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Outpatient Rehabilitation Centers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • August 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5616743
The Outpatient Rehabilitation Centers Market is projected to register a CAGR of 6.2% during the forecast period.

During the COVID 19 pandemic, the outpatient rehabilitation centers market was adversely affected due to supply chain issues. Various research studies have provided insight into the impact of Covid on the studied market. For instance, in May 2020, a research study published titled "COVID-19: maintaining essential rehabilitation services across the care continuum" stated that enhanced measurement and monitoring are desperately needed at the individual, health system, and national levels. With the release of the world health organization (WHO) Rehabilitation Guide for Action, few countries had fully completed a systematic assessment of the rehabilitation situation and developed a strategic plan to adequately meet rehabilitative needs prior to this pandemic or to activate during pandemics. The following recommendations are provided to mitigate the consequences of COVID-19's impact on rehabilitation care and support continued health with a reduced risk of disability. Governments need to include rehabilitation and other direct care providers in home-based and community-based settings in their plans for personal protective equipment acquisition and training. Global collaboration among rehabilitation professionals needs to accelerate the sharing of resources, instructional tools, education, and training packets for how patients and families can continue rehabilitation at home during a pandemic response. Public health messaging on mental and physical health while social distancing needs to expand with input from rehabilitation professionals to provide guidance for persons living with physical and cognitive limitations, with and without caregivers. Public-private partnerships are needed to better support the rapid scale of telehealth today and in the future to ensure effective use, financing, cybersecurity, access, and increased reliability of broadband networks to reach people in low-resourced areas. Hence, with such initiatives, the market will grow in the upcoming future.

Factors such as increasing geriatric populations and increasing unhealthy lifestyles are primary reasons for the growth of the market. According to the WHO, by 2030, 1 out of every six people on the planet will be 60 years old or older. The number of people aged 60 and up is expected to rise from 1 billion in 2020 to 1.4 billion by 2050. By 2050, the global population of people aged 60 and above will get double to reach 2.1 billion. Between 2020 and 2050, the number of people aged 80 and above is expected to triple, reaching 426 million.​ According to the same source, while population aging - the shift in the distribution of a country's population towards older ages - began in high-income countries (for example, in Japan, 30% of the population is already over 60 years old), it is now low- and middle-income countries that are seeing the most change. Two-thirds of the world's population over the age of 60 will live in low- and middle-income countries by 2050. According to a United Nations World Ageing report, in 2019, there were around 12.499 million people aged 65 years or over in the United Kingdom. This number is projected to double to 18.775 million in 2050. In the country, the population aged 65 years or over is expected to increase from 18.5% in 2019 to 25.3% in 2050. ​Since the older population is prone to diseases, this will increase the demand for outpatient care, thereby boosting the market growth. Increasing sedentary lifestyle and unhealthy food habits are key factors for the growth of the market as it increases the prevalence of diseases and thus require to have outpatient care. A research article published in November 2021, titled "Sedentary lifestyle and unhealthy eating habits have led to an increase in obesity cases in India," stated that there has been an increase in obesity in children under the age of five in 33 states and the union territories recording an increase in the number of overweight children, according to the latest national health survey of the family (NFHS). Experts have attributed the increase in obesity to a lack of physical activity and unhealthy eating habits. Additionally, a large majority of Indians tend to lead sedentary lives and lack the motivation to exercise. Hence, an increasingly sedentary lifestyle will increase the prevalence of diseases, which will boost the growth of the market in the upcoming future. ​

Thus, owing to the above-mentioned factors, the studied market growth is expected to increase during the study period.​

Key Market Trends

Pediatric Segment is Expected to Hold a Significant Market Share Over the Forecast Period

Major causes of death among children vary by age. Children under 5 are especially vulnerable to infectious diseases like malaria, pneumonia, diarrhea, HIV, and tuberculosis. For older children, non-communicable diseases, injuries, and conflict pose significant threats. According to UNICEF, recent estimates for the year 2020 indicate that in addition to the 690 million undernourished people in 2019, at least another 83 million people, and possibly as many as 132 million, may go hungry in 2020. Similarly, in July 2020, UNICEF, with the Food and Agricultural Organization, the World Food Programme, and the World Health Organization, issued a statement about the pandemic’s potential to worsen the pre-existing crisis of malnutrition and with the addition of 6.7 million children over the edge during its first year. This is in addition to the 47 million children affected by wasting and 144 million affected by stunting in 2019 before the pandemic, according to the 2020 Joint Malnutrition Estimates.​ ​According to a UNICEF study published in 2020, out of the 1.72 million children aged 0-14 living with HIV globally, only 54% were receiving life-saving antiretroviral therapy (ART) 2020.​ Similarly, according to the American Cancer Society, Inc, around 10,500 children in the United States under the age of 15 will be diagnosed with cancer in 2021. Childhood cancer rates have been rising slightly for the past few decades. After accidents, cancer is the second leading cause of death in children ages 1 to 14. ​Since these chronic diseases require longer treatment with huge intervals between the treatments, hence, it is not idle to keep the patient for a longer time as it would cost additional. Hence, increasing chronic diseases would increase the demand for outpatient rehabilitation centers' growth for the segment.

Hence, owing to the above conditions, the studied market is expected to grow over the forecast period.

North America is Expected to Dominate the Market Over the Forecast Period

Factors such as the rising geriatric population, the launching of new centers, and joint ventures by key market players are one of the key reasons for the growth of the market in the region. An increase in the geriatric population will eventually drive the demand for several medications, as this age group is more vulnerable to a variety of metabolic and lifestyle disorders, diminished bodily functions, cognitive impairment, and less mobility.

For instance, according to data published by the Minister responsible for Statistics Canada in September 2019, the Canadian population would grow from 37.1 million in 2018 to between 44.4 million (low-growth (LG) scenario) and 70.2 million (high-growth (HG) scenario) by 2068, and 55.2 million in 2068 under the medium-growth scenario. The proportion of seniors (people aged 65 and above) in the population would rise from 17.2 percent in 2018 to between 21.4 percent (slow-aging (SA) scenario) and 29.5 percent (fast-aging (FA) scenario) by 2068. The increase in the percentage share of seniors would be most noticeable between 2018 and 2030, when the entire baby boom generation would be 65 or older. Similarly, launches and joint ventures are other key factors for the growth of the market. In September 2020, Rush University System for Health and Select Medical Corporation, a wholly-owned subsidiary of Select Medical Holdings Corp., announced a joint venture agreement to manage operations of a critical illness recovery hospital, inpatient rehabilitation hospital, and 63 physical therapy centers throughout the greater Chicago and northwest Indiana region. Under the agreement, the combined outpatient rehabilitation centers that contributed to the joint venture include 62 NovaCare Rehabilitation, Select Physical Therapy, and Michiana Orthopaedic & Sports Physical Therapy locations from Select Medical, as well as the Rush Rehabilitation center. All 63 outpatient centers will be rebranded as Rush Physical Therapy. As of June 30, 2020, Select Medical operated 101 critical illness recovery hospitals in 28 states, 29 rehabilitation hospitals in 12 states, and 1,757 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical’s joint venture subsidiary Concentra operated 522 occupational health centers in 41 states. Such joint ventures would increase the market growth in the region by increasing the number of centers to the wider patient population.

Thus, due to the above-mentioned factors, the market is likely to grow in the future.

Competitive Landscape

In terms of market share, a few of the major players are currently dominating the market. The market is partially consolidated and consists of several major players. The market has some notable key players. Many key players have multiple centers within the country. Some of the companies which are currently dominating the market are Select Medical Holdings, AIM Health Group Inc., LHC Group, Inc., Senior Care Centers of America, Inc., and Trilogy Health Services LLC , among others.

Additional Benefits:

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Geriatric Population
4.2.2 Rise in Unhealthy Lifestyle
4.3 Market Restraints
4.3.1 Dearth of Skilled Healthcare Professionals
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD million)
5.1 By Program
5.1.1 Standard Outpatient Programs
5.1.2 Intensive Outpatient Programs
5.1.3 Partial Hospitilization Programs
5.2 By Therapy
5.2.1 Cognitive Behavioral Therapy (CBT)
5.2.2 Contingency Management (CM)
5.2.3 Motivational Interviewing (MI) Treatment
5.2.4 Others
5.3 By End User
5.3.1 Pediatric Population
5.3.2 Adult Population
5.3.3 Geriatric Population
5.4 By Geography
5.4.1 North America United States Canada Mexico
5.4.2 Europe Germany United Kingdom France Italy Spain Rest of Europe
5.4.3 Asia-Pacific China Japan India Australia South Korea Rest of Asia-Pacific
5.4.4 Middle-East and Africa GCC South Africa Rest of Middle-East and Africa
5.4.5 South America Brazil Argentina Rest of South America
6.1 Company Profiles
6.1.1 AIM Health Group Inc.
6.1.2 Craig Hospital
6.1.3 Kessler Institute for Rehabilitation
6.1.4 LHC Group, Inc.
6.1.5 Mayo Clinic
6.1.6 Moss Rehabilitation
6.1.7 Rusk Rehabilitation
6.1.8 Select Medical Holdings
6.1.9 Senior Care Centers of America, Inc.
6.1.10 Shepard Center
6.1.11 The Dunes East Hampton Rehab Center
6.1.12 Trilogy Health Services, LLC

Companies Mentioned

A selection of companies mentioned in this report includes:

  • AIM Health Group Inc.
  • Craig Hospital
  • Kessler Institute for Rehabilitation
  • LHC Group, Inc.
  • Mayo Clinic
  • Moss Rehabilitation
  • Rusk Rehabilitation
  • Select Medical Holdings
  • Senior Care Centers of America, Inc.
  • Shepard Center
  • The Dunes East Hampton Rehab Center
  • Trilogy Health Services, LLC