4714 Gettysburg Road Mechanicsburg, PA 17055 NYSE Symbol: SEM Select Medical Holdings Corporation Announces Results For Its First Quarter Ended

Select Medical Holdings

Corporation Announces Results

For Its First Quarter Ended March 31, 2024

MECHANICSBURG, PENNSYLVANIA

- May 2, 2024 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"

or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2024, and the declaration of a cash

For the first quarter ended

March 31, 2024, revenue increased 7.4% to $1,788.8 million, compared to $1,665.0 million for the same quarter, prior year. Income

from operations increased 28.1% to $194.0 million for the first quarter ended March 31, 2024, compared to $151.5 million for

the same quarter, prior year. Net income increased 37.4% to $117.2 million for the first quarter ended March 31, 2024, compared to

$85.3 million for the same quarter, prior year. Adjusted EBITDA increased 22.4% to $261.9 million for the first quarter ended March 31,

2024, compared to $214.1 million for the same quarter, prior year. Earnings per common share increased 33.9% to $0.75 for the first quarter

ended March 31, 2024, compared to $0.56 for the same quarter, prior year. Adjusted earnings per common share increased 37.5% to $0.77

for the first quarter ended March 31, 2024, compared to $0.56 for the same quarter, prior year. The definition of Adjusted EBITDA

and a reconciliation of net income to Adjusted EBITDA are presented in table VI of this release. A reconciliation of earnings per common

share to adjusted earnings per common share is presented in table VII of this release.

Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics,

and occupational health centers in the United States based on number of facilities. Select Medical's reportable segments include

the critical illness recovery hospital segment, the rehabilitation hospital segment, the outpatient rehabilitation segment, and the Concentra

segment. As of March 31, 2024, Select Medical operated 107 critical illness recovery hospitals in 28 states, 33 rehabilitation hospitals

in 13 states, 1,922 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 547 occupational health centers

in 41 states. At March 31, 2024, Select Medical had operations in 46 states and the District of Columbia. Information about Select

Medical is available at www.selectmedical.com.

Critical Illness Recovery Hospital Segment

For the first quarter ended

March 31, 2024, revenue for the critical illness recovery hospital segment increased 10.4% to $655.9 million, compared to $593.9

million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 51.0% to $115.9

million for the first quarter ended March 31, 2024, compared to $76.8 million for the same quarter, prior year. The Adjusted EBITDA

margin for the critical illness recovery hospital segment was 17.7% for the first quarter ended March 31, 2024, compared to 12.9%

for the same quarter, prior year. Certain critical illness recovery hospital key statistics are presented in table V of this release for

the first quarters ended March 31, 2024 and 2023.

Rehabilitation Hospital Segment

For the first quarter ended

March 31, 2024, revenue for the rehabilitation hospital segment increased 14.8% to $265.7 million, compared to $231.5 million for

the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 30.0% to $61.4 million for the first quarter

ended March 31, 2024, compared to $47.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation

hospital segment was 23.1% for the first quarter ended March 31, 2024, compared to 20.4% for the same quarter, prior year. Certain

rehabilitation hospital key statistics are presented in table V of this release for the first quarters ended March 31, 2024 and 2023.

Outpatient Rehabilitation Segment

For the first quarter ended

March 31, 2024, revenue for the outpatient rehabilitation segment increased 2.5% to $303.2 million, compared to $295.9 million for

the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $24.9 million for the first quarter ended

March 31, 2024, compared to $30.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation

segment was 8.2% for the first quarter ended March 31, 2024, compared to 10.2% for the same quarter, prior year. Certain outpatient

rehabilitation key statistics are presented in table V of this release for the first quarters ended March 31, 2024 and 2023.

For the first quarter ended

March 31, 2024, revenue for the Concentra segment increased 2.5% to $467.6 million, compared to $456.3 million for the same quarter,

prior year. Adjusted EBITDA for the Concentra segment increased 2.6% to $96.1 million for the first quarter ended March 31, 2024,

compared to $93.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 20.6% for the first

quarter ended March 31, 2024, compared to 20.5% for the same quarter, prior year. Certain Concentra key statistics are presented

in table V of this release for the first quarters ended March 31, 2024 and 2023.

On May 1, 2024, Select

Medical's Board of Directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about May 30,

2024, to stockholders of record as of the close of business on May 16, 2024.

There is no assurance that

future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of Select Medical's

Board of Directors after taking into account various factors, including, but not limited to, Select Medical's financial condition,

operating results, available cash and current and anticipated cash needs, the terms of Select Medical's indebtedness, and other

factors Select Medical's Board of Directors may deem to be relevant.

Stock Repurchase Program

The Board of Directors of

Select Medical has authorized a common stock repurchase program to repurchase up to $1.0 billion worth of shares of its common stock.

The common stock repurchase program will remain in effect until December 31, 2025, unless further extended or earlier terminated

by the Board of Directors. Stock repurchases under this program may be made in the open market or through privately negotiated transactions,

and at times and in such amounts as Select Medical deems appropriate. Select Medical funds this program with cash on hand and borrowings

under its revolving credit facility.

Select Medical did not repurchase

shares under its authorized stock repurchase program during the three months ended March 31, 2024. Since the inception of the common

stock repurchase program through March 31, 2024, Select Medical has repurchased 48,234,823 shares at a cost of approximately $600.3

million, or $12.45 per share, which includes transaction costs.

Select Medical is reaffirming

its 2024 business outlook for revenue and adjusting its 2024 business outlook for Adjusted EBITDA and fully diluted earnings per share,

which was provided most recently in its February 22, 2024, press release. Select Medical is also issuing its business outlook for

adjusted earnings per share. Select Medical expects revenue to be in the range of $6.9 billion to $7.1 billion, Adjusted EBITDA to be

in the range of $845 million to $885 million, fully diluted earnings per share to be in the range of $1.95 to $2.19 and adjusted earnings

per share to be in the range of $1.96 to $2.20. Reconciliations of full year 2024 Adjusted EBITDA expectations to net income and adjusted

earnings per share to fully diluted earnings per share are presented in table VIII of this release.

Medical will host a conference call regarding its first quarter results and its business outlook on Friday, May 3, 2024, at 9:00am

ET. The conference call will be a live webcast and can be accessed at Select Medical Holdings Corporation's website at www.selectmedicalholdings.com.

A replay of the webcast will be available shortly after the call through the same link.

listeners wishing to dial-in via telephone, or participate in the question and answer session, you may pre-register for the call at Select

Medical Earnings Call Registration to obtain your dial-in number and unique passcode.

Certain statements contained

herein that are not descriptions of historical facts are "forward-looking" statements (as such term is defined in the Private

Securities Litigation Reform Act of 1995), including statements related to Select Medical's 2024 and long-term business outlook.

Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such

forward-looking statements due to factors including the following:

Except as required by applicable

law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly

update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not

place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements

are reasonable, we cannot guarantee future results or performance.

Senior Vice President and Treasurer

SOURCE: Select Medical Holdings Corporation

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2023 and 2024

(In thousands, except per share amounts, unaudited)

to table II for calculation of earnings per common share.