DAYTON — Premier Health and Encompass Health, formerly known as HealthSouth Corporation, have announced plans to build a 60-bed freestanding rehabilitation hospital near Miami Valley Hospital, a project that will ensure more seamless care of patients with complex medical needs while better managing the cost of such services.

Premier Health and Encompass Health expect to open the Rehabilitation Institute of Ohio, a joint venture with Encompass Health, in early 2020 at the corner of South Main and West Apple streets. Construction costs are anticipated to be approximately $24 million. The new hospital will be designed to complement adjacent development in the near future on the former Montgomery County Fairgrounds property, which is owned by Premier Health and the University of Dayton.

Encompass Health’s HealthSouth Rehabilitation Hospital of Dayton, located at Elizabeth Place, will relocate to the new hospital, and Premier Health will contribute its inpatient rehabilitation business known as the Miami Valley Hospital Rehabilitation Institute of Ohio to the joint venture. Encompass Health will oversee hospital operations once the new hospital is complete.

“Miami Valley Hospital has a great legacy of providing quality inpatient rehabilitation services for patients and families in Southwest Ohio,” said Mike Maiberger, executive vice president and chief operating officer of Premier Health, and president of Miami Valley Hospital. “As we invest for the future, we expect this new hospital will create considerable value for our patients by delivering quality care efficiently. We’re pleased to be partnering with Encompass Health, which already has a presence in Dayton and brings a strong reputation for rehabilitative care to the project.”

“We are excited for the opportunity to work collaboratively with a well-respected and top-notch health care provider like Premier Health as we share the same vision of providing high-quality care that is cost-effective,” said Troy DeDecker, president of Encompass Health’s central region. “Together, we will make a difference in the lives of Southwest Ohio residents overcoming a variety of debilitating illnesses and injuries so they can return to independent lives and the people and activities they love most.”