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Encompass Health Opens 9th Hospital in SC: More in the Pipeline?

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Encompass Health Corporation (EHC - Free Report) recently opened a new inpatient rehabilitation hospital in South Carolina. This facility, named Encompass Health Rehabilitation Hospital of Fort Mill, is a 39-bed facility and marks the company's 165th hospital across 38 states and Puerto Rico. It is EHC’s ninth hospital in the state.

The hospital, located at 2260 Vista Road, offers specialized rehabilitative care for patients recovering from conditions like strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic issues. The hospital is equipped with amenities such as a therapy gym, private patient rooms, an activities of daily living suite and a therapy courtyard.

This expansion is part of Encompass Health’s continued strategy to meet the rising demand for rehabilitative services and to provide high-quality care close to home for patients in the Fort Mill and greater Charlotte area. The new hospital is in line with the company’s target of opening six de novo hospitals with a total addition of 280 beds in 2024. It also expects to add around 110 beds to existing hospitals.

Over the 2023-2027 period, management aims to inaugurate six to 10 de novos each year, as well as make bed additions in the range of 80-120 per annum. It also expects to witness a CAGR of 6-8% in discharges in the same time frame.

The move will expand Encompass Health’s footprint in South Carolina and boost its rehabilitation hospitals’ network. It continues to build new hospitals and increase its capabilities as patient volumes keep rising.

Price Performance

Shares of Encompass Health have gained 42.8% in the past year compared with the 32.4% rise 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 can look at some better-ranked stocks in the broader Medical space, like Universal Health Services, Inc. (UHS - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and CareDx, Inc. (CDNA - Free Report) . While Universal Health and Tenet Healthcare each currently sport a Zacks Rank #1 (Strong Buy), CareDx carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 51% year-over-year growth. UHS witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.

The Zacks Consensus Estimate for Tenet Healthcare’s 2024 bottom line is pegged at $10.72 per share, which indicates 53.6% growth from a year ago. During the past 60 days, THC witnessed two upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 58.5%.

The Zacks Consensus Estimate for CareDx’s current-year earnings implies a 140.6% improvement from the year-ago reported figure. CDNA beat earnings estimates in each of the last four quarters, with an average surprise of 114.6%. The consensus mark for its current-year revenues is pegged at $324.5 million, which indicates a 15.7% year-over-year increase.

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