MECHANICSBURG, Pa.,
Feb. 27, 2024 /PRNewswire/ -- Select
Medical Holdings Corporation ("Select Medical," "we," "us," or
"our") (NYSE: SEM) announced today that it has received a
favorable private letter ruling from the Internal Revenue Service
(the "IRS") with respect to the tax-free status of its previously
announced plan to pursue a separation of its wholly-owned
occupational health services business, Concentra Group Holdings
Parent, LLC ("Concentra" and such business, the "Concentra
business"). Details regarding the potential separation were
included in a press release issued on January 3, 2024.
Robert A. Ortenzio, Executive
Chairman and Co-Founder of Select Medical, stated, "This favorable
tax ruling is an important milestone towards completing the
potential separation. We are pleased to continue moving forward
with this transaction which will enhance the success of each
business by creating two companies that will be leaders in their
respective markets."
About Select Medical
Select Medical is one of the largest operators of critical
illness recovery hospitals, rehabilitation hospitals, outpatient
rehabilitation clinics, and occupational health centers in the
United States based on number of facilities. Select Medical's
reportable segments include the critical illness recovery hospital
segment, the rehabilitation hospital segment, the outpatient
rehabilitation segment, and the Concentra segment. As
of December 31, 2023, Select Medical operated 107 critical
illness recovery hospitals in 28 states, 33 rehabilitation
hospitals in 13 states, 1,933 outpatient rehabilitation clinics in
39 states and the District of Columbia, and 544 occupational health centers
in 41 states. At December 31, 2023, Select Medical had
operations in 46 states and the District of Columbia. Information about Select Medical is
available at www.selectmedical.com.
Forward-Looking Statements
Certain statements contained herein that are not descriptions of
historical facts are "forward-looking" statements (as such term is
defined in the Private Securities Litigation Reform Act of 1995),
including statements related to Select Medical's evaluation of
various strategic alternatives such as a separation or divestiture
of the Concentra business. The words "believe," "continue,"
"could," "expect," "anticipate," "intends," "estimate," "forecast,"
"project," "should," "may," "will," "would" or the negative thereof
and similar expressions are intended to identify such
forward-looking statements. Because such statements include risks
and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements due to
factors including the following:
- adverse economic conditions including an inflationary
environment could cause us to continue to experience increases in
the prices of labor and other costs of doing business resulting in
a negative impact on our business, operating results, cash flows,
and financial condition;
- shortages in qualified nurses, therapists, physicians, or other
licensed providers, and/or the inability to attract or retain
qualified healthcare professionals could limit our ability to staff
our facilities;
- shortages in qualified health professionals could cause us to
increase our dependence on contract labor, increase our efforts to
recruit and train new employees, and expand upon our initiatives to
retain existing staff, which could increase our operating costs
significantly;
- the continuing effects of the COVID-19 pandemic including, but
not limited to, the prolonged disruption to the global financial
markets, increased operational costs due to recessionary pressures
and labor costs, additional measures taken by government
authorities and the private sector to limit the spread of COVID-19,
and further legislative and regulatory actions which impact
healthcare providers, including actions that may impact the
Medicare program;
- changes in government reimbursement for our services and/or new
payment policies may result in a reduction in revenue, an increase
in costs, and a reduction in profitability;
- the failure of our Medicare-certified long term care hospitals
or inpatient rehabilitation facilities to maintain their Medicare
certifications may cause our revenue and profitability to
decline;
- the failure of our Medicare-certified long term care hospitals
and inpatient rehabilitation facilities operated as "hospitals
within hospitals" to qualify as hospitals separate from their host
hospitals may cause our revenue and profitability to decline;
- a government investigation or assertion that we have violated
applicable regulations may result in sanctions or reputational harm
and increased costs;
- acquisitions or joint ventures may prove difficult or
unsuccessful, use significant resources, or expose us to unforeseen
liabilities;
- our plans and expectations related to our acquisitions and our
ability to realize anticipated synergies;
- private third-party payors for our services may adopt payment
policies that could limit our future revenue and profitability;
- the failure to maintain established relationships with the
physicians in the areas we serve could reduce our revenue and
profitability;
- competition may limit our ability to grow and result in a
decrease in our revenue and profitability;
- the loss of key members of our management team could
significantly disrupt our operations;
- the effect of claims asserted against us could subject us to
substantial uninsured liabilities;
- a security breach of our or our third-party vendors'
information technology systems may subject us to potential legal
and reputational harm and may result in a violation of the Health
Insurance Portability and Accountability Act of 1996 or the Health
Information Technology for Economic and Clinical Health Act;
- failure to complete or achieve some or all the expected
benefits of the potential separation of Concentra; and
- other factors discussed from time to time in our filings with
the Securities and Exchange Commission (the "SEC"), including
factors discussed under the heading "Risk Factors" of our quarterly
reports on Form 10-Q and in our annual report on Form 10-K for the
year ended December 31, 2023.
Except as required by applicable law, including the securities
laws of the United States and the rules and regulations
of the SEC, we are under no obligation to publicly update or revise
any forward-looking statements, whether as a result of any new
information, future events, or otherwise. You should not place
undue reliance on our forward-looking statements. Although we
believe that the expectations reflected in forward-looking
statements are reasonable, we cannot guarantee future results or
performance.
Investor inquiries:
Joel T. Veit
Senior Vice President and Treasurer
717-972-1100
ir@selectmedical.com
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SOURCE - Select Medical Holdings Corporation