HEALTH

Horizon and Continental Medical to Merge: Albuquerque, N.M.-based Horizon Healthcare Corp. and Continental Medical Systems Inc. agreed to merge in a $502-million stock swap that would create the nation’s largest specialty health care service provider. The combined company, to be called Horizon/CMS Healthcare Corp., would provide a full range of health care, from acute rehabilitation services to long-term care, outpatient and home care services, the companies said. Mechanicsburg, Pa.-based Continental Medical operates 37 rehabilitation hospitals and provides outpatient services at more than 140 locations and contract therapy services to about 1,000 facilities. Horizon provides specialty health care services and long-term nursing care in 149 inpatient units.