RehabCare and the Reading Hospital and Medical Center Develop New Long-Term Acute...

Mon Dec 3, 2007 10:38am EST

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RehabCare and the Reading Hospital and Medical Center Develop New Long-Term Acute Care Hospital

ST. LOUIS & WEST READING, Pa.--(Business Wire)--RehabCare Group, Inc. (NYSE: RHB) and The Reading Hospital and
Medical Center (The Reading Hospital) announced today a joint venture
to develop the first long-term acute care hospital (LTACH) in Berks
County, Pennsylvania. The 60-bed LTACH will be housed within a new
post-acute facility being constructed in Spring Township, about five
miles from The Reading Hospital's main campus.

   A groundbreaking ceremony for the new facility was held on Friday,
November 30. (Photo available upon request)

   The LTACH venture is a continuation of a nearly 10-year
partnership between RehabCare and The Reading Hospital. Since 1998,
RehabCare has managed the 44-bed acute rehabilitation unit (ARU) and
50-bed transitional care center at The Reading Hospital. The existing
ARU will relocate to the new post-acute hospital, as will the
outpatient rehabilitation clinic and diagnostic services necessary to
support patient needs. A spring 2009 opening is anticipated.

   "For more than 140 years, The Reading Hospital and Medical Center
has had a reputation of advancing patient care, and we're proud to
join them in leading the way in bringing this new service to the
community," commented John H. Short, Ph.D., RehabCare President and
CEO. "This project not only elevates our relationship with a valued
partner, but is a complement to our other post-acute services in the
area."

   RehabCare currently manages three nearby skilled nursing facility
programs and an inpatient rehabilitation unit in addition to the two
programs at The Reading Hospital.

   Scott R. Wolfe, President and Chief Executive Officer at The
Reading Hospital, said, "The development of an LTACH is further
evidence of our commitment to extending our continuum of care for the
Berks County community. Working with our trusted partner, RehabCare,
we will offer the specialized services required by individuals whose
complex health needs demand acute hospital care for greater than 25
days. The new post-acute facility also will enable us to expand the
scope of services provided to individuals in need of acute
rehabilitation."

   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 is 30 days.

   Celebrating its 25th anniversary, RehabCare (www.rehabcare.com) is
a leading national provider of physical rehabilitation services in
conjunction with about 1,250 skilled nursing facilities and hospitals
in 43 states and the District of Columbia. The Company also owns
and/or operates 10 freestanding rehabilitation and long-term acute
care hospitals.

   The Reading Hospital and Medical Center is a not-for-profit
healthcare center providing comprehensive acute care, post-acute
rehabilitation, behavioral and occupational health services to Berks
County and the surrounding area. Established as The Reading Dispensary
in 1867, the hospital has since expanded to an 800-bed, 22-building
complex, leading the region in tertiary care and perennially ranking
among the top four Pennsylvania hospitals in patient admissions,
surgical procedures, emergency care volume and outpatient services.

   This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties that may cause our actual
results in future periods to differ materially from forecasted
results. These risks and uncertainties may include but are not limited
to, our ability to consummate acquisitions and other partnering
relationships at reasonable valuations; our ability to integrate
acquisitions and partnering relationships within the expected
timeframes and to achieve the revenue, cost savings and earnings
levels from such acquisitions and relationships at or above the levels
projected; our ability to comply with the terms of our borrowing
agreements; changes in governmental reimbursement rates and other
regulations or policies affecting reimbursement for the services
provided by us to clients and/or patients; the operational,
administrative and financial effect of our compliance with other
governmental regulations and applicable licensing and certification
requirements; our ability to attract new client relationships or to
retain and grow existing client relationships through expansion of our
service offerings and the development of alternative product
offerings; the future financial results of any unconsolidated
affiliates; our ability to attract and the additional costs of
attracting and retaining administrative, operational and professional
employees; shortages of qualified therapists and other healthcare
personnel; significant increases in health, workers compensation and
professional and general liability costs; litigation risks of our past
and future business, including our ability to predict the ultimate
costs and liabilities or the disruption of our operations; competitive
and regulatory effects on pricing and margins; our ability to
effectively respond to fluctuations in our census levels and number of
patient visits; the adequacy and effectiveness of our information
systems; natural disasters and other unexpected events which could
severely damage or interrupt our systems and operations; changes in
federal and state income tax laws and regulations, the effectiveness
of our tax planning strategies and the sustainability of our tax
positions; and general and economic conditions, including efforts by
governmental reimbursement programs, insurers, healthcare providers
and others to contain healthcare costs.

RehabCare Group, Inc.
Financial:
Jay Shreiner, 314-863-7422
Senior Vice President, Chief Financial Officer
or
Betty Cammarata, 314-863-7422
Director, Investor Relations
or
Press:
David J. Totaro, 314-863-7422
Senior Vice President, Corporate Marketing and
Communications
or
The Reading Hospital and Medical Center
Press:
Bucky Rudolph, 610-988-8559
Director of Public Relations

Copyright Business Wire 2007
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