Encompass Health Corp. and Vanderbilt Health have announced the construction of a freestanding, 40‑bed inpatient rehabilitation hospital in Barton Village, a mixed‑use community in Lebanon, Tennessee. The new facility will serve patients in Wilson, Smith, Trousdale and Macon counties and will feature all‑private rooms, a therapy gym with advanced technology, an in‑house dialysis suite, and an on‑site pharmacy.
The project is the second joint venture between the two companies, following the Vanderbilt Stallworth Rehabilitation Hospital in Nashville. It is part of Encompass Health’s strategy to add 127 beds to existing hospitals in 2025 and to expand its national footprint. The partnership leverages Vanderbilt Health’s clinical expertise and regional patient base while allowing Encompass Health to increase capacity in a market with a growing aging population and rising demand for post‑acute care.
Encompass Health’s recent financial performance underscores the company’s ability to fund such expansions. In Q3 2025, the company reported net operating revenue of $1,477.5 million, up 9.4% from Q3 2024, and adjusted EBITDA grew 11.4% year‑over‑year. The company has repeatedly raised its 2025 guidance, most recently in October 2025, to net operating revenue of $5.905 billion to $5.955 billion and adjusted EBITDA of $1.235 billion to $1.255 billion, reflecting confidence in continued demand and operational leverage. The new hospital aligns with the company’s plan to add 150–200 beds annually in 2026 and 2027.
The estimated cost of the Lebanon facility is $71.87 million, and construction is slated to begin in late 2025 with an expected opening in 2028. The project will provide a modern, patient‑centered environment that includes a dedicated dialysis suite—an uncommon feature in rehabilitation hospitals—positioning the facility to serve a broader patient population and generate additional revenue streams.
Mark Tarr, President and CEO of Encompass Health, said the partnership “demonstrates our commitment to expanding access to high‑quality rehabilitation services in underserved regions.” He added that the growing demand for inpatient rehabilitation remains “considerably underserved,” and that the new facility will help meet that need while reinforcing the company’s leadership position in the market.
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