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Encompass Health (EHC) Steadily Grows Inpatient Rehab Business
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Encompass Health Corp. (EHC - Free Report) is making concerted efforts to grow its inpatient rehabilitation business. Earlier in the month, the company announced its joint venture with UnityPoint Health – Trinity for construction of an inpatient rehabilitation hospital in Moline, IL. Last January, the company acquired 68% operations of a 13-bed inpatient rehabilitation unit in Denver, CO via a joint venture with Portercare Adventist Health System. In May, it bought 51% of the operations of a 45-bed inpatient rehabilitation unit in Dayton, OH through a joint venture with Premier Health Partners
The company’s strong inpatient rehabilitation business is on track to deliver another impressive performance, backed by planned bed additions at a number of its existing hospitals, acquisitions and construction of new hospitals. The inpatient rehabilitation industry remains highly fragmented, which gives the company an edge to tap this market.
During the third quarter of 2020, management announced plans to build seven new inpatient rehabilitation hospitals and added 36 beds to its present portfolio. These announcements bring the company's count of planned new hospital openings to eight, each in 2021 and 2022. In an effort to focus solely on its inpatient rehabilitation business, the company is separating its home health and hospice business. To this end, it is mulling over various options, such as full or partial splitting of its home health and hospice business from the parent entity through an initial public offering, spin-off, merger, sale or other transaction.
We believe, the company’s full concentration on growing its inpatient rehabilitation facilities, which are one of the fastest-growing components of the Post-Acute Care sector in the United States, will help it become a niche player in this business.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Encompass Health (EHC) Steadily Grows Inpatient Rehab Business
Encompass Health Corp. (EHC - Free Report) is making concerted efforts to grow its inpatient rehabilitation business. Earlier in the month, the company announced its joint venture with UnityPoint Health – Trinity for construction of an inpatient rehabilitation hospital in Moline, IL. Last January, the company acquired 68% operations of a 13-bed inpatient rehabilitation unit in Denver, CO via a joint venture with Portercare Adventist Health System. In May, it bought 51% of the operations of a 45-bed inpatient rehabilitation unit in Dayton, OH through a joint venture with Premier Health Partners
The company’s strong inpatient rehabilitation business is on track to deliver another impressive performance, backed by planned bed additions at a number of its existing hospitals, acquisitions and construction of new hospitals. The inpatient rehabilitation industry remains highly fragmented, which gives the company an edge to tap this market.
During the third quarter of 2020, management announced plans to build seven new inpatient rehabilitation hospitals and added 36 beds to its present portfolio. These announcements bring the company's count of planned new hospital openings to eight, each in 2021 and 2022.
In an effort to focus solely on its inpatient rehabilitation business, the company is separating its home health and hospice business. To this end, it is mulling over various options, such as full or partial splitting of its home health and hospice business from the parent entity through an initial public offering, spin-off, merger, sale or other transaction.
We believe, the company’s full concentration on growing its inpatient rehabilitation facilities, which are one of the fastest-growing components of the Post-Acute Care sector in the United States, will help it become a niche player in this business.
Other stocks in the same space include Brookdale Senior Living Inc. (BKD - Free Report) , Amedisys, Inc. (AMED - Free Report) , Capital Senior Living Corporation et al. You can see the complete list of today’s Zacks #1 Rank stocks here..
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