On this page of StockholderLetter.com we present the latest annual shareholder letter from SELECT MEDICAL HOLDINGS CORP — ticker symbol SEM. Reading current and past SEM letters to shareholders can bring important insights into the investment thesis.

 •  3/5/2025 Letter Continued (Full PDF)
 •  3/3/2023 SEM Stockholder Letter
 •  3/4/2024 SEM Stockholder Letter
 •  More "Hospital & Medical Practitioners" Category Stockholder Letters
 •  SEM Benford's Law Stock Score = 99

SEM Shareholder/Stockholder Letter Transcript:

SELECT MEDICAL HOLDINGS CORP ORATION
Re   ecting on a Trailblazer
FORGING NEW PATHS
2 0 24
A N N U A L
R E P O R T

ROCCO A. ORTENZIO
Select Medical Co-Founder and Chairman Emeritus
Rocco    Rocky    A. Ortenzio, a pioneer in physical therapy,
passed away on October 26, 2024. He was 91.
A roll-up-your sleeves visionary,
Rocky started in private practice
as a physical therapist in
Harrisburg, PA after receiving
his graduate degree in physical
therapy from the University of
Pennsylvania. Combining his
clinical expertise and business
acumen, he then went on to
establish four separate health
care companies in Central
Pennsylvania over the span
of his six-decade career.
2009
2011
2013
2017
2017
Rocky   s    rst company, Rehab
Corporation, was established
in 1969. In 1979, he founded
Rehab Hospital Services
constructing and operating
a chain of community-based
rehabilitation hospitals. In 1986,
Rocky co-founded Continental
Medical Systems. In 1996, he
co-founded his longest standing
venture, Select Medical, where he
was instrumental in guiding the
company   s success for 28 years.
Rocky   s leadership, dedication
and generosity touched the lives
of many, both within and outside
of business. With philanthropy
as a major part of Rocky   s life,
he and his wife Nancy created
the Rocco and Nancy Ortenzio
Foundation for the bene   t of
health care and education institutions primarily in the Central
Pennsylvania region. Some of the
2
SELECT MEDICAL
2017
Foundation   s many contributions
include: Ortenzio Heart Center
at Penn State Holy Spirit Medical
Center, Ortenzio Cancer Center
at UPMC Pinnacle, Rocco
Ortenzio Chair of Physical
Medicine and Rehabilitation
at Penn State Health Milton S.
Hershey Medical Center and
the Ortenzio Learning Center at
Harrisburg University of Science
and Technology.
Rocky is deeply missed, but
his legacy of leadership and
excellence carries forward.
2021
2021
2021
IMPROVING QUALITY OF LIFE

WORLD-CLASS JOINT VENTURE
PARTNERSHIPS & ACQUISITIONS
1999
At Select Medical, we know the power of combining forces to
elevate and advance health care across the country. Throughout
the company   s history, it has successfully executed against a growth
strategy of joint ventures and acquisitions to deliver world-class
post-acute care to the patients, families and communities it serves.
2003
2007
2014
2014
2010
2014
2014
2013
2016
2016
2015
2018
2018
2019
2020
2021
2021
2021
2021
2021
2023
2021
2024
2024
2021
2022
2023
2024
2024
ANNUAL REPORT
3

DEAR SHAREHOLDER
This has been a year of change, balancing strong growth within our joint venture
partnerships with industry regulatory changes that impact our lines of business.
Additionally, we faced the heartbreaking loss of our beloved co-founder and
chairman emeritus, Rocco A. Ortenzio.
In July, the company completed the initial public
offering of wholly-owned subsidiary Concentra
Group Holdings Parent, Inc. (NYSE: CON), followed
by the spin-off to shareholders in November. These
successful transactions helped Select Medical
reduce its debt and maximize shareholder value.
SUCCESSFUL SPIN-OFF OF
CONCENTRA
On the growth front, new and expanded joint
venture partnerships increased Select Medical   s
footprint across specialty hospitals with AtlantiCare,
Banner Health, Cleveland Clinic, CoxHealth,
Lutheran Health Network, OhioHealth, Riverside
Health, RUSH Health, SSM Health, UF Health
and UPMC/Pinnacle. We also opened two neuro
transitional centers with joint venture partners
Baylor Scott & White Health and OhioHealth.
Additionally, three acute rehabilitation units
opened as part of expansions within our critical
illness recovery hospitals in Chicago, Pensacola, FL
and Spring   eld, MO with more planned in 2025.
Our inpatient rehabilitation hospitals experienced
another standout year related to clinical excellence.
Six hospitals in 12 locations were recognized among
the country   s    Best Rehabilitation Hospitals,   
4
SELECT MEDICAL
6 HOSPITALS 12 LOCATIONS
RANKED    THE BEST IN REHAB   
according to U.S. News & World Report   s annual
rankings for 2024-2025. Additionally, Newsweek
named 11 of our inpatient rehabilitation hospitals
in 20 locations to the 2024 list of    America   s Best
Physical Rehab Centers.   
With more than 6,750 critical illness recovery
and inpatient rehabilitation beds across the
country, Select Medical was able to care for
more than 82,670 patients in our specialty
hospitals throughout 2024.
11
NEW AND EXPANDED
JOINT VENTURE PARTNERSHIPS
The Outpatient Rehabilitation Division completed
eight acquisitions and launched 23 start-ups reinforcing the company   s strong market position across
the U.S. Additionally, the division continued to
expand its industry differentiating Programs of Excellence focusing on pelvic health, degenerative joint
disease, cancer rehabilitation and sports medicine.
IMPROVING QUALITY OF LIFE

immersive, two-day event. It focused on the
company   s 5 Core Values, 6 Cultural Behaviors
and 4 Key Results, the culture framework that
guides how we operate and engage with each
other, and our partners.
EXPANDED OUTPATIENT REHABILITATION
PROGRAMS OF EXCELLENCE
1.2+ MILLION PATIENTS
Under our family of 38 outpatient rehabilitation
brands, we proudly treated 1,200,140 patients in
our 1,914 centers across the country in 2024.
TREATED ACROSS OUR CARE CONTINUUM
Relentless Focus on
Recruitment, Retention & Culture
We remained committed to recruiting, retaining
and developing our workforce, investing in programs
that foster long-term engagement and satisfaction,
such as clinical ladders, continuing education,
student loan repayment, scholarships and
other programs.
It is a privilege to employ more than 45,000 health
care professionals who are committed to providing
compassionate, world-class post-acute care that
helped more than 1.2 million patients regain independence and improve quality of life. Thank you
for your support, we look forward to continuing to
deliver on our mission in 2025.
The company was also recognized in 2024 by Newsweek as one of    America   s Greatest Workplaces for
Women    and    Greatest Workplaces for Diversity.   
We continued to address the ongoing national
nursing shortage launching partnerships with higher
education nursing schools as part of a new initiative
called uPLIFT. The program   s charter is to cultivate
and recruit critical nursing talent for the future.
To date, more than 3,300 nursing
students have entered our hospitals
for clinical rotations.
On the culture front, the company
hosted its biennial Select Medical
Way Conference in Dallas bringing
together more than 500 leaders
at all organizational levels for an
Sincerely,
Robert A. Ortenzio
Executive Chairman &
Co-Founder
David S. Chernow
Chief Executive Officer
2024
ANNUAL REPORT
5



 3/5/2025 Letter Continued (Full PDF)