Profile: Select Medical Holdings Corp (SEM.N)
23 Jul 2014
Select Medical Holdings Corporation, incorporated on October 14, 2004, is an operator of both specialty hospitals and outpatient rehabilitation clinics in the United States. As of December 31, 2013, the Company operated 108 long-term acute care hospitals (LTCHs) and 15 inpatient rehabilitation facilities (IRFs) in 28 states, and 1,006 outpatient rehabilitation clinics in 32 states and the District of Columbia. It also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. The Company operates in two business segments: specialty hospital and outpatient rehabilitation segments, which accounted for approximately 74% and 26%, respectively, of its net operating revenues during the year ended December 31, 2013. Its specialty hospital segment consists of hospitals designed to serve the needs of long-term stay acute patients and hospitals designed to serve patients who require intensive inpatient medical rehabilitation care. Its outpatient rehabilitation business consists of clinics and contract services that provide physical, occupational and speech rehabilitation services.
The Company is an operator of specialty hospitals in the United States, with 123 facilities throughout 28 states, including 108 LTCHs, all of which are certified by the federal Medicare program as LTCHs, and nine acute medical rehabilitation hospitals, all of which are certified by the federal Medicare program as IRFs. As of December 31, 2013, it operated a total of 5,172 available licensed beds and employed approximately 21,000 people in its specialty hospital segment. During the year ended December 31, 2013, approximately 59% of the net operating revenues of its specialty hospital segment came from Medicare reimbursement.
Patients are typically admitted to its specialty hospitals from general acute care hospitals. These patients have specialized needs, and medical conditions, such as respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders and cancer. These patients generally require a longer length of stay than patients in a general acute care hospital and benefit from being treated in a specialty hospital that is designed to meet their medical needs. When a patient is referred to one of its hospitals by a physician, case manager, discharge planner, health maintenance organization or insurance company, the Company performs a clinical assessment of the patient to determine if the patient meets its criteria for admission. Based on the determinations reached in this clinical assessment, an admission decision is made by the attending physician.
The Company competes with Kindred Healthcare Inc., and HealthSouth Corporation.
As of December 31, 2013, the Company’s outpatient rehabilitation clinics in the United States comprised 1,006 facilities throughout 32 states and the District of Columbia, Typically, each of its clinics is located in a medical complex or retail location. As of December 31, 2013, the Company provided rehabilitative services to approximately 499 contracted locations in 30 states and the District of Columbia. Its outpatient rehabilitation segment employed approximately 9,300 people as of December 31, 2013.
In its clinics and through its contractual relationships, the Company provides physical, occupational and speech rehabilitation programs and services. It also provides certain specialized programs, such as hand therapy and athletic training services. The typical patient in one of its clinics suffers from musculoskeletal impairments that restrict his or her ability to perform normal activities of daily living. These impairments are often associated with accidents, sports injuries, strokes, heart attacks and other medical conditions.
The Company’s rehabilitation programs and services are designed to help these patients minimize physical and cognitive impairments and maximize functional ability. It also provides services designed to prevent short-term disabilities from becoming chronic conditions. Its rehabilitation services are provided by professionals, including licensed physical therapists, occupational therapists, speech-language pathologists and athletic trainers. Outpatient rehabilitation patients are referred or directed to its clinics by a physician, employer or health insurer, who would benefit from the level of therapy the Company provides in an outpatient setting. In its outpatient rehabilitation segment, approximately 90% of its net operating revenues come from commercial payors, including healthcare insurers, managed care organizations and workers’ compensation programs, contract management services and private pay sources. The balance of its reimbursement is derived from Medicare and other government sponsored programs.
The Company competes with Physiotherapy Associates and U.S. Physical Therapy.
Select Medical Holdings Corp
4714 Gettysburg Road
P.O. Box 2034
Mechanicsburg PA 17055