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MECHANICSBURG, Pa. - Select Medical Holdings Corporation (NYSE:SEM), a healthcare company with a market capitalization of $1.7 billion and currently showing signs of being undervalued according to InvestingPro analysis, announced Tuesday the appointment of Thomas P. Mullin as its new chief executive officer, effective immediately.
Mullin, who joined the company in 2008, replaces David S. Chernow, who has served as CEO since 2014 and will now transition to the role of vice chairman of the board. The leadership change comes as the company maintains a strong financial health score of "GOOD" from InvestingPro, with analysts expecting continued profitability this year.
The healthcare company also announced several other leadership changes. John A. Saich, previously co-president, will now serve as the company’s sole president. John F. Duggan has been appointed executive vice president, general counsel and secretary, while Michael E. Tarvin will move to the position of senior executive vice president of legal services.
Mullin most recently served as co-president overseeing 140 critical illness recovery and inpatient rehabilitation hospitals. During his 17-year tenure with Select Medical, he has held various executive leadership positions, including executive vice president, president of specialty hospitals, and chief operating officer of specialty hospitals.
"Select Medical has always placed a high priority on the development and growth of its people as a means to drive the future success of the company," said Robert A. Ortenzio, Select Medical Co-Founder and Executive Chairman, in a press release statement.
Select Medical operates 104 critical illness recovery hospitals in 29 states, 36 rehabilitation hospitals in 14 states, and 1,919 outpatient rehabilitation clinics across 39 states and the District of Columbia, according to the company. This extensive network generated revenues of $5.3 billion in the last twelve months, with a gross profit margin of 17%. For deeper insights into Select Medical’s performance and potential, including additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Select Medical Holdings reported its second-quarter 2025 earnings, showcasing a significant earnings per share (EPS) beat. The company reported an EPS of $0.60, which was a notable surprise compared to the forecast of $0.24. Despite this strong EPS performance, revenue for the quarter fell short of expectations, reaching $1.28 billion against a forecast of $1.34 billion. Analyst firm Benchmark maintained its Buy rating on Select Medical with a price target of $21, citing the company’s adjusted earnings per share of $0.32, which exceeded expectations due to a lower effective tax rate and a reduction in shares outstanding. Meanwhile, Mizuho lowered its price target for the company to $18 from $21, citing disappointing results in the critical illness recovery hospital (LTCH) segment. This segment continues to face challenges from the Medicare high-cost outlier threshold and the 20% transmittal rule. Despite the revenue miss, Select Medical’s adjusted EBITDA was reported at $125.4 million, slightly below the Street estimate. These developments highlight the mixed performance of Select Medical in the recent quarter, with strong EPS overshadowed by revenue challenges.
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