Kindred Healthcare and Dignity Health to open new inpatient rehabilitation hospital in Arizona

The two companies are building this second hospital to address increasing demand in the Phoenix area.

Kindred Healthcare and Dignity Health have announced plans to build the companies' second inpatient rehabilitation hospital in Phoenix, Arizona.

The hospital will be located in Gilbert, Arizona, and will focus on acute rehabilitation for patients who suffer from stroke, traumatic brain injury, spinal cord injury, complex neurological disorders, orthopedic conditions, multiple trauma, amputation and other injuries or disorders.

The building itself will be 50,000 square-feet, two stories high and have all private rooms, with a 40-bed patient capacity. It will offer therapeutic technologies such as augmented reality balance training, therapy bionics and a full-body exoskeleton.

Amenities will include multifunctional therapy gymnasiums and a therapeutic courtyard with exterior amenities, such as a golf chipping range and pickleball.

Kindred and Dignity expect the hospital to open by the end of 2021.


This is the second inpatient rehabilitation hospital that Kindred and Dignity have opened in the Phoenix area. The first, Dignity Health East Valley Rehabilitation Hospital in Chandler, Arizona, began serving patients in 2016.

The two companies decided to build this second hospital to address increasing demand for the services they were providing.


Kindred believes that inpatient rehabilitation facilities could be used to drive cost savings in a value-based payment model, according to a report.

If the inpatient rehabilitation facility is able to efficiently lower mortality rates, shorten inpatient stays, lower readmission rates, create fewer emergency room visits and create better patient outcomes, it will see better outcomes and realize savings.

Recently, the Centers for Medicare and Medicaid Services provided another method of creating cost savings for IRFs. In a proposed rule from April, these facilities will get a payment increase of 2.9% for 2021 because of the COVID-19 public health emergency.

CMS also recently waived the 60% rule that requires each IRF to discharge at least 60% of its patients with one of 13 qualifying conditions, and allowed for telehealth visits in response to the pandemic.


"We are excited to grow our relationship with Dignity Health – one of the nation's leading health care providers – to offer the Phoenix community increased access to high-quality inpatient rehabilitation services," said Russ Bailey, the COO of Kindred Rehabilitation Hospitals. "As with Dignity Health East Valley Rehabilitation Hospital, this new hospital will be dedicated to passionately advocating for and providing hope, healing and recovery to patients in its care."

"We are delighted to partner with Kindred to provide services that help patients function as independently as possible while safely returning to the activities they love," said Linda Hunt, the Dignity Health Arizona division president. "Dignity Health continues to address the growing health care needs of our East Valley and the Gilbert community."

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