SELECT MEDICAL HOLDINGS CORPSEM
SELECT MEDICAL HOLDINGS CORP Segments Disclosure
Segment Information
_______________________________________________________________________________
The Company identifies its segments according to how the chief operating decision maker evaluates financial performance and allocates resources. The Company’s reportable segments consist of the critical illness recovery hospital segment, rehabilitation hospital segment, and outpatient rehabilitation segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Other activities include the Company’s corporate shared services, certain investments, and employee leasing services provided to related parties affiliated through the Company’s equity method investments.
The Company’s chief operating decision maker is its Executive Chairman. The chief operating decision maker uses Adjusted EBITDA in the annual budgeting and forecasting process. The chief operating decision maker considers budget-to-actual variances when making decisions about the allocation of operating and capital resources to each segment. The chief operating decision maker also uses segment Adjusted EBITDA to assess the performance of each segment by comparing the results of each segment to one another and to each segment’s budget. Adjusted EBITDA is defined as earnings from continuing operations excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries. The Company has provided additional information regarding its reportable segments, such as total assets, which contributes to the understanding of the Company and provides useful information to the users of the consolidated financial statements.
The following tables summarize selected financial data for the Company’s reportable segments.
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Critical Illness Recovery Hospital | Rehabilitation Hospital | Outpatient Rehabilitation | Other | Total | |||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Revenue | $ | 2,299,773 | $ | 979,585 | $ | 1,188,914 | $ | 357,705 | $ | 4,825,977 | |||||||||||||||||||
| Personnel expense | 1,326,448 | 554,899 | 825,907 | ||||||||||||||||||||||||||
Other segment items (1) | 727,310 | 202,811 | 251,139 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 246,015 | 221,875 | 111,868 | ||||||||||||||||||||||||||
| Total assets | 2,496,886 | 1,233,888 | 1,380,447 | 248,204 | 5,359,425 | ||||||||||||||||||||||||
| Capital expenditures | 93,036 | 21,922 | 38,776 | 6,126 | 159,860 | ||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Critical Illness Recovery Hospital | Rehabilitation Hospital | Outpatient Rehabilitation | Other | Total | |||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Revenue | $ | 2,444,196 | $ | 1,110,592 | $ | 1,250,294 | $ | 382,023 | $ | 5,187,105 | |||||||||||||||||||
| Personnel expense | 1,376,917 | 629,149 | 888,290 | ||||||||||||||||||||||||||
Other segment items (1) | 765,645 | 235,695 | 253,427 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 301,634 | 245,748 | 108,577 | ||||||||||||||||||||||||||
| Total assets | 2,654,474 | 1,366,922 | 1,404,379 | 182,176 | 5,607,951 | ||||||||||||||||||||||||
| Capital expenditures | 65,861 | 53,620 | 36,142 | 3,285 | 158,908 | ||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Critical Illness Recovery Hospital | Rehabilitation Hospitals | Outpatient Rehabilitation | Other | Total | |||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Revenue | $ | 2,477,814 | $ | 1,288,954 | $ | 1,284,873 | $ | 401,189 | $ | 5,452,830 | |||||||||||||||||||
| Personnel Expense | 1,404,061 | 722,897 | 931,702 | ||||||||||||||||||||||||||
Other segment items (1) | 808,306 | 287,435 | 263,008 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 265,447 | 278,622 | 90,163 | ||||||||||||||||||||||||||
| Total assets | 2,669,940 | 1,602,879 | 1,399,975 | 178,795 | 5,851,589 | ||||||||||||||||||||||||
| Capital expenditures | 76,412 | 112,550 | 37,250 | 3,013 | 229,225 | ||||||||||||||||||||||||
(1) Other segment items consist of facilities expense, other operating expenses, and other operating income.
A reconciliation of Adjusted EBITDA to income from continuing operations before income taxes is as follows:
| For the Year Ended December 31, | ||||||||||||||||||||
| 2023 | 2024 | 2025 | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Adjusted EBITDA - Critical Illness Recovery Hospital Segment | $ | 246,015 | $ | 301,634 | $ | 265,447 | ||||||||||||||
| Adjusted EBITDA - Rehabilitation Hospital Segment | 221,875 | 245,748 | 278,622 | |||||||||||||||||
| Adjusted EBITDA - Outpatient Rehabilitation Segment | 111,868 | 108,577 | 90,163 | |||||||||||||||||
| Other revenue | 357,705 | 382,023 | 401,189 | |||||||||||||||||
Other cost of services (1) | (357,705) | (382,023) | (401,189) | |||||||||||||||||
Other general and administrative expenses (1) | (134,153) | (145,939) | (141,129) | |||||||||||||||||
| Other operating income | 486 | 375 | 72 | |||||||||||||||||
| Depreciation and amortization | (135,691) | (142,866) | (140,303) | |||||||||||||||||
| Stock compensation expense | (43,158) | (99,214) | (16,702) | |||||||||||||||||
| Loss on early retirement of debt | (14,692) | (28,845) | — | |||||||||||||||||
| Equity in earnings of unconsolidated subsidiaries | 41,339 | 63,904 | 54,521 | |||||||||||||||||
| Interest expense | (154,165) | (128,605) | (117,942) | |||||||||||||||||
| Income from continuing operations before income taxes | $ | 139,724 | $ | 174,769 | $ | 272,749 | ||||||||||||||
_______________________________________________________________________________
(1) Exclusive of depreciation, amortization, and stock compensation expense.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.