Select Medical (NYSE:SEM) Holdings Corporation (NYSE:SEM), a leading operator of specialty hospitals, announced a change in its board of directors. Rocco A. Ortenzio, who has served as a director of the company, resigned effective today. His departure was not due to any disagreement with the company.
To fill the vacancy, the board appointed David S. Chernow, the current Chief Executive Officer of Select Medical, as a director effective today. Chernow will serve on the board until the 2027 Annual Meeting of Stockholders, where he will stand for election along with other nominees.
This transition comes without any underlying disputes or disagreements and does not involve any changes to Chernow's existing compensation as CEO. The company, in its filing with the Securities and Exchange Commission, confirmed that there are no related party transactions involving Chernow that would require disclosure.
Select Medical's corporate governance continues to evolve with these changes, maintaining its commitment to leadership stability and strategic oversight. The announcement, based on a press release statement, did not suggest any immediate operational changes for the company.
In other recent news, Select Medical Holdings Corporation has seen significant developments. The company successfully completed the initial public offering (IPO) of its subsidiary, Concentra Group Holdings Parent, Inc., raising approximately $499.7 million. Select Medical retained an 82.23% ownership stake in Concentra post-IPO. Concurrently, Concentra established a $1.25 billion credit agreement and launched a $750 million senior notes offering, as part of a broader plan to separate Concentra from Select Medical.
Select Medical reported strong first-quarter results, with a 22% increase in adjusted EBITDA and a 7% rise in revenue year-over-year. Benchmark and RBC Capital responded positively to the company's performance, leading to raised price targets.
Benchmark increased its price target for Select Medical shares to $48, maintaining a Buy rating. The firm's analysis suggested that the IPO's impact on Select Medical's market valuation was positive. RBC Capital also raised its target to $40, maintaining an Outperform rating. These recent developments reflect Select Medical's strategic management and resilience in the healthcare industry.
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