The Dayton Daily News reported on the project in March but Encompass and Premier were still in negotiations. The city plan board on June 12 approved an amended site plan for the hospital campus, which included the rehab hospital.
The two health systems now have a final deal and are moving forward with the project.
Encompass is a for-profit, publicly traded company with a footprint of 127 hospitals and 237 home health and hospice locations in 36 states and Puerto Rico.
Premier’s already has an inpatient rehabilitation business, Miami Valley Hospital Rehabilitation Institute of Ohio, now has about 90 beds inside Miami Valley.
The rehab center will go down to 60 beds, will move to the new facility.
MORE: Moving to San Diego could cost Teradata nearly $50 million
The facility is planned on the block between South Main, Stout, Apple and Catherine streets.
Rehabilitation services help patients with movement and independence after an injury or in response to a disease. The rehabilitation hospital will tie into services at Miami Valley, like helping patients get back on their feet after being treated for a traumatic injury.
Premier officials said when the project was first announced that the rehab services will work with the Level 1 trauma center at the hospital.
Dayton-based Premier is the largest private employer in the region and besides Miami Valley, it operates Upper Valley Medical Center, Atrium Medical Center and a network of physician offices and outpatient centers.
MORE: Employed but uninsured? In Ohio, you’re not alone