Encompass Health Corp. (EHC - Free Report) has announced that its plans to build a free-standing, 60-bed inpatient rehabilitation hospital on American Way in Libertyville, IL The new unit will be named Encompass Health Rehabilitation Hospital of Libertyville.
The facility is expected to be opened in the spring of 2022 and complement other local units of the area. The hospital will provide care for patients recovering from debilitating illnesses and injuries including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions.
The hospital will offer physical, occupational and speech therapies as well as 24-hour nursing care for better patient health outcomes. This will bring the much-needed intensive rehabilitation services to Lake County and the surrounding area.
Encompass Health has nationwide presence with a strong portfolio of 135 hospitals, 245 home health hubs, and 83 hospice centers in 38 states apart from Puerto Rico. With this new unit, the company will continue to deliver high-quality, cost-effective, integrated services across the healthcare continuum.
It seeks to address the hugely unmet demand for facility-based and home-based post acute-care services by constructing or acquiring new hospitals and purchasing or opening home health and hospice agencies in the extremely fragmented industries.
Revenues at Encompass Health have been consistently increasing since 2010, driven by the rising contribution from its inpatient rehabilitation plus home health and hospice segment. Its revenues witnessed a CAGR of 14.2% from 2014 to 2019. Demographic trends, such as aging population should spur long-term demand for the company’s solutions on offer. While it treats patients of all ages, most belong to the senior-citizen age bracket of 65 years and above, and the number of Medicare enrollees are expected to grow approximately 3% per annum for the foreseeable future. This demographic trend will fuel demand for the company’s services and aid revenue growth.
Year to date, Encompass Health has lost 4% compared with its industry’s decline of 4.4%.
Encompass Health presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the some space are Addus Homecare Corp. (ADUS - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Avita Medical (RCEL - Free Report) , each currently carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Addus Homecare current-quarter’s earnings have been revised 12.5% upward.
Quest Diagnostic’s bottom line surpassed estimates in each of the trailing four quarters, the average being 5.58%.
The Zacks Consensus Estimate for Avita Medical’s 2020 earnings has moved 7.69% north.
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