Physical Therapy Costs: What Medicare Data Reveals
A data-driven look at physical therapy procedure costs and utilization under Medicare.
Physical therapy is a critical part of recovery from surgery, injury, and chronic pain. But what does it actually cost? We analyzed the most common PT procedure codes in the 2023 Medicare data to find out.
Across 8 key PT codes, Medicare processed 169.5M services in 2023.
Physical Therapy Procedure Costs
| Code | Description | Medicare Allowed | Hospital Charge | Services | Providers |
|---|---|---|---|---|---|
| 97110 | Therapy procedure using exercise to develop strength, endurance, range of motion, and flexibility, each 15 minutes | $23.39 | $67.23 | 64.8M | 104.6K |
| 97112 | Therapy procedure to re-educate brain-to-nerve-to-muscle function, each 15 minutes | $27.97 | $70.13 | 30.0M | 91.6K |
| 97116 | Therapy procedure for walking training, each 15 minutes | $22.48 | $55.96 | 4.6M | 48.2K |
| 97140 | Therapy procedure using manual technique, each 15 minutes | $21.06 | $65.47 | 29.5M | 94.3K |
| 97530 | Therapy procedure using functional activities | $32.57 | $72.28 | 37.1M | 91.8K |
| 97161 | Evaluation for physical therapy, typically 20 minutes | $100.64 | $184.68 | 1.7M | 67.7K |
| 97162 | Evaluation for physical therapy, typically 30 minutes | $100.37 | $179.30 | 1.5M | 70.8K |
| 97163 | Evaluation for physical therapy, typically 45 minutes | $100.11 | $191.68 | 284.0K | 36.1K |
Understanding PT Billing
Physical therapy is billed in 15-minute units. Code 97110 (therapeutic exercises) is the most common — it covers the core exercises your PT guides you through. A typical session might bill 2-4 units of 97110 plus 1-2 units of manual therapy (97140) or neuromuscular re-education (97112).
A single PT session typically bills 4-6 units across multiple codes, putting the total session cost at roughly $116.95 at Medicare rates.
Evaluation Codes
The first visit includes an evaluation (97161-97163), which costs more than a regular treatment session. These are billed by complexity level: low, moderate, and high. After the initial evaluation, ongoing sessions use the treatment codes above.
The Volume Story
Physical therapy is one of the highest-volume categories in Medicare. With an aging population and growing emphasis on rehabilitation over surgery, PT utilization continues to climb. Code 97110 alone accounts for 64.8M services — making it one of the most common procedures in all of Medicare.
For patients, understanding these codes helps decode those confusing bills. Each 15-minute increment is a separate line item, which is why a one-hour PT session can have 10+ line items on your statement.