SELECT MEDICAL AND SSM HEALTH FORM JOINT VENTURE PARTNERSHIP TO OPERATE INPATIENT REHABILITATION HOSPITAL IN OKLAHOMA CITY

Rhea-AI Summary

Select Medical and SSM Health have announced a joint venture partnership to operate a 50-bed inpatient rehabilitation hospital in Oklahoma City, named SSM Health Rehabilitation Hospital – Oklahoma City. The facility, set to open in December 2024, will be located at 700 NW 7th Street and incorporate SSM Health's existing 12-bed acute rehabilitation unit from St. Anthony Hospital.

This partnership expands on a 15-year collaboration between Select Medical and SSM Health in the St. Louis region, where they jointly operate three inpatient rehabilitation hospitals, 79 outpatient physical therapy centers, and 10 rehabilitation day institutes. Select Medical will serve as the majority owner and managing partner of the new joint venture in Oklahoma City.

Positive

• Expansion of successful 15-year partnership between Select Medical and SSM Health
• Opening of a new 50-bed inpatient rehabilitation hospital in Oklahoma City
• Incorporation of existing 12-bed acute rehabilitation unit into the new facility
• Select Medical to be majority owner and managing partner of the joint venture

Negative

• None.

Insights

Healthcare Industry Analyst

The joint venture between Select Medical and SSM Health to operate a new 50-bed inpatient rehabilitation hospital in Oklahoma City represents a significant expansion of their existing partnership. This move demonstrates a strategic growth initiative in the post-acute care sector, particularly in rehabilitation services.

Key points to consider:

• The new facility will incorporate SSM Health's existing 12-bed acute rehabilitation unit, indicating a consolidation and expansion of services.
• The partnership builds on a successful 15-year collaboration in Missouri, suggesting a proven operational model.
• Select Medical's position as majority owner and managing partner implies they will have primary control over operations, potentially leveraging their expertise in rehabilitation services.
• The December 2024 opening timeline provides a clear target for investors to monitor progress and potential impact on future earnings.

For investors, this expansion could signal revenue growth opportunities in the rehabilitation sector, particularly given the aging population and increasing demand for post-acute care services. However, the full financial impact may not be immediate, as the facility is set to open in late 2024.

Market Research Analyst

This joint venture aligns with broader healthcare trends, including:

• Consolidation in healthcare: Partnerships between established players can lead to economies of scale and improved market positioning.
• Focus on post-acute care: As healthcare systems aim to reduce hospital readmissions and improve patient outcomes, specialized rehabilitation facilities are becoming increasingly important.
• Geographic expansion: By entering the Oklahoma City market, Select Medical is diversifying its geographic footprint, potentially reducing regional market risks.

The partnership's expansion from Missouri to Oklahoma suggests a replicable business model that could be applied to other markets. This scalability could be attractive to investors looking for companies with clear growth strategies. However, it's important to note that success in one market doesn't guarantee success in another and local healthcare dynamics will play a important role in the venture's performance.

Investors should monitor key performance indicators such as occupancy rates, patient outcomes and financial metrics once the facility becomes operational to assess the success of this expansion strategy.

New SSM Health Rehabilitation Hospital will open in December 2024

MECHANICSBURG, Pa. and OKLAHOMA CITY, Oct. 17, 2024 /PRNewswire/ -- Select Medical Corporation ("Select Medical") and SSM Health today announced the formation of a joint venture partnership to own and operate a 50-bed inpatient rehabilitation hospital in Oklahoma City to be named SSM Health Rehabilitation Hospital – Oklahoma City.

The hospital will operate at 700 NW 7^th Street and incorporate SSM Health's 12-bed acute rehabilitation unit presently located in St. Anthony Hospital in Oklahoma City. SSM Health Rehabilitation Hospital – Oklahoma City is scheduled to open in December 2024.

"Our Mission calls us to continually seek new ways to better meet the needs of the people and communities we are privileged to serve," stated SSM Health Oklahoma Regional President Joe Hodges. "We look forward to the opportunity to expand the longstanding partnership that SSM Health has had with Select Medical in St. Louis. Together, we'll further expand and enhance access to high-quality compassionate rehabilitation services across the region."

Under a separate joint venture agreement formed in 2009, Select Medical and SSM Health operate three inpatient rehabilitation hospitals in Missouri located in Richmond Heights, Lake St. Louis and Bridgeton. The partnership also includes 79 outpatient physical therapy centers and 10 rehabilitation day institutes throughout the St. Louis region.

"Select Medical and SSM Health have been partners for 15 years, delivering best-in-class rehabilitative care across the greater St. Louis region," said Tom Mullin, president of Select Medical. "When we saw the opportunity to once again partner in Oklahoma City, it was an easy decision to expand the relationship based on our shared mission and sharp focus on quality, safety and outcomes. We look forward to serving the growing post-acute care needs of Oklahoma City and surrounding communities."

Select Medical will serve as majority owner and managing partner of the new joint venture.

About SSM Health
SSM Health is a Catholic, not-for-profit, fully integrated health system dedicated to advancing innovative, sustainable, and compassionate care for patients and communities throughout the Midwest and beyond. The organization's 40,000 team members and 12,800 providers are committed to fulfilling SSM Health's Mission: "Through our exceptional health care services, we reveal the healing presence of God."

With care delivery sites in Illinois, Missouri, Oklahoma and Wisconsin, SSM Health includes hospitals, physician offices, outpatient and virtual care services, senior care facilities, comprehensive home care and hospice services, a fully transparent pharmacy benefit company, a health insurance company and an accountable care organization. In Oklahoma, SSM Health includes St. Anthony Hospital (Oklahoma City); Bone & Joint Hospital at St. Anthony (Oklahoma City); SSM Health Outpatient Center (Oklahoma City), St. Anthony Hospital - Shawnee (Shawnee, Okla.), St. Anthony Hospital - Shawnee, Seminole Campus (Seminole, Okla.) and St. Anthony Hospital - Midwest (Midwest City, Okla.). The SSM Health network in Oklahoma also includes five SSM Health St. Anthony Healthplex campuses, six managed hospitals, 12 rural affiliated hospitals and SSM Health Medical Group with more than 350 physicians and providers.

About Select Medical
Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States based on number of facilities. As of June 30, 2024, Select Medical operated 107 critical illness recovery hospitals in 29 states, 33 rehabilitation hospitals in 13 states, 1,925 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 547 occupational health centers in 41 states. At June 30, 2024, Select Medical had operations in 46 states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.

Media Contacts
For Select Medical: Shelly Eckenroth, 717-920-4035 or seckenroth@selectmedical.com
For SSM Health: Sandra Payne, 405-272-6359 or sandra.payne@ssmhealth.com

View original content:https://www.prnewswire.com/news-releases/select-medical-and-ssm-health-form-joint-venture-partnership-to-operate-inpatient-rehabilitation-hospital-in-oklahoma-city-302279522.html

SOURCE SELECT MEDICAL CORPORATION

FAQ

When will the SSM Health Rehabilitation Hospital – Oklahoma City open?

The SSM Health Rehabilitation Hospital – Oklahoma City is scheduled to open in December 2024.

How many beds will the new rehabilitation hospital in Oklahoma City have?

The new SSM Health Rehabilitation Hospital – Oklahoma City will have 50 inpatient beds.

Where will the new SSM Health Rehabilitation Hospital be located in Oklahoma City?

The new rehabilitation hospital will be located at 700 NW 7th Street in Oklahoma City.

What is Select Medical's role in the new joint venture for the Oklahoma City rehabilitation hospital?

Select Medical will serve as the majority owner and managing partner of the new joint venture for the SSM Health Rehabilitation Hospital – Oklahoma City.