DAYTON — Premier Health and Encompass Health, formerly known as HealthSouth Corp., have announced plans to build a 60-bed, freestanding, rehabilitation hospital near Miami Valley Hospital, a project that will ensure more seamless care of patients with complex medical needs while better managing the cost of such services.

Premier Health and Encompass Health expect to open the Rehabilitation Institute of Ohio in early 2020 at the corner of South Main and West Apple streets. Construction costs are anticipated to be approximately $24 million. The new hospital will be designed to complement adjacent development in the near future on the former Montgomery County Fairgrounds property, which is owned by Premier Health and the University of Dayton.

Encompass Health’s HealthSouth Rehabilitation Hospital of Dayton at Elizabeth Place will relocate to the new hospital, and Premier Health will contribute its inpatient rehabilitation business known as the Miami Valley Hospital Rehabilitation Institute of Ohio to the joint venture. Encompass Health will oversee hospital operations once the new hospital is complete.