Yahoo Finance Select Medical (SEM) Plans 3rd Hospital in Central Pennsylvania
Select Medical Holdings Corporation SEM recently announced plans to collaborate with Pittsburgh-based healthcare provider UPMC to inaugurate a freestanding inpatient rehabilitation hospital in Central Pennsylvania. The hospital will house 35 private rooms and advanced rehabilitation equipment.
Shares of Select Medical lost 3.2% on Oct 7, replicating a decline in the broader market.
While the planned hospital is most likely to commence operations in 2023, Select Medical seems to complete the project on a war-footing note so that the local community can avail a credible suite of services. To this end, SEM will restore one of the buildings already standing tall on the West Shore Campus of UPMC instead of constructing a new building for the facility.
Select Medical seems prudent to pick up a property on the UPMC’s West Shore Campus to run the new hospital. The reason can be attributed to the fact that the entire Central Pennsylvania region — the West shore in particular — continues to witness solid demand for inpatient rehabilitative care. Therefore, the prevailing situation provides SEM with the perfect ground to gain from extending its post-acute care services and offering improved health outcomes to patients grappling with chronic health issues.
The latest announcement of the hospital, which will be the third inpatient rehabilitation center in Central Pennsylvania, reflects Select Medical’s endeavor to strengthen its post-acute care presence throughout the region. The two other such hospitals run by SEM, taking the help of joint venture partnerships in Central Pennsylvania, include those of Helen M. Simpson and Penn State Health Rehabilitation Hospital.
UPMC seems the apt partner choice for Select Medical in operating the newly-planned hospital. The reason can be attributed to UPMC’s expansive presence across Central Pennsylvania, which will help SEM gain an insightful understanding of the needs of regional inhabitants. Also, the move can be identified as a means to further cement SEM’s ties with UPMC. Notably, the former already partners the latter in helming the 2006-founded Helen M. Simpson hospital as well, bearing a testimony to their strong relationship.
Select Medical often resorted to acquisitions or joint ventures, with an underlying motive to bolster its capabilities and widen its scope of operations to fortify its U.S. footprint.
Needless to say, the rehabilitation hospital count of Select Medical, currently standing at 31, will also receive a boost with such strategic moves. Subsequently, similar actions are expected to drive the concerned segment’s revenues.
Additionally, SEM’s care network comprises critical illness recovery hospitals and outpatient rehabilitation clinics of 105 and 1,920, respectively, across 38 states and the District of Columbia, as of Jun 30, 2022.
Shares of Select Medical have lost 3.9% in the past six months compared with the industry’s decline of 4.1%.
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Zacks Rank & Key Picks
Select Medical currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Medical space are Assertio Holdings, Inc. ASRT, Amphastar Pharmaceuticals, Inc. AMPH and Senseonics Holdings, Inc. SENS. While Amphastar Pharmaceuticals flaunts a Zacks Rank #1 (Strong Buy), Assertio and Senseonics carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Assertio’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 126.39%. The Zacks Consensus Estimate for ASRT’s 2022 earnings is pegged at 51 cents per share. The year-ago reported figure was a loss of 3 cents per share. The consensus mark for ASRT’s 2022 earnings has moved 27.5% north in the past 60 days.
The bottom line of Amphastar Pharmaceuticals outpaced estimates in each of the trailing four quarters, the average being 41.86%. The Zacks Consensus Estimate for AMPH’s 2022 earnings indicates a rise of 24.1%, while the same for revenues suggests an improvement of 16.3% from the respective year-earlier actuals. The consensus mark for AMPH’s 2022 earnings has moved 2.4% north in the past 60 days.
Senseonics’ earnings surpassed estimates in three of the last four quarters and matched the mark once, the average beat being 53.87%. The Zacks Consensus Estimate for SENS’s 2022 earnings is pegged at 31 cents per share. The year-ago reported figure was a loss of 72 cents per share. The consensus mark for SENS's 2022 earnings has moved 416.7% north in the past 60 days.
Shares of Assertio, Amphastar Pharmaceuticals and Senseonics have lost 31.2%, 30.9% and 29.7%, respectively, in the past six months.
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