Arroyo Grande Community Hospital Partners with Kindred Rehabilitation Services for New Inpatient Rehabilitation Hospital

New facility will double the occupancy of the current rehabilitation center

ARROYO GRANDE, Calif.–(BUSINESS WIRE)–Arroyo Grande Community Hospital (AGCH) and Kindred Rehabilitation Services (KRS), a business unit of LifePoint Health, today announced a joint venture to build and operate a new inpatient rehabilitation hospital on Dignity Health’s Arroyo Grande Community Hospital campus.

The approximately 46,000-square-foot hospital will be built adjacent to the current rehabilitation center and will double the amount of beds to 40 all-private patient rooms. It will focus on inpatient rehabilitation for patients who suffer from stroke, traumatic brain injury, spinal cord injury, complex neurological disorders, orthopedic conditions, multiple trauma, amputation, and other injuries or disorders. The state-of-the-art facility will also feature the most advanced multidisciplinary therapy gymnasiums outfitted with the latest therapeutic technologies, including augmented reality balance training, and therapy bionics. Additionally, it will include a therapeutic courtyard with exterior amenities to support patient care and help patients return to daily living activities.

“The current Acute Rehabilitation Center is a great asset for our community, and we know expanding our facility would allow the opportunity to care for a greater number of patients,” says Sue Andersen, President and CEO, Arroyo Grande Community Hospital. “This new hospital will double the size of the unit and advance the treatment options and technology for our patients. We are excited about the expanded partnership with KRS to increase and improve our inpatient rehabilitation services.”

The hospital, expected to break ground in the fall of 2023, will expand the current 20-bed Acute Rehabilitation Center within AGCH, which is also managed by KRS, and has been since 2011. Completion of the project is projected for spring of 2025.

“We are excited to grow our relationship with Dignity Health and significantly expand the region’s access to quality inpatient rehabilitation services through the creation of this innovative, standalone hospital,” said Russ Bailey, president of KRS. “We’ve partnered with Arroyo Grande Community Hospital successfully for more than a decade, and believe this new facility will certainly expand our ability to deliver excellent patient outcomes and experiences, and advance our broader mission of making communities healthier.”

About Arroyo Grande Community Hospital

Arroyo Grande Community Hospital is rated a top Joint Replacement Center by Blue Shield and among the Top 10% in the Nation for Joint Replacement, offering the latest in robotic and other technologically advanced orthopedic procedures. The facility has achieved prestigious designation as a Primary Stroke Center by the Joint Commission for advanced, comprehensive care for stroke patients. The Emergency Department is nationally recognized for superior patient satisfaction and the hospital provides the only comprehensive hospital-based Acute Rehabilitation Center on the Central Coast, offering a wide range of individualized therapies. Arroyo Grande Community Hospital is a member of Dignity Health Central Coast, which also includes French Hospital Medical Center in San Luis Obispo, and Marian Regional Medical Center in Santa Maria. Learn more at

About Kindred Rehabilitation Services

With 30 stand-alone inpatient rehabilitation facilities (IRFs) across 18 states, Kindred Rehabilitation Services is a partner of choice for many major hospital systems in the creation of joint-venture operations that are industry-leading in clinical and financial outcomes. Kindred brings proven rehabilitation management and services expertise to help the nearly 30,000 patients we see each year in our specialty hospitals recover and return home quickly from any of a number of conditions, including stroke, brain injury, spinal cord injury, orthopedic injury, neurological conditions, amputation and trauma. Kindred Rehabilitation Services is a business unit of Brentwood, Tennessee-based LifePoint Health.

About LifePoint Health

LifePoint Health is a leading healthcare provider that serves patients, clinicians, communities and partner organizations across the healthcare continuum. Driven by a mission of Making Communities Healthier, the company has a growing diversified healthcare delivery network comprised of more than 50,000 dedicated employees, 63 community hospital campuses, more than 30 rehabilitation and behavioral health hospitals and 170 additional sites of care, including managed acute rehabilitation units, outpatient centers and post-acute care facilities. More information about LifePoint can be found at


Sara San Juan

Director of Marketing and Communications, Dignity Health

(805) 739-3584

Michelle Augusty

SVP, Communications for Kindred Rehabilitation Services

(615) 920-7654

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