Select Medical Corp. Mechanicsburg, Pa., is scaling back its expansion plans for long-term acute-care hospitals within general acute-care hospitals in light of a change in the CMS' payment policies for such facilities. The company, which has seen its stock price battered by the regulation, said that though its goal had been to open eight to 10 new long-term acute-care hospitals annually using the "hospital within a hospital" model, it will abandon that strategy in favor of fewer new facilities in "alternative settings." Select Medical has opened four new facilities so far in 2004 and will open only one or two more this year and no more than five next year, a company news release said. The company has 83 long-term acute-care hospitals. All but four operate as hospitals within hospitals. -- by Todd Sloane
Select Medical revises long-term acute-care plans
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