Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates in two segments, Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The Home Health and Hospice segment provides home health and hospice services primarily in the Southeast and Texas. Its home health services include a range of Medicare-certified home nursing services to adult patients in need of care comprising skilled nursing, medical social work, and home health aide services, as well as physical, occupational, speech therapy, and others. This segment's hospice services comprise in-home services to terminally ill patients and their families. As of April 11, 2022, it operated 147 hospitals, 251 home health locations, and 96 hospice locations in 42 states and Puerto Rico. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was founded in 1983 and is based in Birmingham, Alabama.
AI Generated Analysis | Feedback
Here are 1-2 brief analogies for Encompass Health (EHC):
- HCA Healthcare for rehabilitation hospitals.
- The Mayo Clinic of physical recovery.
AI Generated Analysis | Feedback
- Inpatient Rehabilitation Services: Providing comprehensive rehabilitative care to patients recovering from debilitating illnesses or injuries in specialized hospital settings.
AI Generated Analysis | Feedback
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.
AI Generated Analysis | Feedback
```html
```
AI Generated Analysis | Feedback
Mark J. Tarr, President and Chief Executive Officer
Mark J. Tarr has served as President and Chief Executive Officer of Encompass Health since December 29, 2016. He joined Encompass Health (formerly HealthSouth Corporation) in 1993, holding various management positions. Before becoming CEO, he served as executive vice president and chief operating officer for Encompass Health from 2011-2016, and as president of the company's inpatient division since September 2004. His career also includes administrative positions at Tenet Healthcare and Charter Medical, and an early role at Georgia-Pacific. He earned a Bachelor of Science in Marketing from Ball State University and an MBA from Emory University’s Goizueta Business School.
Douglas E. Coltharp, Executive Vice President and Chief Financial Officer
Douglas E. Coltharp was appointed Chief Financial Officer on May 6, 2010. Prior to joining Encompass Health, he served as a partner at Arlington Capital Advisors and Arlington Investment Partners, LLC, a boutique investment banking and private equity firm, from 2007 to 2010. He also spent 11 years as executive vice president and chief financial officer for Saks Inc., where he was instrumental in recapitalizing the company and guiding it through a series of acquisitions and organic growth strategies. He began his career in 1987 at Nations Bank, N.A. (now part of Bank of America), rising to senior vice president and head of Southeast Corporate Banking, advising Fortune 1000 companies on capital raising. Coltharp holds a bachelor's degree in finance and economics from Lehigh University and an MBA in finance and strategic planning from the Wharton School, University of Pennsylvania. He also serves as a Member of the Board of Directors at Under Armour Inc. His tenure as a partner at a private equity firm indicates a pattern of managing companies backed by private equity.
Pat Tuer, Executive Vice President and Chief Operating Officer
Pat Tuer assumed the position of Executive Vice President and Chief Operating Officer in April 2025. Before this, he served as group president of Encompass Health's Northeast and MidAtlantic regions since August 2023, and as president of the Northeast region since March 2021. Prior to his work with Encompass Health, Tuer spent more than four years at Select Medical as regional vice president and chief executive officer for long-term acute care hospitals. Earlier in his career, he held various leadership roles at Community Health Systems.
Patrick Darby, Executive Vice President, General Counsel and Corporate Secretary
Patrick Darby serves as the Executive Vice President, General Counsel and Corporate Secretary for Encompass Health.
Dr. Elissa Charbonneau, Chief Medical Officer
Dr. Elissa Charbonneau has been the Chief Medical Officer of Encompass Health since 2015. She previously served as the Vice President of Medical Services for the company. Before joining Encompass Health, Dr. Charbonneau was the Medical Director at the New England Rehabilitation Hospital of Portland.
AI Generated Analysis | Feedback
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.
AI Generated Analysis | Feedback
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.
AI Generated Analysis | Feedback
Encompass Health (EHC) is expected to drive future revenue growth over the next 2-3 years through several key strategic initiatives:
* Expansion of Inpatient Rehabilitation Capacity: Encompass Health is focused on expanding its network by opening new inpatient rehabilitation hospitals (de novo facilities) and adding beds to existing hospitals. The company plans to open 6 to 10 de novo hospitals and add 80 to 120 beds annually to existing facilities through 2027. This strategy directly addresses the growing demand for rehabilitative care and leads to higher patient volumes.
* Increased Patient Volumes and Discharge Growth: A primary driver of revenue growth is the increase in patient admissions and discharges, which is a direct outcome of the company's capacity expansion efforts. Encompass Health has consistently reported strong discharge growth, including same-store discharge growth, contributing significantly to its overall revenue increases.
* Growth in Net Patient Revenue Per Discharge: The company has observed and anticipates continued growth in net patient revenue per discharge. This can be attributed to factors such as favorable reimbursement rates, including potential market basket updates (e.g., a proposed 2.7% increase for Medicare patients starting October 1, 2025), and an optimized service mix.
* Leveraging Favorable Demographic Trends: The aging U.S. population and the associated increase in demand for inpatient rehabilitation services serve as a significant underlying driver for Encompass Health's sustained growth. The company strategically targets underpenetrated markets with aging populations to meet this growing need.
* Focus on Value-Based Care and Operational Efficiency: Encompass Health is actively engaged in value-based care models, which emphasize quality outcomes and cost efficiency. Additionally, investments in technology and innovation, such as telehealth and data analytics, are aimed at improving patient outcomes and streamlining operational efficiency. While not directly a revenue driver, these initiatives can enhance financial performance and market position, supporting sustainable revenue growth.
AI Generated Analysis | Feedback
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.
