They were flown in from across the country on the promise of a glamorous rehab in California. The reality was far different. "I suggest you get a tent." https://t.co/Gh0MCbaLcI ...

, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it will report results for its third quarter ended Sept. 30, 2025, after the market closes on Wednesday, Oct. 29, 2025. The Company will host an investor conference call at 10 a.m. ET on Thursday, Oct. 30, 2025, to discuss its results. Investor Relations contact: Mark Miller | 205-970-5860 [email protected] SOURCE Encompass Health Corp. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media ...

Core Insights - Encompass Health has been recognized as "America's Most Awarded Leader in Inpatient Rehabilitation" for the sixth consecutive year by Newsweek and Statista, with 66 hospitals included in the 2025 America's Best Physical Rehabilitation Centers list [1][2]. Group 1: Recognition and Rankings - The 2025 list features a record-breaking 320 inpatient physical rehabilitation centers, with Encompass Health having the most hospitals recognized [1]. - The ranking is based on quality metrics from the U.S. Centers for Medicare and Medicaid Services, expert survey results, accreditation data, and Google reviews [2]. Group 2: Commitment to Care - Encompass Health emphasizes its commitment to high-quality patient care and excellent outcomes, supported by decades of experience and clinical expertise [3]. - The hospitals provide essential rehabilitation services for various conditions, ensuring patients receive a minimum of three hours of therapy five days a week, along with 24-hour nursing care [3]. Group 3: Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 170 hospitals across 39 states and Puerto Rico [4]. - The company is recognized as one of Fortune's World's Most Admired Companies and Forbes' Most Trusted Companies in America [4].

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]

Core Insights - The U.S. stock market reacted positively to the Federal Reserve's decision to lower its benchmark interest rate by 0.25 percentage points to a range of 4-4.25%, aiming to stimulate growth while managing inflation [1][11] - The Dow Jones Industrial Average increased by 124.10 points (0.27%) to 46,142.42, the S&P 500 rose by 31.61 points (0.48%) to 6,631.96, and the Nasdaq Composite gained 209.40 points (0.94%) to 22,470.72 [2] Interest Coverage Ratio - Companies with strong interest coverage ratios are expected to benefit from lower borrowing costs, as these ratios indicate a firm's ability to meet interest obligations comfortably [3][6] - The interest coverage ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, and a ratio below 1 suggests potential default risk [5][8] - Companies highlighted for their strong interest coverage ratios include Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and The Progressive Corporation (PGR) [4][11] Company Performance and Projections - Stride, Inc. is projected to see sales and EPS growth of 11% and 5.9% respectively, with a stock price increase of 65.7% over the past year [14] - Ralph Lauren Corporation anticipates sales and EPS growth of 6% and 19.8% respectively, with a stock price increase of 69.4% over the past year [15] - Encompass Health Corporation expects sales and EPS growth of 10.2% and 18.3% respectively, with a stock price increase of 35.3% over the past year [16] - The Progressive Corporation projects sales and EPS growth of 16.4% and 26.8% respectively, although its stock price has declined by 6.7% over the past year [17] Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [9][13] - Stocks that meet these criteria are likely to outperform in various market conditions, with a focus on those with strong historical EPS growth and substantial trading volume [10][12]

Core Insights - Encompass Health Corporation (EHC) has opened a new 50-bed inpatient rehabilitation hospital in Central Florida, specifically in The Villages, to cater to the healthcare needs of a rapidly growing retirement community [1][4] Group 1: Facility Features - The new hospital is equipped to support recovery from serious medical issues such as strokes, spinal cord injuries, brain injuries, amputations, and complex orthopedic conditions, providing at least three hours of therapy five days a week [2] - It includes an in-house pharmacy, a therapy gym with advanced technologies, an in-house dialysis suite, and outdoor therapy areas for realistic skill practice [3] Group 2: Strategic Growth Plans - EHC aims to enhance its network in Florida and is part of a broader growth plan that includes opening seven new hospitals and adding 100-120 beds to existing facilities by 2025 [4] Group 3: Financial Performance - EHC's occupancy rates have improved from 72.1% in 2023 to 74.6% in 2024, with an average of 77.7% in the first half of 2025 [5] - The company's net operating revenues increased by 11.3% year-over-year to $2.91 billion in the first half of 2025, with projections for 2025 revenues between $5.88 billion and $5.98 billion [5][8] Group 4: Stock Performance - Year-to-date, EHC shares have increased by 35.7%, outperforming the industry growth of 10.4% [6]

Financial Data and Key Metrics Changes - The company's consolidated revenue grew nearly 5% to $1.3 billion, and adjusted EBITDA increased to $125.4 million from $124.7 million in the prior year [9][10] - Earnings per common share from continuing operations rose 88% to $0.32 from $0.17 per share in the same quarter prior year [9] Business Line Data and Key Metrics Changes - Inpatient rehab hospital division revenue rose 17% year over year to $313.8 million, with adjusted EBITDA increasing nearly 15% to $71 million [10] - Outpatient rehabilitation division revenue increased 3.8%, driven by a corresponding 3.8% increase in patient volume [11] - Critical illness recovery hospital division revenue was $601.1 million, a decline of 1% from the same quarter last year [13][14] Market Data and Key Metrics Changes - The occupancy rate for inpatient rehab hospitals was lower than the prior year at 82%, while the same store occupancy rate remained stable at 86% [10] - The occupancy rate for critical illness recovery hospitals improved to 69% from 67% in the prior year [13] Company Strategy and Development Direction - The company plans to add 382 rehab beds by the end of 2027, with a focus on expanding in key markets [6][8] - Upcoming openings include a 45-bed hospital in Temple, Texas, and a 30-bed critical illness recovery hospital in Memphis, Tennessee [7][8] - The company remains committed to delivering value to shareholders through stock repurchases and dividends [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the inpatient rehab division, particularly in states with favorable regulatory environments [25] - The company is optimistic about the outpatient division's prospects, expecting improvements in EBITDA margins [31] - Management acknowledged ongoing challenges with the reimbursement system but remains hopeful for policy reforms [12][45] Other Important Information - The company repurchased over 5.7 million shares at an average price of $14.86, totaling $85.1 million [9] - A cash dividend of $0.0625 per share was declared, payable on August 28, 2025 [9] Q&A Session Summary Question: How did EBITDA per segment come in line versus internal expectations? - Management indicated that critical illness EBITDA came in slightly lower than expectations, while inpatient rehab exceeded expectations, leading to comfort with reaffirmed guidance [22] Question: What is the strategy in states with favorable environments for inpatient rehab? - The company plans to engage with major systems in states like North Carolina to grow their post-acute network without immediate construction [25] Question: How is the outpatient rehab business expected to evolve? - Management expects continued improvement in outpatient rehab, with initiatives aimed at increasing EBITDA margins approaching 10% [29][31] Question: What is the impact of the outlier threshold? - Management noted that the impact was around $60 million in Q1, with expectations of facing headwinds throughout the year but less significant than in Q1 [34] Question: What is the supply-demand picture in the critical illness recovery hospitals? - Demand remains strong due to demographics and medical technology advances, although challenges with reimbursement persist [50][52] Question: What are the trends in labor costs across business lines? - Employee rate increases have improved from 5% to below 3%, indicating a positive trend in labor costs [53]

Core Insights - Encompass Health Corporation (EHC) has opened a new 50-bed inpatient rehabilitation hospital in Daytona Beach, FL, marking its 169th hospital nationwide and 23rd in Florida, demonstrating the company's commitment to expanding access to rehabilitation care [1][8] Group 1: Hospital Features and Services - The Daytona Beach hospital provides specialized rehabilitation services for patients recovering from strokes, brain injuries, amputations, and orthopedic challenges, featuring private patient rooms, a therapy courtyard, an in-house dialysis suite, and dedicated areas for various therapies [2][8] - This facility represents a shift towards decentralized, patient-centered care in post-acute medicine, expected to enhance recovery outcomes and alleviate pressure on general hospitals in the area [3] Group 2: Growth Strategy - The new hospital is part of EHC's broader 2025 growth plan, which includes opening seven new hospitals this year and adding 100-120 beds to existing facilities, thereby strengthening its national presence [4] - EHC has announced plans to construct a freestanding inpatient rehabilitation hospital in North Las Vegas, NV, expected to begin operations by 2028 [4] Group 3: Market Performance - Year-to-date, EHC shares have increased by 16.2%, contrasting with a 1.5% decline in the industry [5]

Core Insights - DIH Holding US, Inc. has appointed Rehazentrum Valens as a Center of Excellence, emphasizing their commitment to enhancing rehabilitation through innovative technologies [1][5] - The partnership aims to improve patient outcomes and support recovery journeys by integrating advanced rehabilitation technologies [1][2] Company Overview - DIH is a global provider of advanced robotic devices for rehabilitation, focusing on patients with walking impairments and other functional disabilities [1][6] - The company aims to deliver inspiration and health by blending robotic and virtual reality technologies with clinical insights [6] Rehazentrum Valens Profile - Established in 1970, Rehazentrum Valens is a leading rehabilitation center in Switzerland, specializing in neurological, musculoskeletal, and internal medicine rehabilitation [3][7] - The center is recognized for its interdisciplinary collaboration and patient-centered care, aiming to restore independence and quality of life for patients [3][8] Rehabilitation Technologies - Rehazentrum Valens utilizes DIH's Total Solution, including devices like ErigoPro, LokomatPro, Andago, and C-Mill VR+, to enhance rehabilitation programs [4] - The Armeo product family is also employed for advanced arm and hand therapy, catering to a wide range of patient needs [4] Strategic Importance - The recognition of Rehazentrum Valens as a DIH Center of Excellence highlights its leadership in evidence-based rehabilitation and commitment to integrating advanced technologies into patient care [5] - This partnership is expected to shape the future of rehabilitation by combining clinical excellence with innovative solutions [5]

Core Insights - Encompass Health Corporation (EHC) has inaugurated the Rehabilitation Hospital of Fort Myers in partnership with Lee Health, marking a significant expansion in Florida's healthcare landscape [1][5] - The new facility is equipped with 60 beds and offers advanced rehabilitation services, including tailored therapies for patients recovering from various conditions [3][4] - EHC's overall strategy includes increasing its facility count, which has reached 168 hospitals, contributing to a projected revenue growth of 9.6% in 2025 [7] Group 1: Facility and Services - The Rehabilitation Hospital of Fort Myers features modern amenities such as a therapy gym, dialysis unit, and private patient rooms, aimed at enhancing patient recovery [3] - Patients will receive at least three hours of intensive therapy five days a week, along with 24-hour nursing support, which is expected to improve health outcomes in the region [4] Group 2: Strategic Partnerships and Expansion - The partnership with Lee Health is part of EHC's strategy to strengthen its presence in Florida, with the Fort Myers hospital being its 22nd facility in the state [5] - EHC has plans for further expansion, including a new 50-bed rehabilitation hospital in Apollo Beach, FL [5] Group 3: Financial Performance - EHC reported a 10.6% year-over-year revenue increase in Q1 2025, with management estimating operating revenues between $5.85 billion and $5.925 billion for the year [7] - The company's share price has increased by 42.6% over the past year, significantly outperforming the industry average of 5.7% [8]