Patrick W. Tuer
Executive Vice President and Chief Operating Officer at EHC
Executive
About Patrick W. Tuer
Patrick W. Tuer, 41, was appointed Executive Vice President and Chief Operating Officer of Encompass Health (EHC) on April 24, 2025, after rising through multiple operating leadership roles since joining the company in 2018; he currently oversees hospital operations enterprise‑wide and reports to the CEO . He previously served as Group President (oversaw 69 hospitals), Northeast Regional President, and Regional Vice President, Operations; prior to EHC, he held leadership roles at acute and post‑acute hospital companies, and he serves on the board of the American Medical Rehabilitation Providers Association . Company performance context during his tenure includes Q3 2025 net operating revenue +9.4% year over year and Adjusted EBITDA +11.4% YoY, alongside raised full‑year 2025 guidance (revenue and Adjusted EBITDA) . Over the longer term, pay‑vs‑performance disclosures show 2024 TSR of 178.46 (value of initial $100), net income of $596.6 million, and Adjusted EBITDA of $1,103.7 million, evidencing multi‑year value creation momentum .
Company performance snapshot
| Metric | Q3 2024 | Q3 2025 | YoY % |
|---|---|---|---|
| Net Operating Revenue ($mm) | 1,351.0 | 1,477.5 | 9.4% |
| Adjusted EBITDA ($mm) | 269.3 | 300.1 | 11.4% |
| EPS – Income from continuing ops, diluted ($) | 1.07 | 1.24 | 15.9% |
| 2025 Guidance (Updated 10/29/25) | Prior | Updated |
|---|---|---|
| Net Operating Revenue ($mm) | $5,880–$5,980 | $5,905–$5,955 |
| Adjusted EBITDA ($mm) | $1,220–$1,250 | $1,235–$1,255 |
| Adjusted EPS (cont. ops) ($) | $5.12–$5.34 | $5.22–$5.37 |
Pay vs. performance context (company-level)
| Year | TSR – Value of $100 | Peer TSR – Value of $100 | Net Income ($mm) | Adjusted EBITDA ($mm) |
|---|---|---|---|---|
| 2020 | 121.42 | 133.81 | 368.8 | 697.1 |
| 2021 | 97.26 | 147.19 | 517.2 | 816.4 |
| 2022 | 113.86 | 118.22 | 365.9 | 819.3 |
| 2023 | 128.23 | 124.34 | 463.0 | 971.1 |
| 2024 | 178.46 | 126.92 | 596.6 | 1,103.7 |
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Encompass Health | EVP & Chief Operating Officer | Apr 24, 2025–present | Oversees all hospital operations amid accelerated de novo program and capacity additions; mandate to scale growth and operational performance . |
| Encompass Health | Group President (3 geographic regions) | Aug 1, 2023–Apr 24, 2025 | Oversaw 69 hospitals; drove volume growth, operational improvements, patient outcomes . |
| Encompass Health | Northeast Regional President | Mar 2021–Aug 2023 | Led regional execution and best‑practice scaling across hospitals . |
| Encompass Health | Regional Vice President, Operations | Nov 2018–Mar 2021 | Advanced operating model with effective span of control and bench strength planning . |
| Acute/post‑acute hospital companies | Various leadership roles | Pre‑2018 | Broadened acute/post‑acute operating expertise prior to joining EHC . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| American Medical Rehabilitation Providers Association (AMRPA) | Board Member | Current | Industry advocacy and policy influence in inpatient rehabilitation . |
Fixed Compensation
| Element | Terms |
|---|---|
| Annual Base Salary | $450,000 |
| Target Annual Bonus | 65% of base (= $292,500 target at current base) |
| Target Long‑Term Equity Incentive | 150% of base (= $675,000 target at current base) |
| Employment Agreement | None; no written employment agreement in place |
Performance Compensation
- Structure and metrics
- Annual incentives: Financial plus sustainability metrics (quality of care and human capital/retention); 2024 scorecard changes included raising First‑Year RN Turnover target to 70% of hospitals meeting/exceeding goal and removing “Discharge to Skilled Nursing Facility” from metrics (Tuer’s awards are “subject to substantially the same terms and conditions as … other senior vice presidents”) .
- Long‑term incentives (LTI): Three‑year performance period for PSUs; relative TSR modifier; all annual grants vest over three years; EVP‑level awards include stock options in addition to PSUs and RSAs .
- Governance: Capped maximum award opportunities; clawback policy; anti‑hedging/anti‑pledging; double‑trigger CoC and no tax gross‑ups .
| Incentive | Metric/Instrument | Weighting | Target/Goals | Payout Mechanics | Vesting |
|---|---|---|---|---|---|
| Annual Cash Incentive | Financial metrics; quality of care; workforce retention | Not disclosed (company uses multiple measures) | 2024 example changes: higher RN turnover target; removed SNF discharge metric | Capped max awards; pay‑for‑performance design | Annual performance year (cash) |
| PSUs | Multi‑year financial metrics with relative TSR modifier | Not disclosed | Three‑year performance period | Earn‑out subject to performance; relative TSR modifier | Cliff/graded over 3 years; must remain employed or meet “good leaver” retirement rules |
| Stock Options (EVP) | Service‑based options | Part of EVP mix (illustrative 2024 EVP split for NEOs: 20% options) | N/A | Value realized with share price appreciation | Three‑year vesting |
| RSAs | Time‑based restricted stock | Part of EVP mix (illustrative 2024 EVP split for NEOs: 20% RSAs) | N/A | Service‑based retention equity | Three‑year vesting |
Note: The Compensation & Human Capital Committee will address compensation tied to his promotion; structure will follow the same terms and conditions as other senior executives .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 13,882 common shares directly owned as of 4/24/2025 (Form 3 filed 5/1/2025) |
| Ownership as % of Shares Outstanding | ~0.0138% (13,882 ÷ 100,709,106 shares outstanding as of 2/13/2025) |
| Derivatives/Options | None reported on initial Form 3 (Table II showed no entries) |
| Vested vs. Unvested | Not disclosed for Tuer; company‑wide LTI grants vest over three years; senior VPs and above have continued vesting post‑retirement if “good leaver” |
| Stock Ownership Guidelines | Executives must retain 50% of net shares at exercise/vesting until ownership multiple is met |
| Hedging/Pledging | Prohibited for executives and directors (no pledging as collateral; no short sales/hedges) |
| Clawback | Mandatory recoupment for current/former executive officers for 3 years preceding a restatement; broader misconduct provisions also apply |
Employment Terms
| Term | Detail |
|---|---|
| Appointment | Appointed EVP & COO on April 24, 2025 |
| Employment Agreement | No written employment agreement |
| Severance | Covered by executive severance and change‑in‑control plans generally applicable to executives (double‑trigger CoC; cash benefits require termination; no tax gross‑ups) |
| Non‑Compete/Non‑Solicit | Not specifically disclosed in filings reviewed |
| Equity Vesting on Retirement | Senior VPs and above eligible for continued vesting post‑retirement if “good leaver” requirements met |
| Clawback | Executive‑officer recoupment policy applies (restatement‑based recovery and misconduct provisions) |
Investment Implications
- Alignment and incentive quality: Tuer’s pay mix emphasizes at‑risk, multi‑year equity (PSUs with 3‑year period and relative TSR modifier; options at EVP level), aligning him to volume growth, quality metrics, and shareholder returns; governance features (clawback, anti‑hedging/pledging, double‑trigger CoC, capped awards) reduce agency risk .
- Retention/selling pressure: Three‑year vesting and 50% net‑share retention requirement until guideline multiples are met temper near‑term selling; initial direct ownership is modest (~0.0138% of SO), with future Form 4 activity needed to assess any selling pressure as awards vest .
- Execution track record: His operating track record (oversight of 69 hospitals, scaling best practices) supports EHC’s accelerated de novo program; near‑term operating metrics and raised FY25 guidance create a supportive backdrop for incentive attainment and value creation .
- Governance sentiment: Consistently strong say‑on‑pay support (>93%) and use of an independent compensation consultant (Pay Governance) indicate stable external backing for the pay program structure that will govern his awards .