Company: EHC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000785161-25-000021
Chunk: 6

Company: Encompass Health Corp
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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 for the services we provide to an aging population. This confidence is further supported by our strong financial foundation and the substantial investments we have made in our business. We have a proven track record of working through difficult operating environments, and we believe in our ability to overcome current and future challenges.

19

Results of Operations

Payor Mix

We derived consolidated Net operating revenues from the following payor sources:

Three Months Ended March 31, 20252024Medicare67.0 %64.9 %Medicare Advantage16.5 %17.0 %Managed care10.0 %10.9 %Medicaid2.9 %3.4 %Other third-party payors0.6 %0.7 %Workers’ compensation0.4 %0.5 %Patients0.2 %0.3 %Other income2.4 %2.3 %Total100.0 %100.0 %

For additional information regarding our payors, see the “Sources of Revenues” section of Item 1, Business, of the 2024 Form 10‑K.

Our Results

Our consolidated results of operations were as follows:

 Three Months Ended March 31,Percentage Change 202520242025 vs. 2024 (In Millions, Except Percentage Change)Net operating revenues$1,455.4 $1,316.0 10.6 %Operating expenses:   Salaries and benefits762.3 711.6 7.1 %Other operating expenses217.5 203.9 6.7 %Occupancy costs14.9 14.0 6.4 %Supplies62.2 58.5 6.3 %General and administrative expenses52.3 50.2 4.2 %Depreciation and amortization79.2 70.3 12.7 %Total operating expenses1,188.4 1,108.5 7.2 %Interest expense and amortization of debt discounts and fees31.8 35.2 (9.7)%Other income(2.5)(5.4)(53.7)%Equity in net income of nonconsolidated affiliates(0.9)(0.7)28.6 %Income from continuing operations before income tax expense238.6 178.4 33.7 %Provision for income