Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 66

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 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.

23

Results of Operations

Payor Mix

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

Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Medicare64.5 %64.7 %65.7 %64.8 %Medicare Advantage16.9 %17.2 %16.7 %17.1 %Managed care11.2 %10.7 %10.6 %10.7 %Medicaid3.1 %3.3 %3.0 %3.4 %Other third-party payors0.7 %0.8 %0.6 %0.8 %Workers’ compensation0.5 %0.5 %0.5 %0.5 %Patients0.3 %0.3 %0.3 %0.3 %Other income2.8 %2.5 %2.6 %2.4 %Total100.0 %100.0 %100.0 %100.0 %

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

24

Our Results

Our consolidated results of operations were as follows:

 Three Months Ended June 30,Percentage ChangeSix Months Ended June 30,Percentage Change 202520242025 vs. 2024202520242025 vs. 2024 (In Millions, Except Percentage Change)Net operating revenues$1,457.7 $1,301.2 12.0 %$2,913.1 $2,617.2 11.3 %Operating expenses:      Salaries and benefits767.7 700.5 9.6 %1,530.0 1,412.1 8.3 %Other operating expenses213.8 189.9 12.6 %431.3 393.8 9.5 %Occupancy costs14.7 14.2 3.5 %