JACKSON –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.
The formation of the joint venture is subject to customary closing conditions, including regulatory approvals.
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