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Everyone Benefits from the U.S. Physical Therapy Inc. (NASDAQ: USPH) Business Model

This small capital member of the Healthcare Facilities Industry from Houston, TX has a Net Profit Margin of almost 10%, while Return on Average Assets exceeds 17%. The late April stock price appears on course to cross the 52-week high of $15.90 soon. The Price to Earnings Ratio is below 21, even after a 30% rise in revenues during the fourth quarter. Rational stock investment thinking will lead to the inevitable conclusion that this is a stock worth buying at this juncture. However, there is more to this stock than just financial benefits.

The company has developed an inclusive business model which achieves both economy and the durable commitments of associates. The company runs physical therapy and associated services on an outpatient basis. Sports people, individuals who have encountered accidents, and patients recovering from nerve system disorders depend on this kind of therapy. The company takes a token general partnership and a controlling limited partnership interest in clinics established by independent therapists. This model allows professionals to ally with the company for transparent and mutual benefits, and is on top of conventional owned service outlets of the company, and well-considered inorganic growth initiatives.

Physical therapy is a universal need. Mainstream healthcare institutions cannot generally meet extended population needs because treatment durations tend to be long. Outpatient clinics improve the overall quality of medical care for serious injuries and severe illnesses. Many highly invasive surgeries also require follow-up physical therapy. Investors can draw reassurances about the long term outlook of this stock because of the social relevance of the enterprise as well as the creative business model.

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