|                                     |
|-------------------------------------|
|                                     |  |
| Media Contact                       | April 26, 2018 |
| Casey Lassiter, 205 447-6410        |   |
| casey.lassiter@encompasshealth.com  |   |
|                                |   |
| Investor Relations Contact          |   |
| Crissy Carlisle, 205 970-5860       |   |
| crissy.carlisle@encompasshealth.com |   |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 |   |   |   |   | Growth |
|                                                                                 | Q1 2018 |   | Q1 2017 |   | Dollars |   | Percent |
|                                                                                 | (In Millions, Except per Share Data) |
| Net operating revenues                                                               | $ | 1,046.0 |  |   | $ | 957.1 |  |   | $ | 88.9 |  |   | 9.3 | % |
| Income from continuing operations attributable to Encompass Health per diluted share | 0.85 |  |   | 0.70 |  |   | 0.15 |  |   | 21.4 | % |
| Adjusted earnings per share                                                          | 0.93 |  |   | 0.70 |  |   | 0.23 |  |   | 32.9 | % |
| Cash flows provided by operating activities                                          | 216.3 |  |   | 180.8 |  |   | 35.5 |  |   | 19.6 | % |
| Adjusted EBITDA                                                                      | 223.3 |  |   | 200.8 |  |   | 22.5 |  |   | 11.2 | % |
| Adjusted free cash flow                                                              | 170.2 |  |   | 147.5 |  |   | 22.7 |  |   | 15.4 | % |

|        |
|--------|
|        |  |  |
|   |   | 1 |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              |   |   |   |   | Growth |
|                              | Q1 2018 |   | Q1 2017 |   | Dollars |   | Percent |
| Net operating revenues:           | (In Millions) |
| Inpatient                         | $ | 817.1 |  |   | $ | 752.7 |  |   | $ | 64.4 |  |   | 8.6 |  % |
| Outpatient and other              | 23.2 |  |   | 25.1 |  |   | (1.9 | ) |   | (7.6 | )% |
| Total segment revenue             | $ | 840.3 |  |   | $ | 777.8 |  |   | $ | 62.5 |  |   | 8.0 |  % |
|                              |   |   |   |   |   |   |   |
|                              | (Actual Amounts) |
| Discharges                        | 45,108 |  |   | 42,259 |  |   | 2,849 |  |   | 6.7 |  % |
| Same-store discharge growth       |   |   |   |   |   |   | 4.8 |  % |
| Net patient revenue per discharge | $ | 18,114 |  |   | $ | 17,812 |  |   | $ | 302 |  |   | 1.7 |  % |
|                              |   |   |   |   |   |   |   |
|                              | (In Millions) |
| Adjusted EBITDA                   | $ | 223.8 |  |   | $ | 205.4 |  |   | $ | 18.4 |  |   | 9.0 |  % |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue - Revenue growth resulted from volume growth and an increase in net patient revenue per discharge. A heavy incidence of influenza at acute care hospitals and the timing of discharges around Easter and Passover contributed to discharge growth. Discharge growth from new stores resulted from the Company's joint ventures in Gulfport, Mississippi (April 2017), Westerville, Ohio (April 2017), and Jackson, Tennessee (July 2017), as well as a wholly owned hospital in Pearland, Texas (October 2017). Growth in net patient revenue per discharge primarily resulted from an increase in Medicare reimbursement rates and a year-over-year reduction in bad debt, which is now a component of revenue (see the “Other Information” section of this release). |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA - The increase in Adjusted EBITDA primarily resulted from revenue growth. Expense ratios in the first quarter of 2018 compared to the first quarter of 2017 benefited from a year-over-year reduction in bad debt, which is now a component of revenue (see the “Other Information” section of this release). Salaries and benefits as a percent of net operating revenues benefited from labor management and higher volumes. Other operating expenses as a percent of net operating revenues increased primarily due to increases in contract services. |

|        |
|--------|
|        |  |  |
|   |   | 2 |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         |   |   |   |   | Growth |
|                         | Q1 2018 |   | Q1 2017 |   | Dollars |   | Percent |
| Net operating revenues:      | (In Millions) |
| Home health                  | $ | 185.2 |  |   | $ | 163.7 |  |   | $ | 21.5 |  |   | 13.1 |  % |
| Hospice and other            | 20.5 |  |   | 15.6 |  |   | 4.9 |  |   | 31.4 |  % |
| Total segment revenue        | $ | 205.7 |  |   | $ | 179.3 |  |   | $ | 26.4 |  |   | 14.7 |  % |
|                         |   |   |   |   |   |   |   |
| Home Health Metrics          |
| (Actual Amounts)             |
| Admissions                   | 33,855 |  |   | 30,810 |  |   | 3,045 |  |   | 9.9 |  % |
| Same-store admissions growth |   |   |   |   |   |   | 7.4 |  % |
| Episodes                     | 56,658 |  |   | 49,260 |  |   | 7,398 |  |   | 15.0 |  % |
| Same-store episode growth    |   |   |   |   |   |   | 12.7 |  % |
| Revenue per episode          | $ | 2,934 |  |   | $ | 2,978 |  |   | $ | (44 | ) |   | (1.5 | )% |
|                         |   |   |   |   |   |   |   |
|                         | (In Millions) |
| Adjusted EBITDA              | $ | 33.5 |  |   | $ | 23.9 |  |   | $ | 9.6 |  |   | 40.2 |  % |

|         |                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue - Revenue growth was driven by volume growth. Revenue per episode was negatively impacted by an approximate $4 million reserve for a Zone Program Integrity Contractor, or ZPIC, audit. Excluding this reserve, revenue per episode would have increased by 0.7% as changes in patient mix offset the impact of Medicare reimbursement rate cuts. |

|         |                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA - Growth in Adjusted EBITDA primarily resulted from revenue growth and improvements in caregiver productivity and efficiency. |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Q1 2018 |   | % of Consolidated Revenue |   | Q1 2017 |   | % of Consolidated Revenue |
|                                                                    | (In Millions) |
| General and administrative expenses, excluding stock-based compensation | $ | 34.0 |  |   | 3.3% |   | $ | 28.5 |  |   | 3.0% |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | General and administrative expenses increased as a percent of consolidated revenue due to expenses associated with the Company's rebranding and name change. During the first quarter of 2018, the Company invested $3.6 million in its rebranding and name change, all of which was included in general and administrative expenses. During the first quarter of 2017, the Company invested $0.5 million in its rebranding and name change. |

|        |
|--------|
|        |  |  |
|   |   | 3 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |
|                                                                                    | Full-Year 2018 Guidance Ranges |
|                                                                                    | Previous Guidance |   | Updated Guidance |
|                                                                                    | (In Millions, Except Per Share Data) |
| Net operating revenues                                                                  | $4,080 to $4,190 |   | $4,110 to $4,210 |
| Adjusted EBITDA                                                                         | $830 to $850 |   | $845 to $865 |
| Adjusted earnings per share from continuing operations attributable to Encompass Health | $3.25 to $3.40 |   | $3.30 to $3.45 |

|        |
|--------|
|        |  |  |
|   |   | 4 |

----

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | Interest expense and amortization of debt discounts and fees - estimate of $147 million to $157 million |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | Amortization of debt-related items - approximately $7 million |

|        |
|--------|
|        |  |  |
|   |   | 5 |

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |
|                                                                             | Three Months Ended March 31, |
|                                                                             | 2018 |   | 2017 |
|                                                                             | (In Millions, Except per Share Data) |
| Net operating revenues                                                           | $ | 1,046.0 |  |   | $ | 957.1 |  |
| Operating expenses:                                                              |   |  |   |   |  |
| Salaries and benefits                                                            | 570.2 |  |   | 530.1 |  |
| Other operating expenses                                                         | 141.2 |  |   | 127.8 |  |
| Occupancy costs                                                                  | 18.6 |  |   | 17.9 |  |
| Supplies                                                                         | 39.9 |  |   | 37.0 |  |
| General and administrative expenses                                              | 61.1 |  |   | 36.5 |  |
| Depreciation and amortization                                                    | 45.9 |  |   | 45.2 |  |
| Total operating expenses                                                         | 876.9 |  |   | 794.5 |  |
| Interest expense and amortization of debt discounts and fees                     | 35.6 |  |   | 41.3 |  |
| Other loss (income)                                                              | 0.1 |  |   | (1.0 | ) |
| Equity in net income of nonconsolidated affiliates                               | (2.3 | ) |   | (2.1 | ) |
| Income from continuing operations before income tax expense                      | 135.7 |  |   | 124.4 |  |
| Provision for income tax expense                                                 | 30.0 |  |   | 39.7 |  |
| Income from continuing operations                                                | 105.7 |  |   | 84.7 |  |
| Loss from discontinued operations, net of tax                                    | (0.5 | ) |   | (0.3 | ) |
| Net income                                                                       | 105.2 |  |   | 84.4 |  |
| Less: Net income attributable to noncontrolling interests                        | (21.4 | ) |   | (17.6 | ) |
| Net income attributable to Encompass Health                                      | $ | 83.8 |  |   | $ | 66.8 |  |
|                                                                             |   |   |   |
| Weighted average common shares outstanding:                                      |   |  |   |   |  |
| Basic                                                                            | 97.8 |  |   | 88.8 |  |
| Diluted                                                                          | 99.4 |  |   | 99.0 |  |
|                                                                             |  |  |   |  |  |
| Earnings per common share:                                                       |   |   |   |
| Basic earnings per share attributable to Encompass Health common shareholders:   |   |   |   |  |
| Continuing operations                                                            | $ | 0.86 |  |   | $ | 0.75 |  |
| Discontinued operations                                                          | (0.01 | ) |   | — |  |
| Net income                                                                       | $ | 0.85 |  |   | $ | 0.75 |  |
| Diluted earnings per share attributable to Encompass Health common shareholders: |   |   |   |
| Continuing operations                                                            | $ | 0.85 |  |   | $ | 0.70 |  |
| Discontinued operations                                                          | (0.01 | ) |   | — |  |
| Net income                                                                       | $ | 0.84 |  |   | $ | 0.70 |  |
|                                                                             |   |   |   |
| Cash dividends per common share                                                  | $ | 0.25 |  |   | $ | 0.24 |  |
|                                                                             |   |   |   |
| Amounts attributable to Encompass Health common shareholders:                    |   |   |   |  |
| Income from continuing operations                                                | $ | 84.3 |  |   | $ | 67.1 |  |
| Loss from discontinued operations, net of tax                                    | (0.5 | ) |   | (0.3 | ) |
| Net income attributable to Encompass Health                                      | $ | 83.8 |  |   | $ | 66.8 |  |

|        |
|--------|
|        |  |  |
|   |   | 6 |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | March 31, 2018 |   | December 31, 2017 |
|                                             | (In Millions) |
| Assets                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 86.4 |  |   | $ | 54.4 |  |
| Restricted cash                                  | 69.4 |  |   | 62.4 |  |
| Accounts receivable                              | 463.1 |  |   | 472.1 |  |
| Other current assets                             | 89.6 |  |   | 113.3 |  |
| Total current assets                             | 708.5 |  |   | 702.2 |  |
| Property and equipment, net                      | 1,554.3 |  |   | 1,517.1 |  |
| Goodwill                                         | 1,973.1 |  |   | 1,972.6 |  |
| Intangible assets, net                           | 396.1 |  |   | 403.1 |  |
| Deferred income tax assets                       | 68.5 |  |   | 63.6 |  |
| Other long-term assets                           | 239.1 |  |   | 235.1 |  |
| Total assets                                     | $ | 4,939.6 |  |   | $ | 4,893.7 |  |
| Liabilities and Shareholders’ Equity       |   |   |   |
| Current liabilities:                             |   |   |   |
| Current portion of long-term debt                | $ | 32.7 |  |   | $ | 32.3 |  |
| Accounts payable                                 | 83.1 |  |   | 78.4 |  |
| Accrued expenses and other current liabilities   | 456.2 |  |   | 406.8 |  |
| Total current liabilities                        | 572.0 |  |   | 517.5 |  |
| Long-term debt, net of current portion           | 2,544.4 |  |   | 2,545.4 |  |
| Other long-term liabilities                      | 183.8 |  |   | 185.3 |  |
|                                             | 3,300.2 |  |   | 3,248.2 |  |
| Commitments and contingencies                    |   |   |   |
| Redeemable noncontrolling interests              | 198.6 |  |   | 220.9 |  |
| Shareholders’ equity:                      |   |  |   |   |  |
| Encompass Health shareholders’ equity      | 1,197.0 |  |   | 1,181.7 |  |
| Noncontrolling interests                         | 243.8 |  |   | 242.9 |  |
| Total shareholders’ equity                 | 1,440.8 |  |   | 1,424.6 |  |
| Total liabilities and shareholders’ equity | $ | 4,939.6 |  |   | $ | 4,893.7 |  |

|        |
|--------|
|        |  |  |
|   |   | 7 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Three Months Ended March 31, |
|                                                                                    | 2018 |   | 2017 |
|                                                                                    | (In Millions) |
| Cash flows from operating activities:                                                   |   |   |   |
| Net income                                                                              | $ | 105.2 |  |   | $ | 84.4 |  |
| Loss from discontinued operations, net of tax                                           | 0.5 |  |   | 0.3 |  |
| Adjustments to reconcile net income to net cash provided by operating activities— |   |  |   |   |  |
| Depreciation and amortization                                                           | 45.9 |  |   | 45.2 |  |
| Stock-based compensation                                                                | 26.1 |  |   | 8.0 |  |
| Deferred tax (benefit) expense                                                          | (3.0 | ) |   | 49.0 |  |
| Other, net                                                                              | 1.6 |  |   | 2.5 |  |
| Change in assets and liabilities, net of acquisitions—                            |   |   |   |  |
| Accounts receivable                                                                     | 8.3 |  |   | (3.6 | ) |
| Other assets                                                                            | 14.2 |  |   | (16.4 | ) |
| Accounts payable                                                                        | 1.3 |  |   | (1.7 | ) |
| Accrued payroll                                                                         | (9.5 | ) |   | (3.0 | ) |
| Other liabilities                                                                       | 26.4 |  |   | 16.5 |  |
| Net cash used in operating activities of discontinued operations                        | (0.7 | ) |   | (0.4 | ) |
| Total adjustments                                                                       | 110.6 |  |   | 96.1 |  |
| Net cash provided by operating activities                                               | 216.3 |  |   | 180.8 |  |
| Cash flows from investing activities:                                                   |   |   |   |
| Purchases of property and equipment                                                     | (59.9 | ) |   | (41.2 | ) |
| Acquisitions of businesses, net of cash acquired                                        | (0.6 | ) |   | (16.4 | ) |
| Other, net                                                                              | (0.1 | ) |   | 8.5 |  |
| Net cash used in investing activities                                                   | (60.6 | ) |   | (49.1 | ) |
| Cash flows from financing activities:                                                   |   |   |   |
| Borrowings on revolving credit facility                                                 | 95.0 |  |   | 55.0 |  |
| Payments on revolving credit facility                                                   | (95.0 | ) |   | (122.0 | ) |
| Repurchases of common stock, including fees and expenses                                | — |  |   | (18.1 | ) |
| Dividends paid on common stock                                                          | (25.4 | ) |   | (22.2 | ) |
| Purchase of equity interests in consolidated affiliates                                 | (65.1 | ) |   | — |  |
| Proceeds from exercising stock warrants                                                 | — |  |   | 26.6 |  |
| Distributions paid to noncontrolling interests of consolidated affiliates               | (15.4 | ) |   | (11.5 | ) |
| Other, net                                                                              | (10.8 | ) |   | (14.1 | ) |
| Net cash used in financing activities                                                   | (116.7 | ) |   | (106.3 | ) |
| Increase in cash, cash equivalents, and restricted cash                                 | 39.0 |  |   | 25.4 |  |
| Cash, cash equivalents, and restricted cash at beginning of period                      | 116.8 |  |   | 101.4 |  |
| Cash, cash equivalents, and restricted cash at end of period                            | $ | 155.8 |  |   | $ | 126.8 |  |
|                                                                                    |   |   |   |
| Reconciliation of Cash, Cash Equivalents, and Restricted Cash                           |   |   |   |
| Cash and cash equivalents at beginning of period                                        | $ | 54.4 |  |   | $ | 40.5 |  |
| Restricted cash at beginning of period                                                  | 62.4 |  |   | 60.9 |  |
| Cash, cash equivalents, and restricted cash at beginning of period                      | $ | 116.8 |  |   | $ | 101.4 |  |
|                                                                                    |   |   |   |
| Cash and cash equivalents at end of period                                              | $ | 86.4 |  |   | $ | 61.2 |  |
| Restricted cash at end of period                                                        | 69.4 |  |   | 65.6 |  |
| Cash, cash equivalents, and restricted cash at end of period                            | $ | 155.8 |  |   | $ | 126.8 |  |

|        |
|--------|
|        |  |  |
|   |   | 8 |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Three Months Ended March 31, |
|                                                           | 2018 |   | 2017 |
|                                                           | (In Millions, Except Per Share Data) |
| Adjusted EBITDA                                                | $ | 223.3 |  |   | $ | 200.8 |  |
| Depreciation and amortization                                  | (45.9 | ) |   | (45.2 | ) |
| Interest expense and amortization of debt discounts and fees   | (35.6 | ) |   | (41.3 | ) |
| Stock-based compensation expense                               | (26.1 | ) |   | (8.0 | ) |
| Noncash (loss) gain on disposal of assets                      | (0.8 | ) |   | 0.5 |  |
|                                                           | 114.9 |  |   | 106.8 |  |
| Certain items non-indicative of ongoing operating performance: |   |   |   |
| Transaction costs                                              | (1.0 | ) |   | — |  |
| SARs mark-to-market impact on noncontrolling interests         | 1.0 |  |   | — |  |
| Change in fair market value of equity securities               | (0.6 | ) |   | — |  |
| Pre-tax income                                                 | 114.3 |  |   | 106.8 |  |
| Income tax expense                                             | (30.0 | ) |   | (39.7 | ) |
| Income from continuing operations (1)                          | $ | 84.3 |  |   | $ | 67.1 |  |
|                                                           |   |   |   |
| Basic shares                                                   | 97.8 |  |   | 88.8 |  |
| Diluted shares                                                 | 99.4 |  |   | 99.0 |  |
|                                                           |   |   |   |
| Basic earnings per share (1)                                   | $ | 0.86 |  |   | $ | 0.75 |  |
| Diluted earnings per share (1)                                 | $ | 0.85 |  |   | $ | 0.70 |  |

|           |                                                                    |
|-----------|--------------------------------------------------------------------|
| (1)  | Income from continuing operations attributable to Encompass Health |

|        |
|--------|
|        |  |  |
|   |   | 9 |

----

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |
|                                                     | Q1 |
|                                                     | 2018 |   | 2017 |
|                                                     |   |   |   |
| Earnings per share, as reported                          | $ | 0.85 |  |   | $ | 0.70 |  |
| Adjustments, net of tax:                                 |   |   |   |
| Mark-to-market adjustments for stock appreciation rights | 0.08 |  |   | 0.02 |  |
| Transaction costs                                        | 0.01 |  |   | — |  |
| Income tax adjustments                                   | — |  |   | (0.03 | ) |
| Adjusted earnings per share(1)                           | $ | 0.93 |  |   | $ | 0.70 |  |

|           |                                           |
|-----------|-------------------------------------------|
| (1)  | Adjusted EPS may not sum due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 10 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | For the Three Months Ended March 31, 2018 |
|                                                                                    |   |   | Adjustments |   |   |
|                                                                                    | As Reported |   | Mark-to-Market Adjustment for Stock Compensation Expense |   | Income Tax Adjustments |   | Transaction Costs |   | Change in Fair Market Value of Equity Securities |   | As Adjusted |
|                                                                                    | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                                                      | $ | 223.3 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 223.3 |  |
| Depreciation and amortization                                                           | (45.9 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (45.9 | ) |
| Interest expense and amortization of debt discounts and fees                            | (35.6 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (35.6 | ) |
| Stock-based compensation                                                                | (26.1 | ) |   | 11.6 |  |   | — |  |   | — |  |   | — |  |   | (14.5 | ) |
| Loss on disposal of assets                                                              | (0.8 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (0.8 | ) |
| Transaction costs                                                                       | (1.0 | ) |   | — |  |   | — |  |   | 1.0 |  |   | — |  |   | — |  |
| SARs mark-to-market impact on noncontrolling interests                                  | 1.0 |  |   | (1.0 | ) |   | — |  |   | — |  |   | — |  |   | — |  |
| Change in fair market value of equity securities                                        | (0.6 | ) |   | — |  |   | — |  |   | — |  |   | 0.6 |  |   | — |  |
| Income from continuing operations before income tax expense                             | 114.3 |  |   | 10.6 |  |   | — |  |   | 1.0 |  |   | 0.6 |  |   | 126.5 |  |
| Provision for income tax expense                                                        | (30.0 | ) |   | (3.0 | ) |   | (0.2 | ) |   | (0.3 | ) |   | (0.2 | ) |   | (33.7 | ) |
| Income from continuing operations attributable to Encompass Health                      | $ | 84.3 |  |   | $ | 7.6 |  |   | $ | (0.2 | ) |   | $ | 0.7 |  |   | $ | 0.4 |  |   | $ | 92.8 |  |
| Add: Interest, amortization, and loss on extinguishment of convertible debt, net of tax | — |  |   |   |   |   |   |   |   |   |   | — |  |
| Numerator for diluted earnings per share                                                | $ | 84.3 |  |   |   |   |   |   |   |   |   |   | $ | 92.8 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share from continuing operations(2)                                | $ | 0.85 |  |   | $ | 0.08 |  |   | $ | — |  |   | $ | 0.01 |  |   | $ | — |  |   | $ | 0.93 |  |
| Diluted shares used in calculation                                                      | 99.4 |  |   |   |   |   |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 13 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 11 |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | For the Three Months Ended March 31, 2017 |
|                                                               |   |   | Adjustments |   |   |
|                                                               | As Reported |   | Mark-to-Market Adjustment for Stock Appreciation Rights |   | Income Tax Adjustments |   | As Adjusted |
|                                                               | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                                 | $ | 200.8 |  |   | $ | — |  |   | $ | — |  |   | $ | 200.8 |  |
| Depreciation and amortization                                      | (45.2 | ) |   | — |  |   | — |  |   | (45.2 | ) |
| Interest expense and amortization of debt discounts and fees       | (41.3 | ) |   | — |  |   | — |  |   | (41.3 | ) |
| Stock-based compensation                                           | (8.0 | ) |   | 3.3 |  |   | — |  |   | (4.7 | ) |
| Gain on disposal of assets                                         | 0.5 |  |   | — |  |   | — |  |   | 0.5 |  |
| Income from continuing operations before income tax expense        | 106.8 |  |   | 3.3 |  |   | — |  |   | 110.1 |  |
| Provision for income tax expense                                   | (39.7 | ) |   | (1.3 | ) |   | (2.6 | ) |   | (43.6 | ) |
| Income from continuing operations attributable to Encompass Health | $ | 67.1 |  |   | $ | 2.0 |  |   | $ | (2.6 | ) |   | $ | 66.5 |  |
| Add: Interest on convertible debt, net of tax                      | 2.5 |  |   |   |   |   |   | 2.5 |  |
| Numerator for diluted earnings per share                           | $ | 69.6 |  |   |   |   |   |   | $ | 69.0 |  |
|                                                               |   |   |   |   |   |   |   |
| Diluted earnings per share from continuing operations(2)           | $ | 0.70 |  |   | $ | 0.02 |  |   | $ | (0.03 | ) |   | $ | 0.70 |  |
| Diluted shares used in calculation                                 | 99.0 |  |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 13 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 12 |

----

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended March 31, |
|                                                                            | 2018 |   | 2017 |
|                                                                            | (In Millions) |
| Net income                                                                      | $ | 105.2 |  |   | $ | 84.4 |  |
| Loss from discontinued operations, net of tax, attributable to Encompass Health | 0.5 |  |   | 0.3 |  |
| Net income attributable to noncontrolling interests                             | (21.4 | ) |   | (17.6 | ) |
| Provision for income tax expense                                                | 30.0 |  |   | 39.7 |  |
| Interest expense and amortization of debt discounts and fees                    | 35.6 |  |   | 41.3 |  |
| Depreciation and amortization                                                   | 45.9 |  |   | 45.2 |  |
| Net noncash loss (gain) on disposal of assets                                   | 0.8 |  |   | (0.5 | ) |
| Stock-based compensation expense                                                | 26.1 |  |   | 8.0 |  |
| Transaction costs                                                               | 1.0 |  |   | — |  |
| SARs mark-to-market impact on noncontrolling interests                          | (1.0 | ) |   | — |  |
| Change in fair market value of equity securities                                | 0.6 |  |   | — |  |
| Adjusted EBITDA                                                                 | $ | 223.3 |  |   | $ | 200.8 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                         | Three Months Ended March 31, |
|                                                         | 2018 |   | 2017 |
|                                                         | (In Millions) |
| Total segment Adjusted EBITDA                                | $ | 257.3 |  |   | $ | 229.3 |  |
| General and administrative expenses                          | (61.1 | ) |   | (36.5 | ) |
| Depreciation and amortization                                | (45.9 | ) |   | (45.2 | ) |
| (Loss) gain on disposal of assets                            | (0.8 | ) |   | 0.5 |  |
| Interest expense and amortization of debt discounts and fees | (35.6 | ) |   | (41.3 | ) |
| Net income attributable to noncontrolling interests          | 21.4 |  |   | 17.6 |  |
| SARs mark-to-market impact on noncontrolling interests       | 1.0 |  |   | — |  |
| Change in fair market value of equity securities             | (0.6 | ) |   | — |  |
| Income from continuing operations before income tax expense  | $ | 135.7 |  |   | $ | 124.4 |  |

|        |
|--------|
|        |  |  |
|   |   | 13 |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |
|                                                                         | Three Months Ended March 31, |
|                                                                         |
|                                                                         | 2018 |   | 2017 |
|                                                                         | (In Millions) |
| Net cash provided by operating activities                                    | $ | 216.3 |  |   | $ | 180.8 |  |
| Interest expense and amortization of debt discounts and fees                 | 35.6 |  |   | 41.3 |  |
| Equity in net income of nonconsolidated affiliates                           | 2.3 |  |   | 2.1 |  |
| Net income attributable to noncontrolling interests in continuing operations | (21.4 | ) |   | (17.6 | ) |
| Amortization of debt-related items                                           | (1.0 | ) |   | (3.5 | ) |
| Distributions from nonconsolidated affiliates                                | (1.2 | ) |   | (2.1 | ) |
| Current portion of income tax expense (benefit)                              | 33.0 |  |   | (9.3 | ) |
| Change in assets and liabilities                                             | (40.7 | ) |   | 8.2 |  |
| Cash used in operating activities of discontinued operations                 | 0.7 |  |   | 0.4 |  |
| Transaction costs                                                            | 1.0 |  |   | — |  |
| SARs mark-to-market impact on noncontrolling interests                       | (1.0 | ) |   | — |  |
| Change in fair market value of equity securities                             | 0.6 |  |   | — |  |
| Other                                                                        | (0.9 | ) |   | 0.5 |  |
| Consolidated Adjusted EBITDA                                                 | $ | 223.3 |  |   | $ | 200.8 |  |

|        |
|--------|
|        |  |  |
|   |   | 14 |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended March 31, |
|                                                                      |
|                                                                      | 2018 |   | 2017 |
|                                                                      | (In Millions) |
| Net cash provided by operating activities                                 | $ | 216.3 |  |   | $ | 180.8 |  |
| Impact of discontinued operations                                         | 0.7 |  |   | 0.4 |  |
| Net cash provided by operating activities of continuing operations        | 217.0 |  |   | 181.2 |  |
| Capital expenditures for maintenance                                      | (36.1 | ) |   | (22.2 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates | (15.4 | ) |   | (11.5 | ) |
| Items non-indicative of ongoing operations:                               |   |   |   |
| Transaction costs and related assumed liabilities                         | 0.4 |  |   | — |  |
| Cash paid for SARs exercise                                               | 4.3 |  |   | — |  |
| Adjusted free cash flow                                                   | $ | 170.2 |  |   | $ | 147.5 |  |

|        |
|--------|
|        |  |  |
|   |   | 15 |

----

|        |
|--------|
|        |  |  |
|   |   | 16 |

----

|        |
|--------|
|        |  |  |
|   |   | 17 |