Zachary Ignatius Haggerty's questions to Encompass Health Corp (EHC) leadership • Q3 2024
Question
Zach Haggerty, on for Matt Gillmor, asked about the company's exposure to election-related risks, such as changes to subsidies or supplemental payments, and inquired about its target leverage ratio.
Answer
CEO Mark Tarr stated that the company sees no significant threat from either political party, a view supported by historical performance. CFO Douglas Coltharp added that their exposure to programs like Tennessee's supplemental payment is not a factor. Regarding leverage, he said there is no firm target but they are comfortable in the current 2.3x range, with capacity expansion remaining the top priority for cash deployment.