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June 17, 2025

A $61M rehab hospital is in the works for Bangor

A drawing shows the exterior of a building and parking lot. Rendering / Courtesy Encompass Health Corp. Birmingham, Ala., Encompass Health Corp. proposes to build a 79,000-square-foot inpatient rehabilitation hospital at 1017 Union St. in Bangor.

An inpatient rehabilitation provider headquartered in Birmingham, Ala., said it has preliminary plans to build a 50-bed inpatient rehabilitation hospital in Bangor.

Encompass Health Corp. (NYSE: EHC) recently finalized the purchase of a 17.45-acre parcel of land at 1017 Union St., from Union Street Associates LLC, for $1.565 million.

John Bonadio of Maine Commercial Realty brokered the deal.

The estimated cost for the 79,000-square-foot hospital facility is $61 million, Bonadio told Mainebiz. It is expected to open in 2027.

The freestanding, 50-bed hospital would serve patients recovering from debilitating illnesses and injuries, including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions, according to a news release.

National footprint

Encompass Health said it is the largest owner and operator of rehabilitation hospitals in the U.S. Its national footprint includes 166 hospitals in 38 states and Puerto Rico.

Founded in 1984 as HealthSouth, it became Encompass Health in 2019, after opening a new home office in Birmingham in 2018. The company has over 225,000 patients annually.

The Bangor hospital would have private patient rooms, a therapy gym with rehabilitation technologies and an “activities of daily living” suite, in-house dialysis suite, dining room, pharmacy and therapy courtyard. 

"We are excited to expand Encompass Health's presence in Maine to serve patients in Bangor and surrounding communities closer to home," said Pat Tuer, Encompass Health Group’s president.

The hospital would be Encompass’s second hospital in Maine. The company and Maine Medical Center run the New England Rehabilitation Hospital, at 335 Brighton Ave. in Portland, as a joint venture.

Encompass said it would hire for positions in clinical and non-clinical fields. 

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