How Private Equity Is Buying Up Physical Therapy Chains

Episode notes

Private equity firms have been consolidating physical therapy clinics at a rapid pace, with the largest platforms now operating over 1,000 locations each. In this episode, Lucas and Luna examine the economics behind these roll-ups: why PT clinics are attractive targets, how the consolidation affects patient care and therapist compensation, and the growing backlash from clinicians who say the model prioritizes productivity over outcomes. The hosts walk through a specific case: the rise and recent turbulence of ATI Physical Therapy, which went public via SPAC in 2021 and has since seen its stock fall over 90 percent. They also discuss the role of Medicare reimbursement changes and the shift toward value-based care. If you've ever wondered why your local PT clinic now has a corporate logo and a central billing office, this episode explains what's happening behind the scenes.

• Why Private Equity Is Buying Up Wedding Venues67 / 100
• How Private Equity Is Buying Up Dermatology Practices59 / 100
• How Private Equity Is Buying Up Laundromats62 / 100
• How Private Equity Is Buying Up Marijuana Dispensaries
• How Private Equity Is Buying Up Security Guard Companies