RehabCare Group Names Dr. Kenneth Adams Chief Medical Officer; New Position Provides Medical Leadership and Patient Advocacy.

ST. LOUIS -- RehabCare Group, Inc. (NYSE: RHB) announced it has appointed Kenneth K. Adams, M.D. as its Senior Vice President of Medical Affairs and Chief Medical Officer, a newly created position for the 24-year-old company. RehabCare is a leading provider of post-acute services, managing physical rehabilitation programs in hospitals and skilled nursing facilities nationwide, as well as its own freestanding rehabilitation and long-term acute care hospitals.

"Operating successfully in a complexly regulated environment without compromising patient care or outcomes is an increasing challenge for our facilities," said John H. Short, Ph.D., RehabCare President and Chief Executive Officer. "When rules for Medicare reimbursement change, we frequently see new and varying interpretations of medical necessity by fiscal intermediaries. These mounting pressures require the oversight of someone focused on upholding the mission of RehabCare as it pertains to the delivery of medical care within our post-acute continuum, and we're pleased that Ken has accepted that role."

Dr. Adams has served as RehabCare's Corporate Medical Director since 2005, actively lobbying Congress on the company's behalf on issues such as the Part B Therapy Caps and the 75% Rule, and consulting RehabCare programs as they transitioned to the new rules. He became an independent contractor of RehabCare in 2001, serving as Medical Director of the company's inpatient rehabilitation unit at RHD Memorial Medical Center in Dallas, TX. He was named Medical Director of the Year in 2002. In 2003, Dr. Adams was one of 25 physicians in the U.S. to be awarded the American Medical Association's Young Physicians Award. A year later, he also assumed medical leadership of the rehabilitation program at Plano Medical Center in Plano, TX.

A graduate of the University of Texas Southwestern Medical School, Dr. Adams completed his residency at Parkland Memorial Hospital in Dallas, specializing in physical medicine and rehabilitation. He is a diplomat of the American Academy of Physical Medicine and Rehabilitation. Dr. Adams will be a member of the RehabCare Executive Management Team and chair the company's Medical Advisory Board.

Dr. Short described Dr. Adams' new role as the company's principal medical advisor, with responsibility for analyzing the effectiveness of RehabCare standards of clinical practice along with new initiatives to advance rehabilitative care, coordinating activities to help ensure compliance with accreditation standards and regulatory requirements, and developing objectives that strengthen medical leadership and the overall quality of medical services in RehabCare programs.

"To that end, Ken will be interfacing regularly with the medical staff at each of our sites, especially the more than 100 medical directors we contract with in our inpatient rehabilitation facilities," he said. "His own experiences as a medical director make him acutely aware of the intricacies of medical leadership in the post-acute setting." He added that Dr. Adams will be extensively involved in the recruitment and orientation of new program medical directors.

"The greatest challenge for our medical directors today is in the patient admission process," commented Dr. Adams. "The initial decision to admit or deny a patient rests solely on their ability to determine medical and rehabilitation appropriateness. Oftentimes, they must be prepared to defend what they have discerned to be in the best interests of the patient in an incongruous reimbursement system. That requires them to be on top of the current state of reimbursement at all times and in tune with the individual needs of each patient."

Dr. Adams said he will routinely visit with RehabCare programs to provide hands-on guidance, support and education for the medical leadership's short and long-range goals.

RehabCare Group, Inc. is a leading provider of physical therapy management services for hospital inpatient rehabilitation and skilled nursing units, outpatient programs and contract therapy services in conjunction with more than 1,400 hospitals and skilled nursing facilities in 42 states, the District of Columbia and Puerto Rico. RehabCare also owns and operates freestanding rehabilitation and long-term acute care hospitals.

RehabCare is pleased to be included in the Russell 2000 and Standard and Poor's Small Cap 600 indices. More information can be found on the World Wide Web at http://www.rehabcare.com.