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Select Medical Holdings Corporation subsidiary partners with Virginia's Riverside Health on hospital venture

Companies will partner to operate long-term acute care hospital, rehabilitation hospital in Newport News, Select Medical says.

Beth Jones Sanborn, Managing Editor

Select Medical will be majority owner of Hampton Roads Specialty Hospital-Photo via <a href="https://www.riversideonline.com/hrsh/"> Riverside Online </a>Select Medical will be majority owner of Hampton Roads Specialty Hospital-Photo via Riverside Online

Select Medical Holdings Corporation subsidiary Select Medical Corporation will partner with Riverside Health System to operate a long-term acute care hospital and a rehabilitation hospital in Newport News, Virginia, Select Medical announced. A new freestanding inpatient rehabilitation hospital will also be constructed in the region.

As of December 31, 2016, SMHC operated 103 long term acute care hospitals and 20 rehabilitation hospitals in 27 states, as well as 1,611 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical has a joint venture with Concentra, through which 300 centers in 38 states are operated, as well as services at employer worksites and Department of Veterans Affairs community-based outpatient clinics. 

[Also: Tracking 2017 mergers and acquisitions]

The deal stipulates that Riverside Health will stay the majority owner of the 50-bed Riverside Rehabilitation Institute, while Select Medical will be majority owner of the 25-bed long-term acute care Hampton Roads Specialty Hospital, and will also serve as managing partner of both hospitals. 

When the new inpatient rehabilitation hospital opens its doors, which is scheduled for 2019, the long-term acute care hospital will relocate to Riverside Regional Medical Center. 

Riverside Health System operates five acute care hospitals, a behavioral health facility, and a freestanding physical rehabilitation hospital in Virginia. Their medical group includes more than 540 providers. The system is staffed by more than 9,850 employees throughout Virginia.    

Twitter: @BethJSanborn

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