Private Equity Conversations with Fexingo · 2026-07-12 · 9 min
Lucas and Luna examine the rapid consolidation of outpatient physical therapy clinics by private equity firms. With over 300 deals in the last five years, PE-backed platforms now control roughly 20% of the U.S. physical therapy market. The hosts break down the economic logic behind the roll-up: fragmented mom-and-pop practices, stable Medicare and commercial reimbursement, and the ability to add high-margin ancillary services like orthotics and imaging. They focus on a specific case study - the ATI Physical Therapy acquisition - and discuss the tension between clinical autonomy and operational efficiency. The episode also touches on the 2023 bankruptcy of one over-leveraged platform and the lessons for investors, clinicians, and patients. If today's conversation added value, listeners can support the ad-free show at buy me a coffee dot com slash fexingo.
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