NovaCare Rehabilitation’s parent, Select Medical, was sold in $3.9 billion private equity deal
NovaCare has more than 100 physical therapy locations in the Philadelphia region, some of them through a partnership with Rothman Orthopaedics.
NovaCare Rehabilitation’s parent company, Select Medical Holdings Corp., was taken private in $3.9 billion private equity deal this week.
NovaCare has more than 100 physical therapy locations in the Philadelphia region, including some through a partnership with Rothman Orthopaedics.
For 25 years, NovaCare sponsored the Philadelphia Eagles practice complex in South Philadelphia. Jefferson Health took over the sponsorship this year.
Top management joined private-equity firm Welsh, Carson, Anderson & Stowe in the acquisition of Select Medical, which is based in Mechanicsburg, Pa. The sale was completed Wednesday. The price per share was $16.50 per share, an 18% premium to the latest close before the deal was announced in November.
In addition to outpatient physical therapy through NovaCare and other subsidiaries at 1,850 locations in 36 states, Select Medical operates 104 long-term acute-care hospitals in 28 states and 38 rehabilitation hospitals in 15 states. The company has more than 45,000 employees and had $5.5 billion in revenue last year.
Select Medical acquired NovaCare in 1999. Publicly traded NovaCare fell on hard times because of Medicare reimbursement changes under the federal Budget Reconciliation Act in 1997. The law capped reimbursement for speech, physical, and occupational therapy in nursing homes.
The company, then headquartered in King of Prussia, lost $700 million in annual revenue because of those changes, The Inquirer reported at the time.
