Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 45

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 provider of inpatient rehabilitation services. Our national network of inpatient rehabilitation hospitals stretches across 39 states and Puerto Rico, with concentrations of hospitals in Florida and Texas. As of September 30, 2025, we operated 170 inpatient rehabilitation hospitals. We are the sole owner of 104 of these hospitals. We retain 50.0% to 97.5% ownership in the remaining 66 jointly owned hospitals.The accompanying unaudited condensed consolidated financial statements of Encompass Health Corporation and Subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes contained in Encompass Health’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 28, 2025 (the “2024 Form 10‑K”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC applicable to interim financial information. Certain information and note disclosures included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted in these interim statements, as allowed by such SEC rules and regulations. The condensed consolidated balance sheet as of December 31, 2024 has been derived from audited financial statements, but it does not include all disclosures required by GAAP. However, we believe the disclosures are adequate to make the information presented not misleading. Certain prior year amounts may have been reclassified for comparative purposes to conform to the current-year financial statement presentation.The unaudited results of operations for the interim periods shown in these financial statements are not necessarily indicative of operating results for the entire year. In our opinion, the accompanying condensed consolidated financial statements recognize all adjustments of a normal recurring nature considered necessary to fairly state the financial position, results of operations, and cash flows for each interim period presented.

Net Operating Revenues—Our Net operating revenues disaggregated by payor source are as follows (in millions):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Medicare$946.1 $883.3 $2,862.1 $2,573.9 Medicare Advantage245.7 220.9 731.1 671.4 Managed care164.6 148.1 473.0 430.8 Medicaid50.0 46.1 136.9 134.4 Other third-party payors9.8 10.0 28.4 30.8 Workers’