Select Medical Reports $1.353 Billion Revenue in Q1 2025, Sees Mixed Segment Performance

Select Medical Holdings Corporation reported a revenue of $1.353 billion for the first quarter of 2025, reflecting a 2.4% increase from $1.321 billion in the same period of 2024. The company's income from continuing operations before other income and expense was $112.7 million, down from $118.5 million year-over-year. The decline in profitability was primarily attributed to decreased revenue in the critical illness recovery hospital segment, which saw a revenue drop of 2.9% to $637 million. In contrast, the rehabilitation hospital segment experienced a 15.7% increase in revenue, reaching $307.4 million, while the outpatient rehabilitation segment reported a modest 1.4% increase to $307.3 million.

The company's total assets increased to $5.696 billion as of March 31, 2025, compared to $5.608 billion at the end of 2024. Select Medical's liabilities also rose, totaling $3.650 billion, up from $3.611 billion. The increase in liabilities was driven by a rise in long-term debt, which grew from $1.692 billion to $1.767 billion. The company’s stockholders' equity increased to $2.037 billion, up from $1.987 billion, reflecting a positive trend in retained earnings, which rose to $813.5 million from $770.1 million.

Operationally, Select Medical reported a decrease in patient days in its critical illness recovery hospitals, which fell to 291,324 from 294,622. The occupancy rate improved slightly to 73% from 71%. In the rehabilitation hospital segment, patient days increased to 122,822, with an occupancy rate of 82%. The outpatient rehabilitation segment reported a decrease in visits to 2.71 million from 2.74 million, although revenue per visit increased to $102 from $99. The company continues to operate 104 critical illness recovery hospitals, 35 rehabilitation hospitals, and 1,911 outpatient rehabilitation clinics across 40 states.

Looking ahead, Select Medical's management expressed optimism about future growth, particularly in the rehabilitation hospital segment, which has shown strong revenue performance. The company plans to continue expanding its outpatient rehabilitation clinics and exploring acquisition opportunities to enhance its service offerings. However, management acknowledged potential challenges, including rising labor costs and regulatory changes affecting Medicare reimbursement rates, which could impact future profitability. The company also declared a cash dividend of $0.0625 per share, payable on May 29, 2025, to stockholders of record as of May 15, 2025.