Core Insights - BrightSpring Health Services (BTSG) achieved an all-time high stock price of $25.57 on June 9, reflecting a remarkable 120% increase over the past year, contrasting with declines in the broader medical sector [1][8] - The company outperformed competitors Amedisys (AMED) and Option Care Health (OPCH), which saw stock increases of 2.7% and 12.2%, respectively [2][8] Financial Performance - In Q1 2025, BrightSpring reported a 14% year-over-year revenue growth and a 111% increase in adjusted EPS, both exceeding Zacks Consensus Estimates [6][8] - Adjusted EBITDA rose by 19%, supporting management's confidence in achieving continued double-digit growth in revenues and EBITDA for the full year [6] Quality Metrics - Over 80% of BrightSpring's Home Health branches are rated 4 stars or higher, with a declining 60-day hospitalization rate and patient satisfaction around 90% [7][8] - In Hospice services, the company provides 50% more visits and time with patients than the national average, achieving all-time high quality scores [7] - Rehabilitation services reported that 52% of catastrophic neuro event patients regained independence, while Personal Care achieved a satisfaction score of 4.6 out of 5 [7] Valuation - BrightSpring's stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.32, lower than the industry average of 0.39 and below competitors like Amedisys (1.23X) and OPCH (0.90X) [11][12] - Despite being above its one-year median of 0.24X, the stock remains undervalued compared to peers, indicating improved investor sentiment [12] Future Earnings Estimates - The Zacks Consensus Estimate for BrightSpring's 2025 earnings suggests an 82.1% year-over-year improvement [9] - Current estimates for Q1 2025 earnings are 0.22, with projections for the next year at 1.02 [10]

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]

Encompass Health (EHC) 2025 Conference Summary Company Overview - Encompass Health is the largest operator of inpatient rehabilitation facilities in the United States [1] Key Points and Arguments Volume Growth and Capacity - Encompass Health has a long-term target for discharge growth of 6% to 8% annually, with total discharge growth exceeding 6% for the last eleven quarters [6][8] - The company reported a first-quarter discharge growth of 10% in the previous year, influenced by an extra day due to leap year and the quarter ending on Easter Sunday [7] - In 2025, Encompass Health plans to open seven new hospitals, with five openings occurring after September, which will affect growth rates [8] - The expected breakdown for discharge growth is approximately two-thirds from same-store growth and one-third from new store growth [8] Occupancy Rates and Bed Expansion - The occupancy rate reached 78.8%, the highest ever recorded, reflecting a systematic increase in private room availability [10] - The percentage of private rooms in the portfolio increased from 40% in 2020 to 56% by the end of Q1 2025, enhancing occupancy levels [12] - Bed expansions are projected to yield high returns, with internal rates of return (IRR) exceeding 30% [13][14] - The company plans to add approximately 120 beds to existing hospitals in 2026 and 2027 [14] Joint Ventures and Market Strategy - Joint ventures (JVs) account for about 40% of Encompass Health's business, with a robust pipeline of potential partnerships [26] - JVs provide advantages such as faster ramp-up times and management fees, enhancing financial returns [27][28] - The company employs a data-driven approach to identify markets for new facilities, considering demographics, competition, and local healthcare needs [19] Medicare Advantage and Payer Mix - The Medicare Advantage payer mix has increased from under 9% in 2018 to approximately 30% in Q1 2025, with ongoing efforts to improve this further [35] - The reimbursement gap between Medicare Advantage and fee-for-service has narrowed from over 25% to less than 2% [36] - The conversion rate for Medicare Advantage referrals to admissions is currently about half that of fee-for-service, indicating significant growth potential [42] Regulatory Environment and Risks - Encompass Health does not foresee immediate risks from potential Medicare cuts, as IRFs represent less than 2% of overall Medicare expenditures [50] - The company is subject to frequent audits and maintains a low bad debt expense of around 2% [51] - There has been no recent discussion regarding the home health transfer policy, which had previously raised concerns [54] Cost Management and Financial Strategy - Construction costs for new facilities are approximately $1.2 million per bed, with bed expansions costing between $800,000 and $850,000 per bed [58] - The company has not observed upward pressure on construction or supply costs, benefiting from reduced demand among contractors [60] - Encompass Health repurchased $32 million of its stock in Q1 2025, indicating a commitment to returning value to shareholders while expanding capacity [64] Additional Important Insights - The aging demographic is a significant driver of growth, with projections indicating that one in five Americans will be over 65 by 2030 [17][18] - The company emphasizes its value proposition in treating complex medical conditions, which resonates with Medicare Advantage plans [40] - Encompass Health's strategic focus on expanding its capacity and improving payer mix positions it well for future growth opportunities [63]

Encompass Health Corporation (EHC) recently unveiled early-stage plans to build a new 50-bed inpatient rehabilitation hospital in Apollo Beach, FL. This standalone facility will be located in the Waterset master-planned community and will offer advanced rehabilitation services for patients recovering from serious medical conditions, including strokes, spinal injuries, amputations, complex orthopedic cases and brain injuries.This project marks an expansion of Encompass Health’s footprint in Florida, aligning ...

MECHANICSBURG, Pa., May 1, 2025 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2025, and the declaration of a cash dividend.For the first quarter ended March 31, 2025, revenue increased 2.4% to $1,353.2 million, compared to $1,321.2 million for the same quarter, prior year. Income from continuing operations before other income and expense was $112.7 million for the first quarter ended Marc ...

Encompass Health (EHC) Q1 2025 Earnings Call April 26, 2025 01:15 AM ET Company Participants Mark Miller - Chief Investor Relations OfficerMark Tarr - CEO, President & DirectorDouglas Coltharp - Executive VP & CFONone - ExecutiveWhit Mayo - Senior Managing DirectorA.J. Rice - Managing DirectorJared Haase - Equity Research AssociateAndrew Mok - DirectorJohn Ransom - Managing Director, Director of Healthcare Research Conference Call Participants Pito Chickering - AnalystMatthew Gillmor - Director & Equity Res ...

Increases full-year guidance BIRMINGHAM, Ala., April 24, 2025 /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported its results of operations for the first quarter ended March 31, 2025. Summary results Growth Q1 2025 Q1 2024 Dollars Percent (In Millions, Except Per Share Data) Net operating revenue $      1,455.4 $      1,316.0 $     139.4 10.6 % Income from contin ...

MECHANICSBURG, Pa., April 8, 2025 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical") (NYSE: SEM), will release the financial results for its first quarter ended March 31, 2025 on Thursday, May 1, 2025 after the market closes. Select Medical will host a conference call regarding its first quarter results, as well as its business outlook, on Friday, May 2, 2025, at 9:00am ET. The conference call will be a live webcast and can be accessed at via this Earnings Call Webcast Link or via link a ...