Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 62

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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2Q26—40—Norristown, Pennsylvania3Q26—50—San Antonio, Texas4Q26—50—Bangor, Maine4Q26—50—Avondale, Arizona4Q26—60—Wesley Chapel, Florida——50St. George, Utah——50Apollo Beach, Florida——50Haslet, Texas——50North Las Vegas, Nevada——50Palm Beach Gardens, Florida——50Remote and satellite hospitals (included in bed additions)(1)Cleveland, Tennessee—40—Other bed additions~127150 - 200150 - 200

(1) Opening dates are tentative

(2) Opened in October 2025

(3) Expected joint venture

We also continued our shareholder distributions during the nine months ended September 30, 2025 through common stock repurchases and paying a quarterly cash dividend. For additional information see the “Liquidity and Capital Resources” section of this Item.

Business Outlook

We remain optimistic regarding the intermediate and long-term prospects of our business. Demographic trends, such as population aging, should continue to increase long-term demand for the services we provide. While we treat patients of all ages, most of our patients are 65 and older, and the number of Medicare enrollees is expected to grow approximately 3% per year for the foreseeable future, reaching approximately 71 million people over the age of 65 by 2030. More specifically, the average age of our Medicare patients is approximately 77, and the population group for ages 75 and older is expected to grow at approximately 4% per year through 2030. We believe the demand for the services we provide will continue to increase as the U.S. population ages. We believe these factors align with our strengths in, and focus on, inpatient rehabilitation services.

We are committed to delivering high-quality, cost-effective patient care. As the nation’s largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals, we believe we differentiate ourselves from our competitors based on, among other things, the quality of our clinical outcomes, our cost-effectiveness, our financial strength, and our extensive application of technology. We also believe our competitive strengths discussed in Item 1, Business, “Competitive Strengths,” of the 2024 Form 10‑K, give us the ability to adapt and succeed in a healthcare industry facing regulatory uncertainty around attempts to improve outcomes and reduce costs.

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The healthcare industry