Select Medical Faces Financial Risks Amid Separation Agreement with Concentra

Select Medical (SEM) has disclosed a new risk, in the Litigation & Legal Liabilities category.

Select Medical may face significant business risks due to its separation agreement with Concentra, which includes specific indemnity and liability obligations related to their Distribution. There is a potential for disputes between the two companies, and the indemnity rights provided to Select Medical might be insufficient if losses exceed these rights or if Concentra lacks the financial capacity to fulfill its obligations. Furthermore, Select Medical’s own indemnity obligations to Concentra could be substantial, posing a threat to its operational results and financial stability.

Overall, Wall Street has a Moderate Buy consensus rating on SEM stock based on 1 Buy and 1 Hold.

To learn more about Select Medical’s risk factors, click here.