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Select also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. We believe that we will continue to distinguish ourselves as leaders within long-term acute care by providing a broader scope of clinical programs and services. Experienced clinicians work with referring physicians, employers, payors and case managers to ensure high quality rehabilitation for our patients. Our balance sheet this year was also strengthened by an increase in our cash balance and a reduction in our debt to total capitalization. We are also proud of several achievements at our corporate office in Mechanicsburg, Pennsylvania. SEM Internet Address www. Select Medical Corporation, headquartered in Mechanicsburg, Pennsylvania, commenced operations in

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Ortenzio, both of whom have significant experience in the healthcare industry. The addition of Kessler provided our Company with a platform in the inpatient rehabilitation industry and added depth in several of our outpatient rehabilitation markets. At each clinic, our clinical team offers a wide range vvk rehabilitative services that maximize functionality and well-being for individuals suffering from musculoskeletal injuries.

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The addition of Kessler is particularly vu as it marked our entry into the inpatient rehabilitation industry. Within our Specialty Hospital segment, revenue increased This team works closely with referring physicians and case managers to ensure that patients receive a combined approach of intensive nursing care, focused respiratory services and individualized therapies to achieve optimal outcomes. Our Specialty Hospitals demonstrated another strong year, as evidenced by the opening of eight new long-term acute care hospitals and the successful implementation of LTCH-PPS the Medicare prospective payment system for long-term acute care hospitals at all of our eligible long-term.

Our long-term vvk care hospitals are staffed lb experienced lb in nursing, pharmacy, dietary, respiratory therapy, case management and the rehabilitation therapies. We are pleased and proud of the growth our Company achieved in The addition of the four Kessler rehabilitation hospitals complemented our overall strong performance within the Specialty Hospital segment.

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We operate through two business segments, our specialty hospital segment and our outpatient rehabilitation segment. Of our long-term acute care hospitals, 76 were certified by the federal Medicare program as long-term acute care hospitals, and the other three, all of which opened inwere awaiting certification upon completion of their conditions for qualification.

Select is also a leading operator of outpatient rehabilitation clinics in the United States and Canada.

Ortenzio Executive Chairman Robert A. We continued to invest in the vvj markets where we have a strong presence, and we withdrew from some markets where we lacked significant presence.

All four of our acute medical rehabilitation hospitals are certified by the federal Medicare program as inpatient rehabilitation facilities.

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Ortenzio and Robert A. We were able to accomplish this because of our strong internal development platform. Our long-term acute care hospitals provide a wide range of services designed to treat medically complex conditions, pulmonary conditions, neurological vvvu, cancers, cardiac conditions, wound care, renal disorders, infectious disease and other complicated conditions.

We are also proud of several achievements at our corporate office in Mechanicsburg, Pennsylvania. Vvvu the end ofour Company operated clinics throughout the United States and Canada, up from clinics at the end of Vvuu our Outpatient Rehabilitation business, we continued to grow our integrated network of physical therapy clinics to serve the needs of our patients through a wide range of core programs and specialized services.

Experienced clinicians work with referring physicians, employers, payors and case managers to ensure high quality rehabilitation for our patients.

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Our mission and values include providing specialty inpatient services and outpatient rehabilitation services to those we serve, while seeking to provide high-quality health care and cost-effective outcomes for our patients, a positive work environment for our staff and a good return to our shareholders.

These services are performed under many of the same brand names that we use in operating our outpatient clinics, as well as additional established brands, including Select Medical Rehabilitation Services, Rehab Management Services and Metro Therapy.

We believe that we will continue to distinguish ourselves as leaders within long-term acute care by providing a broader scope of clinical programs and services. Since inception, Select has been led by our current management team, including our co-founders, Rocco A.

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Select Medical Corporation, headquartered in Mechanicsburg, Pennsylvania, commenced operations in Long-Term Acute Care Hospitals Overview Our long-term acute care hospitals provide lv specialized care to promote recovery from the most critical and complex medical conditions. Services and Kessler Rehabilitation. While our outpatient rehabilitation business did experience margin compression inrevenue for the segment in increased by 9.

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Our balance sheet this year was also strengthened by an increase in our cash balance and a reduction in our debt to total capitalization. We coupled our emphasis on local market growth with a continued focus on negotiating stronger contract rates. Seven vvh later, our Mission has helped guide us through another successful year. Inour Company achieved several major accomplishments. In the past four years, we have developed and opened 36 new long-term acute vvy hospitals.