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In addition to our outpatient clinics, the outpatient division also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. We extend our sincere thanks and deep appreciation to our Board of Directors for their guidance and support, to our employees for their talents and dedication, to our patients who entrust us with their care, and to you, our shareholders, for your support and belief in Select Medical Corporation. We continued to invest in the local markets where we have a strong presence, and we withdrew from some markets where we lacked significant presence. Our balance sheet this year was also strengthened by an increase in our cash balance and a reduction in our debt to total capitalization. Experienced clinicians work with referring physicians, employers, payors and case managers to ensure high quality rehabilitation for our patients. Ortenzio and Robert A. Within our Specialty Hospital segment, revenue increased

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We declared and paid our first dividend and completed a 2-for-1 split of our common stock. Our long-term acute care hospitals provide a wide range of services designed to treat medically complex conditions, pulmonary conditions, neurological disorders, cancers, cardiac conditions, wound care, renal disorders, infectious disease and other complicated conditions. We operate through two business segments, our specialty hospital segment and our outpatient rehabilitation segment. In the past four years, we have developed and opened 36 new long-term acute care hospitals.

We coupled our emphasis on local market growth with a continued focus on negotiating stronger contract rates.

All four of our acute medical rehabilitation hospitals are certified by the federal Medicare program as inpatient rehabilitation facilities. The acquisition included the Kessler Institute for Rehabilitation, which operates four acute medical rehabilitation hospitals in New Jersey.

Accomplishments Fvuwe grew our outpatient business through the addition of the Kessler outpatient rehabilitation clinics, which complemented our existing local market network on the East Coast.

The outpatient division ended the year with outpatient rehabilitation clinics through out the United States and Canada, an increase from at the end of Ortenzio and Robert A. Select also provides medical rehabilitation services on vgu contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites.

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While our outpatient rehabilitation business did experience margin compression inrevenue for the segment in increased by 9. Our long-term acute care hospitals are staffed with experienced professionals in nursing, pharmacy, dietary, respiratory therapy, case management and the rehabilitation therapies. Services and Kessler Rehabilitation. 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.

The addition of the four Kessler rehabilitation hospitals complemented our overall strong performance within the Specialty Hospital segment. We are also proud of several achievements at our corporate office in Mechanicsburg, Pennsylvania.

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.

In our Outpatient Rehabilitation business, we gvu to grow our integrated network of physical therapy vvy to serve the needs of our patients through a wide range of core programs and specialized services. We vvvu pleased and proud of the growth our Company achieved in We extend our sincere thanks and deep appreciation to our Board of Directors for their guidance and support, to our employees for their talents and dedication, to our patients who entrust us with their care, and to you, our shareholders, for your support and belief in Select Medical Corporation.

Since inception, Select has been led by our current management team, including our co-founders, Rocco A. Select is also a leading operator of outpatient rehabilitation clinics in the United States and Canada.

Accomplishments Inwe continued to vv new specialty hospitals, opening eight new long-term acute care hospitals. Caring and Responsive Employees of Select Committee energized our corporate campus and the community through.

In addition to our outpatient clinics, the outpatient division also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites.

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Inour Company achieved several major accomplishments. SEM Internet Address www. Our Company ended the year with 79 long-term acute care hospitals and four acute medical rehabilitation hospitals.

Our hospitals are designed to offer our patients a longer length of stay and a more resource-intensive level of care. 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.

We continued to invest in the local markets where we have a strong presence, and we withdrew vfu some markets where we lacked significant presence. We were able to accomplish this because of our strong internal development platform. These services are performed under many of the same brand names that we fvu in operating our outpatient clinics, as well as additional established brands, including Select Medical Rehabilitation Services, Rehab Management Services and Metro Therapy.

Revenue in our outpatient rehabilitation segment increased by vvvu. Ortenzio, both of whom have significant experience in the healthcare industry. 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.