Back to top

Image: Bigstock

Encompass Health (EHC) Boosts Texas Presence With Hospital Plan

Read MoreHide Full Article

Encompass Health Corporation (EHC - Free Report) recently unveiled plans to construct an inpatient rehabilitation hospital in Amarillo, TX. The new hospital will house 40 beds.

The move will allow Encompass Health to extend enhanced rehabilitation services and offer coordinated care to patients. This, in turn, will enable EHC to cater to the diversified health issues of Amarillo more effectively once the newly announced facility commences operations. A specific opening timeline will be disclosed afterwards.

The hospital will comprise private patient rooms and upgraded rehabilitation technologies through which Encompass Health will be equipped to deliver physical, occupational and speech therapies. This will be of great relief to patients grappling with severe illnesses and injuries, who can recover rapidly with the assistance of well-versed medical teams.

Encompass Health continues to make sincere efforts to bolster its footprint throughout Texas. The recent move is testament to the same. Presently, EHC boasts of a well-established presence across the state, with 26 inpatient rehabilitation hospitals, 51 home health locations and 13 hospice locations in place.

Efforts to Capitalize on Robust Demand for Rehabilitation Services

There seems to be a dire need for upgraded rehabilitation care as individuals, who suffer from an injury, illness, or surgery, require a well-devised rehabilitative care. A suitable plan indeed helps patients to resume their normal daily activities and improve their quality of life.

Encompass Health intends to bank on the robust demand for these services by delivering cost-effective and high-quality rehabilitation services. Consequently, this Zacks Rank #3 (Hold) leading provider of post-acute healthcare services aims to reach every corner of the United States.  

Apart from boosting statewise presence, initiatives similar to the latest one also provides a boost to the broad network and nationwide presence of EHC. Currently, 145 hospitals, 249 home health hubs and 95 hospice centers stretched across 42 states and Puerto Rico are included within the robust portfolio of Encompass Health. With no intentions of slowing down, the healthcare provider remains committed to its expansion endeavors and either inaugurates back-to-back inpatient rehabilitation hospitals or else reveals hospital construction plans.

Encompass Health offers specialized rehabilitative treatment through Inpatient Rehabilitation segment. With continued expansion plans, the performance of the segment will only get better. The segment not only records consistent growth in its revenues but also contributes the most to EHC’s overall revenues. The trend sustained in the first nine months of 2021, wherein revenues of the Inpatient Rehabilitation segment improved 12.9% from the prior-year comparable period and accounted for roughly 78% of Encompass Health’s total top-line growth.

Apart from Encompass Health, healthcare providers like Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Acadia Healthcare Company, Inc. (ACHC - Free Report) offer high-quality rehabilitation services and pursues expansion plans for capitalizing on solid demand for these services.

Tenet Healthcare operates a network of hospitals and related healthcare facilities for offering high-quality rehabilitation services and other healthcare related services. THC continuously undertakes numerous acquisitions, partnerships and strategic alliances for driving scale of business, operating capacity and expanding geographical presence.

HCA Healthcare operates as one of the leading U.S. healthcare services providers, with a portfolio comprising 185 hospitals, five psychiatric hospitals and two rehabilitation hospitals at 2020-end. HCA is focused on acquisitions, which have bolstered its portfolio, led to network expansion and boosted patient volumes.

Acadia Healthcare offers a full range of healthcare services including inpatient rehabilitation, partial hospitalization and outpatient treatment programs in a bid to treat addictive and mental disorders. ACHC inks joint ventures through which it collaborates with premier health systems, and includes facilities, beds and hospitals to its network.

Shares of Encompass Health have lost 26.8% in a year compared with the industry’s decline of 44.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Shares of Tenet Healthcare, HCA Healthcare and Acadia Healthcare have gained 112.2%, 48% and 33%, respectively, in a year.