Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

In connection with the separation and distribution of Concentra’s common stock, the Company and Concentra entered into several agreements to provide a framework of our ongoing relationship with Concentra, including a transition services agreement (“TSA”), a separation agreement, a tax matters agreement and an employee matters agreement. The services under the TSA generally are a continuation of the support services provided by Select to Concentra prior to the IPO. The fee for support services provided to Concentra was $1.2 million and $12.1 million for the years ended December 31, 2024 and 2025, respectively. The income from the support services fees, as well as the cost to provide these services, are included within General and Administrative expense on the Consolidated Statements of Operations. The provision of services under the TSA will terminate no later than November 25, 2026.

Certain key selected financial information included in Income from discontinued operations, net of tax, for Concentra is as follows:


	For the Year Ended December 31,
	2023		2024
Revenue	$	1,838,081	$	1,738,411
Costs and expenses:
Cost of services, exclusive of depreciation and amortization	1,477,648		1,374,783
General and administrative	—		1,620
Depreciation and amortization	73,051		61,028
Total costs and expenses	1,550,699		1,437,431
Other operating income	250		284
Income from operations	287,632		301,264
Other income and expense:

Equity in earnings of unconsolidated subsidiaries	(526)		(3,676)


Interest expense(1)	(44,474)		(59,513)
Income from discontinued operations before income taxes	242,632		238,075
Income tax expense	53,372		56,756
Income from discontinued operations, net of tax	189,260		181,319
Less: Net income attributable to non-controlling interests	4,796		18,152
Income from discontinued operations, net of tax, attributable to Select Medical Holdings Corporation’s common stockholders	$	184,464	$	163,167

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(1) For the years ended December 31, 2023 and 2024, interest expense includes allocated interest expense of $44.3 million and $22.0 million, respectively. Interest was allocated in accordance with the terms of an intercompany promissory note in place between the Company and Concentra prior to the separation.

The following is selected financial information included on the Consolidated Statements of Cash Flows for Concentra:


	For the Year Ended December 31,
	2023		2024
Depreciation and amortization	73,051		61,028
Cash flows from investing activities:
Purchases of property, equipment, and other assets	$	69,340	$	63,269

Acquisitions

During the year ended December 31, 2023, the Company made acquisitions consisting of critical illness recovery hospital, rehabilitation hospital, and outpatient rehabilitation businesses. The consideration given for these acquired businesses consisted principally of $23.6 million of cash and the issuance of $9.0 million of non-controlling interests. The Company allocated the purchase price of these acquired businesses to assets acquired and liabilities assumed, principally property and equipment and operating lease right-of-use assets and lease liabilities, based on their estimated fair values. The Company recognized goodwill of $6.6 million, $16.2 million, and $2.3 million in our critical illness recovery hospital, rehabilitation hospital, and outpatient rehabilitation reporting units, respectively.

During the year ended December 31, 2024, the Company made acquisitions consisting of critical illness recovery hospital, rehabilitation hospital, and outpatient rehabilitation businesses. The consideration given for these acquired businesses consisted of $12.1 million of cash, $20.3 million of previously held equity interests, and $24.5 million for the issuance of non-controlling interests. The Company allocated the purchase price of these acquired businesses to assets acquired and liabilities assumed, principally property and equipment and operating lease right-of-use assets and lease liabilities, based on their estimated fair values. The Company recognized goodwill of $8.0 million, $38.4 million, and $1.7 million in our critical illness recovery hospital, rehabilitation hospital, and outpatient rehabilitation reporting units, respectively.

During the year ended December 31, 2025, the Company made acquisitions consisting of critical illness recovery hospital, rehabilitation hospital, and outpatient rehabilitation businesses. The consideration given for these acquired businesses consisted of $9.2 million of cash and $20.1 million for the issuance of non-controlling interests. The Company allocated the purchase price of these acquired businesses to assets acquired and liabilities assumed, principally property and equipment and operating lease right-of-use assets and lease liabilities, based on their estimated fair values. The Company recognized goodwill of $7.8 million, $20.5 million, and $0.8 million in our critical illness recovery hospital, rehabilitation hospital, and outpatient rehabilitation reporting units, respectively