Concentra, the occupational health subsidiary of Mechanicsburg-based rehab chain Select Medical, filed last week for an initial public offering of stock, though many of the details remain to be filled in — including the timing and share price for the IPO. Nonetheless, the filing presents a fairly detailed overview of Concentra, its operations and its outlook on the future.
Concentra, which had sales last year of $1.8 billion, operates 547 stand-alone occupational health centers and 151 on-site health clinics at employer worksites.
The clinics generally treat people for work-related injuries, with Concentra estimating its clinics treated one in five workplace injuries nationwide in 2022.
The company expects growing demand for its services due to several factors, including: an aging workforce; higher rates of injuries among younger, less-skilled workers; growing rates of burnout, stress and injury due to staffing shortages; and an increase in claims from people with chronic conditions such as diabetes and obesity — known as comorbidities.
“When comorbid conditions are present, claims are more complex and of longer duration, often involving complications or disability,” Concentra wrote in its IPO filing.
Acquisitions and new clinics are part of the company’s growth plans, as is an expansion into primary care services, according to the IPO.
As an independent company, Concentra would be based in Addison, Texas.
Connecticut-based Investment firm Renaissance Capital estimates Concentra’s stock offering could raise more than $500 million.
A Select Medical spokesperson declined to comment, citing the traditional pre-IPO “quiet period.”
How did we get here: Select Medical announced plans to spin off Concentra earlier this year.
Founded in 1979, Concentra was purchased by health insurer Humana in 2010.
Select Medical bought Concentra in 2015 as part of a joint venture and became the sole owner in 2021.