Case Study: IRF Bed Expansion, Sustainable Growth

This facility is a private 202-bed, not-for-profit community hospital serving suburban areas of a state in the Northeast. It is a member of Voluntary Hospitals of America.

In Year 0, the hospital made a decision to convert its nine leased inpatient rehabilitation beds into an internal, hospital-operated program. The hospital entered into a contract with MileStone Healthcare to transition the unit, securing all licensing and certification requirements, and manage the ongoing operations of the program. Historical patient volumes were exceeded within the first year and continued to grow for the next several years stabilizing at 85% occupancy.


MileStone presented a strategic initiative that included a bed expansion based on internal/external demand and referral analysis. The Inpatient Rehab Bed Expansion Project was subsequently launched in Year 4. Beds were converted, increasing the capacity to 11 beds in Year 5 with an additional expansion to 14 beds in Year 6. Occupancy levels remained stable and climbed to 88% in Year 6. The rehab unit has earned a reputation for quality programming and excellent functional outcomes for the patients it serves.


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