Benzinga | Jun 21, 2021 09:04AM EDT

Select Medical Reports Deal To Buy Acuity Healthcare, No Terms Disclosed; Enters Joint Venture Partnerships With AtlantiCare, Mon Health, Virtua Health, Physician Partners

Deal to Add Long-Term Acute Care Hospitals to Company's National Post-Acute Network

MECHANICSBURG, Pa., June 21, 2021 /PRNewswire/ -- Select Medical today announced it has signed a definitive agreement to acquire Charlotte, NC-based Acuity Healthcare. The purchase will include four long-term acute care hospitals and one satellite serving communities in New Jersey and West Virginia. The deal also includes the establishment of four joint venture (JV) partnerships with AtlantiCare, Mon Health, Virtua Health and physician partners.

"This agreement represents Select Medical's continued focus to execute strategic joint ventures as part of its growth strategy," said Tom Mullin, executive vice president and chief operating officer of specialty hospitals at Select Medical. "Together, with our new partners, we look forward to serving the specialty care needs of chronic, critically ill patients in these emergent regions."

Through the agreement, Select Medical's national network of critical illness recovery hospitals, licensed as long-term acute care, will expand to 104 locations. The Acuity hospitals to be acquired will berenamed Select Specialty Hospital and remain in current New Jersey and West Virginia locations.

* Select Specialty Hospital -- Willingboro, NJ -- Virtua Health JV partner

* Select Specialty Hospital -- Atlantic City, NJ -- AtlantiCare JV partner

* Select Specialty Hospital -- Morgantown, WV -- Mon Health JV partner

* Select Specialty Hospital -- Weirton, WV -- Physician JV partners

* Select Specialty Hospital -- Wheeling, WV (Satellite Location) -- Physician JV partners

"The joint venture partnership with Select Medical brings the clinical excellence and best practices of the nation's No. 1 post-acute care provider to the regions we currently serve," said Ed Cooper, president and chief executive officer at Acuity Healthcare. Select Medical shares our common mission to build healthy communities and improve quality of life for the patients and families they serve. As the aging population continues to grow, the need for continued long-term acute care to treat chronic, critically ill patients has become an essential service and they are well-positioned to handle the future changes facing healthcare and the post-acute industry."

The deal is expected to close in Q3 2021, subject to regulatory approval.