Pennsylvania hospital group buys into Springfield

Wehr Properties has leased the parcel – on East Primrose Street west of the SunRocket call center – to Select Medical Corp. of Mechanicsburg, Pa., for construction of Select Specialty Hospital.

Wehr Properties listing agent John Johnson declined to comment on the terms of the lease other than to say it was a long-term agreement reached about eight months ago. The property is part of about 40 acres along Primrose purchased by Wehr a decade ago that the company has subdivided and leased through the years, Johnson said.

Realtor Galen Pellham represented the buyer and worked for at least a year on finding a site.

The 48,000-square-foot, $15.7 million facility will cater primarily to critically ill patients suffering from severe health conditions or complex injuries who require an average hospital stay of 25 days or longer, said Carolyn Curnane, director of corporate communications for Select Medical Corp.

“We care for some of the sickest patients in the health care system,” she said, adding that the hospital is thought to be the only of its kind in Springfield and southwest Missouri.

So how will Select Specialty Hospital fit into a town with a thriving medical community that boasts three hospitals employing some 25,000 people?

“We really would complement each other,” Curnane said. “We’re not in competition with each other, because general hospitals are not designed to treat patients for the duration of time we are. We’re all part of this continuum of care.”

The Missouri Health Facilities Review Committee approved a Certificate of Need for the specialty hospital in November, according to the Missouri Department of Health and Senior Services.

The new hospital will provide specialized care for patients with acute or chronic respiratory disorders who have tracheotomies or ventilators – a welcome service, said Cora Scott, a spokeswoman for St. John’s Hospital. The nearest long-term care facility that accepts patients on ventilators is in Mount Vernon, according to St. John’s nursing staff.

“That is definitely filling a need in our community,” Scott said. “We feel a specialty hospital … does fill a void.”

St. John’s has a 28-bed transitional care unit for patients who are in between acute and long-term care, Scott added. Patients stay there an average of 10 days, she said.

Select Specialty Hospital will be fully staffed with physicians, nurses, pharmacists and dietitians as well as respiratory, physical and occupational therapists, Curnane said. Smaller specialty hospitals are able to deliver “highly personalized care,” she said.

Select Medical Corp. operates 96 long-term acute care hospitals in 27 states. The privately held company also operates about 610 outpatient clinics and provides medical rehabilitation services to nursing homes, assisted living facilities and senior care centers.

Select Medical has long-term acute care hospitals in St. Louis and Kansas City, Curnane said.

Rocco and Robert Ortenzio founded Select Medical Corp. in 1996. The company employs about 20,000 people nationwide and recorded $1.86 billion in 2005 revenues.

Net operating revenues for all of Select Medical’s hospitals in the second quarter of 2006 increased 3.8 percent to $360.8 million compared to $347.5 million for the same quarter last year.

Total patient days for the second quarter were 246,275, and net revenue per patient day was $1,435. For the same period last year, there were 246,171 total patient days and net revenue per patient day was $1,375.

Income from operations in the second quarter was $78 million compared to $71.6 million for the same period last year. Net income was $33.9 million compared to $29.4 million for the same quarter last year, according to the release.

About Select Medical Corp.

Wehr Properties has leased nine acres in south Springfield to Select Medical Corp., which plans to build a $15.7 million, 44-bed specialty hospital. Here is a snapshot of the company.

Headquarters: Mechanicsburg, Pa.

Operations: 96 long-term acute care hospitals and four acute medical rehab hospitals in 27 states, along with 610 outpatient clinics

2005 Revenue: $1.86 billion

Employees: 20,000 nationwide

Other Missouri locations: St. Louis, Kansas City