How Will Healthcare Trends Shape Rehab Therapy in 2027—and Beyond?

As the year dwindles down, it’s time to start looking ahead to what 2027 has to offer. It can be hard for practice owners and leaders to look beyond their own domain, but most are probably feeling the effects of these trends as they land on their doorstep. We think of healthcare as a world apart from most industries, and while the need and demand are as immutable as aging and the frailty of the human body, the business of care intrudes upon the science and craft.

What can rehab therapy professionals expect from 2027? Here’s what the tea leaves suggest. 

Payer costs are on the rise.

We in these pages have been harsh on insurance companies for their avarice, and rightfully so, as their profits continue to soar. However, two things can be true at once; payers may be bringing in money hand over fist, and their costs may also be continuing to rise. According to a look ahead from PwC, commercial health plan costs are due to rise 9% in 2027. There are a few reasons cited: increased pressure from providers for better pay, along with their use of AI-powered tools to capture more revenue, more utilization of health resources, higher pharmacy costs including increased use of GLP-1s, and the uptick in claims disputes ushered in by the No Surprises Act.

How does this impact rehab therapists? Well, the rise in provider pay and improvement in charge capture is good news for practices, but it likely portends a greater focus from payers on utilization management, more scrutiny on every claim, and a push towards value-based care programs and other measures to bring down costs. And it’s likely that patients may once again bear the brunt of rising costs, which can leave clinicians in a position to try and retain patients at a time when they can scarce afford each visit.       

Small businesses are similarly feeling the pain of higher insurance costs as payers look to make up the gap. There’s opportunity there for practices to work with small businesses on wellness programs that bring down their long-term healthcare costs. 

Inflation is driving up practice costs—and costing return visits. 

Recent inflation and cost increases have affected everyone, and the effects are even more acute for business owners—especially those working on already thin margins. All the consumable items required to keep your clinic every day probably cost just a little more per instance, and that seemingly small increase adds up quickly. And any employer is going to be sensitive to the impact of inflation on their employees and the cost of living when they consider raises. As inelastic as the demand for healthcare may typically be, healthcare providers are in the same boat as every other industry when the cost of everything is rising. 

But is the demand for healthcare, and more specifically rehab therapy, really bulletproof during times of economic unrest? I think we can argue that, yes, demand remains constant because bodies get injured and break down regardless of how the economy performs. The better question is, are patients going to seek out care at a time when their financial situation seems precarious? This study suggests that as inflation increases, overall population health worsens as patients skip out on treatment to be able to afford other expenses. In rehab therapy, where clinician intervention is vital but not likely viewed by patients as life and death, there’s an elevated risk of losing patients before an episode of care ends — if they even come into the clinic in the first place.     

Consolidation puts pressure on the market. 

Inflation isn’t the only trend we’re all feeling in our everyday lives. Mergers, acquisitions, and the overall trend of consolidation leave us bereft of choice and can reduce access for certain segments of the population. The same holds true in healthcare and rehab therapy; consolidation toward enterprise organizations and major franchisees can exert pressure on smaller practices and negatively impact patients. 

For businesses looking to stay independent and compete with enterprise-level practices that can bring enterprise-level resources to bear, it can be difficult — especially if the bigger practice in question is rolled up under a hospital network funneling patients their way.  For patients, consolidation often leads to higher premiums and less choice overall.  

Will we see this trend continue, or even accelerate, in 2027? The economic headwinds that have driven countless other owners to sell their practice have arguably gotten worse, and some entrepreneurs may be tired of the struggle, or feel the need to do right by their employees and patients and tap into the greater resources on offer. 

Of course, things can always change as economic tides turn and the winds of governance shift. The only certainty is that rehab therapists will face challenges and have to decide how best to face them.