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Encompass Health (EHC) to Build New Hospital in Concordville

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Encompass Health Corporation (EHC - Free Report) recently announced that the company intends to construct an inpatient rehabilitation facility in Concordville, PA. The freestanding hospital with a 50-bed capacity is expected to be located on Baltimore Pike.

Recovering patients with different neurological disorders, strokes, brain and spinal cord injuries, amputations, as well as orthopedic conditions, are expected to be served in this facility. Along with full-day nursing care, different types of therapies will be provided in the hospital focused on restoring functioning ability.

The move will expand Encompass Health’s footprint to Delaware County and boost its rehabilitation hospitals’ network. The new unit is likely to be the 10th hospital of the company in the state. EHC has 157 hospitals across 37 states and Puerto Rico. The company is building new hospitals and increasing its capabilities as patient volumes keep rising.

An aging population should continue to boost the demand for services provided by Encompass Health. As such, the company focuses on building new facilities and acquiring profitable ones to expand market density and build scale. These moves are expected to increase its share in a highly fragmented market.

EHC opened three de novo facilities in the first quarter of 2023, which added 199 beds. Moreover, it added one in April and plans to bring three additional de novos through the rest of the year. It intends to add 93 beds to its existing hospitals throughout 2023.

Price Performance

Shares of Encompass Health have declined 3.5% in the past year compared with the 15.8% fall of the industry.

Zacks Investment Research
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Zacks Rank and Key Picks

Encompass Health currently has a Zacks Rank #3 (Hold). Investors interested in the broader medical space may look at better-ranked players like Life Time Group Holdings, Inc. (LTH - Free Report) , GeneDx Holdings Corp. (WGS - Free Report) and Establishment Labs Holdings Inc. (ESTA - Free Report) , all 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 Life Time Group’s 2023 earnings is pegged at 41 cents per share, indicating a massive improvement from the year-ago loss of 18 cents. Also, the consensus estimate for LTH’s revenues in 2023 suggests a 22.8% year-over-year rise.

The consensus estimate for GeneDx’s 2023 earnings indicates 89% year-over-year growth. The Zacks Consensus Estimate for WGS’ revenues in 2023 is pegged at $205 million.

The consensus mark for Establishment Labs’ 2023 earnings has improved 6.2% in the past 30 days. Furthermore, the consensus estimate for ESTA’s revenues in 2023 suggests 27.6% year-over-year growth.

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