HealthSouth Expands its Rehabilitation Footprint

HealthSouth (Birmingham, AL, USA) will acquire Reliant Hospital Partners (Richardson, TX, USA) for USD 730 million, in a bid to enter new post-acute care markets.

The deal will give HealthSouth, which is already the largest US in-patient rehabilitation facility provider, a further 902 beds in 11 in-patient rehabilitation hospitals and three in-patient satellite locations located in the Houston, Dallas-Fort Worth, and Austin areas in Texas, as well as new locations in Abilene (TX), Dayton (OH), and the greater Boston (MA) metropolitan area. All of the Reliant hospitals are leased, and HealthSouth will assume the lease obligations of all the acquired hospitals.

This is the second big acquisition for HealthSouth in Texas within eight months; in November 2014, the company purchased Encompass Home Health and Hospice (EHHH; Dallas, TX, USA) for USD 750 million, in a bid to strengthen its home health division by adding 140 locations in 13 states. The deal also offers the potential for collaboration opportunities between Reliant and EHHH, since the two companies have significant geographic overlap, particularly in Texas.

“The acquisition of the operations of Reliant Hospital Partners furthers HealthSouth's position as a leading provider of post-acute services,” said Jay Grinney, President and CEO of HealthSouth "Reliant's portfolio of high-quality inpatient rehabilitation hospitals complements our networks in the highly competitive Houston, Dallas-Fort Worth and Austin markets.”

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