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Article: Managers Get Financing to Start Up a Rehab Hospital in Clayton, Mo.

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Knight Ridder/Tribune Business News
Article date:
October 29, 2002
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By Judith VandeWater, St. Louis Post-Dispatch Knight Ridder/Tribune Business News

Oct. 29--Two veteran health-care managers have secured $7 million in first-round financing to start Centerre Healthcare Corp. The company, based in Clayton, will operate rehabilitation hospitals within existing hospitals.

Chief Executive John Lewis said changes in Medicare reimbursement that took effect Jan. 1 have made such carve-outs attractive to hospital managers who are finding it hard to operate rehabilitation units under a more restrictive payment structure.

Medicare's payment schedule provides a set sum per admission, based on the diagnosis. "It's a ...

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