Concentra Group Holdings Parent (CON) 10-Q 27 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-42188
Entity Registrant Name	CONCENTRA GROUP HOLDINGS PARENT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	30-1006613
Entity Address, Address Line One	4714 Gettysburg Road
Entity Address, Address Line Two	P.O. Box 2034
Entity Address, City or Town	Mechanicsburg
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17055
City Area Code	717
Local Phone Number	972-1100
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CON
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		126,593,503
Entity Central Index Key	0002014596
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current Assets:
Cash	$ 50,669	$ 31,374
Accounts receivable	228,964	216,194
Prepaid income taxes	2,010	7,979
Other current assets	38,663	38,871
Total Current Assets	320,306	294,418
Operating lease right-of-use assets	399,464	397,852
Property and equipment, net	186,879	178,370
Goodwill	1,233,406	1,229,745
Customer relationships	105,459	117,259
Other identifiable intangible assets, net	107,409	107,510
Other assets	10,415	8,406
Total Assets	2,363,338	2,333,560
Current Liabilities:
Current operating lease liabilities	73,517	72,946
Current portion of long-term debt and notes payable	4,682	1,455
Accrued and other liabilities	158,920	176,466
Total Current Liabilities	265,153	274,634
Non-current operating lease liabilities	359,736	357,310
Long-term debt, net of current portion	3,048	3,291
Non-current deferred tax liability	21,994	23,364
Other non-current liabilities	23,015	27,522
Total Liabilities	1,092,946	1,156,121
Commitments and contingencies (Note 11)
Redeemable non-controlling interests	18,410	16,477
Members’ contributed capital	0	470,303
Common stock, $0.01 par value, 447,081 shares authorized, 104,094 shares issued and outstanding at June 30, 2024	1,041	0
Capital in excess of par	461,520	0
Retained earnings	784,217	685,293
Total Stockholders' Equity	1,246,778
Total Members' Equity		1,155,596
Non-controlling interests	5,204	5,366
Total Equity	1,251,982	1,160,962
Total Liabilities and Equity	2,363,338	2,333,560
Nonrelated Party
Current Liabilities:
Accounts payable and Due to related party	23,674	20,413
Related Party
Current Liabilities:
Accounts payable and Due to related party	4,360	3,354
Long-term debt with related party	$ 420,000	$ 470,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) shares in Thousands	Jun. 30, 2024 $ / shares shares
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Common stock, shares authorized (in shares)	447,081
Common stock, shares issued (in shares)	104,094
Common stock, shares outstanding (in shares)	104,094

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue		$ 477,915	$ 467,079	$ 945,513	$ 923,377
Costs and expenses:
Cost of services, exclusive of depreciation and amortization		339,273	329,836	676,263	657,914
General and administrative, exclusive of depreciation and amortization	[1]	36,828	37,003	73,737	71,653
Depreciation and amortization		17,870	18,283	36,355	36,593
Total costs and expenses		393,971	385,122	786,355	766,160
Other operating income		0	151	284	151
Income from operations		83,944	82,108	159,442	157,368
Other income and expense:
Equity in losses of unconsolidated subsidiaries		(3,676)	0	(3,676)	(526)
Interest income (expense)		205	17	94	(44)
Income before income taxes		71,155	70,625	136,571	134,222
Income tax expense		18,096	16,593	33,233	32,759
Net income		53,059	54,032	103,338	101,463
Less: Net income attributable to non-controlling interests		1,322	1,290	2,645	2,457
Net income attributable to the Company		$ 51,737	$ 52,742	$ 100,693	$ 99,006
Earnings per common share (Note 9):
Basic (in dollars per share)		$ 0.50	$ 0.51	$ 0.97	$ 0.95
Diluted (in dollars per share)		$ 0.50	$ 0.51	$ 0.97	$ 0.95
Related Party
Other income and expense:
Interest expense on related party debt		$ (9,318)	$ (11,500)	$ (19,289)	$ (22,576)
[1]Includes the shared service fee from related party of $3.8 million and $3.7 million for the three months ended June 30, 2024 and 2023, respectively, and $7.7 million and $7.3 million for the six months ended June 30, 2024 and 2023 , respectively. See Note 10 , Related Party Transactions

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party
Shared service fee from related party	$ 3.8	$ 3.7	$ 7.7	$ 7.3

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders’/Members’ Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Units Voting	Class B Units Non-Voting	Class C Units Non-Voting	Member Units	Members’ Contributed Capital	Total Stockholders’ Equity	Common Stock	Capital in excess of par	Retained Earnings	Non-controlling Interests
Members' unit, beginning balance (in shares) at Dec. 31, 2022		435,000	8,498	2,770
Members' unit, beginning balance at Dec. 31, 2022	$ 979,343				$ 973,317	$ 464,725				$ 508,592	$ 6,026
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income attributable to the Company	46,264				46,264					46,264
Net income attributable to non-controlling interests	253				0						253
Contribution from Parent	2,797				2,797	2,797
Vesting of restricted interests (in shares)				248
Vesting of restricted interests	178				178	178
Distributions to and purchases of non-controlling interests	(221)				0						(221)
Redemption value adjustment on non-controlling interests	(435)				(435)					(435)
Members' unit, ending balance (in shares) at Mar. 31, 2023		435,000	8,498	3,018
Members' unit, ending balance at Mar. 31, 2023	1,028,179				1,022,121	467,700				554,421	6,058
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	46,264				46,264					46,264
Net income attributable to non-controlling interests	253				0						253
Distributions to and purchases of non-controlling interests	(221)				0						(221)
Redemption value adjustment on non-controlling interests	(435)				(435)					(435)
Members' unit, beginning balance (in shares) at Dec. 31, 2022		435,000	8,498	2,770
Members' unit, beginning balance at Dec. 31, 2022	979,343				973,317	464,725				508,592	6,026
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income attributable to the Company	99,006
Members' unit, ending balance (in shares) at Jun. 30, 2023		435,000	8,498	3,018
Members' unit, ending balance at Jun. 30, 2023	1,077,220				1,071,703	464,543				607,160	5,517
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	99,006
Members' unit, beginning balance (in shares) at Mar. 31, 2023		435,000	8,498	3,018
Members' unit, beginning balance at Mar. 31, 2023	1,028,179				1,022,121	467,700				554,421	6,058
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income attributable to the Company	52,742				52,742					52,742
Net income attributable to non-controlling interests	297				0						297
Distribution to Parent	(3,352)				(3,352)	(3,352)
Repurchase of common shares	(300)				195	195					(495)
Distributions to and purchases of non-controlling interests	(343)				0						(343)
Redemption value adjustment on non-controlling interests	(3)				(3)					(3)
Members' unit, ending balance (in shares) at Jun. 30, 2023		435,000	8,498	3,018
Members' unit, ending balance at Jun. 30, 2023	1,077,220				1,071,703	464,543				607,160	5,517
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	52,742				52,742					52,742
Net income attributable to non-controlling interests	297				0						297
Distributions to Parent	(3,352)				(3,352)	(3,352)
Distributions to and purchases of non-controlling interests	(343)				0						(343)
Redemption value adjustment on non-controlling interests	(3)				$ (3)					(3)
Members' unit, beginning balance (in shares) at Dec. 31, 2023		435,000	8,498	3,583	447,081
Members' unit, beginning balance at Dec. 31, 2023	470,303					470,303
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income attributable to the Company	48,956						$ 48,956			48,956
Net income attributable to non-controlling interests	270						0				270
Distribution to Parent	(6,891)					(6,891)	(6,891)
Distributions to and purchases of non-controlling interests	(369)						0				(369)
Conversion of LLC to Corporation and Impact of Reverse Stock Split (in shares)					(447,081)			104,094
Conversion of LLC to Corporation and Impact of Reverse Stock Split	0					(463,412)	0	$ 1,041	$ 462,371
Redemption value adjustment on non-controlling interests	(1,901)						(1,901)			(1,901)
Members' unit, ending balance (in shares) at Mar. 31, 2024					0
Members' unit, ending balance at Mar. 31, 2024						0
Beginning balance (in shares) at Dec. 31, 2023								0
Beginning balance at Dec. 31, 2023	1,160,962						1,155,596	$ 0	0	685,293	5,366
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	48,956						48,956			48,956
Net income attributable to non-controlling interests	270						0				270
Distributions to Parent	(6,891)					(6,891)	(6,891)
Distributions to and purchases of non-controlling interests	(369)						0				(369)
Redemption value adjustment on non-controlling interests	(1,901)						(1,901)			(1,901)
Conversion of LLC to Corporation and Impact of Reverse Stock Split (in shares)					(447,081)			104,094
Conversion of LLC to Corporation and Impact of Reverse Stock Split	0					(463,412)	0	$ 1,041	462,371
Ending balance (in shares) at Mar. 31, 2024								104,094
Ending balance at Mar. 31, 2024	1,201,027						1,195,760	$ 1,041	462,371	732,348	5,267
Members' unit, beginning balance (in shares) at Dec. 31, 2023		435,000	8,498	3,583	447,081
Members' unit, beginning balance at Dec. 31, 2023	470,303					470,303
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income attributable to the Company	100,693
Members' unit, ending balance (in shares) at Jun. 30, 2024					0
Members' unit, ending balance at Jun. 30, 2024	0					0
Beginning balance (in shares) at Dec. 31, 2023								0
Beginning balance at Dec. 31, 2023	1,160,962						1,155,596	$ 0	0	685,293	5,366
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	$ 100,693
Ending balance (in shares) at Jun. 30, 2024	104,094							104,094
Ending balance at Jun. 30, 2024	$ 1,251,982						1,246,778	$ 1,041	461,520	784,217	5,204
Members' unit, beginning balance (in shares) at Mar. 31, 2024					0
Members' unit, beginning balance at Mar. 31, 2024						0
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income attributable to the Company	51,737						51,737			51,737
Net income attributable to non-controlling interests	244						0				244
Distribution to Parent	(851)						(851)		(851)
Distributions to and purchases of non-controlling interests	(307)						0				(307)
Redemption value adjustment on non-controlling interests	132						132			132
Members' unit, ending balance (in shares) at Jun. 30, 2024					0
Members' unit, ending balance at Jun. 30, 2024	0					$ 0
Beginning balance (in shares) at Mar. 31, 2024								104,094
Beginning balance at Mar. 31, 2024	1,201,027						1,195,760	$ 1,041	462,371	732,348	5,267
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	51,737						51,737			51,737
Net income attributable to non-controlling interests	244						0				244
Distributions to Parent	(851)						(851)		(851)
Distributions to and purchases of non-controlling interests	(307)						0				(307)
Redemption value adjustment on non-controlling interests	$ 132						132			132
Ending balance (in shares) at Jun. 30, 2024	104,094							104,094
Ending balance at Jun. 30, 2024	$ 1,251,982						$ 1,246,778	$ 1,041	$ 461,520	$ 784,217	$ 5,204

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net income	$ 103,338	$ 101,463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	36,355	36,593
Provision for expected credit losses	59	185
Equity in losses of unconsolidated subsidiaries	3,676	526
(Gain) loss on sale or disposal of assets	42	(14)
Stock compensation expense	332	178
Deferred income taxes	(1,618)	(3,265)
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	(12,829)	(27,011)
Other current assets	1,224	(9,944)
Other assets	(4,217)	1,796
Accounts payable and accrued liabilities	(11,307)	(966)
Net cash provided by operating activities	115,055	99,541
Investing activities
Business combinations, net of cash acquired	(5,144)	(1,446)
Purchase of customer relationships	0	(4,382)
Purchases of property and equipment	(32,494)	(25,864)
Proceeds from sale of assets	23	20
Net cash used in investing activities	(37,615)	(31,672)
Financing activities
Borrowings from related party revolving promissory note	10,000	0
Payments on related party revolving promissory note	(60,000)	(70,000)
Borrowings of other debt	6,618	5,471
Principal payments on other debt	(4,378)	(4,074)
Distributions to and purchases of non-controlling interests	(2,643)	(3,130)
Distributions to Parent	(7,742)	(555)
Net cash used in financing activities	(58,145)	(72,288)
Net increase (decrease) in cash	19,295	(4,419)
Cash at beginning of period	31,374	37,657
Cash at end of period	50,669	33,238
Supplemental information
Cash paid for interest	19,512	22,784
Cash paid for taxes	$ 34,009	$ 32,445

Organization

Organization	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Concentra Group Holdings Parent, LLC (“Concentra Group Holdings Parent”) was formed in October 2017 and converted to a Delaware corporation, Concentra Group Holdings Parent, Inc., on March 4, 2024. At the time of formation, Concentra Group Holdings Parent elected to be taxed as a corporation. The Company conducts substantially all of its business through Concentra Inc. and its subsidiaries. Concentra Group Holdings Parent and its subsidiaries are collectively referred to as the “Company.” The Company is the largest provider of occupational health services in the United States based on number of facilities. As of June 30, 2024, the Company operated 547 occupational health centers and 154 onsite clinics at employer worksites in 42 states. The Company provides a diverse and comprehensive array of occupational health services, including workers’ compensation and employers services, and consumer health services. The Company currently operates as an operating segment of Select Medical Corporation (“Select” or the “Parent”). As of June 30, 2024, Select Medical Corporation (“Select” or the “Parent”) owns 100.0% of the outstanding common shares of the Company on a fully diluted basis. On January 3, 2024, Select announced its intention to separate the Company into a new, publicly traded company through a spin-off distribution in 2024. On February 27, 2024, Select received a private letter ruling from the U.S. Internal Revenue Service to the effect that the distribution of Concentra’s common stock to Select and its stockholders will be tax-free for U.S. federal income tax purposes. On March 4, 2024, the member interests of the Company converted to common shares on a one-for-one basis. On June 24, 2024, the Company’s Board of Directors approved a reverse stock split at a ratio of one share of common stock for every 4.295 shares of common stock, which was effectuated on June 25, 2024. In accordance with ASC 260, Earnings Per Share , the recapitalization of the Company into a stock corporation and the reverse stock split have been retrospectively reflected in the Company’s earnings per unit calculation for all periods presented, see Note 9, Earning per Share . On July 26, 2024, Concentra completed an initial public offering (“IPO”) of 22,500,000 shares of its common stock, par value $0.01 per share, at an initial public offering price of $23.50 per share for the net proceeds of $499.7 million after deducting underwriting discounts and commission of $29.1 million. See Note 12, Subsequent Events for additional information on the IPO and the related debt transactions.

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation and Consolidation The Company has historically operated as part of Select. The unaudited condensed consolidated financial statements of the Company have been prepared from Select’s historical accounting records and are derived from the condensed consolidated financial statements of Select to present Concentra as if it had been operating on a standalone basis. The unaudited condensed consolidated financial statements of the Company as of June 30, 2024, and for the three and six month periods ended June 30, 2024 and 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting and the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, certain information and disclosures required by GAAP, which are normally included in the notes to the consolidated financial statements, have been condensed or omitted pursuant to those rules and regulations, although the Company believes the disclosure is adequate to make the information presented not misleading. In the opinion of management, such information contains all adjustments, which are normal and recurring in nature, necessary for a fair statement of the financial position, results of operations and cash flow for such periods. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full fiscal year ended December 31, 2024. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s registration statement on Form S-1, as amended (File No. 333-280242) (the “Registration Statement”). The condensed consolidated financial statements include the assets, liabilities, revenue, and expenses based on our legal entity structure as well as direct and indirect costs that are attributable to our operations. Indirect costs are the costs of support functions that are partially provided on a centralized basis by Select and its affiliates, which include finance, human resources, benefits administration, procurement support, information technology, legal, corporate governance and other professional services. Indirect costs have been allocated to us for the purposes of preparing the condensed consolidated financial statements based on a specific identification basis or, when specific identification is not practicable, a proportional cost allocation method, primarily based on headcount or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented, depending on the nature of the services received. The income tax amounts in these condensed consolidated financial statements have been calculated based on a separate return methodology and are presented as if our income gave rise to separate federal and state consolidated income tax return filing obligations in the respective jurisdictions in which we operate. Adjustments to income tax expense resulting from the application of the separate return methodology, as compared to tax obligations determined by the Company’s inclusion in the Parent’s consolidated income tax provision, were assumed to be immediately settled with the Parent through Contributed Capital/Capital in Excess of Par as reflected on the Condensed Consolidated Balance Sheets, and reflected as a (Distribution)/Contribution to Parent on the Condensed Consolidated Statements of Changes in Stockholders’/Members’ Equity and the Condensed Consolidated Statements of Cash Flows within financing activities. The condensed consolidated financial statements include the accounts of Concentra and the subsidiaries and variable interest entities in which Concentra has a controlling financial interest. All intercompany balances and transactions within the Company are eliminated in consolidation. Transactions between the Company and Select have been included in these consolidated financial statements. The transfers with Select are expected to be settled in cash, other than the assumed income tax settlement noted above, and are reflected within the consolidated statement of cash flows as an operating or financing activity determined by the nature of the transaction. Select’s third-party debt and related interest expense have not been attributed to the Company because the Company is not the primary legal obligor of the debt and the borrowings are not specifically identifiable to the Company. However, the Company was a guarantor for Select’s senior notes and credit facilities until the guarantee was released at the closing of the IPO. The Company maintains its own cash management system and does not participate in a centralized cash management arrangement with Select. Recent Accounting Guidance Not Yet Adopted Segment Reporting In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve disclosure of segment information so that investors can better understand an entity’s overall performance. The ASU requires entities to quantitatively disclose significant segment expenses that are regularly provided to the chief operating decision maker for each reportable segment, as well as the amount of other segment items for each reportable segment and a description of what the other segment items are comprised. Disclosure of multiple measures of profit or loss will be permitted by the ASU. The ASU is effective for annual reporting periods beginning on or after December 15, 2023, and interim periods with fiscal years beginning after December 15, 2024; however, early adoption is permitted. The ASU is required to be applied retrospectively to all periods presented in the financial statements. The Company is currently reviewing the impact that ASU 2023-07 will have on the disclosures in our consolidated financial statements. Income Taxes In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to improve the transparency and decision usefulness of income tax disclosures. The ASU includes enhanced requirements on the rate reconciliation, including specific categories that must be disclosed, and provides a threshold over which reconciling items must be disclosed. The amendments in the update also require annual disclosure of income taxes paid, disaggregated by federal, state, and foreign taxes, as well as any individual jurisdictions in which income taxes paid is greater than 5% of total income taxes paid. The ASU is effective for annual periods beginning after December 15, 2024; however early adoption is permitted. The ASU can be applied either prospectively or retrospectively. The Company is currently reviewing the impact that ASU 2023-09 will have on the disclosures in our consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.

Redeemable Non-Controlling Inte

Redeemable Non-Controlling Interests	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
Redeemable Non-Controlling Interests	Redeemable Non-Controlling Interests The Company’s redeemable non-controlling interests are comprised of membership interests held by equity holders other than the Company in five less than wholly-owned subsidiaries. These interests are subject to redemption rights. The changes in redeemable non-controlling interests are as follows: 2024 2023 (in thousands) Balance as of January 1 $ 16,477 $ 16,772 Net income attributable to redeemable non-controlling interests 1,053 914 Distributions to and purchases of redeemable non-controlling interests (1,174) (1,656) Redemption value adjustment on redeemable non-controlling interests 1,901 436 Balance as of March 31 $ 18,257 $ 16,466 Net income attributable to redeemable non-controlling interests 1,078 993 Distributions to and purchases of redeemable non-controlling interests (793) (610) Redemption value adjustment on redeemable non-controlling interests (132) 3 Balance as of June 30 $ 18,410 $ 16,852

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities Certain states prohibit the “corporate practice of medicine,” which restricts the Company from owning medical practices that directly employ physicians and from exercising control over medical decisions by physicians. In these states, the Company enters into long-term management agreements with affiliated professional medical groups (referred to as “Managed PCs”) that are owned by licensed physicians which, in turn, employ or contract with physicians who provide professional medical services in its occupational health centers. The Company also enters into a stock transfer restriction agreement with the respective equity holders, which provide for the Company to direct the transfer of ownership of the Managed PCs to other licensed physicians at any time. The long-term management agreements provide for various administrative and management services to be provided by the Company to the Managed PCs, including, but not limited to, billing and collections, accounting, non-physician personnel, supplies, security and maintenance, and insurance. The Company has the right to receive income as an ongoing management fee, and effectively absorbs all of the residual interests of the Managed PCs. Based on the provisions of the management and stock transfer agreements, the Managed PCs are variable interest entities for which the Company is the primary beneficiary and consolidates the Managed PCs under the VIE model. There are no restrictions on the use of the assets of the Managed PCs or on the settlement of its liabilities. Additionally, the Company fully indemnifies the licensed physician owners from all claims, demands, costs, damages, losses, liabilities, and other amounts arising from the ownership and operation of the medical practices, excluding gross negligence. As of June 30, 2024, and December 31, 2023, the total assets of the Company’s variable interest entities were $224.8 million and $212.3 million, respectively, and are principally comprised of accounts receivable. As of June 30, 2024, and December 31, 2023, the total liabilities of the Company’s variable interest entities were $53.7 million and $56.4 million, respectively, and are principally comprised of accounts payable and accrued expenses. These variable interest entities have obligations payable for services received under their management agreements with the Company of $171.7 million and $156.2 million as of June 30, 2024, and December 31, 2023, respectively. These intercompany balances are eliminated in consolidation.

Leases

Leases	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Leases	Leases The Company’s total lease cost is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Operating lease cost $ 25,077 $ 24,296 $ 49,867 $ 48,424 Finance lease cost: Amortization of right-of-use assets 109 261 320 512 Interest on lease liabilities 77 100 132 203 Variable lease cost 5,293 4,920 10,549 10,034 Total lease cost $ 30,556 $ 29,577 $ 60,868 $ 59,173
Leases	Leases The Company’s total lease cost is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Operating lease cost $ 25,077 $ 24,296 $ 49,867 $ 48,424 Finance lease cost: Amortization of right-of-use assets 109 261 320 512 Interest on lease liabilities 77 100 132 203 Variable lease cost 5,293 4,920 10,549 10,034 Total lease cost $ 30,556 $ 29,577 $ 60,868 $ 59,173

Long-Term Debt and Notes Payabl

Long-Term Debt and Notes Payable	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt and Notes Payable	Long-Term Debt and Notes Payable The carrying values of the Company’s long-term debt are as follows: June 30, 2024 December 31, 2023 (in thousands) Long-term revolving promissory note with related party $ 420,000 $ 470,000 Other debt (1) 7,730 4,746 Total debt $ 427,730 $ 474,746 _______________________________________________________________________________ (1) Other debt is primarily comprised of insurance financing arrangements, promissory notes executed in connection with business combinations, and finance leases. As of June 30, 2024, principal maturities of the Company’s long-term debt were as follows: 2024 2025 2026 2027 2028 Thereafter Total (in thousands) Revolving promissory note with related party $ — $ — $ — $ — $ — $ 420,000 $ 420,000 Other debt, including finance leases 3,819 1,024 351 397 447 1,692 7,730 Total debt $ 3,819 $ 1,024 $ 351 $ 397 $ 447 $ 421,692 $ 427,730 See Note 12, Subsequent Events, for a description of the debt financing transactions which occurred in connection with the IPO on July 26, 2024.

Accrued and Other Liabilities

Accrued and Other Liabilities	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and Other Liabilities The following table sets forth the components of accrued and other liabilities: June 30, 2024 December 31, 2023 (in thousands) Accrued payroll $ 57,439 $ 62,824 Accrued vacation 42,983 41,488 Accrued other 55,484 71,755 Income taxes payable 3,014 399 Accrued and other liabilities $ 158,920 $ 176,466

Revenue

Revenue	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following table disaggregates the Company’s revenue for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Occupational health centers: Workers’ compensation $ 288,405 $ 278,554 $ 568,271 $ 546,894 Employer services 153,305 153,164 304,040 305,337 Consumer health 7,669 7,802 15,995 15,987 Other occupational health center revenue 1,861 2,254 4,006 4,672 Total occupational health center revenue 451,240 441,774 892,312 872,890 Onsite clinics 15,539 14,705 31,396 29,250 Other 11,136 10,600 21,805 21,237 Total revenue $ 477,915 $ 467,079 $ 945,513 $ 923,377

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share At December 31, 2023, there were 435,000 Class A units, 8,498 Class B units, and 3,583 Class C units (in thousands) outstanding which converted to common shares on a one-for-one basis effective March 4, 2024. On June 25, 2024, the Company effectuated a reverse stock split at a ratio of one share of common stock for every 4.295 shares of common stock and resulted in 104,094 shares (in thousands) outstanding. There were no participating shares or securities outstanding during the three and six months ended June 30, 2024. The following table sets forth the computation of earnings per share (EPS) in 2024: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Net Income Attributable to the Company Shares (1) Basic and Diluted EPS Net Income Attributable to the Company Shares (1) Basic and Diluted EPS (in thousands, except for per share amounts) Common shares $ 51,737 104,094 $ 0.50 $ 100,693 104,094 $ 0.97 At June 30, 2023, Concentra’s capital structure included Class A, B and C units outstanding and unvested restricted interests and outstanding options. To calculate EPS for the three and six months ended June 30, 2023, Concentra applied the two-class method because its unvested restricted interests and outstanding options were participating securities. The following table sets forth the net income attributable to the Company, its units outstanding, and its participating units outstanding: Three Months Ended Six Months Ended (in thousands) Net income $ 54,032 $ 101,463 Less: net income attributable to non-controlling interests 1,290 2,457 Net income attributable to the Company 52,742 99,006 Less: Distributed and undistributed income attributable to participating shares 148 287 Distributed and undistributed income attributable to outstanding shares $ 52,594 $ 98,719 The following table sets forth the computation of EPS in 2023, under the two-class method: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Net Income Allocation Shares (1)(2) Basic and Diluted EPS Net Income Allocation Shares (1)(2) Basic and Diluted EPS (in thousands, except for per share amounts) Outstanding Class A, Class B, and Class C shares $ 52,594 103,962 $ 0.51 $ 98,719 103,952 $ 0.95 Participating shares 148 292 $ 0.51 287 302 $ 0.95 Total Company $ 52,742 $ 99,006 _______________________________________________________________________________ (1) The recapitalization of the members units into common shares has been treated as such for earnings per share purposes and has been reflected retrospectively for all periods, along with the one for 4.295 reverse stock split, as described in Note 1, Organization. (2) Represents the weighted average units outstanding during the period.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Shared Services Agreement - cost allocations from Select The Company pays Select a fee for the shared support functions provided on a centralized basis by Select and its affiliates. The shared services fee is reassessed and adjusted annually. For the three months ended June 30, 2024 and 2023, the shared service fees were $3.8 million and $3.7 million, respectively. For the six months ended June 30, 2024 and 2023, the shared service fees were $7.7 million and $7.3 million, respectively. These cost allocations reasonably reflect the services and the benefits derived for the periods presented. These allocations may not be indicative of the actual expenses that would have been incurred as a stand-alone entity. In connection with the IPO, and described in the Registration Statement, Select and Concentra entered into a separation agreement, a transition services agreement, a tax matters agreement, and an employee matters agreement on July 26, 2024, which effects the separation of the Company’s business from Select and provides a framework for the Company’s relationship with Select after the separation.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is a party to various legal actions, proceedings, and claims, and regulatory and other governmental audits and investigations in the ordinary course of its business, including, but not limited to, legal actions and claims alleging professional malpractice, general liability for property damage, personal and bodily injury, violations of federal and state employment laws, often in the form of wage and hour class action lawsuits, and liability for data breaches. Many of these actions involve large claims and significant defense costs and sometimes, as in the case of wage and hour class actions, are not covered by insurance. The Company cannot predict the ultimate outcome of pending litigation, proceedings, and regulatory and other governmental audits and investigations. These matters could potentially subject the Company to sanctions, damages, recoupments, fines, and other penalties. To address claims arising out of the Company’s operations, the Company maintains professional malpractice liability insurance and general liability insurance coverages through a number of different programs that are dependent upon such factors as the state where the Company is operating. The Company currently maintains insurance coverages under a combination of policies with a total annual aggregate limit of up to $29.0 million for professional malpractice liability insurance and $29.0 million for general liability insurance. The Company’s insurance for the professional liability coverage is written on a “claims-made” basis, and its commercial general liability coverage is maintained on an “occurrence” basis. These coverages apply after a self-insured retention limit is exceeded. Each of these programs has either a deductible or self-insured retention limit. The Company also maintains additional types of liability insurance covering claims which, due to their nature or amount, are not covered by or not fully covered by the applicable professional malpractice and general liability insurance policies, including workers compensation, property and casualty, directors and officers, cyber liability, and employment practices liability insurance coverages. Our insurance policies generally are silent with respect to punitive damages so coverage is available to the extent insurable under the law of any applicable jurisdiction, and are subject to various deductibles and policy limits. The Company reviews its insurance program annually and may make adjustments to the amount of insurance coverage and self-insured retentions in future years. Significant legal actions, as well as the cost and possible lack of available insurance, could subject the Company to substantial uninsured liabilities. Physical Therapy Billing. On October 7, 2021, Select received a letter from a Trial Attorney at the U.S. Department of Justice, Civil Division, Commercial Litigation Branch, Fraud Section (“DOJ”) stating that the DOJ, in conjunction with the U.S. Department of Health and Human Services (“HHS”), is investigating Select in connection with potential violations of the False Claims Act, 31 U.S.C. § 3729, et seq . The letter specified that the investigation relates to Select’s billing for physical therapy services, and indicated that the DOJ would be requesting certain records from Select. In October and December 2021, the DOJ requested, and Select furnished, records relating to six of Select’s outpatient therapy clinics in Florida. In 2022 and 2023, the DOJ requested certain data relating to all of Select’s outpatient therapy clinics nationwide, and sought information about the Company’s ability to produce additional data relating to the physical therapy services furnished by Select’s outpatient therapy clinics and the Company. The Company has produced data and other documents requested by the DOJ and is fully cooperating on this investigation. In May 2024, by order of the U.S. District Court for the Middle District of Florida, a qui tam lawsuit that is related to the DOJ’s investigation was unsealed after the U.S. filed a notice declining to intervene in the case, but stating that its investigation is continuing and reserving its right to intervene at a later date. The lawsuit, filed in May 2021 and amended in October 2021 and July 2024, was brought by Kathleen Kane, a physical therapist formerly employed in Select’s outpatient division, against Select Medical Corporation, Select Physical Therapy Holdings, Inc. and Select Employment Services, Inc. The amended complaint alleges that the defendants billed federally funded health programs for one-on-one therapy services when group therapy was performed or overbilled for one-on-one therapy services, and billed for unreimbursable unskilled physical therapy services. At this time, the Company is unable to predict the timing and outcome of this matter. California Department of Insurance Investigation. On February 5, 2024, the Company received a subpoena from the California Department of Insurance relating to an investigation under the California Insurance Frauds Prevention Act, Cal. Ins. Code § 1871.7 et seq., which allows a whistleblower to file a false claims lawsuit based on the submission of false or fraudulent claims to insurance companies. The subpoena seeks documentation relating mainly to the Company’s billing and coding for physical therapy claims submitted to commercial insurers and workers compensation carriers located or doing business in California. The Company has produced data and other documents requested by the California Department of Insurance and intends to fully cooperate on this investigation. At this time, the Company is unable to predict the timing and outcome of this matter. Perry Johnson & Associates, Inc. Data Breach . On November 10, 2023, Perry Johnson & Associates, Inc., a third-party vendor of health information technology solutions that provides medical transcription services (“PJ&A”), notified Concentra Health Services, Inc. (“Concentra”) that certain information related to particular Concentra patients was potentially affected by a cybersecurity event. In February 2024, Concentra sent notices to almost four million patients who may have been impacted by the data breach. During the first quarter of 2024, Concentra became aware of six putative class action lawsuits filed against PJ&A and Concentra related to the data breach. The first was filed in the U.S. District Court for the Eastern District of Michigan on February 19, 2024 by Elliot Curry, individually and on behalf of all others similarly situated. Plaintiff alleged, among other things, that he became the victim of identity theft as a result of the PJ&A data breach and that Concentra had lax data security policies. The second was filed in the U.S. District Court for the Eastern District of New York on February 21, 2024 by Tiffany Williams and Jo Joaquim, individually and on behalf of all others similarly situated. Plaintiffs alleged, among other things, that they face an immediate and heightened risk of identity theft as a result of the data breach and that the defendants failed to take measures to properly safeguard their private information. The third was filed in the U.S. District Court for the Eastern District of Missouri on February 26, 2024 by Stephen Tate, a.k.a. Steven Tate, individually and on behalf of all others similarly situated. Plaintiff alleged, among other things, that he faces a heightened and imminent risk of identity theft as a result of the data breach and that the defendants failed to take measures to properly safeguard his private information. The fourth was filed in the U.S. District Court for the Eastern District of Michigan on February 26, 2024 by Eric Franczak, individually and on behalf of all others similarly situated. Plaintiff alleged, among other things, that he faces a substantially increased risk of fraud and identity theft as a result of the data breach and that the defendants failed to take measures to properly safeguard his private information. The fifth was filed in the U.S. District Court for the Eastern District of Michigan on March 6, 2024 by Lazema Johnson, individually and on behalf of all others similarly situated. Plaintiff alleged, among other things, that she faces a substantially increased risk of fraud and identity theft as a result of the data breach and that the defendants failed to take measures to properly safeguard her private information. The sixth was filed in the Superior Court of California, County of Los Angeles, on April 8, 2024 by Robert Valencia, individually and on behalf of all others similarly situated. Plaintiff alleged, among other things, that he faces a substantially increased risk of fraud and identity theft as a result of the data breach and that the defendants failed to take measures to properly safeguard his private information. Concentra is working with its cybersecurity risk insurance policy carrier and does not believe that the data breach or the lawsuits will have a material impact on its operations or financial performance. However, at this time, Concentra is unable to predict the timing and outcome of these matters.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 26, 2024, the Company completed an IPO of 22,500,000 shares of its common stock, par value $0.01 per share, at an initial public offering price of $23.50 per share for the net proceeds of $499.7 million after deducting underwriting discounts and commission of $29.1 million. In addition, the underwriters exercised the option to purchase an additional 750,000 shares of the Company’s common stock for net proceeds of $16.7 million after deducting underwriting discounts and commission of $1.0 million. The Company’s shares began trading on the New York Stock Exchange under the symbol “CON” on July 25, 2024. In connection with the IPO, Concentra Health Services, Inc. (“CHSI”), a wholly-owned subsidiary of the Company, entered into certain financing arrangements which include senior secured credit facilities of $1,250.0 million (the “Credit Facilities”) and a private offering of $650.0 million aggregate principal amount of 6.875% Senior Notes due 2032 (the “Notes”). The Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by Concentra and certain of its wholly-owned subsidiaries. The Credit Facilities consist of an $850.0 million Term Loan and a $400.0 million Revolving Credit Facility. The Revolving Credit Facility was undrawn at the closing of the IPO. The Term Loan matures on July 26, 2031, and has an interest rate of Term SOFR plus 2.25%, subject to a leverage-based pricing grid. The Revolving Credit Facility matures on July 26, 2029, and has an interest rate of Term SOFR plus 2.50%, subject to a leverage-based pricing grid. The net proceeds of the IPO and the debt financing transactions, except for $34.7 million, were paid to Select through the issuance of a dividend, the repayment of the $420.0 million revolving promissory note outstanding, and the repayment of a new promissory note issued subsequent to June 30, 2024 in contemplation of the IPO. After the closing of the IPO, and the exercise of the underwriters’ option to purchase additional shares, Select owns 81.74% of the total outstanding shares of the Company’s common stock. Select intends to make a distribution, which is intended to be tax-free for U.S. federal income tax purposes, to its stockholders of all of its remaining equity interest in the Company within twelve months of the IPO.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income attributable to the Company	$ 51,737	$ 48,956	$ 52,742	$ 46,264	$ 100,693	$ 99,006

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The Company has historically operated as part of Select. The unaudited condensed consolidated financial statements of the Company have been prepared from Select’s historical accounting records and are derived from the condensed consolidated financial statements of Select to present Concentra as if it had been operating on a standalone basis. The unaudited condensed consolidated financial statements of the Company as of June 30, 2024, and for the three and six month periods ended June 30, 2024 and 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting and the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, certain information and disclosures required by GAAP, which are normally included in the notes to the consolidated financial statements, have been condensed or omitted pursuant to those rules and regulations, although the Company believes the disclosure is adequate to make the information presented not misleading. In the opinion of management, such information contains all adjustments, which are normal and recurring in nature, necessary for a fair statement of the financial position, results of operations and cash flow for such periods. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full fiscal year ended December 31, 2024. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s registration statement on Form S-1, as amended (File No. 333-280242) (the “Registration Statement”). The condensed consolidated financial statements include the assets, liabilities, revenue, and expenses based on our legal entity structure as well as direct and indirect costs that are attributable to our operations. Indirect costs are the costs of support functions that are partially provided on a centralized basis by Select and its affiliates, which include finance, human resources, benefits administration, procurement support, information technology, legal, corporate governance and other professional services. Indirect costs have been allocated to us for the purposes of preparing the condensed consolidated financial statements based on a specific identification basis or, when specific identification is not practicable, a proportional cost allocation method, primarily based on headcount or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented, depending on the nature of the services received. The income tax amounts in these condensed consolidated financial statements have been calculated based on a separate return methodology and are presented as if our income gave rise to separate federal and state consolidated income tax return filing obligations in the respective jurisdictions in which we operate. Adjustments to income tax expense resulting from the application of the separate return methodology, as compared to tax obligations determined by the Company’s inclusion in the Parent’s consolidated income tax provision, were assumed to be immediately settled with the Parent through Contributed Capital/Capital in Excess of Par as reflected on the Condensed Consolidated Balance Sheets, and reflected as a (Distribution)/Contribution to Parent on the Condensed Consolidated Statements of Changes in Stockholders’/Members’ Equity and the Condensed Consolidated Statements of Cash Flows within financing activities. The condensed consolidated financial statements include the accounts of Concentra and the subsidiaries and variable interest entities in which Concentra has a controlling financial interest. All intercompany balances and transactions within the Company are eliminated in consolidation. Transactions between the Company and Select have been included in these consolidated financial statements. The transfers with Select are expected to be settled in cash, other than the assumed income tax settlement noted above, and are reflected within the consolidated statement of cash flows as an operating or financing activity determined by the nature of the transaction. Select’s third-party debt and related interest expense have not been attributed to the Company because the Company is not the primary legal obligor of the debt and the borrowings are not specifically identifiable to the Company. However, the Company was a guarantor for Select’s senior notes and credit facilities until the guarantee was released at the closing of the IPO. The Company maintains its own cash management system and does not participate in a centralized cash management arrangement with Select.
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The Company has historically operated as part of Select. The unaudited condensed consolidated financial statements of the Company have been prepared from Select’s historical accounting records and are derived from the condensed consolidated financial statements of Select to present Concentra as if it had been operating on a standalone basis. The unaudited condensed consolidated financial statements of the Company as of June 30, 2024, and for the three and six month periods ended June 30, 2024 and 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting and the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, certain information and disclosures required by GAAP, which are normally included in the notes to the consolidated financial statements, have been condensed or omitted pursuant to those rules and regulations, although the Company believes the disclosure is adequate to make the information presented not misleading. In the opinion of management, such information contains all adjustments, which are normal and recurring in nature, necessary for a fair statement of the financial position, results of operations and cash flow for such periods. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full fiscal year ended December 31, 2024. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s registration statement on Form S-1, as amended (File No. 333-280242) (the “Registration Statement”). The condensed consolidated financial statements include the assets, liabilities, revenue, and expenses based on our legal entity structure as well as direct and indirect costs that are attributable to our operations. Indirect costs are the costs of support functions that are partially provided on a centralized basis by Select and its affiliates, which include finance, human resources, benefits administration, procurement support, information technology, legal, corporate governance and other professional services. Indirect costs have been allocated to us for the purposes of preparing the condensed consolidated financial statements based on a specific identification basis or, when specific identification is not practicable, a proportional cost allocation method, primarily based on headcount or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented, depending on the nature of the services received. The income tax amounts in these condensed consolidated financial statements have been calculated based on a separate return methodology and are presented as if our income gave rise to separate federal and state consolidated income tax return filing obligations in the respective jurisdictions in which we operate. Adjustments to income tax expense resulting from the application of the separate return methodology, as compared to tax obligations determined by the Company’s inclusion in the Parent’s consolidated income tax provision, were assumed to be immediately settled with the Parent through Contributed Capital/Capital in Excess of Par as reflected on the Condensed Consolidated Balance Sheets, and reflected as a (Distribution)/Contribution to Parent on the Condensed Consolidated Statements of Changes in Stockholders’/Members’ Equity and the Condensed Consolidated Statements of Cash Flows within financing activities. The condensed consolidated financial statements include the accounts of Concentra and the subsidiaries and variable interest entities in which Concentra has a controlling financial interest. All intercompany balances and transactions within the Company are eliminated in consolidation. Transactions between the Company and Select have been included in these consolidated financial statements. The transfers with Select are expected to be settled in cash, other than the assumed income tax settlement noted above, and are reflected within the consolidated statement of cash flows as an operating or financing activity determined by the nature of the transaction. Select’s third-party debt and related interest expense have not been attributed to the Company because the Company is not the primary legal obligor of the debt and the borrowings are not specifically identifiable to the Company. However, the Company was a guarantor for Select’s senior notes and credit facilities until the guarantee was released at the closing of the IPO. The Company maintains its own cash management system and does not participate in a centralized cash management arrangement with Select.
Recent Accounting Guidance Not Yet Adopted	Recent Accounting Guidance Not Yet Adopted Segment Reporting In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve disclosure of segment information so that investors can better understand an entity’s overall performance. The ASU requires entities to quantitatively disclose significant segment expenses that are regularly provided to the chief operating decision maker for each reportable segment, as well as the amount of other segment items for each reportable segment and a description of what the other segment items are comprised. Disclosure of multiple measures of profit or loss will be permitted by the ASU. The ASU is effective for annual reporting periods beginning on or after December 15, 2023, and interim periods with fiscal years beginning after December 15, 2024; however, early adoption is permitted. The ASU is required to be applied retrospectively to all periods presented in the financial statements. The Company is currently reviewing the impact that ASU 2023-07 will have on the disclosures in our consolidated financial statements. Income Taxes In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to improve the transparency and decision usefulness of income tax disclosures. The ASU includes enhanced requirements on the rate reconciliation, including specific categories that must be disclosed, and provides a threshold over which reconciling items must be disclosed. The amendments in the update also require annual disclosure of income taxes paid, disaggregated by federal, state, and foreign taxes, as well as any individual jurisdictions in which income taxes paid is greater than 5% of total income taxes paid. The ASU is effective for annual periods beginning after December 15, 2024; however early adoption is permitted. The ASU can be applied either prospectively or retrospectively. The Company is currently reviewing the impact that ASU 2023-09 will have on the disclosures in our consolidated financial statements.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.
Redeemable Non-Controlling Interests	Redeemable Non-Controlling InterestsThe Company’s redeemable non-controlling interests are comprised of membership interests held by equity holders other than the Company in five less than wholly-owned subsidiaries. These interests are subject to redemption rights.
Variable Interest Entities	Variable Interest Entities Certain states prohibit the “corporate practice of medicine,” which restricts the Company from owning medical practices that directly employ physicians and from exercising control over medical decisions by physicians. In these states, the Company enters into long-term management agreements with affiliated professional medical groups (referred to as “Managed PCs”) that are owned by licensed physicians which, in turn, employ or contract with physicians who provide professional medical services in its occupational health centers. The Company also enters into a stock transfer restriction agreement with the respective equity holders, which provide for the Company to direct the transfer of ownership of the Managed PCs to other licensed physicians at any time. The long-term management agreements provide for various administrative and management services to be provided by the Company to the Managed PCs, including, but not limited to, billing and collections, accounting, non-physician personnel, supplies, security and maintenance, and insurance. The Company has the right to receive income as an ongoing management fee, and effectively absorbs all of the residual interests of the Managed PCs. Based on the provisions of the management and stock transfer agreements, the Managed PCs are variable interest entities for which the Company is the primary beneficiary and consolidates the Managed PCs under the VIE model. There are no restrictions on the use of the assets of the Managed PCs or on the settlement of its liabilities. Additionally, the Company fully indemnifies the licensed physician owners from all claims, demands, costs, damages, losses, liabilities, and other amounts arising from the ownership and operation of the medical practices, excluding gross negligence.

Redeemable Non-Controlling In_2

Redeemable Non-Controlling Interests (Tables)	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
Schedule of redeemable non-controlling interests	The changes in redeemable non-controlling interests are as follows: 2024 2023 (in thousands) Balance as of January 1 $ 16,477 $ 16,772 Net income attributable to redeemable non-controlling interests 1,053 914 Distributions to and purchases of redeemable non-controlling interests (1,174) (1,656) Redemption value adjustment on redeemable non-controlling interests 1,901 436 Balance as of March 31 $ 18,257 $ 16,466 Net income attributable to redeemable non-controlling interests 1,078 993 Distributions to and purchases of redeemable non-controlling interests (793) (610) Redemption value adjustment on redeemable non-controlling interests (132) 3 Balance as of June 30 $ 18,410 $ 16,852

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of lease cost	The Company’s total lease cost is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Operating lease cost $ 25,077 $ 24,296 $ 49,867 $ 48,424 Finance lease cost: Amortization of right-of-use assets 109 261 320 512 Interest on lease liabilities 77 100 132 203 Variable lease cost 5,293 4,920 10,549 10,034 Total lease cost $ 30,556 $ 29,577 $ 60,868 $ 59,173

Long-Term Debt and Notes Paya_2

Long-Term Debt and Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of long-term debt and notes payable	The carrying values of the Company’s long-term debt are as follows: June 30, 2024 December 31, 2023 (in thousands) Long-term revolving promissory note with related party $ 420,000 $ 470,000 Other debt (1) 7,730 4,746 Total debt $ 427,730 $ 474,746 _______________________________________________________________________________ (1) Other debt is primarily comprised of insurance financing arrangements, promissory notes executed in connection with business combinations, and finance leases.
Schedule of principal maturities of long-term debt and notes payable	As of June 30, 2024, principal maturities of the Company’s long-term debt were as follows: 2024 2025 2026 2027 2028 Thereafter Total (in thousands) Revolving promissory note with related party $ — $ — $ — $ — $ — $ 420,000 $ 420,000 Other debt, including finance leases 3,819 1,024 351 397 447 1,692 7,730 Total debt $ 3,819 $ 1,024 $ 351 $ 397 $ 447 $ 421,692 $ 427,730

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Components of accrued and other liabilities	The following table sets forth the components of accrued and other liabilities: June 30, 2024 December 31, 2023 (in thousands) Accrued payroll $ 57,439 $ 62,824 Accrued vacation 42,983 41,488 Accrued other 55,484 71,755 Income taxes payable 3,014 399 Accrued and other liabilities $ 158,920 $ 176,466

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	The following table disaggregates the Company’s revenue for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Occupational health centers: Workers’ compensation $ 288,405 $ 278,554 $ 568,271 $ 546,894 Employer services 153,305 153,164 304,040 305,337 Consumer health 7,669 7,802 15,995 15,987 Other occupational health center revenue 1,861 2,254 4,006 4,672 Total occupational health center revenue 451,240 441,774 892,312 872,890 Onsite clinics 15,539 14,705 31,396 29,250 Other 11,136 10,600 21,805 21,237 Total revenue $ 477,915 $ 467,079 $ 945,513 $ 923,377

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted earnings per share	The following table sets forth the computation of earnings per share (EPS) in 2024: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Net Income Attributable to the Company Shares (1) Basic and Diluted EPS Net Income Attributable to the Company Shares (1) Basic and Diluted EPS (in thousands, except for per share amounts) Common shares $ 51,737 104,094 $ 0.50 $ 100,693 104,094 $ 0.97 The following table sets forth the net income attributable to the Company, its units outstanding, and its participating units outstanding: Three Months Ended Six Months Ended (in thousands) Net income $ 54,032 $ 101,463 Less: net income attributable to non-controlling interests 1,290 2,457 Net income attributable to the Company 52,742 99,006 Less: Distributed and undistributed income attributable to participating shares 148 287 Distributed and undistributed income attributable to outstanding shares $ 52,594 $ 98,719 The following table sets forth the computation of EPS in 2023, under the two-class method: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Net Income Allocation Shares (1)(2) Basic and Diluted EPS Net Income Allocation Shares (1)(2) Basic and Diluted EPS (in thousands, except for per share amounts) Outstanding Class A, Class B, and Class C shares $ 52,594 103,962 $ 0.51 $ 98,719 103,952 $ 0.95 Participating shares 148 292 $ 0.51 287 302 $ 0.95 Total Company $ 52,742 $ 99,006 _______________________________________________________________________________ (1) The recapitalization of the members units into common shares has been treated as such for earnings per share purposes and has been reflected retrospectively for all periods, along with the one for 4.295 reverse stock split, as described in Note 1, Organization. (2) Represents the weighted average units outstanding during the period.

Organization (Details)

Organization (Details) $ / shares in Units, $ in Millions				6 Months Ended
	Jul. 26, 2024 USD ($) $ / shares shares	Jun. 25, 2024	Mar. 04, 2024	Jun. 30, 2024 clinic state health_center $ / shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of occupational health centers operated by entity | health_center				547
Number of onsite clinics | clinic				154
Number of states in which entity operates | state				42
Member interests converted to common shares			1
Stock split conversion ratio		0.233
Common stock, par value (in dollars per share)				$ 0.01
Select Medical Corporation | Concentra Group Holdings Parent
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Outstanding member interest				100%
Subsequent Event | IPO
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of shares issued in initial public offering (in shares) | shares	22,500,000
Common stock, par value (in dollars per share)	$ 0.01
Sale of stock, price per share (in dollars per share)	$ 23.50
Proceeds from initial public offering | $	$ 499.7
Underwriting discounts and commissions | $	$ 29.1
Subsequent Event | IPO | Select Medical Corporation | Concentra Group Holdings Parent
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Outstanding member interest	81.74%

Redeemable Non-Controlling In_3

Redeemable Non-Controlling Interests - Narrative (Details)	Jun. 30, 2024 less_than_wholly_owned_subsidiary
Noncontrolling Interest [Abstract]
Number of less than wholly owned subsidiaries	5

Redeemable Non-Controlling In_4

Redeemable Non-Controlling Interests - Schedule of Redeemable Non-Controlling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance, beginning	$ 18,257	$ 16,477	$ 16,466	$ 16,772
Net income attributable to redeemable non-controlling interests	1,078	1,053	993	914
Distributions to and purchases of redeemable non-controlling interests	(793)	(1,174)	(610)	(1,656)
Redemption value adjustment on redeemable non-controlling interests	(132)	1,901	3	435
Redemption value adjustment on redeemable non-controlling interests				436
Balance, ending	$ 18,410	$ 18,257	$ 16,852	$ 16,466

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Variable Interest Entity [Line Items]
Assets	$ 2,363,338	$ 2,333,560
Liabilities	1,092,946	1,156,121
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	224,800	212,300
Liabilities	53,700	56,400
Variable Interest Entity, Primary Beneficiary | Related Party
Variable Interest Entity [Line Items]
Obligations payable	$ 171,700	$ 156,200

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 25,077	$ 24,296	$ 49,867	$ 48,424
Finance lease cost:
Amortization of right-of-use assets	109	261	320	512
Interest on lease liabilities	77	100	132	203
Variable lease cost	5,293	4,920	10,549	10,034
Total lease cost	$ 30,556	$ 29,577	$ 60,868	$ 59,173

Long-Term Debt and Notes Paya_3

Long-Term Debt and Notes Payable - Carrying Value Of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total debt	$ 427,730	$ 474,746
Related Party
Debt Instrument [Line Items]
Long-term revolving promissory note with related party	420,000	470,000
Nonrelated Party
Debt Instrument [Line Items]
Total debt	$ 7,730	$ 4,746

Long-Term Debt and Notes Paya_4

Long-Term Debt and Notes Payable - Principal Maturities Of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
2024	$ 3,819
2025	1,024
2026	351
2027	397
2028	447
Thereafter	421,692
Total	427,730	$ 474,746
Other debt, including finance leases
Debt Instrument [Line Items]
2024	3,819
2025	1,024
2026	351
2027	397
2028	447
Thereafter	1,692
Total	7,730
Related Party
Debt Instrument [Line Items]
2024	0
2025	0
2026	0
2027	0
2028	0
Thereafter	420,000
Total	$ 420,000

Accrued and Other Liabilities_2

Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued payroll	$ 57,439	$ 62,824
Accrued vacation	42,983	41,488
Accrued other	55,484	71,755
Income taxes payable	3,014	399
Accrued and other liabilities	$ 158,920	$ 176,466

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 477,915	$ 467,079	$ 945,513	$ 923,377
Operating Segments | Total occupational health center revenue
Disaggregation of Revenue [Line Items]
Revenue	451,240	441,774	892,312	872,890
Operating Segments | Onsite clinics
Disaggregation of Revenue [Line Items]
Revenue	15,539	14,705	31,396	29,250
Operating Segments | Other
Disaggregation of Revenue [Line Items]
Revenue	11,136	10,600	21,805	21,237
Workers’ compensation
Disaggregation of Revenue [Line Items]
Revenue	288,405	278,554	568,271	546,894
Employer services
Disaggregation of Revenue [Line Items]
Revenue	153,305	153,164	304,040	305,337
Consumer health
Disaggregation of Revenue [Line Items]
Revenue	7,669	7,802	15,995	15,987
Other occupational health center revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 1,861	$ 2,254	$ 4,006	$ 4,672

Earnings per Share - Narrative

Earnings per Share - Narrative (Details) shares in Thousands			3 Months Ended		6 Months Ended
	Jun. 25, 2024 shares	Mar. 04, 2024	Jun. 30, 2024 shares	Jun. 30, 2023 shares	Jun. 30, 2024 shares	Jun. 30, 2023 shares	Dec. 31, 2023 shares	Mar. 31, 2023 shares	Dec. 31, 2022 shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Member interests converted to common shares		1
Stock split conversion ratio	0.233
Conversion of units (in shares)	104,094
Participating shares outstanding (in shares)			0	292	0	302
Class A Units Voting
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common unit, outstanding (in shares)				435,000		435,000	435,000	435,000	435,000
Class B Units Non-Voting
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common unit, outstanding (in shares)				8,498		8,498	8,498	8,498	8,498
Class C Units Non-Voting
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common unit, outstanding (in shares)				3,018		3,018	3,583	3,018	2,770

Earnings per Share - Computatio

Earnings per Share - Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income allocated to common shares - basic	$ 51,737	$ 52,594	$ 100,693	$ 98,719
Net income allocated to common shares - diluted	$ 51,737	$ 52,594	$ 100,693	$ 98,719
Weighted average common shares outstanding, basic (in shares)	104,094	103,962	104,094	103,952
Weighted average common shares outstanding, diluted (in shares)	104,094	103,962	104,094	103,952
Basic (in dollars per share)	$ 0.50	$ 0.51	$ 0.97	$ 0.95
Diluted (in dollars per share)	$ 0.50	$ 0.51	$ 0.97	$ 0.95

Earnings per Share - Net Income

Earnings per Share - Net Income Attributable to the Company, Units Outstanding, and Participating Units Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income	$ 53,059		$ 54,032		$ 103,338	$ 101,463
Less: Net income attributable to non-controlling interests	1,322		1,290		2,645	2,457
Net income attributable to the Company	51,737	$ 48,956	52,742	$ 46,264	100,693	99,006
Basic EPS
Less: Distributed and undistributed income attributable to participating shares - basic EPS			148			287
Distributed and undistributed income attributable to outstanding shares	51,737		52,594		100,693	98,719
Diluted EPS
Less: Distributed and undistributed income attributable to participating shares - diluted EPS			148			287
Distributed and undistributed income attributable to outstanding shares	$ 51,737		$ 52,594		$ 100,693	$ 98,719

Earnings per Share - Computat_2

Earnings per Share - Computation of EPS Under the Two-Class Method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Net Income Allocation
Net income allocated to common shares - basic	$ 51,737		$ 52,594		$ 100,693	$ 98,719
Participating shares - basic			148			287
Net income allocated to common shares - diluted	51,737		52,594		100,693	98,719
Participating shares - diluted			148			287
Net income attributable to the Company	$ 51,737	$ 48,956	$ 52,742	$ 46,264	$ 100,693	$ 99,006
Weighted average common shares outstanding, basic (in shares)	104,094		103,962		104,094	103,952
Weighted average common shares outstanding, diluted (in shares)	104,094		103,962		104,094	103,952
Weighted average participating shares outstanding (in shares)	0		292		0	302
Basic EPS
Basic EPS (in dollars per share)	$ 0.50		$ 0.51		$ 0.97	$ 0.95
Diluted EPS
Diluted EPS (in dollars per share)	$ 0.50		$ 0.51		$ 0.97	$ 0.95

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party
Related Party Transaction [Line Items]
Shared service fee from related party	$ 3.8	$ 3.7	$ 7.7	$ 7.3

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2024 class_action_lawsuit	Jun. 30, 2024 USD ($)	Feb. 29, 2024 patient
Commitments and Contingencies
Loss contingency, number of patients | patient			4,000,000
Loss contingency, new claims filed, number | class_action_lawsuit	6
Professional liability claims
Commitments and Contingencies
Total annual aggregate limit of insurance coverage		$ 29
General Liability
Commitments and Contingencies
Total annual aggregate limit of insurance coverage		$ 29

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 26, 2024	Jun. 30, 2024
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)		$ 0.01
Select Medical Corporation | Concentra Group Holdings Parent
Subsequent Event [Line Items]
Outstanding member interest		100%
Subsequent Event | IPO
Subsequent Event [Line Items]
Number of shares issued in initial public offering (in shares)	22,500,000
Common stock, par value (in dollars per share)	$ 0.01
Sale of stock, price per share (in dollars per share)	$ 23.50
Proceeds from initial public offering	$ 499.7
Underwriting discounts and commissions	29.1
Net proceeds of IPO and debt financing transactions, excluding amounts repaid for debt	$ 34.7
Subsequent Event | IPO | Select Medical Corporation | Concentra Group Holdings Parent
Subsequent Event [Line Items]
Outstanding member interest	81.74%
Subsequent Event | IPO | Senior Secured Credit Facilities | Concentra Health Services, Inc. ("CHSI")
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 1,250
Subsequent Event | IPO | Term loan | Concentra Health Services, Inc. ("CHSI")
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 850
Credit spread adjustment	2.25%
Subsequent Event | IPO | Line of Credit | Concentra Health Services, Inc. ("CHSI") | Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 400
Credit spread adjustment	2.50%
Subsequent Event | IPO | 6.875 Senior Notes Due 2032 | Senior notes | Concentra Health Services, Inc. ("CHSI")
Subsequent Event [Line Items]
Principal outstanding	$ 650
Interest rate of debt (as a percent)	6.875%
Subsequent Event | IPO | Select Medical Revolving Promissory Note
Subsequent Event [Line Items]
Repayments of debt	$ 420
Subsequent Event | Over-Allotment Option
Subsequent Event [Line Items]
Number of shares issued in initial public offering (in shares)	750,000
Underwriting discounts and commissions	$ 1
Net proceeds received	$ 16.7