Physical therapy practices in Illinois are valued at 3x to 6x SDE or approximately 40–70% of annual gross revenue. Corporate PT consolidators (Athletico, ATI, Select Medical) have been active acquirers in the Illinois market, often paying strategic premiums above what individual buyers offer.
Payer Mix and Reimbursement Trends
Illinois PT practices serving predominantly commercial insurance and workers' compensation patients generate higher revenue per visit than Medicare-dominant practices. The ongoing trend of Medicare reimbursement cuts makes high-Medicare-concentration practices less attractive to buyers who model long-term revenue stability. Payer mix analysis is always a first step in PT practice valuation.
Therapist Retention
Physical therapy is a relationship-driven practice — patients follow their therapist, not just the clinic. Practices where multiple licensed PTs have established patient relationships are more valuable than those where the owner-therapist personally treats most patients. Multi-therapist practices with PT assistants and a strong front-office team transition more smoothly and hold value better.
Physician referral relationships are another key value driver. Practices with exclusive or preferred referral arrangements from orthopedic and spine surgeons, pain management physicians, or occupational medicine groups command significant premiums.