Skip to site content
Insights and Trends

VMG Health Highlights Importance of Strategic Partnership for Inpatient Rehab Management

Approximately 45% of acute care discharges nationwide are admitted to a post-acute setting. As highlighted in a recent article by VMG Health, one post-acute setting that continues to see substantial growth across the care continuum: inpatient rehabilitation.1

This rise in demand for inpatient rehabilitation facilities (IRFs) and acute rehabilitation units (ARUs) can be attributed to its many unique value props, including:

      • Strong clinical outcomes and financial performance.
      • Consistent regulatory support.
      • Its ability to treat a wide range of medically complex patients.
      • A high margin for efficient operators.

Additionally, hospitals are finding great benefit in partnering with an experienced rehabilitation provider to help alleviate administrative burdens of developing and running a rehabilitation program, as well as helping to ensure a hospital can achieve the goals mentioned above.

Other benefits based on partnership type highlighted by VMG Health included:1

Joint Venture

Contract Management

  • Ability to hold governance over beds.
  • Retain a portion of the IRFs earnings through distributions.
  • Potential to drive revenue from the facility and support services from the IRF JV. Gaining IRF management expertise to help improve care quality, discharge rates and length of stay.
  • Retain your hospital assets.
  • All commercial and government contracts remain the same.
  • Flexible partnership model (easy to transition to new partnership structure if needed).
  • Access to IRF management best practices.
  • Relief of administrative burden from operating the IRF.

What Makes a Good Partner? 5 Top Qualities

To reap the full benefits of partnership, it is critical to find the right partner that meets your hospital’s unique needs, mission and vision. Not all joint venture or acute rehab management partners are created equal.

Keep reading to learn the top 5 qualities to look for in a rehabilitation partner.


  • Richards, S., Speights, P., & Tracanna, C. (2023, September 5). Strategic partnerships in the inpatient rehabilitation industry: Highlights, opportunities, and risks. VMG Health.
  • Westhead, M. (2023, April). Getting the most out of Hospital Post Acute Partnership. Getting the most out of hospital post-acute partnership.



We use cookies to make our site work. We also use cookies and other tracking technology to measure our site’s performance, personalize content and provide social media features, including through advertising and analytics partners (such as Meta/Facebook and Google). By using our site, you agree that information about your use of the site may be sent to and/or collected by these third parties, and further agree to our website Privacy Policy.