Chiropractor Offices
Industry: Chiropractor Offices
Naics: 621310
Private Company Multiples
Industry Overview
The chiropractic care industry has seen significant growth and transformation in recent years. Once considered controversial, chiropractic treatments have now become a mainstream medical option. Industry revenue has been rising at a 1.4% CAGR, reaching an estimated $20.5 billion over the past five years, with expected growth of 2.2% in 2023.
Key factors driving this growth include:
- Increasing coverage by private insurers, improving patient access.
- Rising patient uptake as more people seek drug-free or alternative therapies.
- Recovery from COVID-19 disruptions, which initially caused patient volume drops and care backlogs.
The industry structure is evolving. While more than half of chiropractors still operate solo practices, there's a trend towards consolidation:
- More group chiropractic clinics exist in 2023 than ever before.
- Chiropractors are increasingly joining multidisciplinary healthcare settings.
- Private equity is showing growing interest, consolidating single clinics into efficient group models.
Looking ahead, the industry is projected to grow at a 1.8% CAGR, reaching an estimated $22.4 billion by 2028.
This growth is expected to be driven by several factors:
- Strength in consumer spending, supporting more visits from self-pay patients, the largest revenue source.
- Diversification of services offered to inspire patient loyalty.
- Potential expansion of Medicare coverage through proposed legislation.
- Continued consolidation activity due to cost pressures and evolving reimbursement landscapes.
- Growing acceptance of drug-free approaches and alternatives to traditional care.
For industry participants, success will likely depend on adapting to these trends. This may include considering joining group practices or multidisciplinary settings, diversifying service offerings, and staying abreast of changes in insurance coverage and reimbursement policies.
The industry faces ongoing challenges, including cost pressures, inflation, and labor shortages. However, the growing acceptance of chiropractic care as a legitimate treatment option and the potential for expanded insurance coverage present significant opportunities for growth.
Key Financial Metrics
Income Statement Benchmark
