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SEM Expands Rehab Footprint With New Virginia Hospital Joint Venture
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Key Takeaways
SEM and Carilion Clinic will build a 50-bed rehab hospital in Roanoke, VA, by spring or summer 2028.
SEM's Rehabilitation Hospital segment revenues rose 14.5% year over year to $351.9 million in Q1 2026.
SEM operated 41 rehab hospitals, 103 recovery hospitals and 1,912 outpatient clinics as of March 31.
Select Medical Holdings Corporation (SEM - Free Report) has finalized a joint venture partnership with Carilion Clinic, a not-for-profit healthcare organization, to construct and manage a new 50-bed inpatient rehabilitation hospital in Roanoke, VA. Under the terms of the agreement, Select Medical will serve as the majority owner and operator of the new facility, named Carilion Rehabilitation Hospital.
Located on 9th Street SE in Roanoke, the new facility is expected to begin construction in spring 2026 and open by spring or summer 2028. Once operational, the state-of-the-art hospital will replace Carilion Roanoke Community Hospital’s existing 34-bed acute rehabilitation unit.
The project is intended to address growing demand for inpatient rehabilitation services across Virginia’s Blue Ridge region, focusing on treatments that help patients regain mobility, function, and independence after major medical conditions, such as stroke, traumatic brain injury, spinal cord injury and other neurological disorders.
The expansion comes at a time when Select Medical’s Rehabilitation Hospital segment continues to deliver solid growth. In first-quarter 2026, segment revenues increased 14.5% year over year to $351.9 million, standing out as a primary growth driver despite broader margin pressure.
As of March 31, 2026, the company's robust platform included 41 rehabilitation hospitals across 15 states, alongside 103 critical illness recovery hospitals and 1,912 outpatient rehabilitation clinics.
This partnership strengthens SEM’s presence in an attractive regional market while leveraging its operational expertise to expand capacity and patient access. The strategic move perfectly reflects its ongoing focus on collaborating with regional healthcare systems to scale its inpatient rehabilitation business.
SEM’s Stock Price Performance
Shares of Select Medical have gained 18.1% over the past six months compared with the industry’s 19.8% growth.
The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.64 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.05 billion, implying 16.6% year-over-year growth.
The Zacks Consensus Estimate for Joint’s 2026 earnings is pegged at 51 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. JYNT beat earnings estimates in each of the trailing four quarters, with the average surprise being 125.2%. The consensus estimate for 2026 revenues is pinned at $61.11 million, implying 11.3% year-over-year growth.
The Zacks Consensus Estimate for LifeStance Health’s 2026 earnings is pegged at 12 cents per share, which has witnessed three upward revisions in the past 30 days, with no movement in the opposite direction. LFST beat earnings estimates in each of the trailing four quarters, with the average surprise being 155.6%. The consensus estimate for 2026 revenues is pinned at $1.65 billion, implying 16.1% year-over-year growth.
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SEM Expands Rehab Footprint With New Virginia Hospital Joint Venture
Key Takeaways
Select Medical Holdings Corporation (SEM - Free Report) has finalized a joint venture partnership with Carilion Clinic, a not-for-profit healthcare organization, to construct and manage a new 50-bed inpatient rehabilitation hospital in Roanoke, VA. Under the terms of the agreement, Select Medical will serve as the majority owner and operator of the new facility, named Carilion Rehabilitation Hospital.
Located on 9th Street SE in Roanoke, the new facility is expected to begin construction in spring 2026 and open by spring or summer 2028. Once operational, the state-of-the-art hospital will replace Carilion Roanoke Community Hospital’s existing 34-bed acute rehabilitation unit.
The project is intended to address growing demand for inpatient rehabilitation services across Virginia’s Blue Ridge region, focusing on treatments that help patients regain mobility, function, and independence after major medical conditions, such as stroke, traumatic brain injury, spinal cord injury and other neurological disorders.
The expansion comes at a time when Select Medical’s Rehabilitation Hospital segment continues to deliver solid growth. In first-quarter 2026, segment revenues increased 14.5% year over year to $351.9 million, standing out as a primary growth driver despite broader margin pressure.
As of March 31, 2026, the company's robust platform included 41 rehabilitation hospitals across 15 states, alongside 103 critical illness recovery hospitals and 1,912 outpatient rehabilitation clinics.
This partnership strengthens SEM’s presence in an attractive regional market while leveraging its operational expertise to expand capacity and patient access. The strategic move perfectly reflects its ongoing focus on collaborating with regional healthcare systems to scale its inpatient rehabilitation business.
SEM’s Stock Price Performance
Shares of Select Medical have gained 18.1% over the past six months compared with the industry’s 19.8% growth.
Image Source: Zacks Investment Research
SEM’s Zacks Rank & Key Picks
SEM currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are BrightSpring Health Services, Inc. (BTSG - Free Report) , The Joint Corp. (JYNT - Free Report) and LifeStance Health Group, Inc. (LFST - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.64 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.05 billion, implying 16.6% year-over-year growth.
The Zacks Consensus Estimate for Joint’s 2026 earnings is pegged at 51 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. JYNT beat earnings estimates in each of the trailing four quarters, with the average surprise being 125.2%. The consensus estimate for 2026 revenues is pinned at $61.11 million, implying 11.3% year-over-year growth.
The Zacks Consensus Estimate for LifeStance Health’s 2026 earnings is pegged at 12 cents per share, which has witnessed three upward revisions in the past 30 days, with no movement in the opposite direction. LFST beat earnings estimates in each of the trailing four quarters, with the average surprise being 155.6%. The consensus estimate for 2026 revenues is pinned at $1.65 billion, implying 16.1% year-over-year growth.