UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 27, 2004
REHABCARE GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-19294 51-0265872
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
7733 Forsyth Boulevard
Suite 2300
St. Louis, Missouri 63105
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 863-7422
Item 7.01 Regulation FD Disclosure.
The information in Exhibit 99.1 is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits. See Exhibit Index.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 27, 2004
REHABCARE GROUP, INC.
By: /s/ Vincent L. Germanese
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Vincent L. Germanese,
Senior Vice President,
Chief Financial Officer
and Secretary
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release dated October 27, 2004
Exhibit 99.1
CONTACT: RehabCare Group, Inc.
Vincent L. Germanese,
Chief Financial Officer
Betty Cammarata, Director-Investor Relations
Press: David Totaro, Senior Vice President/
Corporate Marketing & Communications (Media)
(314) 863-7422
or
Financial Dynamics:
Gordon McCoun/Lanie Marcus
Press: Sean Leous
(212) 850-5600
Valley Baptist Health System
Irma Sanchez
Director of Corporate Communications
(956-389-1951)
For Immediate Release
Wednesday, October 27, 2004
REHABCARE AND VALLEY BAPTIST HEALTH SYSTEM ANNOUNCE STRATEGIC PARTNERSHIP FOR
REHABILITATION SERVICES
- Relationship Will Address the Shortage of Acute Care Rehabilitation
Services in Rio Grande Valley -
ST. LOUIS, MO and HARLINGEN, TX, October 27, 2004--RehabCare Group,
Inc.(NYSE:RHB) and Valley Baptist Health System today announced an agreement for
physical rehabilitation services in inpatient and outpatient settings by
RehabCare, and the development of a rehabilitation hospital and a long-term
acute care hospital (LTACH) in Brownsville, TX. Financial terms of the agreement
were not disclosed.
Based in Harlingen, TX, Valley Baptist Health System has served the Rio
Grande Valley community since 1925. Having purchased the Brownsville Medical
Center in July of 2004, Valley Baptist is the largest medical system and
employer in Cameron County, TX with approximately 850 beds, over 500 physicians
and approximately 2,866 total employees treating 60% of the discharged patients
in the County.
Under the terms of the full-service agreements, which are anticipated to
commence on or around January 1, 2005, RehabCare will manage the existing
inpatient acute rehabilitation unit and outpatient program in Valley Baptist's
Harlingen hospital and the existing outpatient program in Valley Baptist's
Brownsville, TX hospital. In addition, RehabCare and Valley Baptist will jointly
develop a free-standing rehabilitation hospital and, in conjunction with a third
party LTACH provider, will become minority owners in a long-term acute care
hospital in Brownsville, TX. Valley Baptist and RehabCare have identified a
prospective site for the two hospitals, which expect to execute leases by
year-end 2004 and
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commence operations in the second half of 2005. It is expected that the
Brownsville facility will have approximately 25 inpatient acute care rehab beds,
managed by RehabCare, and 40 long-term acute care beds, to be operated by a
third party. The parties also intend to add multiple outpatient sites throughout
the region to extend the delivery of rehabilitation services.
John H. Short, Ph.D., President and CEO of RehabCare, commented, "This
transaction with Valley Baptist is a superb example of the type of relationship
with major healthcare institutions which RehabCare is striving to develop in
target markets across the country. It allows us to use our management and
financial capital to invest in joint ventures where we can provide the full
continuum of care and create true longstanding partnerships."
James G. Springfield, President and Chief Executive Officer of Valley
Baptist Health System, added, "This agreement with RehabCare brings together two
industry leaders and enables each of us to do what we do best - provide the
highest quality of care to patients. With RehabCare managing our acute care
facility in Harlingen and our outpatient programs in both Harlingen and in
Brownsville, Valley Baptist will be able to focus on leveraging its medical
talents while we jointly expand the scope and range of rehabilitation services
to our patients in Cameron County."
Tom Davis, Executive Vice President, Chief Business Development Officer of
RehabCare, noted, "We are delighted to be partnering with Valley Baptist, the
predominant hospital system in the Harlingen and Brownsville region. Our
combined resources will bring a seamless post-acute delivery system to serve the
residents of the Rio Grande Valley, and the first rehabilitation facility to the
Brownsville community."
Mr. Springfield concluded, "Together, we recognized that there is a
shortage of acute rehab beds and a complete absence of long-term acute care beds
in this region, one of the fastest growing regions in the country. Our
partnership with RehabCare provides a solution to this challenge by initiating
acute and long-term care rehabilitation in Brownsville. This represents another
in a long line of Valley Baptist's numerous innovative and pioneering medical
treatments."
RehabCare Group, Inc., headquartered in St. Louis, MO, is a leading
provider of program management services for hospital inpatient rehabilitation
units and skilled nursing units, outpatient therapy
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programs, and contract therapy services in conjunction with more than 700
hospitals and skilled nursing facilities in 39 states, the District of Columbia,
and Puerto Rico. RehabCare is pleased to be included in the Russell 2000 and
Standard and Poor's Small Cap 600 indices.
Valley Baptist Health System is a community health service performing
spiritually based health education and charitable programs in accordance with
the teachings and healing ministry of Jesus Christ. For eight decades, Valley
Baptist has established a tradition of responding to the needs of the community.
This tradition has led Valley Baptist to be the region's leader in bringing
innovative care and services to the people of the Rio Grande Valley of Texas.
This release contains forward-looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties that may cause RehabCare's actual results in future periods to
differ materially from forecasted results. These risks and uncertainties may
include, but are not limited to, the future operating performance of InteliStaf,
and the rate of return that RehabCare will be able to achieve from its equity
interest in InteliStaf; changes in and compliance with governmental
reimbursement rates affecting RehabCare's other lines of business; RehabCare's
ability to attract new client relationships or to retain and grow existing
client relationships through expansion of RehabCare's hospital rehabilitation
and contract therapy service offerings and the development of alternative
product offerings that build stronger partnering relationships between RehabCare
and its clients; RehabCare's ability to identify and consummate, within the
expected timeframes, strategic acquisitions and joint ventures to accelerate
growth in RehabCare's hospital rehabilitation and contract therapy divisions;
the adequacy and effectiveness of RehabCare's operating and administrative
systems; litigation risks of RehabCare's past and future business, including
RehabCare's ability to predict the ultimate costs and liabilities or the
disruption of its operations; competitive and regulatory effects on pricing and
margins; and general economic conditions, including efforts by governmental
reimbursement programs, insurers, healthcare providers and others to contain
healthcare costs. For additional information on RehabCare Group, please visit
the RehabCare website at rehabcare.com.
NOTE: More information on RehabCare can be found on the World Wide Web at
http://www.rehabcare.com.
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