Select Medical Holdings Corp (NYSE: SEM)

Select Medical Holdings Corp operates as a provider of post acute care services in the United States. The company runs critical illness recovery hospitals rehabilitation hospitals and outpatient rehabilitation clinics. It serves patients who require specialized inpatient and outpatient therapy following acute hospital stays.

Select Medical Holdings Corp generates revenue primarily from delivering healthcare services through its three operating segments. For the year ended December 31 2025 the company recorded total revenue of five billion four hundred fifty two point eight million dollars. Approximately forty five percent of this revenue came from the critical illness recovery hospital segment twenty four percent from the rehabilitation hospital segment and twenty four percent from the outpatient rehabilitation segment. The remaining revenue includes fees from employee leasing services provided to non consolidating subsidiaries and minor amounts from other sources. Payor sources consist of Medicare commercial insurance workers compensation and private payments.

The company operates through the following segments: critical illness recovery hospital segment rehabilitation hospital segment and outpatient rehabilitation segment.

• Critical illness recovery hospital segment operates facilities designed to care for patients recovering from serious illnesses with complex medical needs. As of December 31 2025 the segment included 104 hospitals located in 28 states. Services are provided in both freestanding and hospital within a hospital settings. Patients are typically transferred from acute care hospitals and receive interdisciplinary care including nursing respiratory therapy physical therapy occupational therapy speech therapy and medical management. The segment earns revenue mainly from Medicare long term care hospital payments commercial insurers and private pay. Approximately thirty two percent of segment revenue came from Medicare in 2025.

• Rehabilitation hospital segment provides intensive inpatient rehabilitation for patients recovering from conditions such as stroke spinal cord injury brain trauma amputation and orthopedic surgery. As of December 31 2025 the segment operated 38 hospitals in 15 states. Care is delivered by multidisciplinary teams that include physicians nurses therapists psychologists and case managers. Medicare inpatient rehabilitation facility payments constitute the largest payor source with about forty five percent of segment revenue coming from Medicare in 2025. Additional revenue is generated from commercial insurers workers compensation and private payments.

• Outpatient rehabilitation segment runs clinics that deliver physical occupational and speech therapy services to patients with musculoskeletal injuries work related conditions and post operative needs. As of December 31 2025 the segment had 1 917 clinics spread across 39 states and the District of Columbia. Services are provided in medical office retail and freestanding locations. The majority of revenue comes from commercial insurers including health maintenance organizations workers compensation programs and private pay with about eighty three percent of segment revenue derived from commercial sources in 2025. Medicare Medicaid and other government programs supply the remainder.

Select Medical Holdings Corp holds a leading position in the post acute care industry as one of the largest operators of critical illness recovery hospitals rehabilitation hospitals and outpatient rehabilitation clinics in the United States. The company’s scale and geographic diversity enable it to negotiate favorable contracts with commercial insurers and to attract referral relationships with acute care hospitals. Key competitors in the inpatient rehabilitation space include Encompass Health Corporation and ScionHealth while the outpatient rehabilitation market features firms such as Athletico Physical Therapy ATI Physical Therapy U S Physical Therapy and Upstream Rehabilitation. Competitive advantages stem from the company’s integrated service platform its focus on quality outcomes and its ability to leverage centralized administrative functions to control costs.

The company serves a diverse customer base that includes patients recovering from acute illness or injury physicians who refer patients for specialized care commercial health insurers workers compensation programs Medicare and Medicaid programs and employers seeking occupational health services. While the filing does not disclose specific customer names the majority of revenue is derived from institutional payors and individual patients receiving treatment in the company’s facilities.