U S Physical Therapy Inc 8-K, filed Dec 13, 2021
U S Physical Therapy Inc (USPH)
8-K
2021-12-13
For: 2021-12-10
View Original
Added on
April 09, 2026
About this 8-K
U S Physical Therapy Inc filed this 8-K on December 13, 2021, reporting on events of December 10, 2021.
Items reported
- Item 8.01: Other events
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 10, 2021
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction
of incorporation or organization)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant's telephone number, including area code: (713 ) 297-7000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions ( see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Emerging growth company
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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ITEM 8.01 Other Event.
U.S. Physical Therapy, Inc. (the “Company”) reported today that the 3.75% reduction in the Medicare
physician fee schedule for therapy services, which was to be effective January 1, 2022, per the finalized rule by the Centers for Medicare and Medicaid Services (“CMS”), has been addressed in the Protecting Medicare and American Farmers from
Sequester Cuts Act (“Act”) signed into law on December 10, 2021. Based on various provisions in the Act, the Company now estimates that the
Medicare rate reduction for the full year of 2022 will be approximately 0.75%. In addition, the Act included a three-month extension of the 2% sequester relief applied to all Medicare payments through March 31, 2022, followed by 3 months of 1%
sequester relief through June 30, 2022. Sequester relief would then end on June 30, 2022. The Act did not address the 15% reduction in Medicare payments for services performed by a physical or occupational therapist assistant rather than a
physical or occupational therapist, which will begin on January 1, 2022.
Medicare represents approximately 30% of the Company’s physical therapy revenue. The Company estimates
that a total of approximately 35% of its physical therapy revenue, including certain of the Company’s commercial contracts, are tied to current year Medicare rates.
Summary of Risk Factors
Our business can be affected by certain risks, uncertainties and factors which include, but are not limited to:
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the multiple effects of the impact of public health crises and epidemics/pandemics, such as the novel strain of COVID-19, for which the financial
magnitude cannot be currently estimated;
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changes as the result of government enacted national healthcare reform;
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changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
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revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
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business and regulatory conditions including federal and state regulations;
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governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and
increased costs;
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compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and
penalties for failure to comply;
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changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed
by patients;
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revenue and earnings expectations;
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legal actions, which could subject us to increased operating costs and uninsured liabilities;
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general economic conditions;
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availability and cost of qualified physical therapists;
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personnel productivity and retaining key personnel;
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competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses
and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;
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competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual
service arrangements and
other adverse financial consequences for that service line;
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acquisitions, and the successful integration of the operations of the acquired businesses;
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impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling
interest (minority interests);
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maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
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a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and
may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;
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maintaining adequate internal controls;
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maintaining necessary insurance coverage;
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availability, terms, and use of capital; and
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weather and other seasonal factors.
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See also Risk Factors in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 1, 2021 and the additional Risk Factor noted
in Item 2 of our Quarterly Report on Form 10Q for the period ending September 30, 2021 filed on November 9, 2021.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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U.S. PHYSICAL THERAPY, INC.
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Dated: December 13, 2021
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By:
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/s/ CAREY HENDRICKSON
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Carey Hendrickson
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Chief Financial Officer
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(duly authorized officer and principal financial and accounting officer)
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