Long-term acute-care chain Select Medical Corp., Mechanicsburg, Pa., said its net income rose 49% in the third quarter ended Sept. 30 to $27.8 million, or 26 cents per share, from $18.6 million, or 18 cents per share. Revenue rose 16% to $407.6 million. Select Medical increased its total long-term acute-care hospitals to 83 in the third quarter from 77 in the year-ago quarter and continued to operate four acute rehabilitation hospitals. Net revenue per patient day for its specialty hospitals rose 10%, to $1,338 from $1,215. The company had 750 outpatient clinics in the 2004 third quarter, down 8% from 814 clinics in the year-ago quarter.
For the nine months, net income increased 71% to $88.4 million, and operating revenue rose 25% to $1.2 billion. Earlier this month, the company announced a $2.3 billion merger agreement, including debt and outstanding stock, with a new company formed by an investor group led by Welsh, Carson, Anderson & Stowe. The deal would result in Select Medical becoming a private company. -- by Joseph Mantone