Encompass Health currently has a Zacks Rank #2 (Buy). Investors interested in the broader Medical space may look at some other top-ranked players like Sera Prognostics, Inc. (SERA) , Brookdale Senior Living Inc. Image Source: Zacks Investment Research Over the 2023-2027 period, Encompass Health plans to add 6-10 de novos, as well as make bed additions in the range of 80-120 per annum. It also targets to bring about a CAGR of 6-8% in discharges in the same time frame. These growth initiatives are expected to ...

The hospital is a joint venture between BJC HealthCare and Encompass Health. BIRMINGHAM, Ala. and BALLWIN, Mo., May 21, 2024 /PRNewswire/ -- BJC HealthCare, one of the largest nonprofit health care organizations in the United States, and Encompass Health (NYSE: EHC), the nation's largest owner and operator of inpatient rehabilitation hospitals, announce the opening of The Rehabilitation Institute of St. Louis – West County, a 40-bed inpatient rehabilitation hospital located at 998 Woods Mill Road. The hospi ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. We also note that EHC holds a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into ...

Encompass Health Corporation (EHC) is aided by growing patient volumes, a sound business outlook for 2024, an expanding healthcare portfolio and a notable financial position. Top Zacks Rank & Upbeat Price Performance Encompass Health currently carries a Zacks Rank #2 (Buy). The EHC stock has gained 43.1% in the past year compared with the industry's 24.3% growth. The Zacks Medical sector has rallied 4.6% and the S&P 500 composite has risen 27.6% in the same time frame. Image Source: Zacks Investment Researc ...

Have you been paying attention to shares of Encompass Health (EHC) ? Shares have been on the move with the stock up 7.5% over the past month. The stock hit a new 52-week high of $86.72 in the previous session. Encompass Health has gained 29.7% since the start of the year compared to the 3.9% move for the Zacks Medical sector and the 9.6% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it ...

BIRMINGHAM, Ala., and KISSIMMEE, Fla., May 7, 2024 /PRNewswire/ -- Encompass Health (NYSE: EHC) announces the opening of Encompass Health Rehabilitation Hospital of Kissimmee, a 50-bed inpatient rehabilitation hospital located at 4950 Calypso Cay Way. The hospital serves patients recovering from debilitating illnesses and injuries, including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24-hour registered nursing ...

BIRMINGHAM, Ala., May 6, 2024 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it will participate in the BofA Securities 2024 Health Care Conference being held in Las Vegas May 14-16, 2024.Encompass Health's President and Chief Executive Officer Mark Tarr and Executive Vice President and Chief Financial Officer Doug Coltharp will present during a fireside chat on Tuesday, May 14, 2024, at 3 p.m. PT.  The presentation will be webcast live and available at http://investor.encompasshealth.co ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companie ...

PART I [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2024, detailing financial performance including a **13.4% increase in net operating revenues** and a **28.3% increase in net income** attributable to Encompass Health - Encompass Health is a provider of inpatient rehabilitation services, operating **160 inpatient rehabilitation hospitals** across 37 states and Puerto Rico as of March 31, 2024[30](index=30&type=chunk) Condensed Consolidated Statements of Comprehensive Income (Q1 2024 vs Q1 2023) | Metric | Three Months Ended March 31, 2024 (In Millions) | Three Months Ended March 31, 2023 (In Millions) | | :--- | :--- | :--- | | Net operating revenues | $1,316.0 | $1,160.4 | | Income from continuing operations | $140.1 | $114.3 | | Net income attributable to Encompass Health | $112.5 | $87.7 | | Diluted EPS (Continuing operations) | $1.11 | $0.88 | Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2024 (In Millions) | December 31, 2023 (In Millions) | | :--- | :--- | :--- | | Total current assets | $929.8 | $841.8 | | Total assets | $6,231.4 | $6,102.4 | | Total current liabilities | $680.3 | $656.4 | | Total liabilities | $3,828.0 | $3,805.2 | | Total shareholders' equity | $2,362.3 | $2,255.2 | Condensed Consolidated Statements of Cash Flows | Metric | Three Months Ended March 31, 2024 (In Millions) | Three Months Ended March 31, 2023 (In Millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $238.8 | $227.9 | | Net cash used in investing activities | $(129.7) | $(104.0) | | Net cash used in financing activities | $(40.6) | $(58.0) | Net Operating Revenues by Payor Source (Q1 2024 vs Q1 2023) | Payor Source | 2024 (In Millions) | 2023 (In Millions) | | :--- | :--- | :--- | | Medicare | $854.1 | $757.7 | | Medicare Advantage | $223.8 | $186.2 | | Managed care | $142.8 | $127.1 | | Total | $1,316.0 | $1,160.4 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting **13.4% revenue growth** driven by volume, while addressing regulatory challenges and maintaining strong liquidity for operations and capital returns [Executive Overview](index=19&type=section&id=Executive%20Overview) The company reported a **13.4% increase in net operating revenues** for Q1 2024, driven by volume growth and ongoing capacity expansion through new bed additions and hospital developments - Net operating revenues increased **13.4%** in Q1 2024 compared to Q1 2023, driven by volume growth[65](index=65&type=chunk) - In 2024, the company continued its capacity expansion by adding **51 new beds** to existing hospitals[66](index=66&type=chunk) New Hospital Development Pipeline | Location | Expected Opening Year | Number of New Beds | | :--- | :--- | :--- | | Kissimmee, FL | 2024 | 50 | | Atlanta, GA (JV) | 2024 | 40 | | Johnston, RI | 2024 | 50 | | Daytona Beach, FL | 2025 | 50 | | Fort Myers, FL (JV) | 2025 | 60 | | Palm Beach Gardens, FL | 2026 | 50 | | Amarillo, TX | 2026 | 50 | [Business Outlook and Key Challenges](index=20&type=section&id=Business%20Outlook%20and%20Key%20Challenges) The company anticipates long-term demand growth from an aging population but faces challenges from healthcare regulations, including the CMS 2025 Proposed Rule and the expanding Review Choice Demonstration program, alongside competitive and labor market pressures - Long-term demand is expected to grow as the number of Medicare enrollees is projected to increase by approximately **3% annually**[69](index=69&type=chunk) - The CMS 2025 Proposed Rule for IRFs is expected to result in a net increase to the company's Medicare payment rates of approximately **3.0%**, effective October 1, 2024[74](index=74&type=chunk) - The CMS Review Choice Demonstration (RCD) is expanding to states where the company has a significant presence, including Pennsylvania, Texas, and California, which will require additional claim review processes[75](index=75&type=chunk) - Key operational challenges include maintaining strong patient volume growth against competition and recruiting and retaining high-quality personnel amid industry-wide staffing shortages[78](index=78&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2024 net operating revenues increased **13.4% to $1.316 billion**, driven by higher patient discharges and revenue per discharge, leading to a **28.3% increase in net income** despite an impairment charge Key Operational Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Discharges | 61,111 | 55,557 | 10.0% | | Net patient revenue per discharge | $20,990 | $20,415 | 2.8% | | Occupancy % | 76.7% | 73.4% | 4.5% | | Employees per occupied bed | 3.34 | 3.32 | 0.6% | - Revenue growth was driven by increased volumes, with same-store discharges increasing **6.7%** and new hospitals contributing to the remainder of the growth[85](index=85&type=chunk) - Other operating expenses increased due to higher provider taxes and a one-time impairment charge of **$10.4 million** related to the closure of a joint venture hospital in Eau Claire, Wisconsin[88](index=88&type=chunk) - Salaries and benefits as a percentage of revenue slightly decreased from **54.2% to 54.1%**, primarily due to lower contract labor usage and reduced sign-on/shift bonuses[82](index=82&type=chunk)[87](index=87&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$134.4 million in cash** and **$964 million available under its revolving credit facility**, supporting planned **$580-$610 million capital expenditures** and continued shareholder returns through dividends and repurchases - As of March 31, 2024, the company had **$134.4 million in cash and cash equivalents** and approximately **$964 million available** under its revolving credit facility[101](index=101&type=chunk)[102](index=102&type=chunk) Cash Flow Summary (Q1 2024 vs Q1 2023) | Activity | Q1 2024 (In Millions) | Q1 2023 (In Millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $238.8 | $227.9 | | Net cash used in investing activities | $(129.7) | $(104.0) | | Net cash used in financing activities | $(40.6) | $(58.0) | - The company expects to spend approximately **$580 million to $610 million** on capital expenditures in 2024[110](index=110&type=chunk) - The company declared a cash dividend of **$0.15 per share** and has approximately **$198 million remaining** under its stock repurchase authorization as of March 31, 2024[111](index=111&type=chunk)[113](index=113&type=chunk) [Adjusted EBITDA](index=29&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a key non-GAAP liquidity measure for credit agreement covenants, increased significantly to **$273.0 million in Q1 2024** from **$229.0 million in Q1 2023**, with detailed reconciliations provided Reconciliation of Net Income to Adjusted EBITDA | Metric | Three Months Ended March 31, 2024 (In Millions) | Three Months Ended March 31, 2023 (In Millions) | | :--- | :--- | :--- | | Net income | $138.8 | $113.3 | | Provision for income tax expense | $38.3 | $31.9 | | Interest expense and amortization | $35.2 | $36.4 | | Depreciation and amortization | $70.3 | $63.9 | | **Adjusted EBITDA** | **$273.0** | **$229.0** | - Adjusted EBITDA is a critical liquidity measure used to assess compliance with material covenants in the company's credit agreement, such as the leverage ratio and interest coverage ratio[118](index=118&type=chunk)[119](index=119&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[130](index=130&type=chunk) - There were no material changes to the company's Internal Control over Financial Reporting during the first quarter of 2024[131](index=131&type=chunk) PART II [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal actions, governmental audits, and potential undisclosed *qui tam* lawsuits under the False Claims Act, common in the highly regulated healthcare industry - In the ordinary course of business, the company is subject to regulatory audits, investigations, and various legal actions, including employment and personal injury claims[134](index=134&type=chunk) - The company acknowledges the possibility of undisclosed *qui tam* lawsuits filed against it under the False Claims Act, which allows private citizens to sue on behalf of the government[135](index=135&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2023 Annual Report on Form 10-K are reported, with relevant updates incorporated by reference from the 'Key Challenges' section of the MD&A - There have been no material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[137](index=137&type=chunk) - The report incorporates by reference the discussion in the "Executive Overview—Key Challenges" section of the MD&A for updates to risk factors[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company repurchased **176,390 shares** at an average price of **$69.86**, primarily for tax liabilities on vested stock awards, with **$198 million** remaining under the repurchase authorization Purchases of Equity Securities (Q1 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | January 2024 | 111,761 | $66.77 | | February 2024 | 64,410 | $75.17 | | March 2024 | 219 | $82.58 | | **Total** | **176,390** | **$69.86** | - As of March 31, 2024, approximately **$198 million** remained under the company's common stock repurchase authorization, which was reset to **$250 million** in July 2018[140](index=140&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No new or modified insider trading arrangements under Item 408(a) of Regulation S-K were reported during the quarter - The company reported no insider trading arrangements for the period[141](index=141&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section refers to the Exhibit Index, listing all documents filed as part of the quarterly report, including CEO/CFO certifications and XBRL data files - Refers to the Exhibit Index for a list of all exhibits filed with the Form 10-Q[142](index=142&type=chunk)

The Company will award research funding grants totaling up to $50,000. BIRMINGHAM, Ala., May 1, 2024 /PRNewswire/ -- On May 1, Encompass Health opened its call for research grant applications due Sept. 30 at 5 p.m. CST. The grants, totaling up to $50,000, will be awarded for the investigation of the impact or effectiveness of therapies in the inpatient rehabilitation facility post-acute care setting, knowledge translation or implementation science. Grant recipients do not have to be affiliated with Encompas ...