Core Insights - Al-Modawat Specialized Medical in Saudi Arabia is completing an expansion of its eastern wing, expected to be operational in Q4 2025, significantly enhancing hospital capacity [1][2] - The expansion will result in a 23% increase in inpatient rooms and a 12% rise in medical clinics, aimed at accommodating more patients [2] - The project was approved in March 2023 with an estimated cost of SAR3.2 million ($0.85 million) to address higher occupancy rates [3] Financial Impact - The financial benefits from the expansion are anticipated to be realized in Q4 2025 and continue into Q1 2026 [2] - The expansion is part of a broader strategy to manage high occupancy rates at the hospital [3] Industry Context - Al-Modawat operates a general hospital in the southern Aseer region of Saudi Arabia and is headquartered in Muhayil [2] - The expansion aligns with the growing demand for healthcare services in the region, as indicated by the recent fundraising activities of other healthcare providers like Baraya Extended Care [4]

Core Viewpoint - Encompass Health Corp. plans to construct a 50-bed freestanding inpatient rehabilitation hospital in Haslet, Texas, aimed at enhancing its presence in the state and providing high-quality rehabilitative care to patients recovering from serious illnesses and injuries [1][4]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a network of 169 hospitals across 38 states and Puerto Rico [5]. - The company is recognized for its high-quality, compassionate rehabilitative care, utilizing advanced technology and innovative treatments to maximize patient recovery [5]. - Encompass Health has received accolades such as being ranked among Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America [5]. Hospital Features - The new hospital will cater to patients recovering from conditions such as strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions [2]. - It will provide 24-hour nursing care and various therapies, including physical, occupational, and speech therapies, delivered by specialized healthcare professionals [2]. - Facilities will include private patient rooms, a therapy gym with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy, and a therapy courtyard [3]. Expansion Plans - The construction of the Haslet hospital is expected to begin soon, with an anticipated opening in 2027, as part of Encompass Health's ongoing expansion strategy in Texas [4].

Core Insights - Encompass Health reported strong financial results for Q2 2025, with GAAP revenue of $1.46 billion, exceeding consensus by $30.47 million, and non-GAAP EPS of $1.40, surpassing analyst expectations [1][2] - The company experienced double-digit growth in both revenue and profits compared to Q2 2024, prompting management to raise full-year guidance across key metrics [1][2] Financial Performance - Q2 2025 GAAP revenue was $1.46 billion, a 12.0% increase from $1.30 billion in Q2 2024 [2] - Non-GAAP EPS reached $1.40, up 26.1% from $1.11 in Q2 2024 [2] - Adjusted EBITDA grew 17.2% to $319 million from $272 million in the previous year [2] - Adjusted free cash flow increased by 30.5% compared to Q2 2024 [9] Operational Highlights - Total discharges rose to 65,237, a 7.2% increase year-over-year, with same-store discharges growing by 4.7% [5] - Revenue per discharge was $21,670, reflecting a 4.2% year-over-year increase [5] - The payer mix improved, with higher-reimbursement government programs increasing their share by 1.5 percentage points [6] Strategic Focus - The company operates 169 hospitals across 38 states and Puerto Rico, focusing on inpatient rehabilitation services [3] - Recent strategies include expansion through new hospital openings and adding beds to existing facilities [4] - Management emphasizes quality patient outcomes, regulatory compliance, and strategic partnerships [4] Future Outlook - Full-year net operating revenue guidance is now projected between $5.88 billion and $5.98 billion, with adjusted EBITDA guidance increased to $1.22 billion–$1.25 billion [13] - Management plans to continue growth through new hospital openings and bed expansions, targeting 6 to 10 new hospitals and 80 to 120 beds added annually [14]