Home » Baptist Health, Encompass Health invests $40 million-plus

Baptist Health, Encompass Health invests $40 million-plus

JEFFERSONTOWN, Ky. — Baptist Health and Encompass Health Corp. moved forward with plans for Rehabilitation Hospital of Louisville LLC, a proposed inpatient rehabilitation hospital and joint venture, which includes a $40 million-plus investment that will create 42 well-paying jobs in Jefferson County.

The project, which was made public in 2021, includes the construction of a 48,000-square-foot, 40-bed, comprehensive inpatient rehabilitation hospital at 11800 Bluegrass Parkway in Jeffersontown. The hospital will offer rehabilitation services for patients recovering from debilitating injuries or illnesses, like a stroke or brain and spinal cord injuries. The facility will include private rooms, two of which are designed for bariatric patients and one with negative air pressure flow for patients with communicable diseases, as well as a dialysis suite and therapy gym. In addition to 24‑hour nursing care, the hospital will offer physical, occupational and speech therapies to restore functional ability and quality of life.

The hospital will also allow for the relocation of a 29-bed inpatient physical rehab unit at Baptist Health Louisville, making additional space available for growing inpatient and outpatient services at that hospital.

The project adds to Encompass Health’s presence in Kentucky, which includes rehabilitation hospitals in Edgewood, Elizabethtown and Lexington. Construction on the new hospital is expected to begin in 2023, with completion scheduled for spring 2024.

“We are excited to expand and grow our rehabilitation services in Kentucky with Baptist Health, a forward-thinking and well-respected healthcare leader that has been a premier provider of acute inpatient rehabilitation to Louisville residents and beyond for more than 40 years,” said Troy DeDecker, president of Encompass Health’s central region. “We look forward to providing even more access to high‑quality care for Louisville-area residents in need of rehabilitative services through this future hospital.”

Encompass Health is the largest owner and operator of rehabilitation hospitals in the United States, with a national footprint of 153 hospitals in 36 states and Puerto Rico. The company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass was recently named to Modern Healthcare’s Best Places to Work in Healthcare list for 2022.

“The addition of this highly specialized freestanding hospital will meet a critical need in our local communities,” said Gerard Colman, PhD, CEO of Baptist Health. “This hospital will improve patient access to rehabilitation services and serve as a regional destination for care, accepting patients from many facilities that do not have inpatient rehabilitation services.”

Baptist Health is the state’s largest not-for-profit healthcare system, reaching about 75% of all Kentuckians with more than 400 points of care, including nine hospitals with more than 2,700 beds; outpatient facilities; physician practices and services; urgent care clinics; outpatient diagnostic and surgery centers; home care; fitness centers; and occupational medicine and physical therapy clinics.

And from September 2021 to September 2022, Kentucky added 81,700 new jobs. Except for a four-month recovery period after the initial COVID-19 shock, this is the largest number of new jobs added in 20 years.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in October preliminarily approved Encompass Health for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

In addition, the company can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

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