Physical Medicine and Rehabilitation Growth from the 1940s to 2025: The US Government’s Role

President Bush signs ADA

Physical medicine and rehabilitation (PM&R) or physiatry, a very small medical field in the 1940s, seemed destined to remain small, if not disappear. Only 91 physiatrists were certified by the American Board of Physical Medicine and Rehabilitation in 1947. And by 1980 there were only about 1700 Board-certified physiatrists in the US. Over time, the growth curve did become steeper. (See previous blog)

The US Government, beginning in the Progressive Era, was a significant contributor to that growth, directly and indirectly. The growth of the medical specialty coincided with a recognition of the needs of patients treated by physiatrists—people with disabilities of all ages.

A New Primary Medical Specialty Emerged during the Progressive Era: late 1900s–1920's

The Progressive Era, from the late 1900s into the 1920s, beginning at the end of the Civil War and Reconstruction, was a period of dramatic change in the country’s values (an emphasis on joint responsibility versus individualism) that led to major changes in governmental policies and social structures. Science, medicine, and public health were highly valued during the Progressive Era. There was discontent among farmers, workers, small business owners, and veterans.

Theodore Roosevelt, a Republican (1901 to 1909), and Woodrow Wilson, a Democrat (1913 to 1921), supported progressivism, as did the US Congress during this era. Democrat Franklin Delano Roosevelt’s progressive policies during his 13 years in office (1933 to 1945), collectively known as the New Deal, were enacted during the Great Depression (1933 to 1938). Social reformers such as social worker Jane Addams, journalist Upton Sinclair, and workers’ rights activist Frances Perkins Gilman (Secretary of Labor from 1933 to 1945) were successful in convincing the government and the electorate of the need for change. Social reforms included policies supporting women’s rights, voting rights, workers’ and veterans’ rights, and the establishment of social programs and public benefits.

The Progressive Era established a basis for a new primary medical specialty – physical medicine and rehabilitation (PM&R) or physiatry. The World Wars and the Korean War made the case for this medical specialty whose primary purpose was to care for people of all ages with disabilities, both civilians and veterans. In 1947, he American Medical Association’s Council on Medical Specialties established PM&R as an official specialty, with a certification board, the American Board of Physical Medicine and Rehabilitation (ABPM&R).

Federal Policy & Physiatry: 1940s–Present

US governmental programs that boosted the establishment of PM&R from the 1940s to the present era are displayed below.

The 1940s – 1960s
1944Servicemen's Readjustment Act (G.I. Bill)
Expanded Veterans Administration (VA) health and medical infrastructure to care for wounded service members, necessitating coordinated inpatient rehabilitation.
1946Public Law 293 & VA Affiliations
Created the VA Department of Medicine and Surgery and linked military hospitals with university medical schools, establishing PM&R residencies.
1954Vocational Rehabilitation Act
Provided landmark federal funding dedicated to training grants for medical residency programs in PM&R.
1965Establishment of Medicare & Medicaid
Guaranteed ongoing federal support for long-term care, rehabilitative therapies, and care for individuals with disabilities.
The 1970s – 2000
1972Social Security Amendments
Expanded Medicare coverage directly to individuals receiving Social Security Disability Insurance (SSDI) and added specific funding distributions for inpatient rehabilitation facilities.
1973Rehabilitation Act
Established Section 504, prohibiting discrimination against individuals with disabilities in any program receiving federal funding. Also established the National Council on Disability.
1975 / 1990Individuals with Disabilities Education Act (IDEA)
Originally passed as the Education for All Handicapped Children Act, it guaranteed specialized services and individualized education plans (IEPs), establishing pediatric PM&R as a vital specialty. Reauthorized in 2004.
1990Americans with Disabilities Act (ADA)
Modeled after the Civil Rights Act, this mandated accessibility in public and commercial settings, triggering massive demand for rehabilitation services and ergonomic assessments.
1997Inpatient Rehabilitation Facility Prospective Payment System (IRF PPS)
Fundamentally structured how rehabilitation hospitals are paid, codifying the "three-hour rule" requiring patients to tolerate intensive therapy to qualify for inpatient rehab care.
From 2000 to the Present
2000–2020CARE Act & TBI Reauthorizations
Continual updates to the TBI Act expanded federal surveillance via the CDC and promoted rehabilitation research networks to find effective treatment for brain trauma.
2002IRF Prospective Payment System — Implementation
Replaced cost-based reimbursement with per-discharge prospective payments based on clinical case-mix groups.
2004–2007The "60% Rule" Revision
The Centers for Medicare & Medicaid Services (CMS) modified the historic "75% Rule" down to a stable 60% requirement, mandating that at least 60% of inpatient rehab patients have one of 13 specific severe medical conditions (e.g., stroke, spinal cord injury) to qualify for higher facility payment rates.
2006–PresentDARPA Revolutionizing Prosthetics Program
The Defense Advanced Research Agency (DARPA) funded the creation of next-generation, neural-controlled upper-limb prosthetics, creating significant translation into civilian PM&R practices.
2007Wounded Warrior Act
Part of the National Defense Authorization Act (NDAA), this response to Iraq and Afganistan war casualties improved care transitions between the Military Health System and the VA, authorizing billions for TBI treatment, poly-trauma care units, and state-of-the-art prosthetic advancements.
2010Affordable Care Act (ACA)
Classified "rehabilitative and habilitative services" as Essential Health Benefits, preventing insurers from denying coverage for physical, occupational, and speech therapy and assistive devices.
2014The IMPACT Act
The Improving Medicare Post-Acute Care Transformation Avt (IMPACT) mandated that all post-acute care facilities, including IRFs, report standardized patient assessment data on function, cognitive status, and medical conditions, establishing PM&R clinical data tracking at a national level.
2020–PresentCOVID-19 Pandemic Reforms
During the Public Health Emergency, CMS issued sweeping regulatory waivers allowing telehealth delivery of comprehensive rehabilitation therapies. Federal funding supported research on care-tracking models for the post-acute sequelae of SARS-CoV-2 (Long Covid), with physiatrists as leading providers and coordinators for long-term multidisciplinary care.

A future blog post will provide insight into the effects of “The Big Beautiful Bill” and other recent governmental actions that will likely impact people with disabilities as well as physiatry.

photo at top: Joyce Boghosian(opens in new tab), Public domain, via Wikimedia Commons

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