Select Medical Corporation announced a handful of new acquisitions and joint venture partnerships that will add seven long-term acute care hospitals and eight outpatient clinics to its already impressive collection of post-acute care facilities.
The company, which operates critical illness recovery, rehabilitation and occupational health locations across 46 states, said it expects the deals to close in the back half of 2021 pending regulatory approval.
The majority of Select Medical’s new hospitals will come from a newly announced agreement to acquire Acuity Healthcare, which owns and operates four long-term acute care hospitals and one satellite in New Jersey and West Virginia. Included in the package is also new joint venture partnerships with AtlantiCare, Mon Health, Virtua Health and Acuity’s physician partners.
The remaining hospitals come from two additional joint venture deals with Community Health Systems subsidiary Northwest Healthcare and Ascension Saint Thomas.
With Northwest Healthcare, Select Medical will be acquiring and relocating Curahealth Tucson, a 47-bed long-term acute care hospital in Arizona. With Ascension, it will be establishing a new 30-bed critical illness recovery hospital inside the provider’s Saint Thomas Hospital West in Nashville, Tennessee.
The eight new outpatient clinics, meanwhile, are part of a new joint venture partnership Select Medical has signed with HealthWorks Rehab & Fitness in West Virginia. Select Medical will acquire an ownership interest and management services for these clinics with the deal, which represents the company’s first push into outpatient physical therapy services in the state.
Not to be lost in the flurry of announcements was a new partnership between Select Medical and Scripps Health. The latter joined an existing joint venture partnership between Select Medical and UC San Diego Health.
"We are excited to embark on these new joint ventures and acquisitions to bring world-class post-acute care to both existing and new markets across the country," David Chernow, president and CEO of Select Medical, said in a statement. "These deals underscore the focus and success of our strategic growth model to expand our continuum of care through partnerships with premier health care systems that share our mission to deliver the highest level of clinical and operational excellence to the patients, families and communities our hospitals serve."
Select Medical is one of the largest operators of post-acute care facilities in the U.S. The Pennsylvania-based company employed over 48,000 people and operated 99 critical illness recovery hospitals, 30 rehabilitation hospitals and 1,809 outpatient rehabilitation clinics as of March 31.
A publicly traded company, it reported a 9.3% revenue increase to about $1.5 billion for its first quarter of 2021 as well as a 1.4% revenue increase to more than $5.5 billion for the full year of 2020.