Palomar Health, Kindred Healthcare and PMB recently completed the 57,543-square-foot 52-bed Palomar Health Rehabilitation Institute on Palomar’s campus in west Escondido. Louisville, KY-based Kindred and Escondido-based Palomar Health partnered with PMB to develop the $44 million freestanding rehabilitation hospital.

It replaces Palomar’s Acute Rehabilitation Unit, which had been housed in Palomar Health’s downtown Escondido campus. Construction of the new Palomar Health Rehabilitation Institute began in August 2019 and was completed in only 18 months.

San Diego-based medical developer PMB provided development expertise and third-party capital for the project.

“In spite of productivity, schedule and other impacts associated with the Coronavirus pandemic, the development team successfully managed the project to finish in a timely fashion and allow Palomar to relocate their existing rehabilitation unit and close on the sale of their downtown Escondido campus,” says Mark Toothacre, partner and president of PMB.

Diane Hanson, CEO of Palomar Health, said the new rehabilitation hospital is needed in the community.

“There has been a growing need for new rehabilitation services in North San Diego County, and the new Institute will more than meet that need,” she says. “We are now able to serve many more patients, and offer enhanced services, specialties and amenities. The Institute was cost-effectively and quickly delivered to the community, which is a testament to the dedication and hard work of our partners.”

The new facility, located at 2181 Citracado Pkwy., is expected to serve approximately 1,200 patients a year. Kindred Healthcare is operating the new hospital.

The architect for the project was Irvine-based Taylor Design, the general contractor was St. Louis-based McCarthy Building Cos. and the capital partner was Chicago-based Harrison Street Real Estate Capital.