PinnacleHealth System and Select Medical announced today that they will create a joint venture to co-own a rehabilitation hospital and 23 outpatient clinics that provide physical therapy and related services in Central Pennsylvania.
Financial terms of the deal were not disclosed, but according to a news release, PinnacleHealth will contribute the 55-bed Helen M. Simpson Rehabilitation Hospital in Harrisburg and eight outpatient clinics, while Select contributes 15 of its outpatient clinics.
As part of the agreement, Select will serve as managing partner of the joint venture’s hospital and outpatient clinics.
Michael A. Young, president and CEO of PinnacleHealth, said in a news release that since PinnacleHealth opened the rehabilitation hospital in 2006, it has treated patients recovering from orthopedic and neurological operations, injuries and conditions.
"At the same time, we have a national leader in rehabilitation and post-acute care right in our backyard," Young said. "Select Medical’s localized approach to offering care is a great fit for our culture and our dedication to excellence. Between our organizations’ expertise, footprint in the market and deep commitment to the local community, we are excited to offer the region a powerful, combined solution to offer the best rehabilitation care possible."
"The future of healthcare is about high levels of coordination between different types of healthcare providers," said Robert Ortenzio, executive chairman and co-founder of Select. "Through this partnership, our goal is to offer that coordination right now. Our partnership model works well in many other markets. The time has come to offer this to our hometown, and we are proud to do it with PinnacleHealth. Our partner has a superb reputation. The joint venture will be very focused on building on this terrific work."
The hospital will become the 17th to join Select's network of specialized inpatient rehabilitation hospitals.
The release noted that Select currently leases space from PinnacleHealth in its Alex Grass Building in downtown Harrisburg for Select Specialty Hospital, one of three long-term acute care hospitals in the area owned and operated by Select. It is not part of the joint venture.
The Helen M. Simpson Rehabilitation Hospital is a certified stroke rehabilitation hospital and ranked among the top 10 percent of such hospitals in the Uniform Data System for Medical Rehabilitation Program Evaluation Model. The Helen M. Simpson Rehabilitation Hospital offers a multifaceted program to help patients return to a normal, healthy life. The team at the rehabilitation hospital provides general rehabilitation and specialized interdisciplinary therapy programs for conditions including amputations, bariatric surgery rehabilitation, brain injury, medical deconditioning, neurological conditions, oncology recovery, orthopedic conditions and stroke rehabilitation.
Select Medical has extensive experience in rehabilitation hospital management with the Kessler Institute for Rehabilitation, recognized by U.S. News and World Report as the number two inpatient rehabilitation hospital in the United States.
PinnacleHealth Outpatient Rehabilitation currently includes specialized programs such as aquatics, balance and vestibular, STAR oncology rehab, hand and upper extremity, incontinence, lymphedema and two of less than 35 Certified McKenzie Method® clinics in the United States. Under the joint venture, the clinics will also be managed by Select Medical and will operate as Select Physical Therapy.
The joint venture will also become part of one of the nation’s largest networks of physical therapists and centers. Select Medical’s outpatient division includes more than 1,000 clinics across the United States and has won nearly 500 contracts to provide physical therapy to nursing homes, schools and other facilities. The company’s outpatient clinics provide sports medicine and athletic training services to 300 professional, collegiate and high school teams nationwide.
PinnacleHealth is a pioneer not-for-profit healthcare system dedicated to improving the health and quality of life for the people of Central Pennsylvania since 1873. A proven leader in medical innovation, PinnacleHealth offers a range of services from primary care to complex surgeries and Magnet recognition for nursing excellence.
The health care network includes four campuses (Community, West Shore, Harrisburg and Polyclinic). The new five-story West Shore Hospital includes 108 beds with an emergency department, medical/surgical care, cardiology, orthopedics, chronic disease management, and private patient rooms.
PinnacleHealth is part of RiverHealth ACO, an accountable care organization in the Medicare Shared Savings Program. Medical services, including family practice, imaging, outpatient surgery and oncology are offered at multiple locations throughout the region.
Co-founded by the father–and–son team of Rocco and Robert Ortenzio in 1996, Select Medical has become one of the nation's largest providers of specialized acute and post-acute care. Select Medical's network of more than 31,000 employees operates or supports more than 100 hospitals specializing in long-term acute care, 16 medical rehabilitation hospitals, and more than 1,000 outpatient clinics offering physical and occupational therapy.
In addition, the company offers contract therapy services at nearly 500 locations. Select Medical is based in Mechanicsburg.