US-based healthcare services firm Kindred Healthcare has entered an agreement with Dignity Health to establish a joint venture (JV) to develop a new inpatient rehabilitation hospital in Arizona.

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Under the deal, the JV will construct and operate a new 50-bed Dignity Health Rehabilitation Hospital East Valley in Chandler, a suburb of Phoenix.

Kindred Healthcare chief operating officer Kent Wallace said: "Collaborating with high-quality providers like Dignity Health is critical to our commitment to meet patient needs and manage care throughout the entire care continuum as we lower costs and improve patient outcomes.

"Under the deal, the JV will construct and operate a new 50-bed Dignity Health Rehabilitation Hospital East Valley in Chandler, a suburb of Phoenix."

"This new joint venture adds to our strong relationship with Dignity Health, and we look forward to working together to provide health solutions for patients in the greater Phoenix community."

Kindred will own a majority stake in the JV, allowing it to manage day-to-day operations of the new facility.

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Subject to several regulatory and other approvals, Kindred plans to complete and open the hospital by the end of the third quarter of 2015.

Kindred currently operates two transitional care hospitals in the Phoenix area, in addition to providing home health, hospice and non-medical home care services.

It is also developing a new 120-bed transitional care centre (TCC) in the region, which is expected to be operational in the second half of 2015.

Dignity Health runs five hospitals and multiple other healthcare services in the Phoenix area. It already had one JV with Kindred in southern California that is focused on home health services.