U.S. Physical Therapy at 17th Annual Midwest IDEAS Conference: growth push

U.S. Physical Therapy (USPH) showcased growth and challenges at the 17th Annual Midwest IDEAS Conference. Chairman and CEO Chris Reading highlighted the company’s partnership model, hospital alliances, and injury prevention unit as key factors in offsetting headwinds like lower Medicare reimbursement rates and a competitive outpatient market.

USPH is expanding its core physical therapy network and newer businesses while maintaining a decentralized structure that appeals to local operators. A notable strategic move is the partnership with NYU Langone Health, which is expected to bring in about 700,000 additional visits annually. The injury prevention business, Briotix, has grown to a roughly $120 million revenue unit with margins about twice those of the physical therapy segment.

Despite Medicare reimbursement pressure, USPH anticipates improvements starting in 2024 and larger increases from 2028 onward. The company's leverage is manageable, with about $220 million in debt and expected EBITDA above $100 million. USPH maintains a quarterly dividend, paid since 2012, with a current yield of 2.4% and a 16-year streak of consecutive payments.

Shares are currently trading at $78.51, showing a 1.54% increase from the previous close. Overall, USPH is positioned as a clinician-led company with a focus on local partnerships, operating about 800 locations in 45 states through roughly 120 partnerships.