Encompass Health Corporation has recently released its 10-K report, providing a detailed look at the company's financial performance and operations. The company, formerly known as HealthSouth Corporation, is based in Birmingham, Alabama, and is the largest owner and operator of inpatient rehabilitation hospitals in the United States and Puerto Rico. Encompass Health provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions such as strokes, hip fractures, and various debilitating neurological conditions.
In the 10-K report, Encompass Health highlighted that its net operating revenues increased by 11.9% in 2024 compared to 2023, primarily due to volume growth and increased pricing. The company operated 166 inpatient rehabilitation hospitals in 38 states and Puerto Rico as of December 31, 2024. It also undertook significant expansion efforts during the year, including the opening of new hospitals and the addition of beds to existing facilities. Encompass Health also outlined its business outlook, expressing optimism about the future prospects of its services, particularly in light of demographic trends such as population aging.
However, the report also detailed key challenges faced by the company, particularly in the highly regulated healthcare industry. Encompass Health emphasized the need to adapt to changes in regulatory and reimbursement environments, build strategic relationships across the healthcare continuum, and consistently provide high-quality, cost-effective care. The company highlighted specific challenges related to compliance with laws and regulations governing the Medicare program, as well as changes in Medicare reimbursement and regulatory requirements for operating inpatient rehabilitation facilities.
Encompass Health's 10-K report provides a comprehensive overview of its financial condition, results of operations, and the key factors that may impact its future performance. The company's focus on navigating regulatory challenges while maintaining high-quality patient care is evident throughout the report, offering investors and stakeholders valuable insights into its operations and strategic priorities. The market has reacted to these announcements by moving the company's shares -1.1% to a price of $99.27. Check out the company's full 10-K submission here.
