Select Medical Holdings Corporation Announces Estimate of Certain Financial Results of its Wholly-Owned Subsidiary Concentra Group Holdings Parent, Inc. for the Second Quarter Ended June 30, 2024
The expectations regarding
As previously announced,
Company Overview
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). Forward-looking statements use words such as "expect," "estimate," "anticipate," "outlook," "intend," "plan," "confident," "believe," "will," "should," "would" "potential," "positioning," "proposed," "planned," "objective," "likely," "could," "may," and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. Statements regarding our estimated financial results are examples of 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:
- The effect of closing procedures and final review with respect to our estimated preliminary results;
- The frequency of work-related injuries and illnesses;
- The adverse changes to our relationships with employer customers, third-party payors, workers' compensation provider networks or employer services networks;
- Changes to regulations, new interpretations of existing regulations, or violations of regulations;
- Cost containment initiatives or state fee schedule changes undertaken by state workers' compensation boards or commissions and other third-party payors;
- Our ability to realize reimbursement increases at rates sufficient to keep pace with the inflation of our costs;
- Labor shortages, increased employee turnover or costs, and union activity could significantly increase our operating costs;
- Our ability to compete effectively with other occupational health centers, onsite health clinics at employer worksites, and healthcare providers;
- A security breach of our, or our third-party vendors', information technology systems which may cause a violation of HIPAA and subject us to potential legal and reputational harm;
- Negative publicity which can result in increased governmental and regulatory scrutiny and possibly adverse regulatory changes;
- Significant legal actions could subject us to substantial uninsured liabilities;
- Litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our business and financial statements;
- Insurance coverage may not be sufficient to cover losses we may incur;
- Acquisitions may use significant resources, may be unsuccessful, and could expose us to unforeseen liabilities;
- Our exposure to additional risk due to our reliance on third parties in many aspects of our business;
- Compliance with applicable laws regarding the corporate practice of medicine and therapy and fee- splitting;
- Our facilities are subject to extensive federal and state laws and regulations relating to the privacy of individually identifiable information;
- Compliance with applicable data interoperability and information blocking rule;
- Facility licensure requirements in some states are costly and time-consuming, limiting or delaying our operations;
- Our ability to adequately protect and enforce our intellectual property and other proprietary rights;
- Adverse economic conditions in the
U.S. or globally; - Any negative impact on the global economy and capital markets resulting from other geopolitical tensions;
- The impact of impairment of our goodwill and other intangible assets;
- Our ability to maintain satisfactory credit ratings;
- Failure to complete or achieve some or all the expected benefits of the potential separation of
Concentra ; - The negative impact of public threats such as a global pandemic or widespread outbreak of an infectious disease similar to the COVID-19 pandemic;
- The loss of key members of our management team;
- Our ability to attract and retain talented, highly skilled employees and a diverse workforce, and on the succession of our senior management;
- Climate change, or legal, regulatory or market measures to address climate change;
- Increasing scrutiny and rapidly evolving expectations from stakeholders regarding ESG matters
- Changes in tax laws or exposures to additional tax liabilities; and
- Other factors discussed under the heading "Risk Factors" in
Concentra's preliminary prospectus filed onJune 14, 2024 , with theSecurities and Exchange Commission (the "SEC "), relating toConcentra's Registration Statement on Form S-1.
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the
Investor inquiries:
Senior Vice President and Treasurer
717-972-1100
ir@selectmedical.com
I. Summary Financial Results(1) |
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Unaudited |
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Three months ended |
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2024 |
|
2023 |
(in millions) |
(estimated) |
|
(actual) |
Revenue |
$ 477,915 |
|
$ 467,079 |
Cost and expenses: |
|
|
|
Cost of services, exclusive of depreciation and amortization |
339,273 |
|
329,836 |
General and administrative, exclusive of depreciation and amortization |
36,828 |
|
37,003 |
Depreciation and amortization |
17,870 |
|
18,283 |
Total costs and expenses |
393,971 |
|
385,122 |
Other operating income |
— |
|
151 |
Income from Operations |
$ 83,944 |
|
$ 82,108 |
|
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|
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(1) These amounts are subject to change upon completion of |
II. Key Statistics
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2024 |
|
2023 |
Number of occupational health centers – start of period |
547 |
|
539 |
Number of occupational health centers acquired |
— |
|
1 |
Number of occupational health centers de novos |
1 |
|
— |
Number of occupational health centers closed/sold |
(1) |
|
— |
Number of occupational health centers – end of period |
547 |
|
540 |
Number of onsite health clinics operated – end of period |
154 |
|
141 |
|
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|
|
Number of patient visits(2) |
|
|
|
Workers' Compensation |
1,455,254 |
|
1,429,035 |
Employer Services |
1,702,399 |
|
1,781,012 |
|
56,602 |
|
57,847 |
Total |
3,214,255 |
|
3,267,894 |
Visits per day volume |
|
|
|
Workers' Compensation |
22,738 |
|
22,329 |
Employer Services |
26,600 |
|
27,828 |
|
884 |
|
904 |
Total |
50,223 |
|
51,061 |
Revenue per visit(2) |
|
|
|
Workers' Compensation |
$ 198.18 |
|
$ 194.92 |
Employer Services |
90.05 |
|
86.00 |
Consumer Health |
135.49 |
|
134.88 |
Total |
$ 139.81 |
|
$ 134.50 |
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(2) Represents operating statistics for the Occupational Health Centers only. Revenue per visit for the three months ended |
SOURCE