Encompass Health announced on March 18 2026 that it will build a freestanding, 40‑bed inpatient rehabilitation hospital in Bear, Delaware. The new facility will provide 24‑hour nursing care and a full suite of physical, occupational and speech therapies for patients recovering from strokes, neurological disorders, brain and spinal cord injuries, amputations and complex orthopedic conditions.
The hospital will feature private patient rooms, a spacious therapy gym with advanced rehabilitation technologies, an activities‑of‑daily‑living suite, an in‑house dialysis suite, a dining room, pharmacy and therapy courtyard. It will be Encompass’s second location in Delaware, following an existing facility in Middletown, and will serve residents of New Castle County and surrounding areas.
The project is contingent on approval from the Delaware Health Resources Board, which will evaluate the public necessity and cost efficiency of the facility. Construction is expected to begin only after all approvals are secured and is projected to take 28 months. The estimated investment for the Bear facility is $66 million.
Encompass faces competition from New Spring Rehabilitation, which is also seeking approval for a similar rehabilitation hospital in Newark, Delaware. The board must choose between the two proposals, adding a regulatory hurdle to the project timeline.
The expansion aligns with Encompass’s strategy to increase capacity and capture additional Medicare and Medicare Advantage volume. In 2025 the company added 517 inpatient rehabilitation beds through eight new hospitals and expansions to existing hospitals, and its 2026 guidance projects net operating revenue of $6.365 billion to $6.465 billion and adjusted EBITDA of $1.340 billion to $1.380 billion.
"Our Q4 performance was very strong, capping a stellar 2025. Our 2025 revenue increased 10.5% and Adjusted EBITDA grew 14.9%. During the year, we significantly increased our capacity, adding a total of 517 inpatient rehabilitation beds via eight new hospitals and the addition of 127 beds to existing hospitals. The need for the services we provide continues to grow as the U.S. population ages. We are uniquely positioned to meet this rising demand." – Mark Tarr, President and CEO
"Expanding Encompass Health’s footprint in Delaware is truly exciting. This hospital will bring residents of New Castle county and surrounding areas greater access to high‑quality, specialized rehabilitation care close to where they live. We’re eager to break ground on this project and look forward to supporting patients as they regain independence and get back to what matters most." – Mat Gooch, President of Encompass Health’s Northeast region
The rehabilitation medical market is projected to grow at an annual rate of 4%–6% driven by an aging U.S. population and rising prevalence of chronic diseases. Encompass’s expansion into Bear, Delaware, positions the company to capture a share of this expanding market and reinforce its status as the largest owner and operator of inpatient rehabilitation hospitals in the United States, with 174 hospitals in 39 states and Puerto Rico as of March 2026.
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