Michael Petusky's questions to US Physical Therapy Inc (USPH) leadership • Q1 2025
Question
Michael Petusky inquired about the progress of renegotiating reimbursement rates for the recently acquired Metro business. He also asked about the level of interest from other partners in adopting new capabilities like home care, and sought an opinion on the outlook for CMS pricing given the current political environment in Washington D.C.
Answer
CFO Carey Hendrickson confirmed that rate renegotiations for Metro are already yielding results, with its average rate increasing from $102.40 in Q4 to $106 in March, and a significant new Blue Cross Blue Shield contract effective May 1. President Eric Williams noted that while partners show interest in various new services like home care and cash-based programs, the best path for home care growth is likely through targeted acquisitions. CEO Christopher Reading stated that while a permanent fix to the CMS fee schedule is unlikely, he believes further cuts to physical therapy are improbable due to a growing recognition that the current system is unsustainable.