Company: EHC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000785161-25-000021
Chunk: 1

Company: Encompass Health Corp
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 1
---
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

16

•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 people over the age of 65 by 2030. More specifically, the average age of our Medicare patients is approximately 78, and the population group ranging in ages from 75 to 79 is expected to grow at approximately 5% per year through 2026. We believe the demand for the services we provide will continue to increase as the U.S. population ages. We believe these factors align with our strengths in, and focus on, inpatient rehabilitation services.

We are committed to delivering high-quality, cost-effective patient care. As the