Select Medical Corp., a national firm that caters to critically ill patients who require long hospital stays, is partnering with Akron's rival hospitals to open a new facility in town.

The privately held Pennsylvania company announced on Tuesday that it is joining with Akron General Medical Center and Summa Health System to build a long-term acute-care hospital to be known as Select Specialty Hospital of Akron on East Market Street.

Select already runs two long-term acute-care units as ``hospitals within hospitals'' at Akron General and Summa's Akron City Hospital.

Select and similar specialty hospitals get higher payments than general hospitals from Medicare, the federal insurance program for people 65 and older and some young disabled Americans.

Long-term acute-care hospitals are a middle ground between nursing homes and hospital intensive-care units. Patients stay an average 25 days or longer.

The typical patient suffers from multiple medical problems, which make recovery from surgery or illness long, complex and expensive to treat, said Thomas Buckingham, president of the Select Specialty Hospital division of Select Medical Corp.

But changes in Medicare payment rules are forcing operators of long-term acute-care units to move out of other hospitals if they want to keep getting higher payments for most of their patients.

``We didn't want to exit just because Medicare changed the rules,'' Buckingham said. ``We said, `How do we adapt our business model?' Joint venturing with the two major hospital providers (for adults) in town is really the ideal scenario.''

Within Northeast Ohio, Select also operates a hospital in Canton's Mercy Medical Center, Buckingham said. The company hasn't announced any changes for that location.

Select will be the majority owner of the new venture in Akron, while Akron General and Summa will get equal minority stakes. Specific financial details were not disclosed.

The project is a good example of competing hospitals partnering to maintain or improve access to quality health care while managing costs, said Alan Bleyer, president and chief executive of Akron General.

``Our community is best served by having one consolidated facility,'' Bleyer said.

``Before we even went down a path of competition, we said, `Why don't we seriously look at this?' '' agreed Thomas J. Strauss, Summa's president and chief executive. ``We both have to move out to create new facilities. Since we both actually had a similar partner,... we said it was a no-brainer to explore this.''

When the new 60-bed facility is complete in 2008, Select's units within Akron's hospitals will close.

The new hospital will be at the site of the former Taylor Pontiac dealership, across from the Haven of Rest.

Total construction cost is $19 million.

About 200 Select employees will work at the hospital, Buckingham said. Select will oversee day-to-day operations.

The venture is part of a development project unveiled this month by Akron Mayor Don Plusquellic.

Akron Legacy Real Estate Development LLC is pursuing a deal to buy about five acres from the city to house the long-term acute-care hospital, which will be developed in conjunction with Wojno Development.

Akron Legacy also plans to renovate the historic former post office next to the site and turn it into office space that will be leased by Summa for information technology and finance employees.

The projects fall within the city's biomedical corridor, which was established last year to encourage biomedical-friendly development on land surrounding Akron General, Akron City and Akron Children's hospitals.

``It really is not only good for health care but it's good for the city,'' Strauss said. ``It's really going to be the first major initiative developed inside this corridor.''