The bad sectors would have to be somewhat contiguos in area for them to be partitioned off, if they're scattered all over the disk it would be useless. You would need to have a bad sector map of the entire hard disk, then partition usable space above and below and test and retest. I'm not sure exactly which tool can do the location mapping reliably, see if the Hitachi hard disk diagnostic tool helps.
But theres no guarantee that the bad sectors will not keep cascading, SMART drives do a decent job of remapping sectors anyway. Also theres no one to one correlation between reallocated sector count and hard disk failure, the reliability of SMART data is also not foolproof.
Suggest you back up your data to external media or a good drive and be prepared to replace this disk.