Select Medical Expands Presence in Tennessee With Ballad Health Deal

Select Medical Holdings Corporation SEM recently inked a membership interest purchase agreement with an integrated community health improvement organization, Ballad Health. As part of the deal, SEM will jointly operate a Kingsport, TN-based critical illness recovery hospital licensed as long-term acute care, Select Specialty Hospital – Tri-Cities. 

Select Medical will assume the role of majority owner and managing partner in the joint venture hospital, equipped with 46 beds. The facility is currently owned and operated by Select Medical at Ballad Health’s Bristol Regional Medical Center but will be relocated to Indian Path Community Hospital following the necessary regulatory approvals.

The partnership with Ballad Health and the move to a more centralized and expanded facility in Kingsport aims to enhance care delivery, broaden access and meet the growing demand for specialized recovery services in the Tri-Cities region. SEM boasts an impressive history of offering post-intensive care recovery services across the region for nearly three decades through the current Tri-Cities location in Bristol.

Benefits of the Recent Move to Select Medical

The recent initiative marks a significant investment on the part of Select Medical in boosting the accessibility of long-term acute care services across Tennessee and treating more patients grappling with serious illness. In addition to the Tri-Cities facility, SEM operates six other critical illness recovery hospitals in the state, located in Jackson, Knoxville, Memphis, Nashville and Powell. 

Expansion initiatives similar to the latest one are likely to provide an opportunity for SEM to more effectively cater to an increasing patient base at its facilities and earn more revenues. Patient volumes remain the most significant top-line contributor for any healthcare facility operator like Select Medical. As of March 31, 2025, SEM operated a total of 104 critical illness recovery hospitals across 29 states, along with 35 rehabilitation hospitals located in 14 states. Additionally, the company managed 1,911 outpatient rehabilitation clinics spread throughout 39 states and the District of Columbia.

Select Medical often resorts to joint ventures with several U.S. healthcare providers through which it utilizes the collective expertise to extend advanced coordinated care across communities grappling with inadequate access to care.

SEM’s Share Price Performance & Zacks Rank

Shares of Select Medical have gained 0.9% in the past month compared with the industry’s 1.8% growth. SEM currently carries a Zacks Rank #3 (Hold).  

Stocks to Consider

Some better-ranked stocks in the Medical space are BioCryst Pharmaceuticals, Inc. BCRX, Encompass Health Corporation EHC and Pediatrix Medical Group, Inc. MD. While BioCryst Pharmaceuticals sports a Zacks Rank #1 (Strong Buy), Encompass Health and Pediatrix Medical carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BioCryst Pharmaceuticals’ earnings surpassed estimates in two of the last four quarters, matched the mark once and missed the same on the remaining occasion, the average surprise being 12.94%. The Zacks Consensus Estimate for BCRX’s 2025 earnings is pegged at 18 cents per share. A loss of 42 cents per share was incurred in the prior year. The consensus mark for revenues implies an improvement of 34.9% from the year-earlier actual. The consensus mark for BCRX’s 2025 earnings has moved 12.5% north in the past seven days. 

The bottom line of Encompass Health outpaced estimates in each of the trailing four quarters, the average surprise being 12.33%. The Zacks Consensus Estimate for EHC’s 2025 earnings indicates a rise of 13.1%, while the same for revenues implies an improvement of 9.5% from the respective year-earlier actuals. The consensus mark for EHC’s 2025 earnings has moved 0.8% north in the past 60 days.

Pediatrix Medical’s earnings surpassed estimates in each of the last four quarters, the average beat being 24.61%. The Zacks Consensus Estimate for MD’s 2025 earnings indicates a rise of 9.3% from the year-earlier actual. The consensus mark for MD’s 2025 earnings has moved 2.5% north in the past 30 days.

Shares of Encompass Health and Pediatrix Medical have gained 0.6% and 4.5%, respectively, in the past month. However, BioCryst Pharmaceuticals has lost 15.1% in the same time frame.  

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This article originally published on Zacks Investment Research (zacks.com).

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