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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.
- Critical Illness Recovery Hospital - Operates hospitals that serve patients recovering from critical illnesses with complex medical needs, typically admitted from general acute care hospitals.
- Concentra - Provides occupational health services, physical therapy, and consumer health services through occupational health centers and contract services at employer worksites.
- Outpatient Rehabilitation - Offers physical, occupational, and speech rehabilitation services through a network of clinics.
- Rehabilitation Hospital - Manages hospitals providing intensive physical rehabilitation care, with patients usually admitted from general acute care hospitals.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Robert A. Ortenzio ExecutiveBoard | Executive Chairman and Co-Founder | Board of Directors of Concentra Group Holdings, LLC | Co-founded Select Medical in February 1997. Served as CEO until December 2013 and has been a director since its inception. | |
Brian R. Rusignuolo Executive | Executive Vice President and Chief Information Officer | Member of Technology Council of Central Pennsylvania, IT Board of Advisors of Harrisburg University, Penn State Harrisburg IT Advisory Board | Joined SEM in January 2001, Rusignuolo oversees IT and security operations. | |
Christopher S. Weigl Executive | Senior Vice President, Controller & Chief Accounting Officer | None | Appointed to his current role in March 2023, Weigl previously served as Senior Vice President, Corporate Accounting Services. | |
David S. Chernow Executive | Chief Executive Officer | Board of Directors of Concentra Group Holdings Parent | David S. Chernow has been with SEM since January 1, 2014, serving as CEO. He has led SEM for nearly a decade, overseeing its operations and strategic direction. | View Report → |
John A. Saich Executive | Co-President | None | John A. Saich has been with SEM for over 26 years, serving in various senior operational and human resources leadership roles. Appointed Co-President in October 2023. | |
Martin F. Jackson Executive | Senior Executive Vice President of Strategic Finance | Board of Directors of Concentra Group Holdings Parent | With SEM since May 1999, Jackson transitioned to his current role in October 2023 after serving as CFO. | |
Michael E. Tarvin Executive | Senior Executive Vice President, General Counsel | Executive Vice President and Secretary at Concentra Group Holdings Parent, Inc. | Tarvin has been with SEM since February 1997, overseeing legal and compliance functions. He also holds a concurrent role at Concentra Group Holdings Parent, Inc.. | |
Michael F. Malatesta Executive | Executive Vice President and Chief Financial Officer | None | Michael F. Malatesta began his career at SEM in 1999 and became CFO in October 2023. He has played a significant role in financial leadership. | |
Robert G. Breighner, Jr. Executive | Senior Vice President of Compliance and Audit | None | Breighner has been with SEM since November 2001, transitioning through multiple leadership roles within compliance and audit. | |
Thomas P. Mullin Executive | Co-President | None | Joined SEM in 2008. Promoted to Co-President in October 2023 to enhance integration and best practices across SEM's network. | |
Daniel J. Thomas Board | Director | Board positions at Healthcare Highways, Inc., National Partners in Healthcare, Equalis Group LLC | Thomas has been a director since July 2019, with a background in healthcare leadership. | |
James S. Ely III Board | Director | Founder and CEO of PriCap Advisors LLC; Director at Community Health Systems, Inc. | Ely has been a director since November 2008, providing insight into federal healthcare regulations. | |
Katherine R. Davisson Board | Director | Advisory Council of Brightstar Capital Partners; Board member of Bottomless Closet | Davisson has served as a director since April 2021, with roles in advisory and non-profit organizations. | |
Marilyn B. Tavenner Board | Director | Director of InnovAge Holding Corp., Blue Cross Blue Shield of Arizona, Jackson Acquisition Company | Tavenner has been a director since November 2018, with extensive experience in healthcare administration and government operations. | |
Parvinderjit S. Khanuja Board | Director | Managing Partner of Ironwood Physicians, PC; Board Member of the Five Rivers Foundation; Board of Trustees Member at the Phoenix Art Museum | Khanuja has been a director since November 2021, with leadership roles in healthcare and philanthropy. | |
Russell L. Carson Board | Director | Co-Founder and General Partner of Welsh, Carson, Anderson & Stowe; Chairman of the Carson Family Charitable Trust | Carson has served as a director since February 1997 and was elected Lead Director in 2015. | |
Thomas A. Scully Board | Director | General Partner at Welsh, Carson, Anderson & Stowe; Principal of Lincoln Policy Group; Director of InnovAge Holding Corp | Scully has been a director since February 2004, with roles in investment and policy advisory. | |
William H. Frist Board | Director | Partner at Cressey & Company, L.P.; Founder/Partner of Frist Cressey Ventures; Chair of Hope Through Healing Hands | Frist has been a director since May 2010, bringing experience as a former U.S. Senator and healthcare professional. |
- 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?
- 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?
- 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?
- 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?
- 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?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Medicare Program | Reimburses for patient services | All | 22% of A/R in 2023 , 21% of A/R in 2024 ; 31% of total revenue in 2022 , 31% in 2023 , and 29% in 2024. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Select Medical Holdings Corporation – Q3 2022 Business Combinations | 2022 | Net cash paid: $22,027 thousand was used in business combinations that added goodwill of $17,211 thousand allocated to assets including Critical Illness Recovery Hospital ($6,505 thousand), Outpatient Rehabilitation ($6,779 thousand), and Concentra ($3,927 thousand), reflecting targeted investments to expand operational capabilities. |
Select Medical Holdings Corporation – Q1 2022 Business Combinations | 2022 | The company acquired businesses costing $2.884 million (Concentra) and $409,000 (Outpatient Rehabilitation) for a total acquisition cost of $3.293 million, which resulted in a goodwill increase from $3,448.912 million to $3,465.456 million, underscoring its strategic expansion efforts. |
Recent press releases and 8-K filings for SEM.
- Consolidated revenue increased by over 2% while adjusted EBITDA declined by 9% year-over-year, reflecting mixed overall performance.
- The Inpatient Rehab division delivered strong growth with 16% revenue and 15% adjusted EBITDA increases, maintaining a 23% margin.
- Outpatient operations were negatively impacted by severe weather and Medicare reimbursement reductions, and the Critical Illness Recovery division faced regulatory challenges causing a 25% decline in adjusted EBITDA.
- The company repurchased nearly 650,000 shares at an average price of $17.52 and declared a cash dividend of $0.0625 per share.
- The virtual meeting on April 24, 2025 featured remarks from top executives including Robert Ortenzio, Michael Tarvin, and CEO David Chernow, who highlighted strategic growth initiatives and joint venture expansions.
- Shareholders approved several proposals, such as the election of 4 Class I directors, changes to voting requirements including the elimination of super majority voting, annual director elections, nonemployee director compensation policies, and the ratification of PricewaterhouseCoopers LLP as the independent accounting firm for 2025.