Constantine Davides's questions to US Physical Therapy Inc (USPH) leadership • Q1 2025
Question
Constantine Davides asked how the company delivers home care profitably, whether the trend of onshoring manufacturing could benefit the IIP business, if there are cross-selling benefits from IIP to outpatient clinics, and if the company is discussing a 'PT as gatekeeper' model with commercial payers.
Answer
CEO Christopher Reading explained that home care is profitable because it is paid on a per-visit basis without the overhead costs of a physical clinic, making it margin-accretive. He viewed manufacturing onshoring as a long-term positive but theoretical for now. President Eric Williams noted that cross-selling from IIP to outpatient is in "early innings" but showing promise through new government contracts and by leveraging existing PT-employer relationships. Reading added that while direct talks with commercial payers on a 'gatekeeper' model are nascent, the successful Medicare-based EQIP program in Maryland provides powerful data to advance those discussions.