The HealthSouth Corporation has signed an agreement to sell HealthSouth Rehabilitation of Baton Rouge, La., to another facility in the region, Baton Rouge Rehabilitation Hospital.
HealthSouth Regional President Linda Wilder said the company expects the sale to be completed on Jan. 29. Terms of the deal were not disclosed.
"The situation in Baton Rouge is unique," said Wilder. "The rehabilitation market in Baton Rouge is over-bedded and the hospital, although profitable, was underperforming financially when compared to the portfolio of hospitals HealthSouth owns and operates. Ultimately, we determined it was in the company's best interest to monetize this asset and redeploy the capital in other markets."
She said there would be no interruption of patient care during the transition to new ownership and HealthSouth would continue to serve patients through its other hospitals in the state, including HealthSouth Rehabilitation Hospital of Alexandria and HealthSouth Specialty Hospital of North Louisiana, a long-term acute care hospital.
As a result of the transaction, HealthSouth Rehabilitation Hospital of Baton Rouge is expected to be classified as discontinuing operations in Q4 2009. The operating results for the hospital include a $4 million impairment charge recorded in the third quarter of 2009.
HealthSouth is the nation's largest provider of inpatient rehabilitative healthcare services. The company owns a network of inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient rehabilitation satellites and home health agencies in 26 states.