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Encompass Health (EHC) Unveils Hospital Plan in Osceola County

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Encompass Health Corporation (EHC - Free Report) recently purchased a property in Kissimmee to expand its presence in the region. EHC intends to build a rehab hospital at this Osceola County, FL site, bought from RW Management Limited and penetrate further in the region.

This Birmingham, Alabama-based rehabilitation hospital player paid $5.95 million for the above-mentioned transaction, according to Osceola County records.

The new facility will house a 50-bed first phase and a 30-bed second phase plus a 910-square-foot expansion of the facility's gym. The decision was made at the right time when more people are seeking value-based care and rehab facilities. Other factors contributing to demand, include rising population and the increasing number of baby boomers. Patients in the Kissimmee region will be able to enjoy enriched healthcare with the opening of this facility.

The move will allow Encompass Health to extend enhanced rehabilitation services and offer coordinated care to patients.

EHC leaves no stone unturned when it comes to enhancing its portfolio and expanding its geographical presence. The recent move is a testament to the same.

Efforts to Capitalize on Rehabilitation Services

There seems a dire requirement for rehabilitation care upgrades as individuals, suffering an injury, illness or surgery need a well-devised rehabilitative care. A suitable plan indeed helps patients resume their normal daily routine and improve their quality of life.

The inpatient rehabilitation industry remains highly fragmented, which gives    EHC an edge to expand its share in this market. Encompass Health aims to bank on robust demand for these services, delivering cost-effective and high-quality rehabilitation services. Apart from boosting statewise presence, initiatives similar to the latest one also provide an impetus to the broad network and nationwide presence of EHC.

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 announces hospital construction plans.
Encompass Health offers specialized rehabilitative treatment through the Inpatient Rehabilitation segment. With continued expansion plans and high volumes, 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 with revenues of the Inpatient Rehabilitation segment improving 12.9% from the prior-year comparable period’s reading.

Other Initiatives Taken

Last month, the hospital entity unveiled plans to construct an inpatient rehabilitation hospital in Amarillo, TX. The new hospital will house 40 beds. Last June, EHC even announced the opening of Encompass Health Rehabilitation Hospital of Cumming, a 50-bed inpatient rehabilitation hub in Cumming, GA.

In 2020, EHC expanded its presence in Pensacola, FL, and St. Augustine, FL, and announced the construction of rehabilitation hospitals, which underlines its motive to establish its dominance in Florida. In 2020, Encompass Health opened four hospitals and expanded its existing hospitals by 117 beds.

EHC also has a pipeline of activities going forward this year.

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 pursue expansion plans for capitalizing on solid demand for these services.

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

HCA Healthcare operates as one of the leading U.S. healthcare service providers, with a portfolio comprising 185 hospitals, five psychiatric hospitals and two rehabilitation hospitals at 2020 end. HCA is focused on acquisitions, some of which already 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 to treat addictive and mental disorders. ACHC inks joint venture deals whereby it collaborates with premier health systems that add facilities, beds and hospitals to its network.

Shares of Encompass Health have lost 20.8% in a year compared with the industry’s decline of 46.4%. EHC currently holds a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. However, EHC’s robust portfolio is likely to help the stock bounce back going forward.

Zacks Investment ResearchImage Source: Zacks Investment Research

Shares of Tenet Healthcare, HCA Healthcare and Acadia Healthcare have gained 70.1%, 54.7% and 13%, respectively, in a year.