What is Select Medical Holdings? Simply put, it’s a healthcare company that operates hospitals and outpatient rehabilitation clinics. Over the past few years, Select Medical Holdings has grown its enterprise steadily and is well-positioned relative to other firms in the industry. The company has also managed to improve its cash flows. So what does Select Medical Holdings mean for investors? Let’s find out.
What’s more, it’s worth mentioning that Select Medical Holdings Corporation was founded in 1996. Today, it’s an organization of more than 1,880 rehabilitation clinics and critical illness recovery hospitals throughout more than 30 states. The company is headquartered in Mechanicsburg, Pennsylvania. It was a logical step for Rocco Ortenzio, whose previous ventures had yielded him great success.
While Select Medical is not an investment in medical equipment, it’s an important player in the rehabilitation industry. The company operates rehabilitation hospitals, critical illness recovery hospitals, occupational health centers, and physical therapy clinics. It also has joint ventures with hospitals and rehabilitation clinics in different states. For example, its Critical Illness Recovery Hospital unit provides therapy to patients recovering from severe illnesses. Meanwhile, its Rehabilitation Hospitals serve those requiring intensive physical rehabilitation. Most patients are admitted to these hospitals from general acute care hospitals.
Since 2003, Select Medical Holdings has acquired sixteen hospitals and rehab clinics in the United States, bringing the company’s total number of hospitals to forty-one. In addition, it has a number of planned acquisitions. With these three deals, Select Medical has become the second largest player in the rehab industry after HealthSouth Corporation. If Select Medical Holdings succeeds in growing its network, its shareholders will benefit.