Genesis Rehab Services forms groundbreaking partnership with Zhejiang Bang-Er Medical Group

Genesis Rehab Services (GRS), a division of Genesis HealthCare (NYSE: GEN), one of the nation's largest providers of post-acute care, today announced a groundbreaking partnership with Zhejiang Bang-Er Medical Group (Bang-Er), an orthopedic hospital system in China.

In April, 2015, GRS signed a memorandum of understanding with Bang-Er to bring its successful US-based model of evidence-based rehabilitation services to Bang-Er's 11 orthopedic hospitals in China. GRS plans to start operation of in-patient and out-patient rehab services in two Bang-Er hospitals in the third quarter of 2015 and three additional sites in the fourth quarter of 2015.

Unlike the post-acute care infrastructure in the United States, China has limited post-acute care options for patients requiring rehabilitation after their hospital stay. As a result, patients tend to stay at the hospital for the duration of their recovery. With this new partnership, patients will not only receive high-quality orthopedic care from Bang-Er hospitals, but now they will also receive the best possible in-patient and out-patient rehabilitation care to get them back home as quickly and safely as possible.

GRS entered the China market in the fourth quarter of 2014 when it opened its first GRS Health Services Vitality Center in Phoenix City, a community 30 minutes from Guangzhou and two hours from Hong Kong. This health and wellness Vitality Center is the first of its kind in China and effectively introduced the people of China to the Western model of disease prevention, disease management, wellness, and rehabilitation care—including physical, occupational, speech and respiratory therapy.

To staff its Vitality Center in Phoenix City, GRS developed a rigorous training curriculum and certification process, providing education to nurses and other medical professionals. With this new Bang-Er hospital-based partnership, Genesis and China-based GRS Health Services (www.grs-hs.com) can now apply this same certification process to hire and train rehabilitation specialists which act as practice extenders for the physical therapists in China, in order to provide inpatient rehabilitation and help orthopedic patients regain their strength, function and independence using proven treatments and modalities never before seen in China.

"This is an exciting time for Genesis and our first expansion outside of the United States," notes George V. Hager, Jr., Chief Executive Officer of Genesis HealthCare. "With 14.8% of the Chinese population over the age of 60 and 70 million people in need of rehabilitation services, there is huge market potential in China. As one of the largest and most experienced post-acute providers in the United States, it was a natural fit to take our expertise to this new market."

Dong Cheng, Chairman and CEO of Bang-Er, agrees. "We are very lucky to know GRS through some special channels, and we quickly recognized that we have common ground for future collaboration. The demand in China for rehab services is tremendous. I'm very confident that—through this joint venture—we can create new healthcare models and deliver world class health services to the people, especially in the lower tier cities in China."

Looking ahead to the third quarter of 2015, GRS Health Services will bring a new business line, Spring of Power Center, to Qinhuangdao, providing in-patient rehabilitation services with the potential for 300 licensed beds. This center will also house the GRS Aging2.0 China Chapter which will help to identify, incubate and accelerate technologies focused on healthcare products.

SOURCE Genesis Rehab Services