Encompass Health (EHC) Opens Hospital to Boost Presence in Texas
Encompass Health Corporation EHC recently inaugurated the Encompass Health Rehabilitation Hospital of Prosper in Texas. Plans to establish the hospital, equipped with 40 beds, were announced in Mar 2021 and in a gap of nearly three years, the facility was made operable.
The hospital contains private patient rooms and is armed with upgraded rehabilitation technologies and equipment with the help of which it can provide physical, occupational and speech therapies. In addition to this, patients will be looked after by a well-versed medical team comprising nurses, therapists and physicians. And nursing will be made available round the clock.
Therefore, the new hospital is likely to play a great role in the faster recovery of individuals from debilitating injuries and illnesses, which can be strokes, other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. A speedy recovery will impart strength and confidence to patients to return back to their daily lives.
The recent announcement reflects the twin focus of Encompass Health, with the first one being to address the strong demand for inpatient rehabilitation services across the greater Dallas area and subsequently, strengthen its presence in Texas. The facility in Prosper marks the company’s 27th hospital in the state.
The second purpose for such facility openings remains to bolster EHC’s revenue base, which is earned in the form of payments received from the federal government, managed care plans and private insurers in return for its patient care services rendered at the facilities. Total revenues improved 10.7% year over year in the first nine months of 2023. Management estimates operating revenues to be between $4,770 million and $4,800 million for 2023, the midpoint of which suggests 10% growth from the 2022 reported figure.
Encompass Health follows a remarkable expansion endeavor throughout the year and aims to delve deeper into several U.S. communities grappling with inadequate access to rehabilitative care. The new hospital in Prosper will take EHC’s nationwide hospital count to 160. Prior to this, the last hospital added to the list was the Rehabilitation Hospital of Columbus, which was inaugurated this September.
Apart from relying on its own capabilities and resources for constructing hospitals, Encompass Health also takes the help of several regional healthcare organizations and enters into joint ventures with them to gain an in-depth knowledge of the diversified healthcare needs of a region.
Shares of Encompass Health have gained 16.3% in the past year against the industry’s 0.5% decline. EHC currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks in the Medical space are DaVita Inc. DVA, Insulet Corporation PODD and Bausch Health Companies Inc. BHC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s earnings surpassed estimates in each of the last four quarters, the average surprise being 36.55%. The Zacks Consensus Estimate for DVA’s 2023 earnings indicates a rise of 15.6%, while the same for revenues suggests an improvement of 2.8% from the respective prior-year tallies. The consensus mark for DVA’s 2023 earnings has moved 3.2% north in the past seven days.
The bottom line of Insulet outpaced estimates in each of the trailing four quarters, the average beat being 105.14%. The Zacks Consensus Estimate for PODD’s 2023 earnings is pegged at $1.90 per share, which indicates a more than 27-fold increase from the prior-year figure. The consensus mark for revenues suggests an improvement of 25.8% from the prior-year tally. The consensus mark for PODD’s 2023 earnings has moved 18% north in the past 30 days.
Bausch Health’s earnings outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 0.04%. The Zacks Consensus Estimate for BHC’s 2023 earnings indicates a rise of 10.1%, while the same for revenues suggests an improvement of 6.2% from the respective prior-year tallies. The consensus mark for BHC’s 2023 earnings has moved up 3.7% in the past 30 days.
The DaVita stock has gained 32.9% in the past year. However, shares of Insulet and Bausch Health have declined 42.2% and 2.5%, respectively, in the same time frame.
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