Texas Attorney General does not oppose Baylor-Select joint venture

Baylor Health Care System ("Baylor") and Select Medical Corporation ("Select") today announced that they have received notification from the Office of the Attorney General of the State of Texas that it has completed its review of the proposed joint venture between affiliates of Baylor and Select and does not oppose the joint venture.

The previously announced joint venture consists of a proposed partnership between Baylor Institute for Rehabilitation and a wholly-owned subsidiary of Select that is designed to create a regional rehabilitation network to serve the Dallas-Fort Worth metroplex.  The proposed joint venture will expand access to comprehensive inpatient medical rehabilitation and outpatient physical rehabilitation care throughout the metroplex.  It will encompass two freestanding medical rehabilitation hospitals (representing a total of 136 beds) and 30 outpatient physical rehabilitation centers.  In addition, the joint venture will manage three Baylor inpatient rehabilitation units (representing a total of 57 beds).

The transaction, which is expected to close on or before April 1, 2011, is subject to the closing conditions set forth in definitive joint venture agreements.