Company: EHC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000785161-25-000021
Chunk: 49

Company: Encompass Health Corp
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 hospitals. For additional information about our business, see Item 1, Business, and Item 1A, Risk Factors, of the 2024 Form 10‑K.

2025 Overview

During the three months ended March 31, 2025, Net operating revenues increased 10.6% over the same period of 2024 due primarily to volume growth and increased pricing. See “Results of Operations” section of this Item for additional volume and pricing information.

In our continued development and expansion efforts during 2025, we:

•began operating our new 40-bed inpatient rehabilitation hospital in Athens, Georgia with our joint venture partner Piedmont in March;

•expanded our capacity by adding 25 new beds to existing hospitals; and

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•announced or continued the development of the following hospitals:

Expected open dateNumber of New Beds  202520262027De novo projects(1)Fort Myers, Florida(2)2Q2560——Daytona Beach, Florida2Q2550——Danbury, Connecticut3Q2540——Lake Worth, Florida4Q2550——St. Petersburg, Florida4Q2550——Amarillo, Texas4Q2550——Irmo, South Carolina—50—Concordville, Pennsylvania—50—Loganville, Georgia(2)—40—Norristown, Pennsylvania—50—Avondale, Arizona—60—San Antonio, Texas—50—Wesley Chapel, Florida——50Palm Beach Gardens, Florida——50Bangor, Maine——50St. George, Utah——50Remote and satellite hospitals (included in bed additions)(1)Wildwood, Florida (in The Villages, Florida)3Q2550——Other bed additions~110~120~120

(1) Opening dates are tentative

(2) Expected joint venture

We also continued our shareholder distributions during the three months ended March 31, 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 73 million