U.S. Physical Therapy Announces Change in Medicare Rate Reduction for the Remainder of 2024

U.S. Physical Therapy, Inc. (“USPH" or the “Company”) (NYSE: USPH), reported today that the 3.5% reduction in the Medicare physician fee schedule for therapy services for 2024 (as compared to 2023 rates) has been addressed in the “Consolidated Appropriations Act, 2024” (“Act”) signed into law on March 8, 2024. The Act decreased the Medicare reduction for the remainder of 2024; as a result, the Company now estimates that the Medicare rate reduction effective March 9, 2024, will be approximately 1.8% rather than 3.5%. The change in rate is not retroactive to January 1, 2024.

In the Company’s earnings announcement on February 28, 2024, management noted that the 3.5% reduction in Medicare rates was expected to reduce the Company’s revenue by approximately $6.0 million for the full year of 2024 which would equate to an EBITDA reduction of approximately $5.3 million. Management estimates that today’s reported change in the Medicare rate will increase its revenue by approximately $2.3 million versus its previous expectations, which would equate to an increase in EBITDA of approximately $2.0 million. Therefore, management now expects the Medicare rate reductions in 2024 (as compared to 2023 rates) to reduce revenue by approximately $3.7 million for full year 2024 (rather than $6.0 million), which would equate to an EBITDA reduction of approximately $3.3 million (rather than $5.3 million), all as compared to full year 2023.

Forward Looking Statements

This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as “believes”, “expects”, “intends”, “plans”, “appear”, “should” and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to: