Select Medical Signs Definitive Agreement to Acquire Acuity Healthcare; Enters Joint Venture Partnerships with AtlantiCare, Mon Health, Virtua Health and Physician Partners

Rhea-AI Summary

Select Medical has signed a definitive agreement to acquire Acuity Healthcare, enhancing its presence in long-term acute care. This acquisition includes four hospitals and one satellite location in New Jersey and West Virginia, expanding Select Medical's network to 104 facilities. The deal also establishes joint venture partnerships with AtlantiCare, Mon Health, Virtua Health, and physician partners to improve specialty care for critically ill patients. The acquisition is expected to close in Q3 2021, pending regulatory approval.

Positive

• Expansion of network to 104 locations increases market presence.
• Joint ventures with established healthcare providers enhance service offerings.
• Focus on specialty care for chronic, critically ill patients aligns with market needs.

Negative

• None.

MECHANICSBURG, Pa., June 21, 2021 /PRNewswire/ -- Select Medical today announced it has signed a definitive agreement to acquire Charlotte, NC-based Acuity Healthcare.  The purchase will include four long-term acute care hospitals and one satellite serving communities in New Jersey and West Virginia.  The deal also includes the establishment of four joint venture (JV) partnerships with AtlantiCare, Mon Health, Virtua Health and  physician partners. 

"This agreement represents Select Medical's continued focus to execute strategic joint ventures as part of its growth strategy," said Tom Mullin, executive vice president and chief operating officer of specialty hospitals at Select Medical.  "Together, with our new partners, we look forward to serving the specialty care needs of chronic, critically ill patients in these emergent regions."

Through the agreement, Select Medical's national network of critical illness recovery hospitals, licensed as long-term acute care, will expand to 104 locations.  The Acuity hospitals to be acquired will be renamed Select Specialty Hospital and remain in current New Jersey and West Virginia locations.  

• Select Specialty Hospital – Willingboro, NJ – Virtua Health JV partner
• Select Specialty Hospital – Atlantic City, NJ – AtlantiCare JV partner
• Select Specialty Hospital – Morgantown, WV – Mon Health JV partner
• Select Specialty Hospital – Weirton, WV – Physician JV partners
• Select Specialty Hospital – Wheeling, WV (Satellite Location) – Physician JV partners

"The joint venture partnership with Select Medical brings the clinical excellence and best practices of the nation's No. 1 post-acute care provider to the regions we currently serve," said Ed Cooper, president and chief executive officer at Acuity Healthcare. Select Medical shares our common mission to build healthy communities and improve quality of life for the patients and families they serve. As the aging population continues to grow, the need for continued long-term acute care to treat chronic, critically ill patients has become an essential service and they are well-positioned to handle the future changes facing healthcare and the post-acute industry."

The deal is expected to close in Q3 2021, subject to regulatory approval.

About Acuity Healthcare
Acuity Healthcare is an employee-owned (ESOP) long-term acute care hospital company (LTACH) founded in 2001 with headquarters in Charlotte, North Carolina. Acuity Healthcare currently owns and manages four LTACHs with five locations in New Jersey and West Virginia. Acuity is focused on the development and operation of LTACHs and the delivery of specialized care with improved outcomes. We offer quality care in a cost-effective manner to medically complex patients who require intensive hospital services for an extended length of stay. To learn more about Acuity Healthcare, please visit us at www.AcuityHealthcare.net.

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. As of March 31, 2021, Select Medical operated 99 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals in 12 states, and 1,809 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical's joint venture subsidiary Concentra operated 519 occupational health centers in 41 states. At March 31, 2021, Select Medical had combined operations in 46 states and the District of Columbia and employed more than 48,000 people.  For more information, visit www.selectmedical.com.

Media Contacts
For Select Medical: Shelly Eckenroth, 717-920-4035 or seckenroth@selectmedical.com
For Acuity Healthcare:  Lisa Bien, 609-464-0914, lbien@acuityhealthcare.net

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SOURCE Select Medical Corporation

FAQ

What is the significance of Select Medical's acquisition of Acuity Healthcare?

This acquisition expands Select Medical's network and strengthens its offering in long-term acute care.

When is the expected closing date for Select Medical's acquisition of Acuity Healthcare?

The acquisition is expected to close in Q3 2021, subject to regulatory approval.

Which regions will the acquired Acuity Healthcare facilities serve?

The Acuity Healthcare facilities are located in New Jersey and West Virginia.

What joint ventures are involved in the acquisition by Select Medical?

Select Medical has partnered with AtlantiCare, Mon Health, Virtua Health, and physician partners.