Listen to article \u2022\u00a00:00 min<\/p>\n
NovaCare Rehabilitation\u2019s parent company, Select Medical Holdings Corp., was taken private in $3.9 billion private equity deal this week. <\/p>\n
NovaCare has more than 100 physical therapy locations in the Philadelphia region, including some through a partnership with Rothman Orthopaedics. <\/p>\n
For 25 years, NovaCare sponsored the Philadelphia Eagles practice complex in South Philadelphia<\/a>. Jefferson Health<\/a> took over the sponsorship this year.<\/p>\n Top management joined private-equity firm Welsh, Carson, Anderson & Stowe in the acquisition of Select Medical<\/a>, which is based in Mechanicsburg, Pa. The sale was completed Wednesday. The price per share was $16.50 per share, an 18% premium to the latest close before the deal was announced in November.<\/p>\n In addition to outpatient physical therapy through NovaCare and other subsidiaries at 1,850 locations in 36 states, Select Medical operates 104 long-term acute-care hospitals in 28 states and 38 rehabilitation hospitals in 15 states. The company has more than 45,000 employees and had $5.5 billion in revenue last year.<\/p>\n Select Medical acquired NovaCare in 1999. Publicly traded NovaCare fell on hard times because of Medicare reimbursement changes under the federal Budget Reconciliation Act in 1997. The law capped reimbursement<\/a> for speech, physical, and occupational therapy in nursing homes.<\/p>\n