Following the success of the hospital-within-a-hospital model for long-term acute-care, a new healthcare company said it has raised $7 million in first-round financing to use the same model for inpatient rehabilitation.
The company, Centerre Healthcare Corp., St. Louis, aims to open its first hospital-within-a-hospital by mid-2003. Centerre is in lease negotiations with one hospital and various stages of development with "a couple dozen" other hospitals, company co-founder and CEO John Lewis said. Three independent venture capital funds provided the first-round financing.
Most of Centerre's operations will be in the central U.S., particularly the Midwest, Lewis said. The company has no plans to open freestanding rehabilitation hospitals or pursue outpatient care, he said.
"We'll be one of the first to the new hospital-within-a-hospital space for rehabilitation -- the only folks I'm aware of that have contemplated it are HealthSouth," he said. "This will be our only business. We're a pure player in the rehabilitation hospital-within-a-hospital market, and we're early to market. We're confident, well-capitalized and have got a terrific team."
Lewis previously launched Intensiva Healthcare Corp. in 1994 under the hospital-within-a-hospital model. The company, which operated 22 specialty hospitals for critically ill patients, went public in 1996. It was sold to Select Medical Corp., Mechanicsburg, Pa., in 1998 for more than $110 million.
Lewis' partner in Centerre, company co-founder and CFO John Keefe, previously was CFO at NextCare, Austin, Texas. In 2000, NextCare merged with Semper-Care, Dallas, which develops long-term acute-care facilities. -- by Julie Piotrowski