SELECT MEDICAL AND CARILION CLINIC ENTER INTO JOINT VENTURE PARTNERSHIP TO OPERATE AN INPATIENT REHABILITATION HOSPITAL IN ROANOKE, VIRGINIA

Select Medical Corporation and Carilion Clinic have announced a joint venture partnership to establish a new 50-bed inpatient rehabilitation hospital in Roanoke, Virginia. The deal, which involves an undisclosed investment amount, was made public on May 21, 2026. Under the terms of the agreement, Select Medical will serve as the majority owner and manager of the new facility, named Carilion Rehabilitation Hospital, which is set to replace the existing 34-bed acute rehabilitation unit at Carilion Roanoke Community Hospital.

The new hospital will be strategically located at 9th Street, SE, in Roanoke, with construction slated to commence in spring 2026 and a targeted opening in spring or summer of 2028. This initiative reflects the growing demand for inpatient rehabilitative care, particularly in the Virginia Blue Ridge region, where the need for specialized rehabilitation services has been on the rise. Tom Mullin, CEO of Select Medical, emphasized the commitment to delivering high-quality patient care and improving outcomes for individuals recovering from serious conditions such as strokes and traumatic brain injuries.

Carilion Clinic, a not-for-profit healthcare organization headquartered in Roanoke, provides a comprehensive network of health services to nearly one million Virginians. The organization is dedicated to advancing health and wellness in the region through philanthropy, medical education, and research. The partnership with Select Medical is expected to enhance Carilion's existing rehabilitation services, leveraging Select Medical's extensive resources and expertise in managing rehabilitation hospitals. Mike Abbott, president of Carilion Medical Center, highlighted the potential for improved patient care through this collaboration.

Select Medical Corporation is one of the largest operators of critical illness recovery hospitals and rehabilitation facilities in the United States, with a significant presence across multiple states. As of March 31, 2026, the company operated 103 critical illness recovery hospitals and 41 rehabilitation hospitals, along with nearly 2,000 outpatient rehabilitation clinics. This joint venture aligns with Select Medical's strategic focus on expanding its rehabilitation services footprint and addressing the increasing demand for specialized care in the healthcare sector.

The establishment of Carilion Rehabilitation Hospital is indicative of broader trends within the healthcare industry, particularly the emphasis on rehabilitative services as part of comprehensive patient care. As the population ages and the prevalence of chronic conditions rises, the need for specialized rehabilitation facilities is expected to grow. This partnership not only strengthens the service offerings in the Roanoke area but also positions both organizations to better meet the evolving healthcare needs of the community. The successful execution of this project could serve as a model for similar collaborations in other regions, further enhancing access to critical rehabilitative services across the United States.