What are the Key Drifts in the Market?

The U.S. physical-therapy clinics back office software market has been expanding due to the growing investments and funding to launch and enhance the use of various software.

• In October 2025, in order to expedite telehealth innovations, a total of $77 million investment was secured by MD Integrations (MDI), which is a U.S.-based telehealth company, from Denali Growth Partners and Updata Partners. The expansion and the growth of the company will be supported by these investments.
• In June 2025, a total of $300 million in Series E funding was secured by Abridge, which is a healthcare AI start-up. This investment will be utilized to enhance its revenue cycle management for healthcare providers
• In February 2025, a new investment of $17 million was announced by Savant Growth and Qount. The growth and investments in AI to automate practice management and service delivery workflows of Qount will be enhanced with this investment.
• In February 2025, $20 million in a Series A funding round was secured by Anchor, which is a U.S.-based fintech start-up operating an autonomous billing and collections platform. Moreover, the round was led by Zeev Ventures founding partner Oren Zeev and Mosaic General Partnership.

  What is the Significant Challenge in the Market?

  High implementation costs act as a significant challenge in the U.S. physical-therapy clinics back office software market. It also requires licenses, trained staff, and hardware, which adds to the cost, decreasing their adoption by small clinics. Moreover, data security concerns, reimbursement limitations, and interoperability challenges are other market limitations.

  Regional Analysis

  Why did Northeast Dominate the Market in 2024?

  In 2024, Northeast captured the biggest revenue share of 28% in the U.S. physical-therapy clinics back office software market, due to the high volume of healthcare and clinics. This, in turn, increased the use of various software in the physical therapy clinics to minimize the operational complexities, where the industries also contributed to the market growth by developing new platforms and investing in them. At the same time, these clinics also adopted various technologies that enhanced their services, which promoted the market growth.

  For instance,

  • In February 2025, a total of $50 million in Series C funding was raised by Metronome, where the funding will be used for its R&D to promote the use of its pricing and billing data by the customers.
    
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  What Made West Grow Notably in the Market in 2024?

  The West region is expected to host the fastest growth in the U.S. physical-therapy clinics back office software market during the forecast period, due to the growing population. Moreover, a growth in the aging population and the injuries are also increasing the patient volume, which is increasing the use of physical-therapy clinic back office software. Additionally, different types of cloud-based systems and telehealth platforms are also being used by the clinics to enhance patient outcomes and access.

  Segmental Insights

  By Software Functionality Analysis

  Why Did the Practice Management Segment Dominate in the Market in 2024?

  By software functionality, the practice management segment led the U.S. physical-therapy clinics back office software market with approximately 42% share in 2024, driven by its increased use in the daily tasks. It was used for documentation, scheduling, and follow-ups. Moreover, it helped in reducing the administrative burdens.

  By software functionality, the billing & revenue cycle management segment is expected to show the highest growth in the market during the predicted time. They are being used to deal with growing claim denials. Moreover, the companies are developing new models to enhance their automation and affordability.

  By Deployment Mode Analysis

  Which Deployment Mode Type Segment Held the Dominating Share of the Market in 2024?

  By deployment mode, the cloud-based segment held the dominating share of approximately 68% in the U.S. physical-therapy clinics back office software market in 2024 and is expected to show the fastest growth rate in the market during the predicted time, due to its scalability and flexibility. Moreover, their regular updates increased their security, which increased their adoption. Additionally, their improved access increased their use in remote and home settings.

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  By Clinic Size Analysis

  What Made Small Clinics the Dominant Segment in the Market in 2024?

  By clinic size, the small clinics segment led the U.S. physical-therapy clinics' back office software market with approximately 45% share in 2024, driven by their easy entry and independent practice. They also provided personalized care to the patients. Additionally, their simpler operations and assess to the local communities attracted the patients.

  By clinic size, the large clinics segment is expected to show the highest growth in the market during the upcoming years. Due to growing patient volume and complexities, the use of the software is increasing in these clinics. Moreover, they are also offering specialty services like telehealth, which is enhancing their use.

  By End-user Analysis

  How the Independent Physical-Therapy Clinics Segment Dominated the Market in 2024?

  By end-user, the independent physical-therapy clinics segment held the largest share of approximately 50% in the U.S. physical-therapy clinics back office software market in 2024, driven by high fragmentation in the outpatient physical therapy industry. Their simple operations are increasing the use of this software to reduce the administrative burden. Additionally, to streamline their workflows, they showed increased adoption of cloud-based software.

  By end-user, the rehabilitation centers & specialty clinics segment is expected to show the fastest growth rate in the market during the upcoming years. Due to growing musculoskeletal disorders

  Recent Developments in the Market

  • In August 2025, to share the health records with the use of artificial intelligence (AI) tools and new technologies, a new system was introduced by President Donald Trump, where the system will be managed by the Centers for Medicare and Medicaid Services.
  • In March 2025, to launch an AI-driven lab to improve healthcare financial operations, that is R37, a collaboration between R1 and Palantir Technologies, was announced, where the platform will automate key revenue cycle processes.
  • In February 2025, the MATRIXX Dynamic Billing was launched by a global leader in billing and monetization solutions, that is MATRIXX Software.
    

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  U.S. Physical-Therapy Clinics Back Office Software Market Key Players List

  • Clinicient (TherapyBrands)
  • WebPT
  • Kareo
  • Athenahealth (AthenaOne)
  • PracticeSuite
  • ClinicSource
  • TheraNest
  • AdvancedMD
  • Fusion Web Clinic
  • PT Wired
  • MedBridge
  • BlueJay Mobile Health
  • Cliniko
  • SimplePractice
  • OnCall Health
  • eClinicalWorks
  • Epic Systems Corporation
  • Revation Systems
  • JaneApp
  • Cerner Corporation

  Segments Covered in The Report

  By Software Functionality

  • Practice Management
  • Billing & Revenue Cycle Management
  • Electronic Health Records (EHR/EMR)
  • Analytics & Reporting
  • Telehealth & Remote Patient Management Integration
    

  By Deployment Mode

  • Cloud-Based
  • On-Premises

  By Clinic Size

  • Small Clinics (1–10 therapists)
  • Medium Clinics (11–50 therapists)
  • Large Clinics (>50 therapists, hospital-affiliated)
    

  By End User

  • Independent Physical-Therapy Clinics
  • Hospital-Affiliated PT Departments
  • Rehabilitation Centers & Specialty Clinics
  • Home Health Agencies

  By Region

  • U.S.
  • Northeast
  • West
  • South
  • Midwest
    
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