With healthcare spending hitting $5.6 trillion this year—about 19% of US GDP—the PT slice is around $53 billion, but growth has lagged behind the broader sector's 40% jump over the last decade. Falling reimbursements (down about 10% since 2016 and another 2.8% drop in 2025) and rising costs aren't helping. There is a silver lining though; AI tools are stepping up to tackle these headwinds, boosting efficiency without overpromising miracles.

The Real Challenges in PT Right Now

Talent retention is tough—turnover rates for rehab pros sit around 16-18%, way higher than the 3% in other medical fields, with burnout affecting up to 49% of PTs. About two-thirds are eyeing career shifts, and one-third might leave healthcare altogether. Patients struggle too—getting timely conservative care like PT can prevent surgeries and cut costs, but access barriers lead to worse outcomes.

Industry consolidation is ramping up: Large practices ($5M+ revenue) grabbed over 30% market share by 2024, up from 5% in 2018, squeezing mid-sized ones down to under 20%. Admin burdens like billing, prior auths, and denials are overwhelming smaller spots.

How AI Can Help PT Practices Thrive

AI isn't a magic fix, but it's game-changing for routine tasks. Think large language models handling paperwork so you focus on patients. A 2023 WebPT survey showed 84% of providers open to AI for easing admin loads—tools that cut denial follow-ups and streamline claims. At Athelas, our RCM solution uses AI workflows to speed up reimbursements, integrate with EHRs, and give deep financial insights tailored to your practice.

But watch out: Payers are using AI to ramp up denials, reviewing claims faster and denying more—only tech-savvy practices appeal successfully. Our ambient scribing and denial management tools fight back, saving hours weekly.

Building a Brighter PT Future with Smart Tech

2025 is exciting for PT—AI can restore job satisfaction by ditching non-clinical hassles, letting you build real patient connections with evidence-based care. As leaders tackle burnout and retention, tech like ours at Athelas is key to higher productivity and better experiences.

Ready to modernize your PT billing and ops? Contact us—we're here to help with customized AI solutions for physical therapy revenue cycle management.