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Smooth Moves: Occupational Therapists in the US Industry Market Research Report Now Available from IBISWorld
Date:4/3/2013

Los Angeles, CA (PRWEB) April 03, 2013

The Occupational Therapists industry has grown over the past five years due to steady demand from an aging population because older individuals are more likely to develop chronic conditions, such as back and joint pain. As a result, occupational therapy has been increasingly required to help these individuals return to work. Further, “growth in funding for Medicare and Medicaid has helped individuals pay for occupational therapy, thereby improving downstream demand,” says IBISWorld industry analyst David Yang. “Therapy services are also a cheaper alternative to medical surgeries, which helped demand during the recession.” In the five years to 2013, industry revenue grew an estimated 4.5% per year on average to $14.8 billion.

Over the past five years, Medicare and Medicaid administrators and private insurance providers have turned to occupational therapy as a low-cost alternative to traditional medical care. Occupational therapy can provide early detection for health problems, thereby lowering long-term healthcare costs. To meet growing demand, the number of enterprises in the Occupational Therapists industry has increased at an annualized rate of 1.3% over the past five years. “Although demand has increased, industry operators also faced pressures on profitability,” Yang says. “Medicare has set reimbursement caps on therapy services, which limits some patients' ability to pay for industry services. Additionally, therapists have faced a growing number of malpractice suits.” In response, companies implemented cost-cutting measures, such as consolidating serv
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