Encompass Health Corporation (EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. The company specializes in post-acute healthcare services, providing high-quality, cost-effective, and compassionate rehabilitative care for patients recovering from major injuries or illnesses. EHC primarily focuses on inpatient rehabilitation services, with additional offerings in outpatient and other healthcare-related services.
- Inpatient Rehabilitation - Provides specialized rehabilitative treatment on an inpatient basis, focusing on restoring patients' physical and cognitive abilities after significant injuries or illnesses such as strokes, hip fractures, and neurological conditions.
- Outpatient and Other Services - Offers outpatient services and other revenue streams, including provider tax revenues, to complement its core inpatient rehabilitation operations.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Douglas E. Coltharp ExecutiveBoard | Executive Vice President and Chief Financial Officer | Member of board of directors at Under Armour, Inc. | Douglas E. Coltharp has been the Executive Vice President and Chief Financial Officer at EHC since May 6, 2010. He previously served as Partner at Arlington Capital Advisors and as CFO at Saks Incorporated, and he currently sits on the board of directors of Under Armour, Inc.. | |
Mark J. Tarr ExecutiveBoard | President and Chief Executive Officer | Board of Directors of Protective Life Corp | Mark J. Tarr has been the President and Chief Executive Officer of Encompass Health Corporation since December 29, 2016. He has previously served in various senior positions at EHC, including Executive Vice President of Operations (from October 1, 2007) and President of the Inpatient Division (from 2004 to 2007). | View Report → |
Andrew L. Price Executive | Chief Accounting Officer | Andrew L. Price is the Chief Accounting Officer at EHC since October 22, 2009. He joined EHC in June 2004 and previously held roles as Senior Vice President of Accounting and Vice President of Operations Accounting. | ||
Edmund M. Fay Executive | Senior Vice President and Treasurer | Edmund M. Fay is the Senior Vice President and Treasurer at Encompass Health Corporation, a role he has held since March 1, 2008. Prior to EHC, he accumulated over 16 years of experience in financial services, holding leadership roles at Regions Financial Corporation, Wachovia Corporation, and J.P. Morgan & Company. | ||
Elissa J. Charbonneau Executive | Chief Medical Officer | Elissa J. Charbonneau, D.O., is the Chief Medical Officer at EHC since July 1, 2015. She previously served as Vice President of Medical Services from January 2015 to June 2015 and as Medical Director of New England Rehabilitation Hospital of Portland from 2001 to 2014. | ||
Patrick Darby Executive | Executive Vice President, General Counsel, and Secretary | Patrick Darby has served as the Executive Vice President, General Counsel, and Secretary at Encompass Health Corporation since February 18, 2016. He has an extensive legal background, including a partnership at Bradley Arant Boult Cummings LLP from 1990 to 2016. | ||
Christopher R. Reidy Board | Audit Committee Chair | Director and Chair of the Technology Committee at Embecta Corp. ; Board Member, Executive Committee Member, Finance and Investment Committee Chair, and Quality Committee Member at Atlantic Health System | Christopher R. Reidy serves as the Audit Committee Chair at EHC since October 1, 2021 while also holding board positions that contribute to financial and governance oversight. He has a rich background in executive roles at BD, ADP, and AT&T, which has fortified his expertise in finance, healthcare, and technology. | |
Edward M. Christie III Board | Director | President and CEO of Spirit Airlines | Edward M. Christie III joined EHC as a director and Audit Committee member on November 27, 2023. Previously, he has served as the President and CEO of Spirit Airlines since January 2019. | |
Greg D. Carmichael Board | Independent Director | Executive Chair of the Board at City National Bank; Chief Executive Officer at Signature Bridge Bank, N.A. | Greg D. Carmichael has served as an independent director at Encompass Health Corporation since January 1, 2020. He also held the role of Chairman of the Board during the period leading up to the 2024 annual meeting, and he currently serves in active external roles such as Executive Chair of the Board at City National Bank and CEO at Signature Bridge Bank, N.A.. | |
Joan E. Herman Board | Director | President and CEO of Herman & Associates, LLC ; Director at Ionis Pharmaceuticals, Inc. ; Board member of Fifth Avenue Private Equity funds ; Board chair of Venice Family Clinic Foundation | Joan E. Herman has been a director at Encompass Health Corporation since January 25, 2013. She brings extensive expertise from her leadership roles, including serving as President and CEO of Herman & Associates, LLC and senior positions at Elevance, Inc. and Phoenix Life Insurance Company. | |
Kevin J. O’Connor Board | Director | Senior Vice President, General Counsel and Corporate Secretary at Lockheed Martin Corporation; Board of Trustees for the University of Connecticut | Kevin J. O’Connor is a board director at Encompass Health Corporation since March 30, 2022. He also currently serves as Senior Vice President, General Counsel and Corporate Secretary at Lockheed Martin Corporation and is a member of the board of trustees for the University of Connecticut. | |
Leslye G. Katz Board | Director | Vice-Chair of the Board of Directors, My Sisters’ Place; Board Member, Grad Bag | Leslye G. Katz has served as a director at EHC since January 25, 2013 and chairs the Nominating/Corporate Governance Committee while also serving on the Audit Committee. She brings extensive financial management experience from previous roles at IMS Health and American Lawyer Media. | |
Nancy M. Schlichting Board | Director | Director at Walgreens Boots Alliance, Inc.; Director at Baxter International Inc. | Nancy M. Schlichting has served as Director of Encompass Health since December 11, 2017. She brings extensive healthcare leadership experience from previous roles at Henry Ford Health System and other leading organizations. | |
Patricia A. Maryland Board | Director | Director at Surgery Partners, Inc. ; Director at Privia Health Group, Inc. | Patricia A. Maryland has been a director at Encompass Health Corporation since January 1, 2020, where she chairs the Compensation and Human Capital Committee and serves on the Compliance and Quality of Care Committee. With 40 years of healthcare administration experience, she previously held executive roles at Ascension Healthcare and served in various leadership positions at major healthcare organizations. | |
Terrance Williams Board | Member of the Board of Directors | President and CEO-elect, TruStage Financial Group, Inc. ; Board Member, Columbus (OH) Regional Airport Authority | Terrance Williams serves on EHC’s Board of Directors and Audit Committee, having joined the audit committee on January 1, 2020. He contributes his expertise in corporate governance to the company. |
- How do you plan to manage the risk of overbedding and sustain quality outcomes in Florida as you accelerate de novo hospital openings and add beds, especially given the state's historical CON restrictions and rapid capacity expansions?
- With 2025 guidance reflecting increased startup and ramp-up costs—including higher Oracle Fusion and NCI expenses—what specific actions are you taking to offset the resulting margin pressures and ensure consistent EBITDA performance?
- You mentioned maintaining a minimum leverage threshold around 2x to avoid inefficiencies; could you elaborate on how deviations from this target might impact your free cash flow deployment strategy, particularly share repurchases?
- Given the continued high growth in group medical prescription drug costs driven by GLP-1 and enhanced cancer therapies, what measures are in place to mitigate these rising expenses without significantly affecting overall margins?
- As you expand your capacity with prefabricated hospitals and traditional construction projects, how are you addressing potential construction cost variability and inflation to maintain predictable CapEx and project timelines?
Research analysts who have asked questions during Encompass Health earnings calls.
Andrew Mok
Barclays
6 questions for EHC
Jared Haase
William Blair & Company
6 questions for EHC
Ann Hynes
Mizuho Financial Group
5 questions for EHC
Brian Tanquilut
Jefferies
5 questions for EHC
Joanna Gajuk
Bank of America
5 questions for EHC
Matthew Gillmor
KeyCorp
5 questions for EHC
Pito Chickering
Deutsche Bank
5 questions for EHC
Raj Kumar
Stephens
3 questions for EHC
Whit Mayo
Leerink Partners
3 questions for EHC
A.J. Rice
UBS
2 questions for EHC
Albert Rice
UBS
2 questions for EHC
Benjamin Mayo
Leerink Partners
2 questions for EHC
Scott Fidel
Stephens Inc.
2 questions for EHC
A.J. Rice
UBS Group AG
1 question for EHC
Benjamin Hendrix
RBC Capital Markets
1 question for EHC
Christian Malachy Porter
Bank of America
1 question for EHC
John Ransom
Raymond James
1 question for EHC
Kieran Ryan
Deutsche Bank
1 question for EHC
Meghan Holtz
Jefferies Financial Group Inc.
1 question for EHC
Michael Murray
RBC Capital Markets
1 question for EHC
Zachary Ignatius Haggerty
KeyBanc Capital Markets
1 question for EHC
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Medicare (CMS) | Government payor for healthcare services | All | 65.1% of net operating revenues (FY 2024) ; 55.5% of accounts receivable (as of Dec 31, 2024) |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
29-bed Inpatient Rehabilitation Unit (Columbus, GA) | 2023 | Encompass Health acquired 50% of the operations of the unit in Columbus, GA to enhance its inpatient rehabilitation services, recording assets at an estimated fair value of $31.1 million and recognizing $7.4 million in tax-deductible goodwill; various income-based valuation methods were used, and the transaction was recorded under the acquisition accounting method. |
48-bed Inpatient Rehabilitation Unit (Knoxville, TN) | 2023 | Encompass Health acquired 50% of the operations of the Knoxville unit to penetrate its historical patient base and leverage operational efficiencies, recording a total asset valuation of $16.9 million and $2.1 million in tax-deductible goodwill using multiple valuation methodologies under the acquisition method. |
24-bed Inpatient Rehabilitation Unit (Eau Claire, WI) | 2023 | Encompass Health acquired 50% of the operations of the Eau Claire unit, contributed by Hospital Sisters Health System, to further expand its service reach, with the results of operations reported from the acquisition date and a portion of $2.1 million in recorded goodwill. |
22-bed Inpatient Rehabilitation Unit (Moline, IL) | 2022 | Encompass Health acquired 50% of the operations of the Moline unit, contributed by Trinity Medical Center, with assets recorded at estimated fair values and goodwill reflecting strategic growth opportunities, although the recorded goodwill is non-deductible for federal income tax purposes. |
23-bed Inpatient Rehabilitation Unit (Grand Forks, ND) | 2022 | Encompass Health acquired 60% of the operations of the Grand Forks unit through a joint venture with Altru Health System, using the acquisition method to record assets including $0.3 million in noncompete agreements and $10.4 million in goodwill, aligning with its growth strategy. |
Frontier Home Health and Hospice, LLC (Boise, ID) | 2022 | Encompass Health acquired a 50% equity interest in the joint venture with Saint Alphonsus System for $15.9 million to expand its footprint in Boise, Idaho, with acquisition accounting recording identifiable intangible assets, cash, and $28.7 million in goodwill (of which at least $14.4 million is tax-deductible) determined via various valuation methodologies. |
Recent press releases and 8-K filings for EHC.
- Encompass Health reported net operating revenue of $1,477.5 million for Q3 2025, an increase of 9.4% compared to Q3 2024, and $4,390.6 million for the nine months ended September 30, 2025, up 10.6% year-over-year.
- Adjusted EBITDA for Q3 2025 grew 11.4% to $300.1 million, while Adjusted EPS increased 19.4% to $1.23. For the nine months, Adjusted EBITDA rose 14.5% to $932.3 million and Adjusted EPS increased 22.4% to $3.99.
- The company updated its 2025 guidance as of October 29, 2025, raising Net Operating Revenue to $5,905 to $5,955 million, Adjusted EBITDA to $1,235 to $1,255 million, and Adjusted EPS to $5.22 to $5.37.
- In Q3 2025, Encompass Health opened three de novo hospitals and one satellite hospital, contributing to a total of 240 beds opened year-to-date from four de novo hospitals and one satellite hospital.
- The company retired $100 million of 5.75% Senior Notes due 2025 and repurchased 787,418 shares of common stock for $81.7 million year-to-date as of Q3 2025.
- Encompass Health reported a 9.4% increase in Q3 2025 revenue and 11.4% growth in adjusted EBITDA, reaching $300.1 million.
- The company raised its 2025 guidance, now expecting net operating revenue of $5.905 to $5.955 billion, adjusted EBITDA of $1.235 to $1.255 billion, and adjusted EPS of $5.22 to $5.37.
- EHC is accelerating capacity expansion, increasing estimated bed additions to existing hospitals to approximately 127 for 2025 and 150 to 200 for both 2026 and 2027.
- In Q3 2025, Encompass Health repurchased approximately 221,000 shares for about $25 million and declared a cash dividend of $0.19 per share.
- Encompass Health reported strong financial performance for Q3 2025, with revenue increasing 9.4% and adjusted EBITDA growing 11.4%. Year-to-date, revenue grew 10.6% and adjusted EBITDA grew 14.5%.
- The company raised its full-year 2025 guidance, now expecting net operating revenue of $5.905 to $5.955 billion, adjusted EBITDA of $1.235 to $1.255 billion, adjusted EPS of $5.22 to $5.37, and adjusted free cash flow of $730 to $810 million.
- Operational expansion continued with three new hospitals opened and 39 beds added in Q3 2025. The company increased its expected bed additions to 127 beds in 2025 and 150 to 200 in both 2026 and 2027.
- Encompass Health repurchased approximately 221,000 shares for about $25 million in Q3, bringing the year-to-date total to approximately $82 million, and declared a cash dividend of $0.19 per share.
- Encompass Health reported strong Q3 2025 financial results, with revenue increasing 9.4% and adjusted EBITDA growing 11.4% to $300.1 million.
- The company increased its 2025 guidance for net operating revenue to $5.905 billion-$5.955 billion, adjusted EBITDA to $1.235 billion-$1.255 billion, and adjusted EPS to $5.22-$5.37.
- Encompass Health is significantly expanding capacity, expecting to add approximately 127 beds to existing hospitals in 2025 and 150-200 beds in both 2026 and 2027, alongside new hospital openings.
- The company noted favorable labor trends, with Q3 2025 annualized RN turnover at 20.2% and therapist turnover at 7.8%, and premium labor costs declining $5.6 million from Q3 2024.
- Encompass Health reported net operating revenue of $1,477.5 million for Q3 2025, marking a 9.4% increase from Q3 2024, and Adjusted EBITDA grew 11.4% to $300.1 million.
- Adjusted earnings per share for Q3 2025 increased 19.4% to $1.23 compared to $1.03 in Q3 2024.
- The company increased its full-year 2025 guidance for net operating revenue to $5,905 to $5,955 million, Adjusted EBITDA to $1,235 to $1,255 million, and Adjusted earnings per share to $5.22 to $5.37.
- During Q3 2025, Encompass Health expanded its capacity by opening three new hospitals and adding 39 beds to existing facilities, contributing to a 5.0% increase in discharges.
- Encompass Health repurchased 221,301 shares for $24.9 million in Q3 2025 and paid a $0.19 per share quarterly dividend in October 2025.
- Encompass Health reported net operating revenue of $1,477.5 million for the third quarter ended September 30, 2025, marking a 9.4% increase compared to Q3 2024. Adjusted earnings per share for Q3 2025 was $1.23, an increase of 19.4% from the prior year period.
- The company's Adjusted EBITDA for Q3 2025 was $300.1 million, up 11.4% from Q3 2024, and cash flows provided by operating activities were $270.8 million.
- Encompass Health increased its full-year 2025 guidance for net operating revenue to a range of $5,905 million to $5,955 million, Adjusted EBITDA to $1,235 million to $1,255 million, and adjusted earnings per share from continuing operations to $5.22 to $5.37.
- Operationally, during Q3 2025, the company opened three new hospitals and added 39 beds to existing hospitals, including its first in Connecticut.
- Encompass Health Corporation (EHC) filed an 8-K on September 12, 2025, reiterating its full-year 2025 guidance.
- The company continues to expect full-year 2025 net operating revenue to be between $5,880 million and $5,980 million.
- Full-year 2025 Adjusted EBITDA is projected to range from $1,220 million to $1,250 million.
- Adjusted earnings per share from continuing operations attributable to Encompass Health are anticipated to be between $5.12 and $5.34 for full-year 2025.
- Encompass Health reported strong second quarter 2025 financial results, with revenue increasing 12% to $1.46 billion and adjusted EBITDA rising 17.2% to $318.6 million. Total discharges grew 7.2%, including 4.7% in same-store.
- Based on its strong Q2 performance, the company raised its full-year 2025 guidance, now expecting net operating revenue of $5.88 billion to $5.98 billion, adjusted EBITDA of $1.22 billion to $1.25 billion, and adjusted earnings per share of $5.12 to $5.34. Adjusted free cash flow guidance was also increased to a range of $705 million to $795 million.
- The company is continuing its capacity expansion, increasing its 2025 anticipated growth CapEx by $30 million and planning to open five additional hospitals and add 30-50 beds to existing hospitals by year-end.
- Encompass Health increased its quarterly dividend to $0.19 per share, payable in October, and repurchased approximately 232,000 shares of common stock for $24.7 million in Q2. The company anticipates further share repurchase activity due to favorable cash flow from bonus depreciation.
- The CMS 2026 IRF final rule included a net market basket update of 2.6%, which is estimated to result in approximately a 2.7% increase in net revenue per discharge for Medicare patients beginning October 1, 2025.
- Encompass Health Corporation published an Investor Reference Book on June 25, 2025, providing an overview of its business outlook, growth strategy, and operational initiatives.
- The company projects significant growth, targeting 6 to 10 new Inpatient Rehabilitation Facilities (de novos) and 80 to 120 bed additions annually, aiming for a 6% to 8% discharge CAGR.
- Financially, Encompass Health reported $690.3 million in Adjusted Free Cash Flow for 2024 and maintained a leverage ratio of 2.3x. As of March 31, 2025, it had $953 million available on its $1 billion revolving credit facility.
- The company's real estate strategy involves owning approximately 79% of its IRF facilities, with 132 owned and 36 leased out of 168 IRFs as of June 13, 2025, providing flexibility and cost control.
- Encompass Health reaffirms its full-year 2025 guidance with net operating revenue expected between $5,850M and $5,925M, adjusted EBITDA between $1,185M and $1,220M, and adjusted EPS from $4.85 to $5.10.
- The company’s senior management is scheduled to meet with investors on June 4, 2025 and June 18, 2025 as disclosed in the filing.