Select Medical, one of the country's largest rehabilitation providers, got a leg-up in its second quarter 2018 earnings from merging its occupational health and urgent care business with Dignity Health's subsidiary.
The Mechanicsburg, Pa.-based company's operating revenues jumped nearly 18% to $1.3 billion during the second quarter, which ended June 30, compared with $1.1 billion in the second quarter of 2017. Net income spiked 18% to nearly $61 million during the quarter, compared with about $51 million during the same quarter in 2017.
Meanwhile, Select's joint venture, Concentra, saw its operating revenues jump by a whopping 60.7% during the quarter to $413 million, compared with $257 million during the second quarter of 2017. That included a $139 million infusion from U.S. HealthWorks, Dignity's urgent care and occupational medicine subsidiary, which merged with Concentra effective Feb. 1. Dignity owns a 20% equity interest in the combined entity.
The company's rehabilitation hospital segment also saw healthy operating revenue growth of nearly 15% during the quarter, due in part to a 19% uptick in admissions.
Select's critical illness recovery hospital segment, formerly known as long-term acute care hospitals, saw revenue growth of less than 1%, and its adjusted earnings before interest, taxes, depreciation and amortization margin fell to 13.7% from 17% during the second quarter of 2017.
Select's overall adjusted EBITDA increased 12% to $178.2 million during the quarter, compared with $157.7 million during the same period in 2017.
Select, which does business in 47 states plus Washington, D.C., operated 98 critical illness recovery hospitals, 26 rehabilitation hospitals and 1,638 outpatient rehabilitation clinics as of June 30. Concentra operated 527 facilities as of that date, compared with 315 during the second quarter of 2017.
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