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Q1-2022 Rehabilitation Update

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Q1-2022 Rehabilitation Update

Merger and acquisition activity within the rehabilitation sector continued at a strong pace during the first quarter of 2022. Private equity investors remain bullish on the space evidenced by three new platform investments and one secondary buyout in Q1. While the outpatient physical therapy space has consolidated for some time, we’re also seeing a renewed interest in contract therapy evident by Lee Equity Partner’s investment in Therapy Partner Solutions. The industry-wide labor shortage and wage pressures have exacerbated supply and demand imbalances for therapy services in hospitals, SNFs, and other post-acute settings, leading to an increased demand for contract therapy services. Outpatient providers have faced similar challenges as well, hindering some groups’ ability to grow organically. As a result, we’re seeing platforms become more reliant on M&A growth strategies in order to reach targeted growth milestones, which has consequently increased competition and valuations in transaction processes.

To print and download the full Rehabilitation Update report, please click below…

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Sources: SEC Filings; Company Press Releases, and Reports; IBISWorld; Capital IQ; PHP Estimates and Research. This document has been compiled with publicly available information. Provident Healthcare Partners, LLC makes no guarantee of its accuracy or completeness. No data or statement should be construed to be a recommendation for the purchase, sale, or retention of any security.