Encompass Health and Piedmont announce plans to build a 40-bed inpatient rehabilitation hospital in Loganville, Georgia

Rhea-AI Summary

Encompass Health Corp. and Piedmont are awarded a certificate of need to build a 40-bed inpatient rehabilitation hospital in Loganville, Georgia. The hospital will offer care for patients recovering from various conditions and will feature advanced rehabilitation technologies.

Insights

Healthcare Industry Analyst

The announcement of a new inpatient rehabilitation hospital by Encompass Health Corp. in partnership with Piedmont is a strategic move that reflects the growing demand for specialized rehabilitative care. The decision to allocate a 40-bed facility dedicated to complex conditions such as strokes and spinal cord injuries aligns with broader industry trends where healthcare providers are increasingly investing in focused areas of care that promise better patient outcomes and potentially higher profit margins due to specialized services.

From an industry perspective, the addition of private rooms and advanced rehabilitation technologies suggests a competitive edge in patient care quality, which can lead to increased market share in the region. The relocation of Piedmont's existing rehabilitation unit could also result in operational efficiencies and strengthened branding for both entities. This move is likely to attract patients seeking comprehensive rehabilitative care, thus potentially increasing revenue streams for both Encompass Health and Piedmont.

However, the capital expenditure involved in building the new facility must be considered against the forecasted revenue and cost savings from operational efficiencies. The long-term success will depend on the hospital's ability to maintain high occupancy rates and secure reimbursements from insurance providers, which are critical factors in the profitability of healthcare facilities.

Medical Research Analyst

With the prevalence of chronic diseases and an aging population, the need for inpatient rehabilitation services is on the rise. The focus on treating debilitating illnesses and injuries is a response to a market need for specialized care that can improve the quality of life for patients with severe impairments. The emphasis on a multidisciplinary approach, including physical, occupational and speech therapies, is indicative of the holistic care model that is becoming standard in rehabilitation medicine.

The advanced rehabilitation technologies mentioned, while not specified, are likely to include robotic-assisted devices and virtual reality systems that have been shown to significantly enhance recovery in neurological conditions. The integration of such technologies into patient care not only improves outcomes but also positions the hospital as a forward-thinking institution, potentially attracting top-tier medical talent and research opportunities.

Additionally, the impact of such a facility extends beyond immediate patient care, as successful rehabilitation can reduce long-term healthcare costs by minimizing the need for ongoing medical support and enabling patients to return to independence, thus benefiting the broader healthcare system economically.

Market Research Analyst

The strategic location of the new rehabilitation hospital in Loganville, Georgia, suggests a targeted approach to serving the East Atlanta area, a region that may be experiencing a gap in such specialized healthcare services. By offering a higher capacity of 40 beds, compared to the current 20-bed unit, Encompass Health and Piedmont are positioning themselves to capture a larger patient base. The mention of a therapy courtyard and other patient amenities indicates a focus on creating an environment conducive to healing, which can be a differentiating factor in patient choice of facility.

The partnership between Encompass Health and Piedmont leverages Piedmont's century-long presence and reputation in Georgia, which could facilitate smoother market entry and patient trust. The collaboration between a regional healthcare leader and a national provider of post-acute services may also yield marketing synergies, enhancing the visibility of the new hospital.

It is essential to monitor the hospital's performance post-launch, as initial occupancy rates and patient satisfaction scores will be key indicators of its acceptance in the community and its impact on the partners' market positions.

BIRMINGHAM, Ala. and LOGANVILLE, Ga., March 7, 2024 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) and Piedmont today announced they have been awarded a certificate of need to build a freestanding, 40-bed inpatient rehabilitation hospital in Loganville, Georgia. The hospital will be located at 3195 Loganville Highway. When the Loganville hospital opens, Piedmont intends to relocate its existing 20-bed rehabilitation unit at Piedmont Eastside Medical Center to the new hospital.

The hospital will care for patients recovering from debilitating illnesses and injuries including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions. Complementing local acute care services, the future hospital will offer physical, occupational, and speech therapies and 24-hour nursing care to restore functional ability and quality of life. The hospital will feature all private patient rooms, a spacious therapy gym with advanced rehabilitation technologies, and activities of daily living suite, cafeteria, pharmacy, and therapy courtyard.

"We are excited to continue expanding our partnership with Piedmont, a well‑respected integrated healthcare leader that has been serving Georgia residents for more than a century," said Ronnie Wagley, President of Encompass Health's South Atlantic Region. "By leveraging the strengths of both organizations, we look forward to serving more patients and providing high‑quality, rehabilitative care to residents in the East Atlanta area and beyond."

"We are honored to serve patients in Gwinnett County and the surrounding communities, now in partnership with Encompass Health," said Larry Ebert, CEO of Piedmont Eastside Hospital. "We look forward to building a rehabilitation facility where patients can regain function, strength, hope, and independence before rejoining the community."

About Piedmont Healthcare
Piedmont is empowering Georgians by changing health care. We continue to fuel Georgia's growth through safe, high-quality care close to home through an integrated health care system that provides a hassle-free, unified experience. We are a private, not-for-profit organization with more than 12,000 donors annually that for centuries has sought to make a positive difference in every life we touch in the communities we serve. Across our 1,600 physical locations we care for 3.7 million patients and serve communities that comprise 80 percent of Georgia's population. This includes 23 hospitals, 65 Piedmont Urgent Care centers, 25 QuickCare locations, 1,875 Piedmont Clinic physician practices and nearly 3,100 Piedmont Clinic members. Our patients conveniently engage with Piedmont online, as they scheduled more than 515,000 online appointments and over 154,000 virtual visits. With more than 44,000 care givers we are the largest Georgia-based private employer of Georgians, who all came for the job, but stayed for the people. In 2023, Piedmont has earned recognition from Newsweek as one of America's Greatest Workplaces for Diversity and also as one of America's Greatest Workplaces for Women. In 2022, Forbes ranked Piedmont on its list of the Best Large Employers in the United States. In addition, Piedmont provided nearly $360 million in Community Benefit in Fiscal Year 2022, including approximately $310 million in uncompensated care.

For more information, or booking your next appointment, visit piedmont.org. 

About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of rehabilitation hospitals in the United States. With a national footprint that includes 160 hospitals in 37 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune's World's Most Admired Companies and Modern Healthcare's Best Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook.

FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this and other hospital projects, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including realization of anticipated revenues and avoidance of unforeseen exposure to liabilities;  disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended Dec. 31, 2023.

Encompass Health contacts: Media contact: Kennedi Spurling | 205-970-5912 kennedi.spurling@encompasshealth.com

Piedmont contact: Media contact: Alexis Scott | 470-446-8342 Alexis.Scott1@piedmont.org

Investor Relations contact: Mark Miller | 205-970-5860 mark.miller@encompasshealth.com

 

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SOURCE Encompass Health Corp.

FAQ

Where will the new hospital be located?

The new hospital will be located at 3195 Loganville Highway in Loganville, Georgia.

What services will the hospital offer?

The hospital will offer physical, occupational, and speech therapies, 24-hour nursing care, and care for patients recovering from strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and orthopedic conditions.

Who will the hospital partner with for this project?

Encompass Health Corp. and Piedmont will partner to build the new hospital in Loganville, Georgia.

What amenities will the hospital feature?

The hospital will feature all private patient rooms, a therapy gym with advanced technologies, activities of daily living suite, cafeteria, pharmacy, and therapy courtyard.