Business Units or Product Lines

Select Medical Holdings Corporation operates through four segments: Critical Illness Recovery Hospitals, Rehabilitation Hospitals, Outpatient Rehabilitation Clinics, and Concentra. Each segment caters to different aspects of patient care and specialized treatments.

Business Models for Each Product Line

Critical Illness Recovery Hospitals and Rehabilitation Hospitals generate revenue primarily from patient services reimbursed by Medicare, Medicaid, and third-party insurers. Major expenses include labor, medical supplies, and facility costs. Outpatient Rehabilitation Clinics earn from therapy services paid by insurance and private payors, whereas Concentra derives revenue from work-related injuries and urgent care services, with significant expenses in staffing and rent.

Future Opportunities for Growth

Select Medical could expand its network of rehabilitation facilities and clinics, particularly in underserved geographic areas. There is potential growth in telehealth services and post-acute care technologies. Partnerships with managed care organizations could enhance patient flow.

Potential Major Risks

Risks include changes in healthcare regulations and reimbursement rates, which could impact revenue. Labor shortages in healthcare professionals could increase operating costs. Economic downturns may reduce elective procedures and outpatient visits, affecting earnings.