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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Information [Abstract]  
Segment Information
12. Segment Information

The Company’s reportable segments include the physical therapy operations segment and the IIP segment. Also included in the physical therapy operations segment are revenues from management contract services and other services, which include services the Company provides on-site, such as athletic trainers for schools.

Physical Therapy Operations

The physical therapy operations segment primarily operates through subsidiary clinic partnerships (“Clinic Partnerships”), in which the Company generally owns a 1% general partnership interest in all the Clinic Partnerships. The Company’s limited partnership interests generally range from 65% to 75% (the range is 10% - 99%) in the Clinic Partnerships. The managing therapist of each clinic owns, directly or indirectly, the remaining limited partnership interest in most of the clinics (hereinafter referred to as “Clinic Partnerships”). Some of the Clinic Partnerships serve as management services organizations which manage and provide staffing and a variety of administrative services to physical therapy provider entities in which the Company does not have an ownership interest. These Clinic Partnerships similarly are owned collectively by the Company and one or more physical therapists who are involved in the management of the operations.  To a lesser extent, the Company operates some clinics, through wholly-owned subsidiaries (hereinafter referred to as “Wholly-Owned Facilities).
The Company continues to seek to attract for employment physical therapists who have established relationships with physicians and other referral sources, by offering these therapists a competitive salary and incentives based on the profitability of the clinic that they manage. For multi-site clinic practices in which a controlling interest is acquired by the Company, the prior owners typically continue on as employees to manage the clinic operations, retain a non-controlling ownership interest in the clinics and receive a competitive salary for managing the clinic operations. In addition, the Company has developed satellite clinic facilities as part of existing Clinic Partnerships and Wholly-Owned Facilities, with the result that a substantial number of Clinic Partnerships and Wholly-Owned Facilities operate more than one clinic location.

Clinic Partnerships

For non-acquired Clinic Partnerships, the earnings and liabilities attributable to the non-controlling interests, typically owned by the managing therapist, directly or indirectly, are recorded within the balance sheets and income statements as non-controlling interest—permanent equity. For acquired Clinic Partnerships with redeemable non-controlling interests, the earnings attributable to the redeemable non-controlling interests are recorded within the consolidated balance sheets and income statements as redeemable non-controlling interest—temporary equity.

Wholly-Owned Facilities

For Wholly-Owned Facilities with profit sharing arrangements, an appropriate accrual is recorded for the amount of profit sharing due to the clinic partners/directors. The amount is expensed as compensation and included in clinic operating costs—salaries and related costs. The respective liability is included in current liabilities—accrued expenses on the consolidated balance sheets.

Industrial Injury Prevention Services

Services provided in the IIP segment include onsite injury prevention and rehabilitation, performance optimization, post offer employment testing, functional capacity evaluations, and ergonomic assessments. The majority of these services are contracted with and paid for directly by employers, including a number of Fortune 500 companies. Other clients include large insurers and their contractors. IIP services are performed through Industrial Sports Medicine Professionals with specialized training related to the musculoskeletal system.

Segment Financials

The Company, including its chief operating decision maker, the Chief Executive Officer, uses gross profit in its budget-to-actual, forecasting, and other analytical processes to assess segment performance and allocate resources. The Company has provided additional information regarding its reportable segments which contributes to the understanding of the Company and provides useful information.

 
Three Months Ended
  

 
March 31, 2025
    
March 31, 2024
  

  (In thousands)  
Net revenue:            
Physical therapy operations
   $ 156,408     $ 134,425  
Industrial injury prevention services
     27,380       21,250  
Total Company
   $ 183,788     $ 155,675  
 
                
Operating Costs:
                
Salaries and related costs:
                
Physical therapy operations
   $ 93,574     $ 79,774  
Industrial injury prevention services
     17,675       13,957  
Total salaries and related costs
   $ 111,249     $ 93,731  
Rent supplies, contract labor and other:
                
Physical therapy operations
   $ 30,099     $ 25,073  
Industrial injury prevention services
     3,745       2,831  
Total rent, supplies, contract labor and other
   $ 33,844     $ 27,904  
Depreciation and amortization:
                
Physical therapy operations
   $
 5,184     $
 3,760  
Industrial injury prevention services
     356       125  
Total depreciation and amortization
   $
 5,540     $
 3,885  
Provision for credit losses:
                
Physical therapy operations
   $ 1,841     $ 1,627  
Industrial injury prevention services
     7       -  
Total provision for credit losses
   $ 1,848     $ 1,627  
Clinic closure costs:
                
Physical therapy operations
   $
242     $
 127  
Industrial injury prevention services
     -       -  
Total clinic closure costs
   $
 242     $
 127  
Total Company
   $ 152,723     $ 127,274  

               
Gross profit:
                
Physical therapy operations
   $ 25,468     $ 24,064  
Industrial injury prevention services
     5,597       4,337  
Total Company
   $ 31,065     $ 28,401  

               
Unallocated amounts
                
Corporate office costs
   $
 16,245     $
 14,085  
Interest expense, debt and other
     2,279       1,968  
Interest income from investments
     (24 )     (1,543 )
Gain on change in fair value of contingent earn-out consideration
     (4,822 )     (612 )
Change in revaluation of put-right liability
     404       80  
Equity in earnings of unconsolidated affiliate
     (393 )     (271 )
Loss on sale of a partnership
     123       -  
Other
     (75 )     (62 )
Total unallocated amounts
     13,737       13,645  
Income before taxes
   $
 17,328     $
 14,756  

               
Assets:
     March 31, 2025
       December 31, 2024
  
Goodwill:
                
Physical therapy operations
   $ 586,726     $ 579,046  
Industrial injury prevention services
     87,661       88,106  
Total goodwil
   $ 674,387     $ 667,152  
All other assets:
                
Physical therapy operations
     418,120     $
 415,039  
Industrial injury prevention services
     87,180       85,276  
Total all other assets
     505,300       500,315  
Total Assets
   $
1,179,687     $
 1,167,467