RehabCare Appoints Kevin Gross to Head Hospital Division

RehabCare Group, Inc. (NYSE: RHB) announced it has named Kevin J. Gross Senior Vice President, Operations of its Hospital division, effective July 1. A resident of Wayne, Pennsylvania, Gross and his family will relocate to RehabCare headquarters in St. Louis, MO, where he will report directly to RehabCare President and CEO John H. Short, Ph.D. He also will become a member of the Company’s executive management team. During its nationwide search for a successor to Tom Davis, Executive Vice President, who resigned on October 31, 2007, the division was under the interim management of Donald R. Smithburg, Senior Director for Phase 2 Consulting, a RehabCare company, and the former CEO of Louisiana State University Healthcare Services. "Kevin’s appointment ends an extensive search for a results-oriented executive with the right combination of effective management and strong business acumen,” said Dr. Short. "Kevin has unassailable leadership qualities, with 25 years experience in developing solid teams, setting strategic direction, and achieving turnaround in hospitals and health systems for both community-based and investor-owned organizations.” Prior to joining RehabCare, Gross served as President of the Acute Care division of Universal Health Services (UHS), overseeing operations of 24 hospitals across the United States. In his first year at the helm, the division realized strong increases in same store admissions, revenue and operating margins. He also carried out multi-million Dollar construction and capital expenditure projects throughout the division’s portfolio. Before UHS, Gross was President of the Oklahoma Division for Ardent Health Services, managing a nine-hospital system in Northeast Oklahoma for four years. In the years preceding, he held pivotal management roles for several hospitals and healthcare systems in Texas, Kansas and Colorado. Gross holds an MBA in Healthcare Administration from The Wharton School of the University of Pennsylvania and a BS in Biomedical Engineering from Northwestern University. "RehabCare has an aggressive growth strategy for its Hospital division. I welcome the challenge of fine-tuning and executing that plan, as well as invigorating the division’s operational performance by developing our leadership talent, building greater community presence and identifying essential resources to strengthen its infrastructure,” said Gross. "There’s no question that our Hospital division has experienced growing pains, as any ‘start-up’ business does,” commented Dr. Short. "But we remain committed to its success and I have every confidence in Kevin’s ability to reinforce this critical business segment for continued growth.” RehabCare’s Hospital division currently consists of six freestanding rehabilitation hospitals and five long-term acute care hospitals that the Company either wholly owns or holds majority ownership in through joint venture relationships. Dr. Short said the Company expects to own and/or operate 17 freestanding hospitals by the end of 2009. With more than 25 years experience, RehabCare (www.rehabcare.com), a St. Louis-based company, is a leading national provider of physical rehabilitation services in conjunction with 1,200 hospitals and skilled nursing facilities (SNFs) in 42 states. The company also owns and/or operates freestanding rehabilitation and long-term acute care hospitals. Photo available upon request.