Here are 1-2 brief analogies for Encompass Health (EHC):

• HCA Healthcare for rehabilitation hospitals.
• The Mayo Clinic of physical recovery.

• Inpatient Rehabilitation Services: Providing comprehensive rehabilitative care to patients recovering from debilitating illnesses or injuries in specialized hospital settings.

Encompass Health (EHC) primarily sells its healthcare services directly to individuals.

The company serves the following categories of customers:

• Patients in Inpatient Rehabilitation Hospitals: These are individuals, predominantly adults and seniors, who have experienced a debilitating illness or injury (e.g., stroke, spinal cord injury, traumatic brain injury, major joint replacement, other complex neurological or orthopedic conditions) and require intensive, interdisciplinary rehabilitation services to regain function and independence in a specialized hospital setting.
• Patients Receiving Home Health Services: These are individuals who require skilled nursing care, therapy services (physical, occupational, speech), or other medical and rehabilitative assistance in their home environment. This often occurs after a hospital stay, for management of chronic health conditions, or to maintain independence and prevent re-hospitalization.
• Patients Receiving Hospice Care: These are individuals, typically seniors, who have a terminal illness and seek palliative care and support for themselves and their families at the end of life. Hospice services are generally provided in the patient's home or a homelike setting, focusing on comfort, pain management, and emotional/spiritual support.

• MEDITECH
• Vizient

The proliferation of "Hospital-at-Home" and other advanced home-based acute care models presents a clear emerging threat. These models, rapidly expanding with support from the Centers for Medicare & Medicaid Services (CMS) through programs like the Acute Hospital Care at Home waiver, and embraced by major health systems and payers, enable patients to receive hospital-level acute care and even initial rehabilitation services in their own homes. This growing trend challenges the traditional post-acute care pathway where individuals needing complex rehabilitation after an acute event are typically discharged to an inpatient rehabilitation facility (IRF). By providing high-acuity care and rehabilitation in the home setting, these alternative models could reduce the volume of patients referred to IRFs, shorten their length of stay, or potentially bypass the need for an IRF altogether for certain patient populations, directly impacting Encompass Health's core inpatient rehabilitation business.

The increasing vertical integration and consolidation within the healthcare ecosystem, particularly by payers and large health systems, represents another clear emerging threat. Major health insurers and large integrated delivery networks are aggressively acquiring or developing their own post-acute care assets, including home health agencies, skilled nursing facilities, and even inpatient rehabilitation facilities. This trend creates "closed networks" where integrated providers or payers can steer patients to their owned or preferred post-acute providers, potentially diverting referrals away from independent providers like Encompass Health and impacting their patient volumes and market share.

Encompass Health (EHC) primarily operates in the United States, focusing on inpatient rehabilitation services and, to a lesser extent, home health and hospice services.

For their main product, inpatient rehabilitation services, the estimated addressable market size in the U.S. is approximately $12.75 billion. This estimate is derived from Encompass Health's 2024 net operating revenue of $4.25 billion for inpatient rehabilitation and the fact that approximately one in three patients in the U.S. receiving inpatient rehabilitative care do so through an Encompass Health rehabilitation hospital.

For home health and hospice services, the addressable market size is null, as specific market sizing data was not available in the provided information. Encompass Health's net operating revenue for home health and hospice was $1.12 billion in 2024.

Share Repurchases

• A $500 million share repurchase program was authorized in July 2024.
• Encompass Health repurchased approximately $82 million of common stock year-to-date through Q3 2025.
• The company executed $31.1 million in annual share buybacks in 2024.

Share Issuance

• No specific information found regarding significant dollar amounts of share issuances by Encompass Health to raise capital from external investors within the last 3-5 years.

Inbound Investments

• No specific information found regarding large inbound investments made in Encompass Health by third-parties (e.g., strategic partners or private equity firms) within the last 3-5 years.

Outbound Investments

• In 2022, Encompass Health spun off its home health and hospice business, Enhabit.
• In April 2021, the company acquired the home health and hospice assets of Frontier Home Health and Hospice, which generated approximately $36 million in revenue in 2020.
• In 2020, the company's M&A strategy focused on the home health and hospice space, with expected investments of $50 million to $100 million in growth opportunities.

Capital Expenditures

• Growth capital expenditure (CapEx) is a top priority for Encompass Health, primarily focused on adding capacity through new hospitals (de novos) and bed expansions for inpatient rehabilitation services.
• From 2020 through 2024, the company opened 36 new hospitals and added 474 beds to existing hospitals, increasing total bed supply by approximately 20%.
• For 2025, Encompass Health expects to open seven new de novo hospitals and one satellite hospital, and add approximately 100-127 beds to existing facilities, with an estimated growth CapEx of about $580 million.