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Encompass Health (EHC) Unveils 40-Bed Hospital Plan in Ohio

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Encompass Health Corporation (EHC - Free Report) recently unveiled plans to construct an inpatient rehabilitation hospital nearby Cleveland, OH. A specific opening timeline for the new hospital, which will house 40 beds, will be disclosed afterward.

However, shares of Encompass Health lost 1.7% on Dec 15, replicating declines in broader markets.

Through the newly announced hospital plan near Cleveland, Encompass Health intends to extend improved rehabilitative care and cater to the health issues of Northeast Ohio’s residents more effectively.

The hospital will consist of private patient rooms, enhanced rehabilitation technologies and well-versed medical teams. It will also offer physical, occupational and speech therapies; thus patients grappling with severe illnesses and injuries are likely to recover rapidly.

The recent move reinforces Encompass Health’s sincere efforts to meet growing demand for high-quality rehabilitation services in Ohio, which will complement local acute care services. Additionally, the development is expected to strengthen EHC's presence throughout Ohio. Encompass Health already boasts of a strong footprint in the state, wherein it has four inpatient rehabilitation hospitals and one home health location in place.

Encompass Health continues to provide affordable and high-quality rehabilitation services across every corner of the United States through its Inpatient Rehabilitation segment. EHC intends to capitalize on the growing demand for high-quality rehabilitation care via this segment. These services are of immense importance as individuals suffering from an injury, illness, or surgery require well-devised rehabilitative care. A suitable plan aids patients in resuming their normal daily activities and improving their quality of life. Thus, initiatives similar to the latest one provide a boost to revenues of the Inpatient Rehabilitation segment, which usually contributes the most to Encompass Health’s total revenues.

Encompass Health has been pursuing back-to-back expansion plans and foraying into areas suffering from inaccessibility to quality care to drive growth. These expansion plans have bolstered the nationwide network and presence of this integrated healthcare services provider. Hence, the healthcare portfolio of EHC comprises 145 hospitals, 249 home health hubs and 95 hospice centers stretched across 42 states and Puerto Rico.

Apart from Encompass Health, healthcare providers like Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Community Health Systems, Inc. (CYH - Free Report) also offer high-quality rehabilitation services and pursue 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 bolstered patient volumes.

Being a well-established operator of general acute care hospitals and outpatient facilities across U.S. communities, Community Health either owns or leases 87 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals at 2020-end. CYH aims to add facilities and pursue buyouts for bolstering its capabilities and nationwide network.

Price Performances

Shares of Encompass Health have lost 21.2% in the past six months compared with the industry’s decline of 34.5%. EHC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

While shares of Tenet Healthcare and HCA Healthcare have gained 13.9%, 22.5% and 1.3%, respectively, in the past six months, Community Health stock has lost 13.9% in the same time frame.