New CoxHealth partnership calls for SWMO rehab hospital

Last edited 9:20 a.m., Jan. 11, 2024 [Editor's note: Additional details from CoxHealth have been added.]

A newly announced joint venture calls on CoxHealth to partner with a Pennsylvania company on a southwest Missouri rehabilitation hospital.

CoxHealth and Mechanicsburg, Pennsylvania-based Select Medical Holdings Corp. (NYSE: SEM) are partnering to start an inpatient rehab facility with a tentative opening date in fourth-quarter 2025, according to a news release. A location is slated to be announced at a later date.

Select Specialty Hospital currently operates a long-term acute care hospital facility in Springfield, at 1630 E. Primrose St., which it opened in early 2008, according to past reporting.

“In partnering with Select Medical, we are joining forces with a leading post-acute care provider known for its clinical excellence, quality and outcomes,” said Ashley Casad, senior vice president and president of CoxHealth’s Springfield hospitals, in the release. “The new venture will bring additional expertise and an updated facility for the patients we serve. Through this partnership, we can enhance the service to our patients faster than either organization can do on its own.”

Select Medical would operate the rehab hospital as the managing partner, officials said, noting the partnership would be structured as a 51-49 relationship.

The joint venture additionally would consolidate inpatient rehab care that CoxHealth currently offers at the Meyer Orthopedic and Rehabilitation Hospital inpatient unit and the acute rehabilitation unit at Cox Medical Center Branson with the Select Specialty Hospital – Springfield acute rehabilitation unit. Around 100 employees who work at the CoxHealth rehab units are expected to have employment opportunities at the new venture, said CoxHealth spokesperson Randy Berger.

Construction of the new hospital is subject to regulatory approval.

The deal follows a separate partnership announced last year through which CoxHealth and Mercy Springfield Communities are seeking a pediatric partner to build a standalone children's hospital, according to past reporting.