A proposal for a $50 million, 90-bed replacement for Nashville Rehabilitation Hospital was rejected by a 5-3 vote of the Tennessee Health Services and Development Agency board, said Reid Brogden, the agency's general counsel. The hospital has not decided whether to appeal, spokesman Michael Drescher said. During yesterday's hearing, one board member noted that the rehabilitation hospital could spend up to $5 million on its current facilities without a certificate of need. Drescher said it would be more cost effective to replace the hospital, whose buildings are 40 years to 65 years old. The plan was opposed by most of Nashville's acute-care hospitals. If the replacement hospital is built, it would be owned by a partnership including its current owners, Surgical Alliance Corp., Nashville; and Brentwood Holdings, a Nashville-area investment group. Physician investors would be sought eventually, Drescher said. -- by Vince Galloro
Tenn. rejects plan for replacement rehab hospital
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