· Summary of Industry Definition

Physical therapist are outpatient rehabilitative care providers. Working with patients with injuries to the muscles, joints, nerves, etc. Also Physical Therapist educate their patients on the various treatments they will be undergoing and the complications of their health. (ibisworld.com)

· Summary of Industry Key External Indicators

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Graph showing the growth of the population and the stability of the job market)

The median age of the population is expected to have a slow growth in 2015. With the population growing at a steady rate this presents a potential opportunity for industry growth. The number of employees will continue to grow because of the demand for occupational health. Physical therapy is said the be a cost effective means to preventing short term disabilities from becoming chronic conditions. Physical therapy also aids in recovery from surgery and musculoskeletal injury’s. Another key external driver for physical therapist is the federal funding for Medicare and Medicaid. Most of the industries revenue is derived from patients the are covered by Medicaid or Medicare. The reimbursement factors for physical therapy services reduce the patient’s access to treatment hurting the demand for rehabilitative services. In 2015 Medicare and Medicaid is expected to increase funding. The number of patients with private health insurance is expecting increases in 2015. Like most health care services physical therapy is covered by private health insurance. Per capita disposable income is the amount of disposable income a house hold has. People with private insurance are more likely to have more disposable income than those without. It is stated that in 2015 the disposable income for health services will increase. The last external key factor in the national unemployment rate. Currently it rises for a few individuals but overall It is said to decrease in 2015.

 

· Summary of Industry Key Success Factors

The most important key success factors in the industry of physical therapy are developing a symbolic relationship with another industry. Build relationships with physicians of all aspects of health care, hospitals, nursing homes, and community health programs. Strong relationships can increase referrals. Maintain a good reputation a good reputation will make more doctor and patients refer to you. Adaptation to new technology we are in a technical age where computers are rapidly advancing. You must be able to learn new software quickly. Proximity to key factors how close are you to the money. Typically most physical therapist cluster in highly populated areas. Comply with government regulations first a physical therapist must be licensed second have good moral character and work ethic. Lastly ensuring pricing policy is appropriate set fees for rehabilitative services must be profitable while also attracting customers. Alterations to pricing may change as government reimbursement levels change.

· Summary of Industry Demand Determinants

Three demand detriments for physical therapy are employment and demographics, Government policies, and cost considerations. Employment and demographics ask the major question “where is the money”. The U.S. armed forces and people 55 years and older are more prone to injury offering more jobs for physical therapist in that field. Governing polices in the Past have reduced the incidences of injuries in the workplace with health and safety programs on the job. With workers compensation employers can pay for their workers injuries directly or indirectly with insurance. Cost considerations states individuals with high incomes tend to spend more on healthcare also more likely to have private insurance. Insurance reimbursements can reduce the cost of the services and boost the demand for rehabilitative services.