Select Medical Holdings Corporation Reports 2025 Financial Results with Revenue of $5.45 Billion

**Select Medical Holdings Corporation Reports 2025 Financial Results**

Select Medical Holdings Corporation (NYSE: SEM), a large operator of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics, released its financial results for the fiscal year ended December 31, 2025. The company reported revenue of $5.45 billion, an increase of 5.1% compared to the $5.19 billion reported in 2024. Income from continuing operations, net of tax, reached $214.5 million, a significant rise from the $130.0 million reported in the previous year. Adjusted EBITDA for 2025 was $493.2 million, representing 9.0% of revenue, compared to $510.4 million, or 9.8% of revenue, in 2024.

The company's three segments showed varied performance. The Critical Illness Recovery Hospital segment saw revenue increase by 1.4% to $2.48 billion, while Adjusted EBITDA decreased by 12.0% to $265.4 million. The Rehabilitation Hospital segment experienced a revenue increase of 16.1% to $1.29 billion, with Adjusted EBITDA rising by 13.4% to $278.6 million. The Outpatient Rehabilitation segment reported a 2.8% increase in revenue to $1.28 billion, but Adjusted EBITDA decreased by 17.0% to $90.2 million. The company attributed the overall revenue growth to increased patient volumes and revenue per patient day in the Rehabilitation Hospital segment, and increased patient visits in the Outpatient Rehabilitation segment.

Select Medical highlighted several strategic developments in its annual report. As of December 31, 2025, the company operated 104 critical illness recovery hospitals, 38 rehabilitation hospitals, and 1,917 outpatient rehabilitation clinics across 39 states and the District of Columbia. The company completed a tax-free distribution of Concentra Group Holdings Parent, Inc. to its stockholders on November 25, 2024, and no longer owns any shares of Concentra common stock. On November 24, 2025, the company received a non-binding indication of interest from Robert A. Ortenzio, its Executive Chairman, Co-Founder and Director, to acquire all of the Company’s outstanding shares for cash consideration of $16.00 to $16.20 per share of the company's common stock.

Key operational metrics for 2025 included 36,126 admissions and 1,107,387 patient days in the Critical Illness Recovery Hospital segment, with an average length of stay of 31 days and an occupancy rate of 69%. The Rehabilitation Hospital segment reported 36,787 admissions and 510,127 patient days, with an average length of stay of 14 days and an occupancy rate of 82%. The Outpatient Rehabilitation segment recorded 11,517,388 visits. The company also noted its ongoing efforts to leverage artificial intelligence to enhance operational and administrative functions, while maintaining policies and controls to ensure responsible and compliant use of AI.

Looking ahead, Select Medical acknowledged potential risks and uncertainties that could affect future performance. These include changes in government reimbursement policies, adverse economic conditions, labor shortages, competition, and the outcome of the non-binding indication of interest from its Executive Chairman. The company also emphasized its commitment to maintaining compliance with healthcare regulations and protecting patient data through robust information security measures.