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Select Medical (SEM) Enters JV to Boost New Jersey Healthcare
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Select Medical Holdings Corporation (SEM - Free Report) entered a joint venture (JV) with the New Jersey-based integrated healthcare system, AtlantiCare. The agreement involves the construction of an inpatient rehabilitation hospital in Galloway Township.
While the construction of the hospital is likely to start in 2023, subject to state approvals, the same is expected to commence operations in 2024 or 2025. The facility formed as a result of the JV, named Bacharach Institute for Rehabilitation, will be furnished with innovative rehabilitative technologies to cure patients suffering from debilitating illnesses and injuries.
The JV with AtlantiCare also encompasses joint management of operations of the 13 outpatient physical therapy centers situated in the southeastern region of New Jersey that form part of Select Medical’s NovaCare Rehabilitation brand. SEM will assume the role of the majority owner and managing partner of the newly planned facility as well as 13 outpatient physical therapy centers.
With the latest JV, the keen interest of Select Medical in addressing the rising and evolving needs of inpatient and outpatient rehabilitative care across New Jersey is clearly reflected. Catering effectively to post-acute care requirements will instill patients’ trust on SEM, which, in turn, is expected to strengthen its foothold in the state.
Select Medical often resorts to JVs with several U.S. healthcare providers through which it utilizes the collective expertise to extend advanced coordinated care across communities grappling with inadequate access to care.
In the same month of the JV announcement with AtlantiCare, Select Medical announced another expansion initiative that it plans to pursue through its JV partnership with OhioHealth. The partners plan to construct a center comprising 12 beds and provide neuro transitional care across areas outside of central Ohio.
Expansion initiatives similar to the latest one are likely to increase the rehabilitation hospital count of Select Medical, which stands at 31 as of Dec 31, 2022. Apart from inpatient rehabilitation hospitals, SEM’s care network comprises critical illness recovery hospitals and outpatient rehabilitation clinics of 103 and 1,928, respectively, across 39 states and the District of Columbia.
Shares of Select Medical have gained 20.7% in a year compared with the industry’s 3.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Select Medical currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Medical space are Edwards Lifesciences Corporation (EW - Free Report) , Novo Nordisk A/S (NVO - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) . While Novo Nordisk sports a Zacks Rank #1 (Strong Buy), Edwards Lifesciences and Thermo Fisher carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences’ earnings surpassed estimates in two of the last four quarters, matched the mark once and missed the same on the remaining occasion, the average surprise being 1.69%. The Zacks Consensus Estimate for EW’s 2023 earnings indicates a rise of 1.6% from the year-earlier actual, while the same for revenues suggests an improvement of 8.8%. The consensus mark for EW’s 2023 earnings has moved 1.2% north in the past 30 days.
The bottom line of Novo Nordisk outpaced estimates in three of the trailing four quarters and missed the mark once, the average being 3%. The Zacks Consensus Estimate for NVO’s 2023 earnings indicates a rise of 21.4% from the year-earlier actuals, while the same for revenues suggests an improvement of 9.8%. The consensus mark for NVO’s 2023 earnings has moved 1.2% north in the past 30 days.
Thermo Fisher’s earnings surpassed estimates in each of the last four quarters, the average beat being 9.96%. The Zacks Consensus Estimate for TMO’s 2023 earnings indicates a rise of 1.4% from the year-earlier actual, while the same for revenues suggests an improvement of 1%. TMO boasts an impressive Value Score of B.
Shares of Novo Nordisk and Thermo Fisher have gained 38.6% and 3.9%, respectively, in a year. However, the Edward Lifesciences stock has lost 30.8% in the same time frame.
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Select Medical (SEM) Enters JV to Boost New Jersey Healthcare
Select Medical Holdings Corporation (SEM - Free Report) entered a joint venture (JV) with the New Jersey-based integrated healthcare system, AtlantiCare. The agreement involves the construction of an inpatient rehabilitation hospital in Galloway Township.
While the construction of the hospital is likely to start in 2023, subject to state approvals, the same is expected to commence operations in 2024 or 2025. The facility formed as a result of the JV, named Bacharach Institute for Rehabilitation, will be furnished with innovative rehabilitative technologies to cure patients suffering from debilitating illnesses and injuries.
The JV with AtlantiCare also encompasses joint management of operations of the 13 outpatient physical therapy centers situated in the southeastern region of New Jersey that form part of Select Medical’s NovaCare Rehabilitation brand. SEM will assume the role of the majority owner and managing partner of the newly planned facility as well as 13 outpatient physical therapy centers.
With the latest JV, the keen interest of Select Medical in addressing the rising and evolving needs of inpatient and outpatient rehabilitative care across New Jersey is clearly reflected. Catering effectively to post-acute care requirements will instill patients’ trust on SEM, which, in turn, is expected to strengthen its foothold in the state.
Select Medical often resorts to JVs with several U.S. healthcare providers through which it utilizes the collective expertise to extend advanced coordinated care across communities grappling with inadequate access to care.
In the same month of the JV announcement with AtlantiCare, Select Medical announced another expansion initiative that it plans to pursue through its JV partnership with OhioHealth. The partners plan to construct a center comprising 12 beds and provide neuro transitional care across areas outside of central Ohio.
Expansion initiatives similar to the latest one are likely to increase the rehabilitation hospital count of Select Medical, which stands at 31 as of Dec 31, 2022. Apart from inpatient rehabilitation hospitals, SEM’s care network comprises critical illness recovery hospitals and outpatient rehabilitation clinics of 103 and 1,928, respectively, across 39 states and the District of Columbia.
Shares of Select Medical have gained 20.7% in a year compared with the industry’s 3.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Select Medical currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Medical space are Edwards Lifesciences Corporation (EW - Free Report) , Novo Nordisk A/S (NVO - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) . While Novo Nordisk sports a Zacks Rank #1 (Strong Buy), Edwards Lifesciences and Thermo Fisher carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences’ earnings surpassed estimates in two of the last four quarters, matched the mark once and missed the same on the remaining occasion, the average surprise being 1.69%. The Zacks Consensus Estimate for EW’s 2023 earnings indicates a rise of 1.6% from the year-earlier actual, while the same for revenues suggests an improvement of 8.8%. The consensus mark for EW’s 2023 earnings has moved 1.2% north in the past 30 days.
The bottom line of Novo Nordisk outpaced estimates in three of the trailing four quarters and missed the mark once, the average being 3%. The Zacks Consensus Estimate for NVO’s 2023 earnings indicates a rise of 21.4% from the year-earlier actuals, while the same for revenues suggests an improvement of 9.8%. The consensus mark for NVO’s 2023 earnings has moved 1.2% north in the past 30 days.
Thermo Fisher’s earnings surpassed estimates in each of the last four quarters, the average beat being 9.96%. The Zacks Consensus Estimate for TMO’s 2023 earnings indicates a rise of 1.4% from the year-earlier actual, while the same for revenues suggests an improvement of 1%. TMO boasts an impressive Value Score of B.
Shares of Novo Nordisk and Thermo Fisher have gained 38.6% and 3.9%, respectively, in a year. However, the Edward Lifesciences stock has lost 30.8% in the same time frame.