EXHIBIT 13.1

SIX-YEAR FINANCIAL SUMMARY
Dollars in thousands, except per share data
(Year ended December 31,)		2005		2004		2003		2002		2001		2000
Consolidated statement of earnings data:
Operating revenues	$	454,266	$	383,846	$	539,322	$	562,565	$	542,265	$	452,374
Operating earnings (loss) ^{(2) (3)}		33,267		41,804		(14,396)		39,697		36,967		44,189
Net earnings (loss) ⁽²⁾ ^{(3) (4)}		(16,982)		23,181		(13,699)		24,395		21,035		23,534
Net earnings (loss) per share: ^{(2) (3) (4)}
Basic	$	(1.01)	$	1.42	$	(0.86)	$	1.45	$	1.25	$	1.62
Diluted	$	(1.01)	$	1.38	$	(0.86)	$	1.38	$	1.16	$	1.45
Weighted average shares outstanding (000s):
Basic		16,751		16,292		16,000		16,833		16,775		14,563
Diluted		16,751		16,835		16,000		17,642		18,077		16,268

Consolidated balance sheet data:
Working capital	$	60,664	$	76,451	$	76,952	$	67,846	$	77,524	$	64,186
Total assets		272,925		277,666		233,626		235,530		250,661		229,093
Total liabilities		74,677		70,638		55,671		46,916		51,625		111,133
Stockholders’ equity		198,248		207,028		177,955		188,614		199,036		117,960

Financial statistics:
Operating margin ^{(2) (3)}		7.3%		10.9%		(2.7)%		7.1%		6.8%		9.8%
Net margin ^{(2) (3) (4)}		(3.7)%		6.0%		(2.5)%		4.3%		3.9%		5.2%
Current ratio		1.9:1		2.3:1		2.9:1		2.8:1		2.7:1		2.6:1
Diluted EPS growth rate ^{(2) (3) (4)}		(173.2)%		260.5%		(162.3)%		19.0%		(20.0)%		40.8%
Return on equity ^{(1) (2) (3) (4)}		(8.4)%		12.0%		(7.5)%		12.6%		13.3%		24.0%

Operating statistics:
Freestanding hospitals:
Number of locations at end of year ⁽⁵⁾		5		N/A		N/A		N/A		N/A		N/A
Number of patient discharges ⁽⁵⁾		1,110		N/A		N/A		N/A		N/A		N/A
Program management:
Inpatient units:
Average number of programs		145		142		133		135		137		136
Average admissions per program		372		383		422		411		394		373
Outpatient programs:
Average number of locations		42		42		48		55		61		53
Patient visits (000s)		1,146		1,133		1,248		1,366		1,439		1,173
Contract therapy:
Average number of locations		749		588		460		378		250		156

⁽¹⁾

Average of beginning and ending equity.

⁽²⁾

The results for 2001 include $9.0 million in non-recurring charges related to our supplemental staffing division.

⁽³⁾

The results for 2003 include a pretax loss on net assets held for sale of $43.6 million ($30.6 million after tax or $1.90 per diluted share).

⁽⁴⁾

The results for 2005 include after tax losses on our equity investment in InteliStaf Holdings, Inc. of $36.5 million or $2.18 per diluted share.

⁽⁵⁾

We entered the freestanding hospitals business on August 1, 2005 with the acquisition of substantially all of the operating assets of MeadowBrook Healthcare, Inc.

EXHIBIT 13.1

Stock Data

The Company’s common stock is listed and traded on the New York Stock Exchange under the symbol “RHB.” The stock prices below are the high and low closing sale prices per share of our common stock, as reported on

the New York Stock Exchange, for the periods indicated.

CALENDAR QUARTER		1st	2nd	3rd	4th
2005	High	$30.20	$30.62	$27.89	$21.46
	Low	25.91	26.15	20.43	19.21
2004	High	$25.04	$26.68	$26.10	$28.81
	Low	18.82	19.48	21.65	22.26

The Company has not paid dividends on its common stock during the two most recently completed fiscal years and has not declared any dividends during the current fiscal year. The Company does not anticipate paying cash dividends in the foreseeable future.

The number of holders of the Company’s common stock as of March 6, 2006, was approximately 15,140, including 519 shareholders of record and an estimated 14,620 persons or entities holding common stock in nominee name.

Shareholders may receive earnings news releases, which provide timely financial information, by notifying our investor relations department or by visiting our website: http://www.rehabcare.com.