Select Medical (SEM) Buys Richmond Post-Acute Care Facility
Select Medical Holdings Corporation SEM inked an agreement to acquire the long-term acute care hospital of Virginia — Vibra Hospital of Richmond. The financial details of the deal were kept under wraps.
Post acquisition by SEM, the hospital, equipped with 63 beds, will operate under the new name of Select Specialty Hospital – Richmond. The facility promises to extend high-quality post-ICU medical care that is often required in the healing and recovery of patients with chronic and critical diseases, and equip them to resume daily life activities.
The buyout seems to be a time-opportune move on the part of Select Medical as Richmond witnesses a growing demand for advanced critical illness recovery care services. Considering the solid demand that such services witness, SEM has been quite active so far in 2023, with plans to extend the above-mentioned services across different U.S. regions.
To complement its endeavor, Select Medical has often resorted to joint ventures (JVs) with several U.S. healthcare providers, wherein the collective expertise of the partners are leveraged. In March 2023, SEM inked a JV with Lutheran Health Network of Indiana to extend critical illness recovery care across Indiana. It also has plans to construct a specialty hospital in Florida that will extend critical illness recovery and inpatient rehabilitative care across the state.
Post-acute care forms a vital component of a nation’s healthcare system that may minimize the burden exerted on healthcare systems from frequent hospital readmission or premature admission to a long-term care facility. An aging U.S. population, which includes the medically vulnerable, substantiates the reason for SEM’s intensified focus to establish a solid post-acute care presence across the nation.
The recent acquisition is expected to further solidify the footprint of Select Medical across Virginia. The other facilities that SEM operates in the state include Select Specialty Hospital – Hampton Roads, Inova Specialty Hospital (that is likely to inaugurate in May 2023) and Riverside Rehabilitation Hospital. In addition to this, 43 Select Physical Therapy outpatient centers are included in SEM’s healthcare portfolio in Virginia.
Growth-related initiatives similar to the latest one are likely to increase the critical illness recovery hospital count of Select Medical, which stood at 103 as of Dec 31, 2022. SEM’s care network also comprises 31 rehabilitation hospitals and 1,928 outpatient rehabilitation clinics.
Shares of Select Medical have gained 11.6% in a year against the industry’s 6.9% decline.
Image Source: Zacks Investment Research
SEM currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks from the Medical space are Amphastar Pharmaceuticals, Inc. AMPH, IRadimed Corporation IRMD and Insulet Corporation PODD. Amphastar Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy), and IRadimed and Insulet carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphastar Pharmaceuticals’ earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and matched the mark once, the average beat being 34.99%. The Zacks Consensus Estimate for AMPH’s 2023 earnings and revenues suggests improvements of 3.1% and 9.4% from the respective year-ago reported figures.
The consensus estimate for Amphastar Pharmaceuticals' 2023 earnings has moved 12.8% north in the past 60 days. Shares of AMPH have declined 2.2% in a year.
IRadimed’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 10.33%. The Zacks Consensus Estimate for IRMD’s 2023 earnings and revenues suggests improvements of 18.2% and 16.9% from the respective year-ago reported figures.
The consensus estimate for IRadimed’s 2023 earnings has moved 1.6% north in the past 60 days. Shares of IRMD have lost 14.5% in a year.
Insulet’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average being 59.81%. The Zacks Consensus Estimate for PODD’s 2023 earnings is pegged at $1.29 per share, indicating an increase of more than 18-fold from the year-ago reported figure. The same for revenues suggests an improvement of 16.7% from the year-ago reported figure.
The consensus estimate for Insulet’s 2023 earnings has moved 2.4% north in the past 30 days. Shares of PODD have gained 17.4% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amphastar Pharmaceuticals, Inc. (AMPH) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Select Medical Holdings Corporation (SEM) : Free Stock Analysis Report
iRadimed Corporation (IRMD) : Free Stock Analysis Report
