The reduction in the Medicare rate from 3.5% to 1.8% is likely to have a positive impact on U.S. Physical Therapy's financial performance for the remainder of 2024. This is because a lower reduction rate means the company will retain a higher percentage of Medicare reimbursements than previously expected. The fact that this change is not retroactive to January 1, 2024, means its financial impact starts from March 9, 2024, providing a clearer financial outlook for the company for most of the year.