FORT SMITH - Rehabilitation services in the Fort Smith region are about to get a major upgrade.

Kindred Healthcare, LLC and Mercy announced that they have signed a definitive agreement and created a joint venture to construct and operate a 40-bed inpatient rehabilitation hospital.

Groundbreaking is expected in the fall, subject to regulatory and other approvals, with construction expected to take 12 to 13 months. A location is being determined for the facility projected to be 49,000 square feet and cost $23 million.

Kindred will manage day-to-day operations of Mercy Rehabilitation Hospital Fort Smith. The new hospital will care for adults recovering from conditions such as stroke, neurological disease, injury to the brain or spinal cord and other debilitating illnesses or injuries.

Kindred and Mercy are also partners for rehab hospitals in Oklahoma City, St. Louis and Springfield, Missouri.

Currently, Mercy operates an inpatient rehab facility within Mercy Hospital Fort Smith. Mercy also offers a full complement of outpatient rehab services.