Select Medical Holdings Corporation ( SEM Quick Quote SEM - Free Report) recently unveiled plans to construct a specialty hospital in Orlando, FL. The facility will be located in the Dr. Phillips suburb of Orlando and will likely start operating in late 2024.
The specialty hospital will extend critical illness recovery and inpatient rehabilitative care to Florida’s patients with serious and intricate medical conditions. The facility also aims to cater to patients grappling with debilitating illnesses and injuries such as stroke, brain injury, spinal cord injury, to name a few.
Select Medical seems to be prudent to make the recent hospital construction plan, considering the rapidly growing demand for post-ICU and inpatient rehabilitative care throughout the Central Florida region. On top of that, the population in Florida continues to grow at a rapid pace and a considerable population of the state is above 65 years. This highlights the state’s dire need for enhanced post-acute care.
In fact, post-acute care services seem to be of immense importance as individuals, who suffer from an injury, illness, or surgery, are often in need of continuous nursing care for addressing their rehabilitation needs. Apart from getting proper treatment and medications, well-devised rehabilitative care helps patients to return to their normal daily activities.
The latest move can also be termed as an expansion initiative of Select Medical through which its presence in Orlando and broadly, across Florida, will be strengthened. Presently, SEM operates two critical illness recovery hospitals, that are licensed as long-term acute care, in Orlando. Apart from this, it also owns 11 critical illness recovery hospitals and three inpatient rehabilitation hospitals and units throughout Florida.
The Orlando hospital announcement also marks Select Medical’s sincere efforts to boost its care network and reach several U.S. regions grappling with inadequate care access. The treatment network of SEM is quite diversified in nature comprising 103 critical illness recovery hospitals, 31 rehabilitation hospitals, 1,928 outpatient rehabilitation clinics, 540 occupational health centers and 147 onsite clinics stretched across 46 states and the District of Columbia as of Dec 31, 2022.
For expanding its capabilities and care network, Select Medical also takes the help of joint ventures (JVs) with several U.S. healthcare providers. The JV enables leveraging the collective expertise of the partners to extend advanced coordinated care. SEM seems to be quite active this year with respect to the JV front.
In March 2023, Select Medical inked a JV with Lutheran Health Network of Indiana, a subsidiary of
Community Health Systems ( CYH Quick Quote CYH - Free Report) , to provide critical illness recovery and inpatient rehabilitation care services in Fort Wayne, IN. SEM inked a JV with the New Jersey-based integrated healthcare system, AtlantiCare, to build an inpatient rehabilitation hospital in Galloway Township in February. In the same month itself, the JV partnership of SEM with OhioHealth - OHRH, LLC, revealed plans to construct a center providing neuro transitional care comprising 12 beds across areas outside of central Ohio.
Shares of Select Medical have inched up 1.7% year to date against the
industry’s 11.8% decline. Image Source: Zacks Investment Research
SEM currently has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks in the
Medical space are Bio-Rad Laboratories, Inc. ( BIO Quick Quote BIO - Free Report) and Catalyst Pharmaceuticals, Inc. ( CPRX Quick Quote CPRX - Free Report) . While Bio-Rad Laboratories sports a Zacks Rank #1 (Strong Buy), Catalyst Pharmaceuticals carries a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here
Bio-Rad Laboratories’ earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 27.54%. The Zacks Consensus Estimate for BIO’s 2023 earnings indicates a rise of 10.3%, while the same for revenues suggests an improvement of 5.2% from the respective year-earlier actuals. The consensus mark for BIO’s 2023 earnings has moved 5.9% north in the past 30 days.
The bottom line of Catalyst Pharmaceuticals outpaced estimates in three of the trailing four quarters and missed the mark once, the average being 3.35%. The Zacks Consensus Estimate for CPRX’s 2023 earnings indicates a rise of 62.7%, while the same for revenues suggests an improvement of 77.6% from the respective year-earlier actuals. The consensus mark for CPRX’s 2023 earnings has moved 4.3% north in the past seven days.
Shares of Bio-Rad Laboratories have gained 11.2% year to date. However, the Catalyst Pharmaceuticals stock has lost 11.8% in the same time frame.