U.S. Physical Therapy sees Medicare rate reduction approximately 1.8%

U.S. Physical Therapy, 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” signed into law on March 8 . 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 will be approximately 1.8% rather than 3.5%. The change in rate is not retroactive to January 1… 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 $6M for the full year of 2024 which would equate to an EBITDA reduction of approximately $5.3M Management estimates that today’s reported change in the Medicare rate will increase its revenue by approximately $2.3Mversus its previous expectations, which would equate to an increase in EBITDA of approximately $2.0M . Therefore, management now expects the Medicare rate reductions in 2024 to reduce revenue by approximately $3.7M for full year 2024 ather than $6M which would equate to an EBITDA reduction of approximately $3.3 M rather than $5.3M all as compared to full year 2023.