Company: EHC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000785161-25-000009
Chunk: 145

Company: Encompass Health Corp
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 145
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For the Year Ended December 31, 202420232022Medicare65.1 %65.0 %65.3 %Medicare Advantage16.8 %16.2 %15.1 %Managed care10.8 %11.1 %11.6 %Medicaid3.3 %4.0 %4.2 %Other third-party payors0.8 %0.9 %0.9 %Workers' compensation0.5 %0.5 %0.6 %Patients0.3 %0.3 %0.4 %Other income2.4 %2.0 %1.9 %Total100.0 %100.0 %100.0 %

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Our payor mix is weighted heavily towards Medicare. We receive Medicare reimbursements under the IRF-PPS. For additional information regarding Medicare reimbursement, see the “Sources of Revenues” section of Item 1, Business.

As part of the Balanced Budget Act of 1997, Congress created a program of private, managed healthcare coverage for Medicare beneficiaries. This program has been referred to as Medicare Part C, or “Medicare Advantage.” The program offers beneficiaries a range of Medicare coverage options by providing a choice between the traditional fee-for-service program (under Medicare Parts A and B) or enrollment in a health maintenance organization, preferred provider organization, point-of-service plan, provider sponsor organization, or an insurance plan operated in conjunction with a medical savings account. 

Our Net operating revenues consist primarily of revenues derived from patient care services. Net operating revenues also include other revenues generated from management and administrative fees and other non-patient care services. These other revenues are included in “other income” in the above table.

Our Results

Our consolidated results of operations were as follows:

 For the Year Ended December 31,Percentage Change 2024202320222024 vs. 20232023 vs. 2022 (In Millions)  Net operating revenues$5,373.2 $4,801.2 $4,348.6 11.9 %10.4 %Operating expenses:     Salaries and benefits2,901.0 2,600.1 2,393.3 11.6 %8.6 %Other operating expenses802.6 719.1 670.4 11.6 %