Rehabcare (RHB) 8-K Regulation FD Disclosure

Exhibit 99

Investor Presentation

Second Quarter 2008

1

$716 million consolidated
revenues(1)

Hospital Rehabilitation Services Division

$159 million revenue - 22% of revenue (1)

•154 hospital-based programs

•30 states

•44,000 inpatient and skilled nursing unit discharges/year (1)

•1.0 million annual outpatient visits (1)

$108 million revenue -15% of revenue (1)

Hospital Division

•5 LTACHs, 6 rehabilitation hospitals (2)

•1 rehabilitation hospital minority owned (3)

•7 states (4)

•521 beds (2) (4)

•6,200 annual patient discharges (1)(4)

Other Healthcare Services Division

$42 million revenue -6% of revenue (1)

•Phase 2 Consulting - - consulting and care management for hospitals and health systems

•Polaris Group - consulting for long-term care facilities

•VTA Management Services - therapy and nurse staffing for New York

(1)For twelve months ended 6/30/08

(2)Includes Midland, TX facility, which
closed 8/29/08

(3)Not included in consolidated
revenues

(4)These statistics include the
minority-owned rehab hospital

$408 million revenue - 57% of revenue (1)

Contract Therapy Division

•1,053 skilled nursing facility programs

•37 states

•7.4 million annual patient visits (1)

Service Lines

2

The Contract Therapy division managesskilled nursing facility (SNF) rehab programs that are
designed to provide therapy intervention to both short-stay patients and long-term residents with a
wide range of conditions, including neurological, orthopedic and other conditions common to the
geriatric patient.

Competitive Landscape

Company

•Self-Operation

•RehabCare

•Aegis Therapies

•Genesis

•Kindred - Peoplefirst

•Sundance

•Select Medical

•EnduraCare

•Skilled Healthcare

Owned

>12,000

0

N/A

~200

228

108

0

0

75

Source: Information available from public filings or from company websites

Managed

0

1,053

N/A

~500

345

317

~ 400

~ 300

114

Total

>12,000

1,053

>1,000

~700

573

425

~400

~300

189

Contract TherapyMarket Overview

Market Size

•17,000 Medicare certified skilled nursing facilities

3

Part B Therapy Caps & Physician Fee Schedule (PFS)

On July 15, 2008, Congress overrode a Presidential veto to pass the
MedicareImprovements for Patients and Providers Act of 2008.This law:

•Reinstates the therapy cap exceptions process for Part B patients
through December 31, 2009, which had expired June 30, 2008

•Continues 0.5% physician increase for 2008 and provides an additional
1.1% increase for physicians in 2009, in lieu of a scheduled 10.6%
reduction

2009 Final Rule

On July 31, 2008, CMS issued its final rule for SNFs, which goes into effect
October 1.The final rule delays implementation of a recalibration of RUG
(Resource Utilization Group) categories and includes a market basket increase of
3.4% for FY09.

Contract Therapy
Legislative/Regulatory Environment

4

Contract Therapy
Performance

Dollars in millions	Q2 08	Q1 08	Q4 07	Q3 07
Operating Revenues	$106.3	$104.3	$99.4	$98.3
Operating Earnings	$5.6	$3.8	$4.0(1)	$3.2(1)
Number of Locations End of Period	1,053	1,038	1,064	1,085

Outlook

•4.5 - 5.5% operating earnings margin for the balance of 2008

•Modest net increase in locations for the remainder of 2008

•Operating revenues increase $2.0 million as a result of 2.0% sequential same store
growth and a 0.6% increase in average number of locations

•Operating earnings margin improves from 3.7% to 4.7% sequentially when excluding
the positive impact of a $0.6 million non-compete settlement in the second quarter

•Net gain of 15 operating units, the first net gain in two years

(1)Includes favorable net self-insurance accruals of approximately $0.4 million in both Q4 and Q3 that are not expected to be
repeated on a go-forward basis. Excluding the favorable adjustments for self-insurance accruals, operating earnings would
have been $3.6 million and $2.8 million in Q4 and Q3, respectively.

5

Acute care hospital-based inpatient rehabilitation facilities(IRFs) in RehabCare’s Hospital
Rehabilitation Services (HRS) division are for patients who require early, intensive therapies (at
least 3 hours/day 5 days/week) for recovery from stroke, brain injury, neurological disorders,
amputation and other disabling injuries and illnesses.Outpatient therapy programs provide
proactive, exercise-oriented therapy with hands-on treatment for individuals of all ages.

Competitive Landscape (Acute care hospital-based IRFs)

•Self-Operation

•RehabCare (107)

•Horizon Health (Physical Rehab Services) (>20)

•HealthSouth (11)

•Milestone(1)

•TherEx (formerly National Rehab Partners)(1)

(1) Private company or a subsidiary of a public company; number of locations is not available

Source: Information available from public filings or from company websites

Hospital Rehabilitation ServicesMarket Overview

Market Size

•5,000 acute care hospitals (approximately 1,000 hospital-based IRFs)

6

Hospital Rehab Services
Performance

Dollars in millions	Q2 08	Q1 08	Q4 07	Q3 07
Operating Revenues	$40.2	$40.2	$38.8	$40.3
Operating Earnings	$5.3	$4.6	$6.0(1)	$6.3(1)
Number of Locations End of Period	154	153	154	154
IRF Discharges	10,309	10,276	10,190	10,173
Percent Qualifying Admissions	65.9%	63.2%	67.7%	66.4%

Outlook Note: 2009 Final Rule permanently freezes the IRF 75% Rule at the 60% threshold

•Modest increase in IRF units during 2008

•3 - 5% growth in same store discharges YOY during 2008

•Continued 12 - 15% operating margins

•Operating revenues remain unchanged at $40.2 million, while operating
earnings margin improves by 1.7 percentage point to 13.2%

•Unit count increases by one, after two years of decline

•Pipeline of signed but unopened IRF contracts stands at six, four of which are
expected to open in 2008

(1)Includes favorable net self-insurance accruals of approximately $0.6 million and $0.5 million in Q4 and Q3, respectively,
that are not expected to be repeated on a go-forward basis.Excluding the favorable adjustments for self-insurance
accruals, operating earnings would have been approximately $5.4 million and $5.8 million in Q4 and Q3, respectively.

7

Inpatient rehabilitation facilities (IRFs) are equipped to treat patients with a wide range of
debilitating injuries and illnesses, offering inpatient and outpatient services in a home-like
environment.Long-term acute carehospitals(LTACHs)are specialty care hospitals designed
for extended stay patients with complex and chronic conditions.

Hospital DivisionDescriptionand Locations

Arlington, TX

Providence, RI

St. Louis, MO

N. Kansas City, MO

Reading, PA

Tulsa, OK

Miami, FL

Houston, TX

New Orleans, LA

Amarillo, TX

Midland, TX (closed
Aug. 29, 2008)

Austin, TX

Rome, GA

Lafayette, LA

Peoria, IL

Current locations

Future locations

Kokomo, IN

 

8

Hospital DivisionDevelopment Timeline

•Division established in 2005 with the acquisition of
MeadowBrook Healthcare

•10 existing hospitals, 6 in development, 1 awaiting State
Attorney General approval, 2 expansions

•Anticipated 4-6 new projects/year

9

Market Size:

•240+ IRFs

Competitive Landscape

•Select Medical (88)

•Kindred (83)

•Regency Hospital (23)

•Triumph Healthcare (20)

•LifeCare (20)

•Vibra Healthcare (12)

•Cornerstone Healthcare (9)

•Ernest Health (8)

•HealthSouth (6)

•RehabCare (5)

Market Size:

•460+ LTACHs

Freestanding IRFs

LTACHs

(1)Includes minority-owned hospital

Source: Information available from public filings or from company websites

Hospital DivisionMarket Overview

Competitive Landscape

•HealthSouth (93)

•RehabCare (6)(1)

•Ernest Health (6)

•Select Medical (4)

•Vibra Healthcare (4)

•Centerre (4)

10

Hospital Division

Performance

Dollars in millions	Q2 08	Q1 08	Q4 07	Q3 07
Operating Revenues	$28.8	$29.2	$25.7	$24.4
Operating Earnings(loss)	$(3.7)	$(0.3)	$(0.8)(1)	$(1.6)(1)
Number of IRFs End of Period	6	6	6	6
IRF Patient Discharges	1,150	1,212	1,104	1,060
60% Compliance Level (Avg)	58.5%	59.7%	63.6%	63.7%
Number of LTACHs End of Period	5	3	3	3
LTACH Patient Discharges	422	416	407	386

Outlook

•Expect 10-13% EBITDA margin before corporate overhead in Q4 2008 for
group of 7 hospitals in operation more than one year, and return to 13-15%
margin in Q1 2009

•$1.4 - $1.9 million net EBITDA drag during second half of 2008 for hospitals
under development or in operation less than one year

•$3.4 million sequential earnings decline resulted primarily from a combination of
$1.5 million lower same store revenues, $0.8 million higher start-up and ramp-up
losses, a $0.4 million increase in bad debt expense and a $0.6 million increase in
SG&A related to infrastructure investments

(1)Includes favorable net self-insurance accruals of approximately $0.2 million in both Q4 and Q3 that are not expected to be
repeated on a go-forward basis.In addition, Q3 contains unfavorable contractual allowance adjustments of approximately $1.4
million.Excluding the favorable self-insurance accrual adjustments in Q4 and Q3 and the unfavorable contractual allowance
adjustments in Q3, operating losses would have been $1.0 million and $0.4 million in Q4 and Q3, respectively.

11

(dollars in millions except per share)	2Q 08	1Q 08	4Q 07	3Q 07
Operating Revenues	$185.5	$184.1	$173.6	$172.9
Operating Earnings	$7.5(1)	$8.4	$9.0(2)	$8.2(2)
Net Earnings	$4.5(1)	$4.5	$5.1(2)	$3.9(2)
Diluted Earnings Per Share	$0.25(1)	$0.25	$0.29(2)	$0.22(2)

(1)Includes a favorable pretax net settlement on a non-compete agreement of $0.6 million, or $0.4
million after tax and $0.02 per diluted share.

(2)Includes favorable net self-insurance accruals of approximately $1.4 million and $1.2 million, or
$0.05 and $0.04 per diluted share after tax in Q4 and Q3, respectively, that are not expected to
be repeated on a go-forward basis.

•Second quarter consolidated earnings benefited from improved
operating earnings performance in CT and HRS, but were
negatively impacted by a $3.7 million loss in the Hospital division

Consolidated Financial Summary

12

(Dollars in thousands)

Cash and Cash Equivalents

Total Assets

Total Debt

Stockholders’ Equity

Percent of Debt to Total Capital

3/31/08

6/30/08

$15,218

415,685

75,700

$250,272

23%

$14,345

426,704

71,000

$255,903

22%

•Cash flow from operations totaled $18.6 million for six
months ended June 30, 2008 and $52.0 million for the
last twelve months

Consolidated Balance Sheet

13

•Maintain targeted margins in operating divisions

•Grow operating revenues sequentially through

− same store growth

− net increases in units for all divisions

•Centralize and strengthen support infrastructure for Hospital
division

•Address therapist supply issue through academic
partnerships, campus relations/recruiting and innovative
initiatives like the Allied Health Research Institute

Primary Objectives

14

Investment ConsiderationsWhy RehabCare?

Increasing market demand

Unique continuum of care model

Demonstrated ability to grow revenue
organically and through acquisitions

Proven ability to adapt to market

and regulatory changes

Expenditures for post-acute services:

üGrew $20.4 billion from 2000-2007

üProjected increase of 150% by 2016

üRepresents 15% of Medicare fee-for-
service spending

üPPS

ü75% rule

üPart B therapy caps

üLTACH 25% rule

One of the longest tenured post-acute providers (established in 1982)

Revenues1

1 excludes StarMed

15

Forward-looking statements have been provided pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements are based on the Company’s
current expectations and could be affected by numerous factors, risks and uncertainties discussed in
the Company’s filings with the Securities and Exchange Commission, including the Company’s most
recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and current reports
on Form 8-K.Do not rely on forward looking statements as the Company cannot predict or control
many of the factors that ultimately may affect the Company’s ability to achieve the results estimated.
The Company makes no promise to update any forward looking statements whether as a result of
changes in underlying factors, new information, future events or otherwise.

Safe Harbor