Hartford Business Journal

HARTFORDBUSINESS.COM | NOVEMBER 2, 2026 9 By David Krechevsky davidk@hartfordbusiness.com A year after opening its first Connecticut hospital, Encom- pass Health says its 40-bed, for-profit inpatient rehabilitation facility in Danbury is approaching capacity and exceeding patient-volume projections, reinforcing the company's belief that the state needs more rehab services. Its performance comes as another for-profit rehabilitation hospital prepares to open in Waterbury and Encompass Health seeks approval for a second Connecticut location in Branford. Together, the projects are fueling debate over how much additional rehabilitation capacity the state needs, and what the expansion could mean for established providers competing for patients and workers. Encompass Health Rehabilitation Hospital of Danbury, which opened in September 2025, had an average of 34 patients a day in September, repre- senting 85% of its licensed capacity, hospital officials said. On several days, the patient count reached 38, or 95% of capacity, they said. Mathew Gooch, president of Encompass Health's Northeast region, said the hospital has consistently exceeded its patient volume targets for its first year. "Volume has exceeded where we expected it to be at this point," Gooch said during a recent inter- view with Hartford Business Journal. Encompass Health, the Birmingham, Alabama-based company that operates inpatient rehabilitation hospitals nationwide, opened the 50,500-square-foot Danbury facility at 50 Reserve Road to treat patients recovering from strokes, brain and spinal cord injuries, amputations and other serious medical conditions. The hospital provides intensive physical, occupational and speech therapy, along with round-the-clock nursing care and physician oversight. Gooch said the hospital deliberately limited admissions during its initial months to allow employees to become familiar with procedures, technology and the demands of inpatient rehab. Patient volume subsequently increased as the hospital developed relationships with referring healthcare providers, he said. Those referral sources include Danbury Hospital, Waterbury Hospital, St. Mary's Hospital in Water- bury and Stamford Hospital. The facility also has accepted patients from neighboring New York. The Danbury location's performance supports Encompass Health's assess- ment that western Connecticut had insufficient inpatient rehabilitation capacity, Gooch said. He believes Encompass Health has helped general hospitals discharge patients who no longer need their services but are not yet ready to return home. However, Gooch acknowledged that he did not have data showing whether Encompass Health's presence has reduced the length of patients' stays at referring hospitals. Growing competition The next addition to Connecticut's rehab hospital market is Pennsylva- nia-based PAM Health's $33 million facility at 351 Harpers Ferry Road in Waterbury. The approximately 55,000-square- foot facility is scheduled to begin accepting patients in the second week of November, according to PAM Health CEO Anthony F. Misitano. Although PAM Health received state approval for a 42-bed hospital, it is initially licensed to operate 34 beds. The company may apply to increase that number to the full 42 beds. Paula Carlisle, CEO of PAM Health's Waterbury hospital, said the facility expects referrals from Water- bury Hospital, St. Mary's Hospital and other healthcare providers in the region. "We already actually have a number of hospitals, home health organizations and assisted-living facilities in the area that are ready to start sending patients yesterday," Carlisle said. She attributed the growing demand partly to Connecticut's aging popu- lation, but also to the difficulty some patients have in obtaining rehab placements after hospitalization. Existing rehab facilities, she said, sometimes have waiting lists, forcing general hospitals to keep patients who are ready to begin rehabilitation. The Waterbury facility will draw from some of the same referral sources as Encompass Health's Danbury hospital. But Gooch said he believes demand is strong enough to support both facilities and he does not expect PAM Health's arrival to significantly affect Encompass Health's patient volume. Encompass also is seeking state approval for a 50-bed inpatient rehabil- itation hospital in Branford. The state announced in June that it had entered settlement talks with the company about that proposal. The Branford project has drawn opposition from established nonprofit rehabilitation providers, including Gaylord Hospital in Wallingford and Hospital for Special Care in New Britain. Those institutions have questioned whether additional beds are needed and raised concerns about competition for patients and healthcare workers. The expansion by both for-profit companies also represents a shift in Connecticut's rehabilitation hospital market, historically served by nonprofit providers such as Gaylord and Hospital for Special Care. Those institutions offer specialized services that are not necessarily identical to the intensive rehabilitation programs operated by Encompass Health and PAM Health, officials said. Measuring capacity According to the state Department of Public Health, Connecticut has five licensed chronic disease hospitals with a combined 507 licensed beds. The Danbury and Waterbury facili- ties account for 74 of those beds and have increased the number of licensed chronic disease hospitals from three to five. If approved and fully licensed, Encompass Health's Branford project would bring the total to 557 beds. Recovery Business New rehab hospitals reshape CT market as providers compete for patients, workers Encompass Health's 40-bed rehabilitation hospital in Danbury is approaching capacity a year after opening in September 2025, according to hospital officials. Contributed Photo Mathew Gooch Continued on next page Paula Carlisle, CEO of PAM Health Rehabilitation Hospital of Waterbury, outside the newly completed facility at 351 Harpers Ferry Road in Waterbury. HBJ Photo | Michael Puffer

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