Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 71

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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5 compared to the same period of 2024 resulted from our joint ventures in Athens, Georgia (March 2025) and Fort Myers, Florida (May 2025), as well as our wholly owned hospitals in Johnston, Rhode Island (July 2024), Fort Mill, South Carolina (September 2024), Houston, Texas (November 2024), and Daytona Beach, Florida (July 2025). Growth in net patient revenue per discharge during the three months ended September 30, 2025 compared to the same period of 2024 primarily resulted from increase in reimbursement rates.

Growth in revenues, discharges, and net patient revenue per discharge during the nine months ended September 30, 2025 were impacted primarily by the same factors as discussed above for the third quarter of 2025. Discharge growth included a 3.8% increase in same-store discharges. Discharge growth from new stores during the nine months ended September 30, 2025 compared to the same period of 2024 also resulted from our joint ventures in Atlanta, Georgia (May 2024) and Louisville, Kentucky (June 2024), as well as our wholly owned hospital in Kissimmee, Florida (May 2024).

26

The increase in outpatient and other revenue during the three and nine months ended September 30, 2025 included an increase of $16.3 million and $30.1 million, respectively, in Medicaid supplemental payments (offset by an increase of $8.7 million and $25.1 million, respectively, in provider tax expenses included in Other operating expenses). Medicaid supplemental payments represent amounts received under state directed and supplemental payment programs associated with Medicaid. For additional information, see Item 1, Business, “Medicaid Reimbursement,” of the 2024 Form 10‑K.

Salaries and Benefits

Salaries and benefits increased during the three and nine months ended September 30, 2025 compared to the same periods of 2024 primarily due to salary and benefit cost increases for our employees and increased patient volumes, including an increase in the number of full-time equivalents as a result of our development activities. Salaries and benefits decreased as a percent of Net operating revenues during the three months ended September 30, 2025 compared to the same period of 2024 primarily due to decreases in both contract labor and sign-on and shift bonuses. Salaries and benefits decreased as a percent of Net operating revenues during the nine months ended September 30,