annual revenues and 23,000 in annual visits. The current owners will retain a 35% minority stake in the practice.
4. U.S. Physical Therapy also acquired an 80% interest in an outpatient home care practice. The transaction was completed through U.S. Physical Therapy’s subsidiary, MSO Metro, LLC. The location of the practice was not disclosed but it currently generates approximately $2.1 million in annual revenues.
5. Ivy Rehab, a portfolio company of Waud Capital Partners, continues to be one of the more active Rehabilitation buyers. In 2025, it acquired three practices: Lakeside Comprehensive Rehabilitation in Hart, Michigan, Cawley Physical Therapy and Rehabilitation in Wilkes-Barre, Pennsylvania and In Motion Physical Therapy in Downington, Pennsylvania. Ivy Rehab for Kids, a branch of Ivy Rehab, also completed the acquisition of Coastline Therapy Group, which is based in Wilmington, North Carolina.
6. PT Solutions acquired OrthoCarolina‘s physical therapy business for an undisclosed price. OrthoCarolina is one of the nation’s largest independently owned orthopedic practices with nearly 300 physical therapists in 24 locations. The Beekman Group, a private equity firm based in New York, New York, was the seller. This is PT Solutions’ first acquisition since it purchased ActivePro Rehab Partners in 2023.
