How Private Equity Is Buying Up Physical Therapy Clinics

Episode notes

Episode 57 of Private Equity Conversations examines the rapid consolidation of physical therapy clinics across the United States. Lucas and Luna break down the economics behind PE roll-ups in outpatient rehab, using the specific case of Athletico Physical Therapy - acquired by AEA Investors in 2021 and then merged with U.S. Physical Therapy. They discuss why PT clinics are attractive targets (recurring revenue, aging demographics, low margin but stable cash flows), the typical playbook of buying regional chains and centralizing billing, and the tension between investor return expectations and patient care. The episode includes data on the $40 billion outpatient PT market and the rise of platforms like FYZICAL and ATI. Lucas also flags a potential regulatory shift: the FTC's increased scrutiny of serial acquisitions in healthcare. No hot takes - just the mechanics of a deal type that touches millions of patients.

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