April 13, 2026 — Today, Encompass Health Deaconess Rehabilitation Hospital, a joint venture between Encompass Health and Deaconess Health System, announced plans to expand and consolidate its services. The hospital is adding 40 private patient beds to its main location at 9355 Warrick Trail in Newburgh, Indiana. This includes consolidating 18 beds from its midtown Evansville location. The expansion allows patients to receive care more efficiently and effectively.
“This expansion is about meeting the growing needs of rehabilitation care in our area,” said Blake Bunner, chief executive officer of Encompass Health Deaconess Rehabilitation Hospital. “We are committed to serving patients with the excellent care they deserve so they can return to what matters most in their lives.”
The hospital is also adding an additional therapy gym with state-of-the-art technology, as well as expanding the kitchen, central supply and pharmacy areas. Construction is expected to be completed in November 2026.
“We will immediately see the benefits of this expansion,” Bunner said. “We will serve more patients, reduce delays in access to care and continue delivering high-quality rehabilitation close to home.”
With the additional patient rooms, the hospital’s total bed count will be 120. Encompass Health Deaconess Rehabilitation Hospital opened to patients in 1989. It holds Joint Commission Disease-Specific Care Certifications for Stroke and Brain Injury Rehabilitation.