Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 1

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 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;

•expanded our capacity by adding 51 new beds to existing hospitals; and

20

•announced or continued the development of the following hospitals:

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

(1) Opening dates are tentative

(2) Opened in July 2025

(3) Expected joint venture

We also continued our shareholder distributions during the six months ended June 30, 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 71 million people over the age of 65 by 2030. More specifically, the average age of our Medicare patients is approximately 77, and the population group for ages 75 and older is expected to grow at approximately 4% per