ATI Physical Therapy CEO Labeed Diab
By Jarrett Banks
ATI Physical Therapy, Inc.(NYSE:ATIP) recently completed its business combination with Fortress Value Acquisition Corp. II, a special purpose acquisition company.
IPO Edge sat down with CEO Labeed Diab to find out more about what’s next for the company.
IPO Edge: What is the overall market for physical therapy? Is it a good investment?
The physical therapy market in the U.S. is approximately $40 billon, but as physical therapy continues to shift to an outpatient model and treatment moves to the front of the healthcare equation, the market for ATI in the musculoskeletal arena becomes a $300-400 billon market.
IPO Edge: Where do you operate and what is the size of your operations?
ATI has more than 900 locations across the U.S. in 24 states. We employ more than 5,000 team members dedicated to producing industry-leading outcomes for our patients.
IPO Edge: What role is ATI Physical Therapy playing in the fight against opioid addiction?
ATI believes that physical therapy should be a first treatment option for musculoskeletal (MSK) issues. More than 70 percent of MSK-related issues can be treated by physical therapy without having to resort to more evasive treatment options like imaging, opioids or surgery. Studies have shown the utilizing physical therapy as a first option can lower the probability of opioid use by approximately 90{efe5d79870c08482e17ab0c97855f89429dac5f22c46026d3ca83573faec2208}, advanced imaging by close to 30{efe5d79870c08482e17ab0c97855f89429dac5f22c46026d3ca83573faec2208} and an ER visit by 15{efe5d79870c08482e17ab0c97855f89429dac5f22c46026d3ca83573faec2208}, resulting in potential average costs savings of more than $2,700 per patient.
IPO Edge: How has the Company changed over the past year due to the COVID-19 Pandemic? How did it disrupt your business for one-on-one sessions and what was your solution?
ATI is proud to be an essential healthcare provider. During the pandemic our clinics remained open to treat our patients. We also pivoted to a telehealth option through our CONNECT™ platform, providing our patients options on how/when they wanted to engage with our services.
IPO Edge: What are some of the exciting advances that you see in the market going forward?
As healthcare organizations, insurers, employers and consumers are all looking for ways to lower healthcare costs. ATI believes that physical therapy for MSK-related issues will play an even more important role in the delivery of care – at the front of the healthcare equation, providing both cost savings and benefits to all parties involved.
IPO Edge: In what markets or even age groups is physical therapy a growing market?
Everyone is getting older. In recent Harris Survey conducted by ATI, consumer defined aging better as the ability to remain active, pain free. Baby boomers continue to make up a large portion of consumer spend on the healthcare front. However, ATI is also seeing trends in younger athletes playing multiple or year-round sports as well as weekend warriors as potential groups that will require MSK-related care and treatment options.
IPO Edge: What does the future look like in terms of innovation now that you are publicly traded?
ATI is looking at innovation in growth in three key areas. First, digitization and automation of the patient experience, meeting them how and when they want to engage with our services, while helping to improve productivity across the board. Second, continuing to leverage our national footprint and help educate employers on the value and savings physical therapy can reliable deliver as a first option for treatment for their employees with MSK-related issues. And third, with our proprietary Electronic Medical Record (EMR) platform and outcomes driven database, we are in a unique position to continue to drive and help accelerate value-based care and predictable outcomes across the MSK spectrum.
IPO Edge Contact:
Jarrett Banks, Editor-at-Large
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