Encompass Health Corporation EHC recently inaugurated an inpatient rehabilitation hospital named Encompass Health Rehabilitation Hospital of St. Augustine in Florida. The hospital, which is equipped with 40 beds, finally commenced operations after more than one and a half year after EHC purchased land for establishing the same in July 2020.
The hospital, integrated with advanced rehabilitation technologies, will enable Encompass Health to bring about improved health outcomes across St. Augustine and, in turn, Florida.
EHC is focused on expanding its presence in Florida, considering the high demand for enhanced rehabilitation services throughout the state. The recently inaugurated hospital is a testament to the same, as it looks to capitalize on the prevailing scenario.
Encompass Health boasts a solid footprint in Florida, and the new hospital at St. Augustine takes the inpatient rehabilitation hospital count of EHC to 15 in Florida. The company has four other hospitals in the pipeline that are expected to open in the state this year. The hospitals not only cure people infected with chronic illnesses but also offer well-devised rehabilitative care for aiding patients in resuming their normal daily activities.
The expansion endeavors of EHC are not restricted to just Florida. Even the several uncertainties inflicted by the COVID-19 pandemic failed to slow down the healthcare provider’s plans for constructing numerous inpatient rehabilitation hospitals throughout the United States. Encompass Health continues to foray into the underserved parts of the nation, which grapple with inadequate access to quality care.
The St. Augustine hospital adds one more hospital to EHC's nationwide inpatient rehabilitation hospitals and takes the count to 147. Meanwhile, the robust portfolio of Encompass Health comprises 251 home health hubs and 96 hospice centers across 42 states and Puerto Rico. While both the home health and hospice centers assure advanced care at home, the home health services include a wide array of Medicare-certified home-based patient care, and the hospice locations deliver in-home services to address pain control and symptom management of terminally ill patients and their families.
Initiatives similar to the latest hospital opening are likely to provide a boost to revenues of EHC’s Inpatient Rehabilitation segment. The segment usually contributes the most to the company’s top-line growth and the trend sustained in 2021 as well, with the unit accounting for 78.4% of the company’s net operating revenues. Continued strong performance exhibited by the segment is expected to be a strong revenue driver in the days ahead. In 2022, management anticipates net operating revenues within $5.38-$5.50 billion, which indicates a significant improvement from the 2021 reported figure of $5.1 billion.
Shares of Encompass Health have gained 2.8% year to date against the industry’s decline of 13.5%.
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EHC currently has a Zacks Rank #4 (Sell).
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Apart from Encompass Health, healthcare providers like Tenet Healthcare Corporation THC, HCA Healthcare, Inc. HCA and Community Health Systems, Inc. CYH deliver high-quality rehabilitative services and boast a solid nationwide portfolio.
Tenet Healthcare operates a network of hospitals and related healthcare facilities for offering high-quality rehabilitative services and other healthcare-related services. THC has been continuously undertaking numerous acquisitions, partnerships and strategic alliances for driving scale of business, operating capacity and expanding geographical presence. At the end of 2021, Tenet Healthcare boasts an expansive care network encompassing 60 hospitals and 535 other healthcare facilities.
HCA Healthcare operates as one of the leading U.S. healthcare services providers, with a portfolio consisting of 175 general, acute care hospitals, five psychiatric hospitals and two rehabilitation hospitals at the 2021-end. HCA manages 125 freestanding surgery centers and 21 freestanding endoscopy centers. HCA Healthcare has been pursuing acquisitions, which have been bolstering its portfolio, leading to network expansion and driving patient volumes.
Being a well-established operator of general acute care hospitals and outpatient facilities across U.S. communities, Community Health either owned or leased 81 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals at the end of 2021. CYH has over 1,000 outpatient facilities in place. Community Health aims to add facilities and pursue buyouts for bolstering its capabilities and nationwide network.
Shares of Tenet Healthcare and HCA Healthcare have gained 9.7% and 2.8%, respectively, year to date. Meanwhile, Community Health stock has lost 16% in the same time frame.
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