Select Medical Holdings Reports Q2 2025 Revenue Increase to $1.34 Billion

Select Medical Holdings Corporation reported its financial results for the second quarter and first half of 2025, revealing a revenue increase to $1.34 billion for the three months ended June 30, 2025, up from $1.28 billion in the same period of 2024. For the first half of 2025, revenue reached $2.69 billion, compared to $2.60 billion in the prior year. The company’s income from continuing operations before other income and expense also saw an increase, rising to $86.5 million for the second quarter and $199.3 million for the first half, compared to $73.9 million and $192.3 million, respectively, in 2024. However, net income attributable to Select Medical Holdings Corporation decreased to $40.6 million for the second quarter, down from $77.6 million in the same period last year, primarily due to the absence of income from discontinued operations following the spin-off of Concentra.

The company experienced varied performance across its segments. The critical illness recovery hospital segment reported a slight revenue decline of 0.6% to $601.1 million for the second quarter, attributed to a decrease in revenue per patient day. In contrast, the rehabilitation hospital segment saw a significant revenue increase of 17.2% to $313.8 million, driven by a rise in patient days and revenue per patient day. The outpatient rehabilitation segment also reported a revenue increase of 3.8% to $327.6 million, supported by a rise in patient visits. Overall, Select Medical's Adjusted EBITDA for the second quarter was $125.4 million, reflecting a marginal increase from $124.7 million in the prior year.

Operationally, Select Medical maintained a total of 104 critical illness recovery hospitals and 24 rehabilitation hospitals as of June 30, 2025, with a slight increase in the number of outpatient rehabilitation clinics to 1,620. The company reported a total of 5.64 million outpatient visits in the first half of 2025, up from 5.56 million in the same period of 2024. The average revenue per visit in outpatient rehabilitation remained stable at $101. The company’s occupancy rates in critical illness recovery hospitals improved to 71% from 69% year-over-year, while rehabilitation hospitals reported an occupancy rate of 82%.

Select Medical's financial position showed total assets of $5.74 billion as of June 30, 2025, an increase from $5.61 billion at the end of 2024. The company’s long-term debt increased to $1.84 billion, up from $1.69 billion at the end of the previous fiscal year. The company also reported a net working capital of $141.9 million, a significant increase from $42.1 million at the end of 2024, primarily due to higher accounts receivable. Looking ahead, Select Medical anticipates continued growth in its rehabilitation hospital segment and outpatient services, while managing the challenges posed by rising labor costs and regulatory changes in healthcare reimbursement.