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Encompass Health (EHC) Continues to Bolster Presence in Ohio

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Encompass Health Corporation (EHC - Free Report) recently inaugurated an inpatient rehabilitation hospital in Toledo, OH. The hospital, which is known as Encompass Health Rehabilitation Hospital of Toledo, has 40 beds in it. Notably, the company announced the plans of the same last year in November.

The hospital provides physical, occupational and speech therapies that will aid patients in recovering from debilitating illnesses and injuries. In addition to 40 private patient rooms, the hospital comprises a large therapy gym equipped with enhanced rehabilitation technologies.

The hospital staff consists of well-qualified nurses, therapists and physicians, which is likely to help in speedy recovery of patients. Highly specialized nurses will take care of patients throughout the day.

This move will enable Encompass Health to resolve health issues of residents in the Toledo community more effectively. Further, increasing demand for improved healthcare services in the state of Ohio reinforces the importance of the new hospital.

Shares of this Zacks Rank #4 (Sell) health care provider have gained 4.8% in a year compared with the industry’s growth of 16.9%.

Constant Efforts to Expand Presence

This is not the first time that Encompass Health is making an effort to expand presence in Ohio. Prior to the latest opening, it had three inpatient rehabilitation hospitals in Cincinnati, Dayton and Westerville, and a home health location in Canton.

Not only Ohio, Encompass Health has been striving to offer improved healthcare services across the United States as evident from a strong portfolio of 137 hospitals, 242 home health hubs, and 83 hospice centers in 39 states and Puerto Rico.

The latest hospital, which is the company’s fourth inpatient rehabilitation hospital in Ohio, also marks its 137th inpatient rehabilitation hospital across the United States. Notably, before the inauguration in Toledo, the company opened a similar hospital in South Dakota in June this year.

Till August, Encompass Health actively announced its expansion endeavors across different U.S. states. After a quiet period of two months, the health care provider came up with the news of a joint venture with BJC HealthCare last week. On the back of the deal, the company intends to construct an inpatient rehabilitation hospital containing 40 beds in Shiloh, IL.

The company’s revenues have consistently witnessed improvements since 2010 driven by favorable performance of the company’s segments — inpatient rehabilitation and, home health and hospice. Though revenues had suffered an initial blow due to reduced patient admissions stemming from the COVID-19 pandemic, the scenario improved in the third quarter. Case in point, favorable pricing actions undertaken in the inpatient rehabilitation segment, have led to a rise of 1.1% in third-quarter revenues.

The coronavirus crisis has re-emphasized the need for greater access to healthcare services, which poises Encompass Health well for growth in the long term. Also, demographic trends, such as aging population aging should spur demand for the services provided by the company.

Stocks to Consider

Some better-ranked stocks in the medical space include Quidel Corporation (QDEL - Free Report) , Abeona Therapeutics Inc. (ABEO - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) . While Quidel sports a Zacks Rank #1 (Strong Buy), Abeona Therapeutics and Molina carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Quidel, Abeona Therapeutics and Molina have a trailing four-quarter earnings surprise of 30.74%, 19.12% and 14.80%, on average, respectively.

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