Encompass Health seeks approval for 50‑bed Branford rehabilitation hospital; OHS hearing hears needs analysis and objections

Encompass Health asked Connecticut’s Office of Health Strategy on April 16 to approve a Certificate of Need to build a 50‑bed freestanding inpatient rehabilitation hospital in Branford, with a capital expenditure the company described as just under $70,000,000. Hearing Officer Daniel Chuka opened the hybrid proceeding and took administrative notices of state planning materials and prior dockets before sworn witnesses presented evidence.

Matthew Goosk, identified in the record as the regional president for Encompass Health’s Northeast region, said the company operates a large network of inpatient rehabilitation hospitals and that its recent Danbury opening exceeded projected census. "We operate over 173 hospitals across 30 states and Puerto Rico," he told the panel, arguing that Encompass’s scale and experience support the Branford project’s ability to expand access and reduce acute‑care stays.

A senior clinical witness described IRF clinical requirements that distinguish inpatient rehabilitation from other post‑acute settings: physician oversight, 24‑hour nursing and an expectation that appropriate patients receive about three hours of therapy a day. The clinical witness said Encompass’s Medicare fee‑for‑service discharge‑to‑community rate nationally exceeds other post‑acute settings and cited outcome tracking systems the company uses to manage readmission risk and functional improvement.

Martine Chaffin, a health‑planning consultant for the applicant, presented a population‑based bed‑need analysis. She said publicly available Medicare fee‑for‑service data and Connecticut planning data show long‑term low IRF utilization in the Branford service area and that her methodology—used previously in the Danbury case and rolled forward to current population projections—identifies a gap in access. Chaffin told the panel that correcting a mathematical issue in an OHS exhibit increases the state’s calculated bed need.

Gaylord Hospital and the Hospital for Special Care intervened and their counsel cross‑examined Encompass witnesses on multiple fronts. Counsel questioned whether long‑term acute care hospitals (LTACs) in the area already provide high levels of therapy and whether those facilities and existing providers could meet local needs. Counsel also pressed Encompass on staffing claims for newly opened hospitals, the presence of posted job vacancies for Danbury, and how the company handles contracting and admissions with Medicare Advantage plans.

On regulatory history, the hearing record includes references to prior Department of Justice settlements involving Encompass facilities. When asked, an Encompass witness said the company implemented enhanced documentation and training measures and that the cited settlements did not result in a corporate integrity agreement. The panel accepted exhibits and indicated it would consider those records in its decision‑making.

Branford’s first selectman, Josh Brooks, spoke during public comment in support of the proposal, saying the facility would let residents obtain rehabilitative care closer to home and citing a constituent’s reluctance to travel for post‑acute care.

Hearing Officer Chuka emphasized procedural requirements for speakers and encouraged adherence to time limits; the hearing recessed for lunch and the record remains open for written comments submitted through the CON portal for seven days. No formal vote occurred at the session; the hearing officer will prepare recommended findings of fact and conclusions of law for OHS consideration.

What’s next: OHS will consider the full record, including written comments and exhibits, before issuing a proposed decision; the hearing officer said he aims to complete the hearing process and issue recommended findings following any remaining testimony and briefing.