ATI Physical Therapy is one of the largest outpatient physical therapy providers in the U.S., operating 866 company-owned clinics across 24 states. ATI treats patients with musculoskeletal conditions — spine, shoulder, knee, and neck injuries — using physical therapy techniques like therapeutic exercise, manual therapy, and strength training. Patients are typically referred by physicians seeking conservative, non-surgical care. ATI generates revenue by delivering patient visits and is reimbursed by commercial insurers, Medicare/Medicaid, workers' comp, and auto/personal injury carriers. Revenue is driven by two core metrics: visit volume (visits per day per clinic) and rate per visit. The clinic cost structure is largely fixed, so incremental visits drive meaningful operating leverage, while low utilization weighs heavily on profitability. The single largest variable cost is clinical labor — physical therapists and support staff — and a tight labor market has driven wage inflation in recent years. Beyond clinics, ATI runs smaller adjacent businesses including on-site employer injury prevention programs, management services for physician-owned PT practices, and sports medicine services for schools and universities. ATI's near-term strategy focuses on organic improvement: growing clinical headcount to increase visit capacity, improving clinic utilization, and negotiating better commercial payor rates. ATI has been closing underperforming clinics while opening very few new ones, constrained by a strained financial position that includes complex second-lien debt, negative operating cash flow, and a NYSE delisting in late 2024.