Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 61

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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Cautionary Statement Regarding Forward-Looking Statements” beginning on page ii of this report, which is incorporated herein by reference for a description of important factors that could cause actual results to differ from expected results. See also Item 1A, Risk Factors, of this report and to the 2024 Form 10‑K.

Executive Overview

Our Business

We are the nation’s largest owner and operator of inpatient rehabilitation hospitals (“IRFs”) in terms of patients treated, revenues, and number of hospitals. We provide specialized rehabilitative treatment on an inpatient basis. We operate IRFs in 39 states and Puerto Rico, with concentrations in Florida and Texas. As of September 30, 2025, we operated 170 IRFs. 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 and nine months ended September 30, 2025, Net operating revenues increased 9.4% and 10.6%, respectively, over the same periods 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;

•began operating our new 60-bed inpatient rehabilitation hospital in Fort Myers, Florida with our joint venture partner Lee Healthcare Holdings, LLC in May;

•began operating our new 50-bed inpatient rehabilitation hospital in Daytona Beach, Florida in July;

•began operating our new 40-bed inpatient rehabilitation hospital in Danbury, Connecticut in September;

•expanded our capacity by adding 140 new beds to existing hospitals (inclusive of our new 50-bed satellite inpatient rehabilitation hospital in Wildwood, Florida (The Villages) which began operating in September); and

20

•announced or continued the development of the following hospitals:

Expected open dateNumber of New Beds  202520262027De novo projects(1)St. Petersburg, Florida(2)4Q2550——Amarillo, Texas(3)4Q2550——Lake Worth, Florida4Q2550——Irmo, South Carolina1Q26—50—Concordville, Pennsylvania1Q26—50—Loganville, Georgia(3)