SELECT MEDICAL HOLDINGS CORPORATION

SELECT MEDICAL HOLDINGS CORPORATION

Previous company name

Name change date

Company Overview
Select Medical Holdings Corporation is an American-based private company engaged in the management activities of holding companies. The company was incorporated in the year 2004 and has its registered head office located in New York, a city in southeastern tip of the state of New York, United States of America.
The company operates as the holding company for specialty outpatient clinics and specialty hospitals. It oversees, administers, manages and assumes the strategic and organizational planning of its holding companies.
Select Medical Holdings Corporation is the parent company of Select Medical Corporation, an American company involved in the provision of long-term acute care hospital services and inpatient acute rehabilitative hospital care through select specialty hospital division.
Business Summary
Select Medical Holdings Corporation is an operator of both specialty hospitals and outpatient rehabilitation clinics in the United States. As of December 31, 2009, the Company operated 89 long-term acute care hospitals and six inpatient rehabilitation facilities in 25 states, and 961 outpatient rehabilitation clinics in 37 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. 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.
Description and history
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, 2009, the Company operated 89 long-term acute care hospitals (LTCHs) and six inpatient rehabilitation facilities (IRFs) in 25 states, and 961 outpatient rehabilitation clinics in 37 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 70% and 30%, respectively, of its net operating revenues during the year ended December 31, 2009. 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. In September 2010, the Company acquired Regency Hospital Company, L.L.C.

Specialty Hospitals

The Company is an operator of specialty hospitals in the United States, with 95 facilities throughout 25 states, as of December 31, 2009. As of December 31, 2009, 88 of its long term acute care hospitals were certified by the federal Medicare program as long term acute care hospitals. It also operates six acute medical rehabilitation hospitals, all of which are certified by the federal Medicare program as inpatient rehabilitation facilities. As of December 31, 2009, it operated a total of 4,233 available licensed beds and employed approximately 13,300 people in its specialty hospital segment.

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, a clinical liaison along with a case manager from its company makes an assessment to determine the care required. 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., HealthSouth Corporation. and RehabCare Group, Inc.

Outpatient Rehabilitation

As of December 31, 2009, the Company’s outpatient rehabilitation clinics in the United States comprised 961 facilities throughout 37 states and the District of Columbia. Typically, each of its clinics is located in a medical complex or retail location. 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 or sports performance enhancement that treat sports and work-related injuries, musculoskeletal disorders, chronic or acute pain and orthopedic conditions. 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 respiratory therapists. In addition to providing therapy in our outpatient clinics, it provides medical rehabilitative services including physical and occupational therapies and speech pathology services, to residents and patients of nursing homes, hospitals, schools, assisted living and senior care centers and worksites. 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.

Business Line
Engaged in the management activities of holding companies
Subsidiary
AMERICAN REHABILITATION CENTER INC
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
9/25/2009
US SIC Code
8069
Company Address
4714, Gettysburg Road

City province or state postal code
17055, MECHANICSBURG, PA
Phone: +1 717 972 1100
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.selectmedicalcorp.com