US-based West Tennessee Healthcare has entered an agreement with HealthSouth to establish a joint venture (JV) to develop a new inpatient rehabilitation hospital in Tennessee.

As part of the deal, the JV will build, own and operate a 48-bed inpatient rehabilitation hospital in Jackson, Tennessee.

HealthSouth central region president Barbara Jacobsmeyer said: "This joint venture will uniquely position the hospital to continue to provide a high-quality physical rehabilitation programme in a new, state-of-the-art facility.

"As part of the deal, the JV will build, own and operate a 48-bed inpatient rehabilitation hospital in Jackson, Tennessee."

"We look forward to working together to provide comprehensive physical rehabilitation to patients who have experienced stroke, trauma, brain and orthopaedic injuries or other major illnesses or injuries."

The deal was approved by the Board of Trustees of Jackson-Madison County General Hospital District, who agreed to relocate the existing inpatient rehabilitation unit at Jackson-Madison Hospital to a freestanding one.

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The deal is said to provide joint ownership of HealthSouth’s existing Cane Creek Rehabilitation Hospital in Martin, Tennessee.

HealthSouth said the agreement allows it to assume management of the existing rehabilitation unit until the new 48-bed hospital is complete.

The JV intends to start construction of the new facility once it clears pending state regulatory approvals.

West Tennessee Healthcare president Bobby Arnold said: "HealthSouth and its employees will bring significant and valuable experience and expertise."

West Tennessee Healthcare is a not-for-profit healthcare system with locations throughout 18 counties in west Tennessee. HealthSouth provides post-acute healthcare services, including facility and home-based post-acute services in 33 states and Puerto Rico.