RehabCare and Floyd Healthcare Resources Close Agreement to Operate Joint Venture Specialty Hospital

ST. LOUIS & ROME, Ga.--(BUSINESS WIRE)--A joint venture between RehabCare Group, Inc. (NYSE: RHB) and Floyd Healthcare Resources (FHR) was finalized June 1, following approval by the Georgia Attorney General's office May 21. The joint venture will own and operate The Specialty Hospital, a 24-bed Long-Term Acute Care Hospital (LTACH) located within Floyd Medical Center (Rome, GA). RehabCare will own 80 percent of the joint venture with FHR owning 20 percent.

“Completion of this agreement also allows us to continue our momentum in opening new hospitals. We currently operate 11 facilities across the country and we’re on pace to own and/or manage 17 by the end of 2009.”

“The Specialty Hospital is the only LTACH located north of Marietta and this clearance paves the way for us to expand this important health service for the residents of northern Georgia,” said John H. Short, Ph.D., RehabCare President and CEO. “Completion of this agreement also allows us to continue our momentum in opening new hospitals. We currently operate 11 facilities across the country and we’re on pace to own and/or manage 17 by the end of 2009.”

RehabCare and FHR have announced plans to expand the LTACH to 45 beds under a previously granted certificate of need and to relocate it to a freestanding facility that the joint venture will construct on the campus of the medical center. Construction should be completed by the end of 2009.

LTACHs provide specialized, around-the-clock care for extended stay patients with chronic or medically complex conditions, such as ventilator dependency, brain injury, cardiopulmonary disease, chronic pain and neuropathy. Patients are typically admitted to an LTACH following treatment in a traditional acute care hospital, and the average length of stay exceeds 25 days.

RehabCare currently owns and/or manages four LTACHs and seven freestanding rehabilitation hospitals in locations across the country. With more than 25 years experience, RehabCare also is a leading provider of physical rehabilitation program management services in more than 1,200 hospitals, nursing homes and other long-term care facilities throughout the United States. More information on RehabCare can be found at www.rehabcare.com.

Floyd Healthcare Resources Inc. is a not-for-profit corporation created in 1991 by the Hospital Authority of Floyd County. It serves as a holding company for medically related business investments initially funded through loans made to it by the Hospital Authority of Floyd County and/or Floyd Healthcare Management, Inc. Floyd Healthcare Resources, Inc. is governed by an eight (8) member board of directors, two of whom must be members of the Hospital Authority of Floyd County.

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