NORTH SMITHFIELD – A sister facility of Woonsocket’s Landmark Medical Center based in North Smithfield will return to its status as a for-profit rehabilitation center, thanks to a joint venture with a Kentucky-based company announced this week.

The Rehabilitation Hospital of Rhode Island has signed an agreement with Kindred Healthcare, with the out-of-state company to hold a 60 percent ownership stake in the facility, while Landmark continues to own 40 percent.

Both Landmark and RHRI were purchased by California-based Prime Healthcare in 2016 and the health care chain, one of the largest in the U.S., applied to convert the facilities to nonprofit status. Following an extensive process governed by Rhode Island’s Hospital Conversions Act, the company received the approval in 2017.

The agreement is positive financial news for the town of North Smithfield. RHRI, an 82-bed rehabilitation center located on Eddie Dowling Highway, was valued at roughly $12 million prior to the 2017 conversion, and hospital officials were paying taxes of around $250,000 annually to the town.

The transaction should be competed by the third quarter of this year, according to a release on the agreement.

Kindred reportedly works in 46 states at 1,731 locations, and has annual revenues of $3.2 billion.

According to reports, officials from Kindred said the partnership could result in expanded services.

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