May 01, 2016 10:40 AM ET

Healthcare Providers and Services

Company Overview of Select Medical Corporation

Company Overview

Select Medical Corporation operates specialty hospitals and outpatient rehabilitation clinics in the United States. The company operates through three segments: Specialty Hospitals, Outpatient Rehabilitation, and Concentra. The Specialty Hospitals segment operates hospitals designed to serve the needs of long term stay acute patients; and hospitals designed to serve patients who require intensive medical rehabilitation care. It provides services to patients with specialized needs, and serious and complex medical conditions, such as respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders, and cance...

4714 Gettysburg Road

PO Box 2034

Mechanicsburg, PA 17055

United States

Founded in 1996

28,400 Employees

Phone:

717-972-1100

Key Executives for Select Medical Corporation

Chief Executive Officer, President, Chief Executive Officer of Select Medical Holdings Corporation and President of Select Medical Holdings Corporation
Age: 58
Co-Founder, Executive Chairman and Member of Compensation Committee
Age: 57
Co-Founder, Vice Chairman and Member of Compensation Committee
Age: 82
Chief Financial Officer and Executive Vice President
Age: 60
Chief Accounting Officer, Senior Vice President and Controller
Age: 54
Compensation as of Fiscal Year 2015.

Select Medical Corporation Key Developments

Select Medical Corporation Enters into Amendment to its Senior Secured Credit Facility with JPMorgan Chase Bank

On December 11, 2015, Select Medical Corporation (Select) and Select Medical Holdings Corporation (Holdings) entered into Amendment No. 6 to Select's senior secured credit facility with JPMorgan Chase Bank, N.A., as administrative agent (the Credit Agreement). The Amendment provides for the conversion of the outstanding Series D Term Loans of any lenders consenting thereto into a like principal amount of the Series E Term Loans, which has a maturity date of June 1, 2018, raises the interest rate payable on the Series E Term Loans from Adjusted LIBO plus 2.75% (subject to an Adjusted LIBO rate floor of 1.00%), or Alternate Base Rate plus 1.75%, to Adjusted LIBO plus 4.00% (subject to an Adjusted LIBO rate floor of 1.00%), or Alternate Base Rate plus 3.00% or, if there is a Ratings Event (as defined in the Credit Agreement), Adjusted LIBO plus 4.25% (subject to an Adjusted LIBO rate floor of 1.00%), or Alternate Base Rate plus 3.25%, increases the quarterly compliance threshold set in the leverage ratio financial maintenance covenant to a level of 5.75 to 1.00 from 5.00 to 1.00, increases the capacity for incremental extensions of credit to $450.0 million, amends the definition of Consolidated EBITDA to add back certain specialty hospital start-up losses and makes certain other technical amendments to the Credit Agreement. In connection with the Amendment, holders of $56.2 million principal amount of Series D Term Loans elected to convert that amount into the like principal amount of Series E Term Loans.

Select Medical Corporation Announces Amendments to Articles of Incorporation

On October 28, 2015, the board of directors Select Medical Corporation approved an amendment to the Company's Amended and Restated Bylaws (the Bylaws) to change the voting standard for uncontested director elections from a plurality standard to a majority standard and to provide for certain duties of the Lead Director of the Board. The majority voting standard raises the standard for election to the Board by requiring affirmative votes from a majority of the votes cast in an uncontested election. In connection with the majority voting standard, the Board further approved a policy requiring candidates for the Board to tender, promptly following the annual meeting at which they are elected or re-elected as a director, irrevocable resignations that will be effective upon (i) the failure to receive the required vote at the next annual meeting at which they face re-election and (ii) Board acceptance of such resignation. Under the new bylaw, in a contested election, the plurality voting standard would still apply. An election of directors will be considered contested if, as of the record date for the applicable meeting of stockholders, there are more nominees for election than positions on the Board to be filled by election at such meeting. All other elections of directors will be considered uncontested. On October 28, 2015, in addition to the amendment to the Bylaws described under Item 5.03 hereof, the Board approved the following changes in advancement of the Company's commitment to sound corporate governance: (i) creation of a Lead Director of the Board; (ii) establishment of a required holding periods for stock options and restricted stock awards for directors and executive officers; (iii) implementation of stock ownership guidelines for directors and named executive officers; (iv) adoption of a compensation recoupment policy; (v) adoption of a policy prohibiting excise tax gross-up payments in connection with a change of control in future agreements; (vi) prohibition of buy-outs of underwater stock options in the Company's equity plans; and (vii) adoption of a policy prohibiting the Company's employees from engaging in certain hedging transactions relating to the Company's common stock.

QuantiaMD Adds Select Medical Corporation to Faculty

Select Medical Corporation reported it has joined the faculty of the web and mobile physician community QuantiaMD. Select Medical joins other medical faculty on QuantiaMD including the Cleveland Clinic, Johns Hopkins University School of Medicine, The Mayo Clinic, MD Anderson Cancer Center, UPMC and others. As part of the agreement, members of the Select Medical faculty deliver a series of interactive presentations on topics specific to long-term acute care (LTAC) hospitals for the QuantiaMD community. In keeping with QuantiaMD's format, each presentation includes practical, easily applicable information and online polls that let members test their knowledge and gauge their attitudes towards the topics. In addition, presenting faculty participate in active question-and-answer sessions with the community at large. QuantiaMD membership is free to any verified U.S. based healthcare professional.

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