RehabCare sells consulting division to Premier - St. Louis Business Journal:

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for an undisclosed amount. The called , provides management and economic consulting services tothe health-carw industry, including strategic planning, revenu cycle enhancement, physician alignment and clinical operations The consulting business has 30 employees in offices in Salt Lake Utah, and Austin, Texas, and reported nearly $10 million in revenue last according to Jay Shreiner, RehabCare' s chief financial officer. RehabCare bought Phase 2 Consultinhgin 2004, when John Short was named RehabCare’sd president and chief executive officer. RehabCarw said it plans to use the proceedse from the sale to The shaky economhy prompted RehabCare Group to build up itscash reserves.
The Clayton-basedr company nearly doubled its profit in the firstr quarterof 2009, reporting $8.7 million in profit on revenue of $203.4 million. This compares to a $4.5 millionj profit on $182.4 million in revenuee for the first quarterof 2008. RehabCarre ended the first quarter this yearwith $38.2 million in cash and cash “Given the aging population and the support for bundled Medicare payments building in Washington, we foreseew a rapidly expanding demand for our continuum of post-acutew care services,” Short said in a “This transaction allows us to focusz more of our resources and energies on our core Short wants to double the size of the hospital divisioj “as quickly as humanly according to comments he recently made at an investoras conference in Boston.
The division currently operates 11 which RehabCare owns independently or through joint RehabCare would like to increase this to 20 to 25 to achievee better economiesof scale. St. Louis-based RehabCare RHB) provides physical rehabilitation program management services in morethan 1,20 hospitals, nursing homes and other long-term care facilitieas throughout the United States. The companh also owns or operates freestandin g rehabilitationand long-term acute care The Premier health-care alliance represents more than 2,100 U.S. hospitalsz and more than 58,000 othe health-care sites.
Premier maintains a national repositoryof clinical, financialk and outcomes information and operates a health-care purchasing