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Kindred Healthcare and OSF Healthcare Announce Plans for Combined Inpatient Rehabilitation and Long-Term Acute Care Hospital in Central Illinois

LOUISVILLE, Ky. and PEORIA, Ill. (March 9, 2021) – Kindred Healthcare, LLC (“Kindred”) and OSF HealthCare today announced a partnership agreement to provide rehabilitation and long-term acute care (“LTAC”) hospital services in central Illinois. Pursuant to the agreement, Kindred and OSF will work together to transform Kindred’s wholly owned hospital in Peoria, Illinois.

The hospital’s LTAC beds will continue to deliver care for the most difficult-to-treat, critically ill and medically complex patients – such as patients with respiratory failure, septicemia, traumatic injuries, wounds or other severe illnesses complicated by multiple chronic conditions, including post-COVID recovery.

A new acute inpatient rehabilitation unit will help adults who have experienced a loss of function or disability due to stroke, brain injury, spinal cord injury, neurological disorders, orthopedic surgery and other conditions. It will feature all private rooms and provide intense, interdisciplinary rehabilitation therapies and medical care to improve functional independence and help the patient return home.

“We have had a long-standing relationship with Kindred Healthcare. This will allow us to fill a great need in central Illinois by expanding long-term acute care and rehabilitation services for our patients,” said Bob Anderson, President, OSF HealthCare Saint Francis Medical Center. “Ultimately, it’s about bringing the best options to those who come to us for care which, in turn, will lessen the impact on other parts of our health care Ministry.”

“Partnering with OSF HealthCare will enable us to best meet the needs of patients in the Peoria community,” said Jason Zachariah, Kindred’s President and Chief Operating Officer. “We have long respected OSF and are excited to collaborate with them to deliver quality care focused on improving the quality of life for the hospital’s LTAC and rehabilitation patients.”

Subject to regulatory and other approvals, Kindred and OSF expect to begin offering LTAC and rehabilitation services by September 1, 2022, following the completion of renovations to the facility at 500 W Romeo B Garrett Ave., Peoria. OSF will hold majority ownership of the hospital, which will be renamed and branded to demonstrate being part of OSF HealthCare. The hospital will then be operated as a Catholic health care facility.


About Kindred Healthcare

Kindred Healthcare, LLC is the nation’s leading specialty hospital company delivering acute health services in its long-term acute care hospitals, inpatient rehabilitation hospitals, acute rehabilitation units, and behavioral health line of business, all specializing in treating the most medically complex patients. Based in Louisville, Kentucky, and ranked as one of Fortune magazine’s Most Admired Healthcare Companies for nine years, Kindred’s mission is to help our patients reach their highest potential for health and healing with intensive medical and rehabilitative care through a compassionate patient experience. For more information, go to You can also follow us on FacebookLinkedIn, and Twitter.

Media Contact:
Susan E. Moss
Senior Vice President, Marketing and Communications
Kindred Healthcare


About OSF Healthcare 

OSF HealthCare is an integrated health system owned and operated by The Sisters of the Third Order of St. Francis, headquartered in Peoria, Illinois. OSF HealthCare employs more than 23,600 Mission Partners in 147 locations, including 14 hospitals – ten acute care, four critical access – with 2,097 licensed beds, and two colleges of nursing throughout Illinois and Michigan. The OSF HealthCare physician network employs more than 1,500 primary care, specialist and advanced practice providers. OSF HealthCare, through OSF Home Care Services, operates an extensive network of home health and hospice services. It also owns Pointcore, Inc., comprised of health care-related businesses; OSF HealthCare Foundation, the philanthropic arm for the organization; and OSF Ventures, which provides investment capital for promising health care innovation startups. More at

Media Contact:
Shelli Dankoff
Media Relations Supervisor
OSF Healthcare