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Dignity Health, Select Medical To Merge Urgent Care Operations


San Francisco-based Dignity Health and Select Medical Holdings Corp. plan to consolidate their urgent care businesses. Dignity’s U.S. HealthWorks will combine with Select Medical’s Concentra Group Holdings, and Dignity will own 20% equity interest in the new entity, which is worth $238M, according to Modern Healthcare. The deal is expected to close in the first quarter.

The combined entity will operate over 500 clinics. Dignity Health’s U.S. HealthWorks subsidiary operates 250 clinics in 21 states, while Select Medical’s Concentra runs 315 occupational health centers in 38 states.

Dignity Health and Select Medical also formed a JV earlier this year to build and manage a 60-bed acute inpatient rehabilitation hospital in Las Vegas and jointly operate 12 outpatient rehab clinics. The hospital is expected to open in 2018.

Dignity Health is one of the nation’s largest not-for-profit healthcare providers and has over 400 healthcare properties, including 39 hospitals and several urgent care and occupational centers, imaging and surgery centers, home health and primary care clinics in 22 states. Select Medical operates 102 long-term acute care hospitals and 21 rehab hospitals in 28 states and 1,608 outpatient rehab clinics in 37 states and Washington, D.C.