Encompass Health to Open First Small-Format Rehab Hospital in Texas
Encompass Health plans two projects in Montgomery County: a 24-bed small-format inpatient rehabilitation hospital in Conroe and a 60-bed replacement hospital in The Woodlands. The Conroe facility will operate as a satellite of the existing Woodlands hospital, with opening expected in late 2027; the replacement hospital is slated for 2029. These expansions aim to increase access to inpatient rehabilitation services in the greater Houston area.
The Conroe facility represents a new development model for Encompass Health, designed to extend the reach of existing hospitals into growing communities while sharing administrative and clinical resources. The 24-bed satellite will connect to the established Woodlands campus, which itself is slated for a modern 60-bed replacement featuring all-private rooms.
Both projects target the greater Houston area's rising demand for post-acute rehabilitation services. Patients typically arrive after serious events such as strokes, spinal cord injuries, or complex orthopedic procedures, requiring round-the-clock nursing and multidisciplinary therapy. Construction sequencing for the Woodlands replacement will keep the current hospital operational throughout the build.
The expansion could meaningfully improve rehabilitation access for residents north of Houston, who may otherwise travel significant distances for specialized inpatient care. The small-format model may also signal a broader industry trend toward distributed healthcare delivery, potentially benefiting aging populations and those with limited mobility. However, the multi-year timeline means community needs will continue evolving before these beds open, and outcomes will depend on staffing availability and integration with existing referral networks.