West Tennessee Healthcare and HealthSouth Corporation (NYSE: HLS) have signed an agreement to form a joint venture to own and operate a 48-bed inpatient rehabilitation hospital in Jackson, Tennessee. The agreement was approved by the Board of Trustees of Jackson-Madison County General Hospital District and calls for the relocation of the existing inpatient rehabilitation unit at Jackson-Madison County General Hospital to a freestanding hospital. In addition, the agreement provides for joint ownership of HealthSouth's existing Cane Creek Rehabilitation Hospital in Martin, Tennessee.
The transition of ownership of both hospitals to the joint venture will take place upon completion of construction of the freestanding hospital in Jackson. The agreement establishes that HealthSouth will assume management of the existing rehabilitation unit on July 1, 2015, until the new 48-bed hospital is complete. The joint venture plans to begin building the new inpatient rehabilitation hospital pending the required state regulatory approvals.
"West Tennessee Healthcare has a long history of providing excellent clinical care. This joint venture will uniquely position the hospital to continue to provide a high-quality physical rehabilitation program in a new, state-of-the-art facility," said Barbara Jacobsmeyer, president of HealthSouth's central region. "We look forward to working together to provide comprehensive physical rehabilitation to patients who have experienced stroke, trauma, brain and orthopedic injuries or other major illnesses or injuries."
"We are extremely pleased and excited to begin work with HealthSouth in this new joint venture," said Bobby Arnold, WTH President and CEO. "HealthSouth and its employees will bring significant and valuable experience and expertise."
"HealthSouth is a leader in inpatient rehabilitative care and shares our strong commitment to patient care, quality outcomes and patient safety," said Greg Milam, Chairman, West Tennessee Healthcare Board of Trustees. "We have been exploring for several years the best way to enhance and expand our inpatient rehabilitation services, and we believe that partnering with HealthSouth is the best outcome for our patients, our employees, our physicians and the communities we serve."
The formation of the joint venture is subject to customary closing conditions, including regulatory approvals.
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