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Encompass Health Corporation EHC recently opened an inpatient rehabilitation hospital named Encompass Health Rehabilitation Hospital of North Tampa in Florida. Notably, plans of establishing this hospital were initiated in July 2019. Shares of Encompass Health have gained 1.2% in the last day’s trading as of Apr 7.
The latest move enables Encompass Health to cater to the health issues of residents in the Tampa Bay region more effectively and ensure that they have access to enhanced rehabilitative care close to their homes.
Equipped with 50 beds, the hospital houses private patient rooms and improved rehabilitation technologies through which it offers physical, occupational and speech therapies. These services seem to be the need of the hour for regional patients who require urgent rehabilitative care following debilitating illnesses and injuries. Additionally, the hospital’s medical staff not only comprises highly specialized therapists and physicians but also nurses whose care can be availed for 24 hours.
Shares of this Zacks Rank #3 (Hold) company have gained 21.6% in the past six months compared with the industry’s growth of 3.9%.
Strong Florida Footprint
Encompass Health boasts of a well-established presence in Florida. The latest hospital takes the company’s inpatient rehabilitation hospital count across Florida to 13. Apart from hospitals, the company also has 19 home health locations across the state.
Furthermore, Encompass Health has been undertaking a plethora of measures to strengthen its footprint in the state. During February 2021, the company disclosed plans to build an inpatient rehabilitation hospital containing 50 beds in the state’s Kissimmee city. In line with its abovementioned endeavor, the company has also laid plans to construct hospitals in Jacksonville, Cape Coral, Naples, Lakeland and Clermont.
Strong Inpatient Rehabilitation Segment
With the latest hospital, Encompass Health’s inpatient rehabilitation hospital count rose to 139. Further, it has a nationwide portfolio of 241 home health hubs and 82 hospice centers across 39 states and Puerto Rico. The company intends to offer cost-effective healthcare services across every corner of the United States, which seems to be time opportune amid the rising healthcare expenses nationwide. It also strives to cater to areas grappling with inaccessibility to quality care.
The company’s Inpatient Rehabilitation segment has been performing well on the back of higher demand for inpatient rehabilitation services across several U.S. states. Further, it has been focused on expansion plans, as evident from addition of inpatient rehabilitation hospitals to its network. Such services have been gaining momentum as individuals, who suffer from an injury, illness, or surgery, require continuous nursing care for addressing their rehabilitation needs. Apart from getting proper treatment and medications, a well-devised rehabilitative care also helps patients to return to their normal daily activities and hence, improve their quality of life.
As a result, the growth prospects of the Inpatient Rehabilitation segment have been solidifying with the same contributing a substantial portion to the company’s top line growth. The year 2020 was no exception to the trend, wherein the segment contributed 76.8% to the company’s net operating revenues.
Stocks to Consider
Some better-ranked stocks in the medical space include Select Medical Holdings Corporation SEM, Tenet Healthcare Corporation THC and HCA Healthcare, Inc. HCA. While Select Medical sports a Zacks Rank #1 (Strong Buy), Tenet Healthcare and HCA Healthcare carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Select Medical, Tenet Healthcare and HCA Healthcare delivered trailing four-quarter earnings surprise of 242.41%, 199.09% and 58.50%, on average, respectively.
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