Rehab Care Demand Growth

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Encompass Health Opens First Connecticut Rehab Hospital in Danbury
ZACKSยท 2025-09-26 17:21
Core Insights - Encompass Health Corporation (EHC) has expanded its national presence by opening a new inpatient rehabilitation hospital in Danbury, CT, marking its first facility in the state [1][9] - The new hospital will provide intensive therapy and specialized care for patients recovering from various conditions, including strokes and spinal cord injuries [1][9] Facility Details - The Danbury facility features 40 private patient rooms, a therapy gym with advanced rehabilitation technologies, an in-house dialysis unit, and pharmacy services [2][9] - Treatment plans include a minimum of three hours of therapy five days a week, 24/7 nursing care, and physician oversight [2][3] Market Demand and Expansion Plans - The expansion reflects increasing demand for rehabilitation care due to an aging U.S. population and rising chronic health conditions [3] - EHC plans to open seven new hospitals in 2025, add a 50-bed satellite facility, and increase bed capacity in existing hospitals by 100-120 [4] Financial Performance - EHC's net operating revenues rose 11.3% year-over-year to $2.91 billion in the first half of 2025, with expectations of reaching $5.88-$5.98 billion for the full year [5] - Occupancy rates improved from 72.1% in 2023 to 74.6% in 2024, averaging 77.7% in the first half of 2025 [5] Stock Performance - Year-to-date, EHC shares have increased by 36%, outperforming the industry growth of 10.6% [6]