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Baptist Health, Encompass Health to create 42 jobs with $40 million-plus inpatient rehabilitation hospital

Baptist Health and Encompass Health Corp. is moving forward with plans for the Rehabilitation Hospital of Louisville LLC, a proposed inpatient rehabilitation hospital and joint venture, which includes a $40 million-plus investment that will create 42 good-paying jobs in Jefferson County.

“Health care is an incredibly important growth sector in the commonwealth, and that’s especially true in Louisville and the surrounding region,” said Governor Andy Beshear. “Encompass Health and Baptist Health are central to that, so I’m very pleased to see this project take the next step forward. This new physical rehabilitation facility will create dozens of quality jobs and ensure that these two excellent health care providers continue to play an important role in our state.”

Louisville Mayor Greg Fischer also noted the region’s strong presence in health care.

“With a history of medical innovation, Louisville has built a reputation as a leading city in health care,” said Mayor Fischer. “Since 1924, Baptist Health has helped Louisville become a healthier city by offering a full spectrum of health care services and expertise, and its new high-quality rehabilitation center, built in partnership with Encompass Health, will play a key role in ensuring that residents to regain good health and independence after an injury or medical emergency.”

The project, announced in 2021, includes construction of a 48,000-square-foot, 40-bed, comprehensive inpatient rehabilitation hospital at 11800 Bluegrass Parkway in Jeffersontown. The hospital will offer rehabilitation services for patients recovering from debilitating injuries or illness, such as a stroke or brain and spinal cord injuries. The facility will include private rooms, two of which are designed for bariatric patients and one with negative air pressure flow for patients with communicable diseases, as well as a dialysis suite and therapy gym. In addition to 24-hour nursing care, the hospital will offer physical, occupational and speech therapies to restore functional ability and quality of life.

The hospital will also accommodate the relocation of a 29-bed inpatient physical rehabilitation unit at Baptist Health Louisville, which in turn will make additional space available for the growth of inpatient and outpatient services at that hospital.

The project adds to Encompass Health’s presence in Kentucky, which includes rehabilitation hospitals in Edgewood, Elizabethtown and Lexington. Construction on the new hospital is expected to begin in 2023 with completion scheduled for spring 2024.

“We are excited to expand and expand our rehabilitation services in Kentucky with Baptist Health, a forward-thinking and respected healthcare leader that has been a premier provider of acute inpatient rehabilitation to residents of Louisville and beyond for over 40 years,” said Troy DeDecker, president of Encompass Health’s Central Region. “We look forward to providing even more access to high-quality care for Louisville-area residents in need of rehabilitative services through this future hospital.”

Encompass Health is the largest owner and operator of rehabilitation hospitals in the United States with a national footprint of 153 hospitals in 36 states and Puerto Rico. The company provides high-quality, compassionate rehabilitative care for patients recovering from a serious injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass was recently named to Modern Healthcare’s list of Best Places to Work in Healthcare for 2022.

“The addition of this highly specialized freestanding hospital will address a critical need in our local communities,” said Gerard Colman, PhD, CEO of Baptist Health. “This hospital will improve patient access to rehabilitation services and serve as a regional destination for care, accepting patients from many facilities that do not have inpatient rehabilitation services.”

Baptist Health is the state’s largest not-for-profit health care system, reaching approximately 75% of all Kentuckians with more than 400 points of care, including nine hospitals with more than 2,700 beds; outpatient facilities; physician practices and services; urgent care clinics; outpatient diagnostic and surgery centers; home care; fitness centers; and occupational medicine and physiotherapy clinics.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in October preliminarily approved Encompass Health for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building supplies, equipment used in research and development, and electronic processing.

In addition, the company may receive resources from Kentucky’s workforce service providers. These include free recruitment and job placement services, tailored training at reduced costs and job training incentives.

For more information about Encompass Health, visit Learn more about Baptist Health at

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