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Encompass Health (EHC) Forms JV With NCH Healthcare in Naples
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Encompass Health Corporation (EHC - Free Report) recently announced plans to form a joint venture (JV) with not-for-profit, multi-facility healthcare alliance NCH Healthcare System to open and run an inpatient rehabilitation hospital in Naples, FL.
The move is anticipated to improve inpatient rehabilitation services in Naples. The 50-bed freestanding hospital, currently under construction at 14305 Collier Boulevard, is set to open in August 2022. Following the launch, NCH Healthcare is expected to move its NCH Brookdale Center for Healthy Aging & Rehabilitation, an existing 54-bed rehabilitation facility, to the new hospital.
The inpatient rehabilitation solution complements acute care services and helps patients restore functional abilities. NCH Healthcare’s board gave approval to invest in this JV. The move is expected to enhance quality and scope of inpatient rehabilitation services in the community. Entering into the JV is in line with Encompass Health’s strategy to focus on more profitable inpatient rehabilitation operations.
EHC is on its way to streamline its overall business through a spin-off of its home health and hospice business come Jul 1, 2022. Following the separation, Encompass Health will have a single reportable segment, which is inpatient rehabilitation. Its net operating revenues for 2022 are expected within $4,250-$4,300 million. This unit reported net operating revenues of $4,015 million in 2021. EHC expects to make 100-150 bed additions and 6-10 de novos per annum in the 2022-2026 period.
Following the spin-off, the new entity will be named Enhabit and have two reportable segments, namely home health and hospice. Management expects net service revenues of Enhabit within $1,080-$1,120 million for 2022.
Price Performance
Shares of Encompass Health have declined 30.4% in the past year compared with the 51.1% fall of the industry it belongs to.
The Zacks Consensus Estimate for Select Medical’s earnings is currently pegged at $2.19 per share. SEM has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
Select Medical’s earnings beat estimates in each of the last four quarters, the average being 42%.
The Zacks Consensus Estimate for Omega Therapeutics’ earnings indicates a 28.9% increase from the prior-year reported number. OMGA has witnessed three upward estimate revisions and no downward movement in the past 60 days.
Omega Therapeutics’ earnings beat estimates twice in the last four quarters and missed the mark on the other two occasions.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has improved 4.5 times in the past 60 days. PGNY has witnessed three upward estimate revisions during the same time against none in the opposite direction.
Progyny’s earnings beat estimates in each of the last four quarters, the average being 169.7%.
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Encompass Health (EHC) Forms JV With NCH Healthcare in Naples
Encompass Health Corporation (EHC - Free Report) recently announced plans to form a joint venture (JV) with not-for-profit, multi-facility healthcare alliance NCH Healthcare System to open and run an inpatient rehabilitation hospital in Naples, FL.
The move is anticipated to improve inpatient rehabilitation services in Naples. The 50-bed freestanding hospital, currently under construction at 14305 Collier Boulevard, is set to open in August 2022. Following the launch, NCH Healthcare is expected to move its NCH Brookdale Center for Healthy Aging & Rehabilitation, an existing 54-bed rehabilitation facility, to the new hospital.
The inpatient rehabilitation solution complements acute care services and helps patients restore functional abilities. NCH Healthcare’s board gave approval to invest in this JV. The move is expected to enhance quality and scope of inpatient rehabilitation services in the community. Entering into the JV is in line with Encompass Health’s strategy to focus on more profitable inpatient rehabilitation operations.
EHC is on its way to streamline its overall business through a spin-off of its home health and hospice business come Jul 1, 2022. Following the separation, Encompass Health will have a single reportable segment, which is inpatient rehabilitation. Its net operating revenues for 2022 are expected within $4,250-$4,300 million. This unit reported net operating revenues of $4,015 million in 2021. EHC expects to make 100-150 bed additions and 6-10 de novos per annum in the 2022-2026 period.
Following the spin-off, the new entity will be named Enhabit and have two reportable segments, namely home health and hospice. Management expects net service revenues of Enhabit within $1,080-$1,120 million for 2022.
Price Performance
Shares of Encompass Health have declined 30.4% in the past year compared with the 51.1% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank and Key Picks
Encompass Health currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical space are Select Medical Holdings Corporation (SEM - Free Report) , Omega Therapeutics, Inc. (OMGA - Free Report) and Progyny, Inc. (PGNY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Select Medical’s earnings is currently pegged at $2.19 per share. SEM has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
Select Medical’s earnings beat estimates in each of the last four quarters, the average being 42%.
The Zacks Consensus Estimate for Omega Therapeutics’ earnings indicates a 28.9% increase from the prior-year reported number. OMGA has witnessed three upward estimate revisions and no downward movement in the past 60 days.
Omega Therapeutics’ earnings beat estimates twice in the last four quarters and missed the mark on the other two occasions.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has improved 4.5 times in the past 60 days. PGNY has witnessed three upward estimate revisions during the same time against none in the opposite direction.
Progyny’s earnings beat estimates in each of the last four quarters, the average being 169.7%.