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Select Medical sells its contract therapy business for $65 million
The Lower Allen Township-based company today announced it sold its contract to an affiliate of Michigan-based Encore Rehabilitation Services, LLC for $65 million in cash.
Encore is a portfolio company of Colorado-based Revelstoke Capital Partners LLC that operates therapy programs within skilled nursing facilities in several states.
Select Medical’s contract therapy division is known as Select Medical Rehabilitation Services, which are rehabilitation programs that operate under contract within other health care facilities, according to Edwin Bodensiek, a spokesperson for Select Medical.
Under contract, Select Medical would offer services such as physical, occupational and speech-language therapy to skilled nursing facilities, assisted living and senior care centers, schools, pediatric centers, acute care hospitals, continuing care retirement communities, worksites and private homes across the U.S.
Now, all of these contracts will be under new ownership.
If Encore hits its revenue targets within the next three years, Select Medical can earn up to $7.5 million in additional purchase price from Encore, according to a news release.
The reason for selling this portion of its business was not disclosed, Bodensiek said.
In March, Select Medical acquired Chester County-based Physiotherapy Associates Holdings Inc., which includes more than 500 outpatient rehabilitation clinics nationwide.
In February, the company did a hospital swap with Kentucky-based Kindred Healthcare Inc, giving up five of its acute care hospitals in exchange for $800,000 in cash and four of Kindred’s acute care hospitals.
Select Medical currently operates 109 long term acute care hospitals and 18 acute medical rehabilitation hospitals in 28 states, as well as 1,038 outpatient rehabilitation clinics in 31 states and the District of Columbia.
