Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Encompass Health (EHC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.Encompass Health is a member of the Medical sector. This group includes 1000 individual stocks and cu ...

Wall Street analysts forecast that Encompass Health (EHC) will report quarterly earnings of $1.19 per share in its upcoming release, pointing to a year-over-year increase of 6.3%. It is anticipated that revenues will amount to $1.44 billion, exhibiting an increase of 9.2% compared to the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course o ...

BIRMINGHAM, Ala., and ST. GEORGE, Utah, April 18, 2025 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced preliminary plans to build a freestanding, 50-bed inpatient rehabilitation hospital in St. George, Utah. The hospital will serve 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 nursing care, the hospital will offer ...

BIRMINGHAM, Ala., April 9, 2025 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it has changed the time of its 2025 first quarter earnings call from 10 a.m. ET to 9 a.m. ET on Friday, April 25, 2025. As previously announced, the Company will report results for its first quarter ended March 31, 2025, after the market closes on Thursday, April 24, 2025. The Company will host the investor conference call to discuss its results at 9 a.m. ET on Friday, April 25, 2025. The conference call may b ...

BIRMINGHAM, Ala., April 7, 2025 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it will report results for its first quarter ended March 31, 2025, after the market closes on Thursday, April 24, 2025. The Company will host an investor conference call at 10 a.m. ET on Friday, April 25, 2025, to discuss its results. The conference call may be accessed by dialing 800-245-3047 and providing the conference ID EHCQ125. International callers should dial 203-518-9765 and provide the same conferenc ...

Core Insights - Encompass Health Corporation (EHC) has launched a new 40-bed inpatient rehabilitation facility in Athens, GA, through a joint venture with Piedmont, Georgia's largest healthcare system, reinforcing their long-term partnership [1][2][3] Company Developments - The new facility is designed to assist patients recovering from various medical conditions, providing at least three hours of intensive therapy five days a week, continuous nursing care, and regular physician consultations, which is expected to significantly enhance patient outcomes [2] - EHC currently operates 167 inpatient rehabilitation hospitals across 38 states and Puerto Rico, and the expansion with Piedmont will further establish its presence in Georgia, with future projects including additional hospitals in Loganville, GA [3] - The company is committed to growth, planning to establish seven new hospitals with a total of 340 beds and expand existing facilities by 100 beds by 2025, aiming to open six to 10 new hospitals annually between 2023 and 2027 while adding 80-120 beds each year [4] Market Performance - Shares of Encompass Health have increased by 26.4% over the past year, significantly outperforming the industry growth of 5.5% [5]

The hospital provides essential rehabilitative services that help patients recovering from strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions regain function and independence. Patients receive a minimum of three hours of intensive therapy for five days each week, frequent physician visits and 24-hour nursing care. "Our talented team is excited to serve the Athens community," said Loretta Rice, CEO of Rehabilitation Hospital of Athens. "The compassionate, high-qualit ...

Encompass Health Corporation (EHC) remains well-poised for growth on the back of solid top-line growth, continuous addition of facilities to its existing network and robust cash reserves. A strong 2025 outlook reinforces the growth prospects of the stock.Let’s delve deeper and analyze the factors aiding Encompass Health.EHC’s Impressive Earnings Surprise HistoryEncompass Health boasts a robust earnings surprise record. It has outpaced estimates in each of the trailing four quarters, the average surprise bei ...

Financial Performance - Total net operating revenues for 2024 reached $5,373.2 million, up 11.9% from $4,801.2 million in 2023[24]. - The number of discharges increased to 248,498 in 2024, compared to 229,480 in 2023, reflecting an 8.8% growth[24]. - The company has a strong balance sheet with approximately 78% of hospital real estate owned and no significant debt maturities until 2028[34]. - The company has a $1 billion revolving credit facility, with $944 million available for borrowing as of December 31, 2024[29]. - Medicare revenues account for approximately 82% of total revenues, with 65.1% from traditional Medicare and 16.8% from Medicare Advantage in 2024[59][60]. - The sources of revenue mix for 2024 shows a slight decrease in Medicaid revenues to 3.3% from 4.0% in 2023[60]. - Medicaid payments for specific discharges represented only 3.3% of consolidated net operating revenues for the year ended December 31, 2024[80]. - Medicaid discharges represented 5.6% of total inpatient discharges for the year ended December 31, 2024[80]. Operational Growth - In 2024, the company operated 166 inpatient rehabilitation hospitals, an increase from 161 in 2023 and 153 in 2022[24]. - The company aims to add 6 to 10 new inpatient rehabilitation hospitals and 80 to 120 beds to existing hospitals annually[30]. - The company has opened or acquired 71 new hospitals since 2012, increasing licensed beds by approximately 67%, or 4,438 beds[38]. - As of December 31, 2024, 143 out of 166 hospitals held stroke-specific certifications, indicating a focus on enhancing stroke care[27]. Employee Engagement and Development - As of December 31, 2024, the company employed approximately 40,000 individuals, with 23,564 full-time employees[40]. - The nurse turnover rate decreased to 20.4% in 2024 from 23.1% in 2023, while therapist turnover remained stable at 7.7%[50]. - The overall employee engagement score was 83.7% favorable in 2024, reflecting a small increase over 2023, with 87% participation in the survey[53]. - The company reimbursed over $1.1 million in tuition and paid over $4.0 million toward employees' student loan debt in 2024[51]. - The company has endowed five scholarships for students pursuing degrees in nursing and allied health fields[51]. - The company offers a 30% to 50% reduced tuition rate for nurses advancing their academic degrees[51]. - The company has invested in best-in-class technology for on-demand learning and development programs[52]. - The DE&I program achieved a favorable response rate of 83.1% for embracing diversity as a strength, compared to the industry benchmark of 78.9%[49]. - The company sponsored seven students from disadvantaged groups in partnership with Holy Family Cristo Rey Catholic High School in 2024[47]. Regulatory Compliance and Risks - The company is subject to audits by Medicare Administrative Contractors (MACs) and Recovery Audit Contractors (RACs), which can lead to adjustments in reimbursement[66]. - Compliance with the "60% Rule" is critical for facilities to maintain their classification as inpatient rehabilitation facilities (IRFs) and avoid reduced reimbursement rates[70]. - Future changes in Medicare reimbursement rates and regulations could materially affect the company's financial position and operations[65]. - The complexity of healthcare regulations, including the Stark law, poses challenges for compliance, and the company cannot assure that every relationship fully complies with these laws[106]. - Non-compliance with certification requirements may lead to ineligibility for Medicare or Medicaid reimbursement, and could result in substantial penalties[88]. - The company has developed operational systems to facilitate compliance with Medicare standards, but there is no assurance against allegations of noncompliance[91]. - The federal False Claims Act imposes penalties equal to three times the actual amount of overpayments plus up to approximately $28,000 per claim, with increased scrutiny on billing errors[95]. - Violations of the Anti-Kickback Law can result in penalties of up to $100,000 for each violation plus tripled damages for improper claims, and may lead to exclusion from Medicare and Medicaid programs[98]. - The 2020 Stark Rule creates permanent exceptions for value-based compensation arrangements that aim to improve patient care and reduce costs, enhancing coordinated care agreements[105]. - The company maintains a comprehensive ethics and compliance program, including annual training for employees and a policy of non-retaliation for reporting compliance concerns[85]. - The company faces significant risks from increasing state and local regulations that may conflict with federal regulations, impacting operational compliance[84]. - Violations of the Stark law could have a material adverse effect on the company's business, financial position, and stock price[107]. - The company is subject to various federal and state privacy-related laws, which could impose additional penalties beyond HIPAA regulations[113]. - Penalties for HIPAA violations can reach approximately $71,000 per violation, with potential annual caps ranging from approximately $49,000 to $2,135,000 depending on the level of culpability[112]. Market Conditions and Future Outlook - Approximately 54% of Medicare beneficiaries were enrolled in Medicare Advantage plans in 2024, with projections indicating this could rise to about 64% by 2034[77]. - The 2024 IRF Rule implemented a net 3.4% market basket increase effective for discharges between October 1, 2023, and September 30, 2024[72]. - The 2025 IRF Rule implemented a net 3.0% market basket increase effective for discharges between October 1, 2024, and September 30, 2025, with an expected net increase to Medicare payment rates of approximately 3.3%[73]. - In 2024, typical rate increases for managed care contracts ranged from 2-4%[76]. - The company has seen a growing percentage of revenue derived from Medicare Advantage payors, which typically reimburse less than traditional Medicare[77]. - The company faces risks from credit market uncertainty, which could adversely affect its financial condition and growth opportunities[262]. - The inability to obtain additional financing at reasonable costs could have a material adverse effect on the company's financial condition or growth opportunities[262]. - Future market shocks could lead to reduced availability of certain types of debt financing, impacting the company's business plan[262]. - The company monitors the financial strength of its depositories, creditors, and insurance carriers to mitigate risks associated with credit market uncertainty[263].

Core Viewpoint - Encompass Health Corporation (EHC) reported strong fourth-quarter results, with adjusted earnings per share (EPS) of $1.17, exceeding estimates and showing significant year-over-year growth [1][2]. Financial Performance - Net operating revenues reached $1.4 billion, reflecting a 12.8% increase year over year and surpassing consensus estimates by 2.1% [2][3]. - Net patient revenue per discharge increased by 4.2% year over year, beating estimates, while total discharges grew by 7.8% to 63,839, exceeding expectations [4]. - Adjusted EBITDA for the quarter was $289.6 million, a 13.6% year-over-year increase, surpassing estimates [5]. Operational Highlights - The company added 22 beds to existing hospitals and opened one new hospital during the fourth quarter [5]. - Total operating expenses rose to $1.17 billion, an 11% increase year over year, primarily due to higher salaries and benefits [4]. Year-End Financials - As of December 31, 2024, cash and cash equivalents stood at $85.4 million, a 23.6% increase from the previous year [6]. - Total assets increased by 7.1% to $6.5 billion, while long-term debt decreased by 12.2% to $2.4 billion [6][7]. - Total shareholders' equity improved by 23.8% to $2.8 billion, with net cash from operations reaching $1 billion, a 17.9% increase year over year [7]. Full Year Update - For the full year 2024, operating revenues were $5.4 billion, up from $4.8 billion in 2023, with adjusted net income per share rising to $4.43 from $3.64 [8]. Capital Deployment - In 2024, the company repurchased shares worth $31.1 million and had approximately $489 million remaining under its buyback authorization [9]. 2025 Outlook - Net operating revenues for 2025 are projected to be between $5.8 billion and $5.9 billion, indicating an 8.9% improvement from 2024 [11]. - Adjusted EPS is expected to range from $4.67 to $4.96, suggesting an 8.7% rise from the previous year [11]. - The company plans to open seven new hospitals and add around 100 beds to existing facilities in 2025 [12]. Growth Targets - Management aims to open six to ten new hospitals annually and add 80-120 beds each year from 2023 to 2027, with a projected CAGR of 6-8% in discharges during this period [13].