UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
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): November 1, 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: November 1, 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 November 1, 2004
Exhibit 99.1
CONTACT: RehabCare Group, Inc.
Vincent L. Germanese
Chief Financial Officer
Betty Cammarata, Director-Investor Relations
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
or
Howard Regional Health System
Debbie Clason, Director, Marketing
and Community Relations
(765) 453-8593
FOR IMMEDIATE RELEASE
MONDAY, November 1, 2004
REHABCARE AND HOWARD REGIONAL HEALTH SYSTEM ANNOUNCE STRATEGIC PARTNERSHIP FOR
REHABILITATION SERVICES
- Will Provide Full Post-Acute Delivery System
- in North Central Indiana -
ST. LOUIS, MO and KOKOMO, IN, November 1, 2004--RehabCare Group, Inc. (NYSE:RHB)
and the Board of Trustees of Howard Community Hospital d/b/a Howard Regional
Health System today have announced their intention to form a joint venture which
will own and operate Howard Regional Health System West Campus, a rehabilitation
hospital providing physical rehabilitation services in Kokomo, IN. Financial
terms were not disclosed.
Based in Kokomo, IN, Howard Regional Health System has provided exceptional
healthcare to Howard County since 1961. Howard Regional has 180 licensed beds
and serves a 9-county service area with over 1,400 staff, physicians and
licensed healthcare professionals. In April 2004 it acquired the former
HealthSouth Rehabilitation Hospital of Kokomo, now known as Howard Regional
Health System West Campus Specialty Hospital ("West Campus"). West Campus is a
30-bed hospital offering rehabilitation services to patients suffering from
stroke, disabling injuries and other trauma-related illnesses.
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REHABCARE AND HOWARD REGIONAL HEALTH SYSTEM ANNOUNCE STRATEGIC PARTNERSHIP FOR
REHABILITATION SERVICES Page 2
The joint venture, which is expected to be finalized in January 2005, will
acquire the operations of West Campus. RehabCare will, in turn, enter into a
management agreement with the joint venture to manage the acute rehabilitation
hospital. In addition, the joint venture will identify a long-term acute care
hospital (LTACH) provider to own and operate an LTACH in a remaining portion of
the West Campus. It is expected that when fully operational, the West Campus
facility will add 30 long-term acute care beds to its existing 30 inpatient
acute care rehabilitation beds.
John H. Short, Ph.D., President and CEO of RehabCare, commented, "We are
very pleased to announce this joint venture with Howard Regional Health System.
This represents another example of RehabCare's ability to use its financial
capital and clinical and management expertise to create innovative partnerships
with major healthcare providers in growing markets."
"We are deeply committed to continue improving the quality of care we offer
to the residents of north central Indiana," said James P. Alender, President and
CEO of Howard Regional Health System. "This joint venture affords Howard
Regional the opportunity to introduce quality long term acute care to the
residents of north central Indiana in addition to enhancing our rehabilitation
services."
Tom Davis, Executive Vice President, Chief Development Officer of
RehabCare, concluded, "The West Campus Specialty Hospital is a superb facility
that has a complete staff of excellent therapists and healthcare professionals.
Through this joint venture, operations of the existing facility will continue to
provide the high quality physical rehabilitation services the residents of north
central Indiana have come to expect at the West Campus. With the four skilled
nursing facilities that we currently manage in the Howard County region and the
future addition of an LTACH, we look forward to developing a full post-acute
delivery system for Howard Regional Health System."
RehabCare Group, Inc., headquartered in St. Louis, Missouri, is a leading
provider of program management services for hospital inpatient rehabilitation
units and skilled nursing units, outpatient therapy programs, and contract
therapy services in conjunction with more than 775 hospitals and skilled nursing
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REHABCARE AND HOWARD REGIONAL HEALTH SYSTEM ANNOUNCE STRATEGIC PARTNERSHIP FOR
REHABILITATION SERVICES Page 3
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.
Howard Regional Health System is a two-hospital healthcare system located
in Kokomo, Indiana with 180 licensed beds, serving a 9-county service area. The
three-campus System is the third largest employer in Howard County, with
approximately 1400 staff, physicians, and licensed healthcare professionals.
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.
NOTE: More information on RehabCare can be found on the World Wide Web at
http://www.rehabcare.com.
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