Encompass Health Corp., a Birmingham, Alabama-based healthcare provider, is planning to build a new 50-bed rehabilitation hospital in Post Falls.

Encompass Health Rehabilitation Hospital of Post Falls will provide inpatient rehabilitation services to Post Falls, Coeur d’Alene, and surrounding areas, where existing rehabilitation beds are limited, contends Kim Steward, president of Encompass Health’s West region.

“The area stood out because of its large and growing population of residents age 65 and older, a demographic that frequently utilizes inpatient rehabilitation services,” Steward says in an email to the Journal. “We also determined there are relatively few rehabilitation beds in the market compared with the need.”

The proposed 55,000-square-foot hospital is set to be erected on 8 acres of land, at 8142 N. Zorros Road, south of Post Falls-based real estate developer Jacklin Northwest’s future shopping center at Jacklin Ranch Commercial Park, the Journal previously reported. Jacklin Northwest sold the property to Encompass Health in March, according to information on file with the Kootenai County Assessor’s Office. The Assessor's Office lists the property’s value at $620,000.

The facility will be located about a quarter-mile east of Highway 41 and 2.5 miles north of Interstate 90.

The new hospital’s proximity to major highways, acute care providers, and the cities of Spokane and Coeur d’Alene were additional factors in the company’s decision to build a facility in Post Falls, Steward says.

“Having a local inpatient rehabilitation hospital will allow patients to receive specialized rehabilitation closer to home rather than traveling to larger cities for care,” she contends. “The proximity also makes it easier for family members to visit patients during their rehabilitation stays, which average about 14 days.”

The average cost to construct a rehabilitation hospital of this size is estimated at $58 million, Steward says. Crews are likely to begin work in October, and the hospital is expected to open in 2028.

She declines to disclose the project’s contractor, architect, or engineer. However, permit information on file with the city of Post Falls lists Robins & Morton Corp., of Birmingham, Alabama, as the contractor; Chicago-based Perkins & Will Inc. is the architect; and Birmingham, Alabama-based MBA Engineers Inc. is providing engineering services.

The hospital will serve patients recovering from illnesses and injuries including strokes and other neurological conditions, brain and spinal cord injuries, amputations, and complex orthopedic issues, according to a press release from Encompass Health.

Planned patient resources include 24-hour nursing care; physical, occupational, and speech therapies; private patient rooms; a large therapy gym with advanced rehabilitation technology; an activities suite; an in-house dialysis suite; a dining room; a pharmacy; and an outdoor therapy courtyard, plans show.

Steward expects the hospital to hire around 100 workers, including specialized nurses, therapists, and physicians. Eventually, the total staff is expected to reach between 150 and 200 employees.

The Post Falls hospital will be the company’s second location in Idaho, joining St. Alphonsus Regional Rehabilitation Hospital in Boise. Encompass Health owns and operates a 175 total inpatient rehabilitation hospitals in 39 states and Puerto Rico.

A focus on rehab capacity emerges

Other hospitals in the Post Falls area have increased their inpatient rehabilitation bed capacities in recent years to meet patient needs. At the end of 2025, Northern Idaho Advanced Care Hospital, at 600 N. Cecil Road in Post Falls, converted and relicensed 17 beds from long-term acute care to inpatient rehabilitation. The conversion project was part of a joint venture between Albuquerque, New Mexico-based Ernest Health and Coeur d’Alene-based Kootenai Health, the Journal previously reported.

Ernest Health also owns Rehabilitation Hospital of the Northwest, which is located on the same campus as the 43,000-square-foot advanced care hospital. Rehabilitation Hospital of the Northwest maintains 30 inpatient rehabilitation beds, says Dan Barth, director of business development at the two Ernest Health hospitals.

Amenities at North Idaho Advanced Care Hospital’s converted inpatient unit include a 3,700-square-foot therapy space, a warm water aquatic therapy pool, and a home activities practice suite, Barth says.

Encompass Health’s new hospital, combined with the two existing rehabilitation facilities, make up the only medical centers with inpatient rehabilitation capacity in North Idaho, he contends.

In Spokane, St. Luke’s Rehabilitation Medical Center, at 711 S. Cowley Street, operates 102 beds and was North Idaho’s main rehabilitation hospital before Rehabilitation Hospital of the Northwest opened about a decade ago, the Journal previously reported.

Encompass Health doesn’t own or maintain any locations in Washington state, according to the company’s website.