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    Select Medical Holdings Corp (SEM)

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    Select Medical Holdings Corporation (SEM) is a prominent healthcare services provider in the United States, operating since 1997. The company specializes in managing critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers. SEM offers a wide range of healthcare services, including intensive physical rehabilitation, occupational health services, and consumer health services, across 46 states and the District of Columbia.

    1. Critical Illness Recovery Hospital - Operates hospitals that serve patients recovering from critical illnesses with complex medical needs, typically admitted from general acute care hospitals.
    2. Concentra - Provides occupational health services, physical therapy, and consumer health services through occupational health centers and contract services at employer worksites.
    3. Outpatient Rehabilitation - Offers physical, occupational, and speech rehabilitation services through a network of clinics.
    4. Rehabilitation Hospital - Manages hospitals providing intensive physical rehabilitation care, with patients usually admitted from general acute care hospitals.
    NamePositionStart DateShort Bio
    Robert A. OrtenzioExecutive Chairman and Co-FounderFebruary 1997Co-founded SEM in February 1997. Served as CEO from 2005 to 2013 and President/COO from 1997 to 2001. Appointed Executive Chairman on January 1, 2014.
    Rocco A. OrtenzioVice Chairman and Co-FounderFebruary 1997Co-founded SEM in February 1997. Served as Chairman/CEO from 1997 to 2001 and Executive Chairman from 2001 to 2013. Appointed Vice Chairman on January 1, 2014.
    David S. ChernowChief Executive Officer and DirectorJanuary 1, 2014CEO since January 1, 2014. Appointed as a director effective August 1, 2024. Previously served as President/CEO from 2010 to 2014 and held other executive roles since 2010.
    Martin F. JacksonSenior EVP, Strategic Finance and OperationsOctober 1, 2023Joined SEM in 1999. Served as CFO from 2007 to 2023. Appointed Senior EVP of Strategic Finance and Operations on October 1, 2023.
    Michael F. MalatestaEVP and Chief Financial OfficerOctober 2023Joined SEM in 1999. Held various senior finance roles, including SVP of Finance from 2013 to 2023. Appointed CFO in October 2023.
    John A. SaichPresidentOctober 1, 2023Joined SEM in 1998. Previously served as EVP/Chief Administrative Officer from 2018 to 2023. Appointed President on October 1, 2023.
    Thomas P. MullinPresidentOctober 2023Joined SEM in 2008. Held leadership roles, including EVP of Hospital Operations from 2020 to 2023. Appointed President in October 2023.
    Michael E. TarvinSenior EVP, General Counsel, and SecretaryOctober 2023Joined SEM in 1997. Held various legal roles, including EVP/General Counsel from 2007 to 2023. Appointed Senior EVP in October 2023.
    Brian R. RusignuoloEVP and Chief Information OfficerJanuary 2021Joined SEM in 2001. Previously served as SVP/CIO from 2012 to 2021. Appointed EVP/CIO in January 2021.
    Christopher S. WeiglSVP, Controller, and Chief Accounting OfficerMarch 1, 2023Joined SEM in 2022. Previously served as SVP of Corporate Accounting Services from 2022 to 2023. Appointed CAO on March 1, 2023.
    Robert G. Breighner, Jr.SVP, Compliance and AuditOctober 2023Joined SEM in 2001. Previously served as VP of Compliance and Audit Services from 2003 to 2023. Appointed SVP of Compliance and Audit in October 2023.
    1. Given your plan to reduce SWB (Salaries, Wages, and Benefits) as a percentage of revenue to around 57% this year, what specific initiatives are you implementing to achieve further reductions next year, and how sustainable are these improvements?
    2. With the closure of an LTAC hospital in Ohio due to consolidation and noticing a reduction in your LTAC hospital count, what is your long-term strategy for the LTAC division, especially considering challenges with threshold levels and high-cost outliers?
    3. You have outlined significant capital expenditures, planning to add 569 additional beds through operations by 2026, primarily in the inpatient rehab division. How do you intend to finance these developments while maintaining your target leverage ratio of 3x, and what returns do you expect from these investments?
    4. In the outpatient rehab division, margins have improved due to efficiency efforts and technology implementation. Can you elaborate on how your internally developed system is enhancing clinical efficiency, and what impact do you expect this to have on future margins?
    5. Following the Concentra IPO and the planned distribution of your remaining interest to shareholders, how will the loss of Concentra's revenue and adjusted EBITDA impact your overall financial performance, and what strategies are in place to mitigate this effect?
    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationDecember 31, 2025
    Total additional amount$1.0 billion
    Remaining authorization amount$399.7 million as of September 30, 2024
    DetailsThe program is intended to repurchase up to $1.0 billion worth of shares of its common stock. It is funded with cash on hand and borrowings under the company's revolving facility.