Core Insights - Select Medical Holdings Corporation (SEM) has entered into a membership interest purchase agreement with Ballad Health to jointly operate a critical illness recovery hospital in Kingsport, TN [1][2][8] - The new facility will be a 46-bed hospital, relocating from Bristol Regional Medical Center to Indian Path Community Hospital after regulatory approvals [2][4] - This partnership aims to enhance care delivery and broaden access to specialized recovery services in the Tri-Cities region, addressing the growing demand for such services [3][4] Company Expansion - The initiative represents a significant investment by SEM to improve accessibility to long-term acute care services in Tennessee, with the company already operating six other critical illness recovery hospitals in the state [4][5] - As of March 31, 2025, SEM operates a total of 104 critical illness recovery hospitals across 29 states, along with 35 rehabilitation hospitals and 1,911 outpatient rehabilitation clinics [5][8] - The expansion initiatives are expected to allow SEM to cater more effectively to an increasing patient base and enhance revenue generation [5][6] Market Performance - SEM's shares have increased by 0.9% over the past month, compared to the industry's growth of 1.8% [7] - The company currently holds a Zacks Rank of 3 (Hold), indicating a stable outlook in the market [7]

Company Overview - Select Medical Holdings Corporation is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States based on the number of facilities [4] - As of March 31, 2025, Select Medical operated 104 critical illness recovery hospitals in 29 states, 35 rehabilitation hospitals in 14 states, and 1,911 outpatient rehabilitation clinics in 39 states and the District of Columbia [4] - The company has operations in 41 states and the District of Columbia [4] Financial Results Announcement - Select Medical will release its financial results for the second quarter ended June 30, 2025, on Thursday, July 31, 2025, after the market closes [1] - A conference call regarding the second quarter results and business outlook will be hosted on Friday, August 1, 2025, at 9:00 am ET [2] - The conference call will be available as a live webcast and can be accessed through the company's website [2]

MECHANICSBURG, Pa., June 27, 2025 /PRNewswire/ -- Select Medical Corporation today announced it signed a membership interest purchase agreement with Ballad Health to jointly operate Select Specialty Hospital – Tri-Cities, a critical illness recovery hospital in Kingsport, Tenn. The facility, licensed as long-term acute care, will be a hospital-in-hospital located in Ballad Health's Indian Path Community Hospital. Select Medical will serve as the majority owner and managing partner of the 46-bed joint ventur ...

Shares of Select Medical Holdings Corporation (SEM) have fallen 17.6% since it reported first-quarter 2025 results on May 1. The quarterly results were hurt by the reduced occupancy rate in the Rehabilitation Hospital segment and lower admissions in the Critical Illness Recovery Hospital segment, coupled with higher costs and expenses. However, the negatives were partially offset by improved revenue per patient day in the Rehabilitation hospital segment and occupancy rates in the Critical Illness Recovery H ...

Select Medical (SEM) Q1 2025 Earnings Call May 02, 2025 09:00 AM ET Company Participants Robert Ortenzio - Co-Founder & Executive ChairmanMartin Jackson - Senior Executive Vice President of Strategic Finance & OperationsBen Hendrix - Vice PresidentBill Sutherland - Director of Research Conference Call Participants Justin Bowers - AnalystAnn Hynes - Senior Healthcare Services Equity Analyst & Managing Director Operator Good morning, and thank you for joining us today for Select Medical Holdings Corporation's ...

Select Medical (SEM) Q1 2025 Earnings Call May 02, 2025 09:00 AM ET Company Participants Robert Ortenzio - Co-Founder & Executive ChairmanMartin Jackson - Senior Executive Vice President of Strategic Finance & OperationsBen Hendrix - Vice PresidentBill Sutherland - Director of Research Conference Call Participants Justin Bowers - AnalystAnn Hynes - Senior Healthcare Services Equity Analyst & Managing Director Operator Good morning, and thank you for joining us today for Select Medical Holdings Corporation's ...

Select Medical (SEM) Q1 2025 Earnings Call May 02, 2025 09:00 AM ET Speaker0 Good morning, and thank you for joining us today for Select Medical Holdings Corporation's earnings conference call to discuss the first quarter twenty twenty five results at the company's and the company's business outlook. Presenting today are the company's Executive Chairman and Co Founder, Robert Ortenzio and the company's Senior Executive Vice President of Strategic finance and operations, Martin Jackson. Also on the conferenc ...

Select Medical (SEM) came out with quarterly earnings of $0.44 per share, missing the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.22%. A quarter ago, it was expected that this hospital and rehabilitation center operator would post earnings of $0.19 per share when it actually produced earnings of $0.18, delivering a surprise of -5.26%.Over th ...

Select Medical Holdings Corporation Announces Results For Its First Quarter Ended March 31, 2025 and Cash Dividend MECHANICSBURG, PENNSYLVANIA — May 1, 2025 — Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2025, and the declaration of a cash dividend. For the first quarter ended March 31, 2025, revenue increased 2.4% to $1,353.2 million, compared to $1,321.2 million for the same quarter, prior year. Incom ...

Financial Performance - For the three months ended March 31, 2025, the company reported total revenue of $1,353.2 million, a 2.4% increase compared to $1,321.2 million for the same period in 2024[78]. - Income from continuing operations, net of tax, was $74.7 million for the three months ended March 31, 2025, compared to $61.5 million for the same period in 2024, representing a 21% increase[78]. - Adjusted EBITDA for the three months ended March 31, 2025, was $151.4 million, down 8.6% from $165.8 million in the same period in 2024[78]. - Revenue for the three months ended March 31, 2025, was $1,353.2 million, a 2.4% increase from $1,321.2 million in the same period of 2024[108]. - Income from continuing operations before other income and expense decreased to $112.7 million in Q1 2025, down from $118.5 million in Q1 2024[108]. - Adjusted EBITDA for Q1 2025 was $151.4 million, with an Adjusted EBITDA margin of 11.2%, compared to $165.8 million and 12.5% in Q1 2024[108]. - Total operating expenses for Q1 2025 were $1,205.6 million, or 89.1% of revenue, compared to $1,169.2 million, or 88.5% of revenue in Q1 2024[112]. - Cost of services for Q1 2025 was $1,172.6 million, representing 86.7% of revenue, up from 84.8% in Q1 2024[112]. - General and administrative expenses decreased to $33.0 million, or 2.4% of revenue, from $48.4 million, or 3.7% of revenue in Q1 2024[112]. - Net income attributable to Select Medical Holdings Corporation was 4.2% in Q1 2025, down from 7.3% in Q1 2024[103]. Segment Performance - The critical illness recovery hospital segment generated revenue of $637.0 million, accounting for approximately 47% of total revenue, while the rehabilitation hospital and outpatient rehabilitation segments each contributed approximately 23%[73]. - The company experienced a 29.1% decrease in income from continuing operations before other income and expense in the critical illness recovery hospital segment compared to the previous year[79]. - The rehabilitation hospital segment saw a 15.7% increase in revenue, while the outpatient rehabilitation segment experienced a 1.4% increase[79]. - Critical illness recovery hospital revenue decreased by 2.9% to $637.0 million in Q1 2025, primarily due to a decrease in revenue per patient day from $2,219 to $2,179[109]. - Rehabilitation hospital revenue increased by 15.7% to $307.4 million in Q1 2025, with revenue per patient day rising 6.6% to $2,234[110]. - Outpatient rehabilitation revenue increased by 1.4% to $307.3 million in Q1 2025, driven by a 3.0% increase in revenue per visit to $102[111]. - Adjusted EBITDA for the Critical Illness Recovery Hospital Segment decreased to $86.6 million for the three months ended March 31, 2025, down from $115.9 million for the same period in 2024, resulting in a margin drop from 17.7% to 13.6%[114]. - Adjusted EBITDA for the Rehabilitation Hospital Segment increased by 14.7% to $70.4 million for the three months ended March 31, 2025, with a margin of 22.9%, slightly down from 23.1% in 2024[115]. - Adjusted EBITDA for the Outpatient Rehabilitation Segment was $24.3 million for the three months ended March 31, 2025, compared to $24.9 million in 2024, with a margin decrease from 8.2% to 7.9%[116]. Cash Flow and Capital Management - Net cash used in operating activities significantly improved to $(3.5) million for the three months ended March 31, 2025, compared to $(66.7) million in 2024, driven by a normalization of accounts receivable[125]. - Net working capital increased to $147.5 million at March 31, 2025, compared to $42.1 million at December 31, 2024, mainly due to higher accounts receivable[130]. - The company authorized a common stock repurchase program of up to $1.0 billion, with 649,804 shares repurchased at a cost of approximately $11.4 million during the three months ended March 31, 2025[132]. - As of March 31, 2025, the company had cash and cash equivalents of $53.2 million and $377.5 million of availability under its revolving facilities[134]. Market and Regulatory Environment - The company faces various risks, including changes in government reimbursement policies and shortages of qualified healthcare professionals, which could negatively impact revenue and profitability[68]. - Revenue from the Medicare program accounted for approximately 29% of the company's total revenue for both Q1 2025 and the year 2024[81]. - The standard federal rate for LTCH-PPS for fiscal year 2024 increased to $48,117 from $46,433 in fiscal year 2023, reflecting a market basket increase of 3.5%[86]. - The fixed-loss amount for high cost outlier cases under LTCH-PPS for fiscal year 2024 rose to $59,873, up from $38,518 in fiscal year 2023[86]. - The standard payment conversion factor for IRF-PPS for fiscal year 2024 was set at $18,541, an increase from $17,878 in fiscal year 2023[94]. - The outlier threshold amount for IRF-PPS decreased to $10,423 for fiscal year 2024 from $12,526 in fiscal year 2023[94]. - The proposed standard federal rate for LTCH-PPS for fiscal year 2026 is $50,729, an increase from $49,383 in fiscal year 2025[88]. - The proposed fixed-loss amount for high cost outlier cases under LTCH-PPS for fiscal year 2026 is $91,247, up from $77,048 in fiscal year 2025[88]. - The standard payment conversion factor for IRF-PPS for fiscal year 2026 is proposed to be $19,364, an increase from $18,907 in fiscal year 2025[96]. - CMS expects a 3% decrease in Medicare payments for physical and occupational therapy services in 2025[98]. - The criteria for outlier payment reconciliation were modified to a change in the LTCH's CCR of 20% or more, effective for cost reporting periods beginning on or after October 1, 2024[91]. Future Growth Strategies - The company plans to pursue new joint venture relationships and open new outpatient rehabilitation clinics to drive incremental growth[133].