William Blair 39th Annual Growth Stock Conference  Mark Tarr, President and Chief Executive Officer  June 5, 2019
 Forward-looking statements   The information contained in this presentation includes certain estimates, projections and other forward-looking  information that reflect Encompass Health’s current outlook, views and plans with respect to future events, including  legislative and regulatory developments, strategy, a potential settlement of the pending DOJ investigation, capital  expenditures, acquisition and other development activities, cyber security, dividend strategies, repurchases of  securities, effective tax rates, financial performance, financial assumptions, business model, balance sheet and cash  flow plans, disintermediation, and shareholder value-enhancing transactions. These estimates, projections and other  forward-looking information are based on assumptions the Company believes, as of the date hereof, are reasonable.  Inevitably, there will be differences between such estimates and actual events or results, and those differences may be  material.  There can be no assurance any estimates, projections or forward-looking information will be realized.  All such estimates, projections and forward-looking information speak only as of the date hereof. Encompass  Health undertakes no duty to publicly update or revise the information contained herein.  You are cautioned not to place undue reliance on the estimates, projections and other forward-looking information in  this presentation as they are based on current expectations and general assumptions and are subject to various risks,  uncertainties and other factors, including those set forth in the Form 10-K for the year ended December 31, 2018,  Form 10-Q for the quarter ended March 31, 2019, and in other documents Encompass Health previously filed with the  SEC, many of which are beyond Encompass Health’s control, that may cause actual events or results to differ  materially from the views, beliefs and estimates expressed herein.  Note Regarding Presentation of Non-GAAP Financial Measures  This presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities  Exchange Act of 1934, including Adjusted EBITDA, leverage ratios, adjusted earnings per share, and adjusted free cash  flow. The Company’s Form 8-K, dated June 4, 2019, to which the following presentation is attached as Exhibit 99.1,  provides further explanation and disclosure regarding Encompass Health’s use of non-GAAP financial measures and  should be read in conjunction with this presentation. Schedules that reconcile the non-GAAP financial measures  included in the following presentation to the most directly comparable financial measures calculated and presented in  accordance with Generally Accepted Accounting Principles in the United States are included in that Form 8-K.    Encompass Health                                                                                       2
 Company overview   Encompass Health                                                                                                                              3
 Company overview - Inpatient Rehabilitation   Encompass Health                                   4
 Company overview - Home Health and Hospice   Encompass Health                                   5
 Market Overlap   Inpatient Rehabilitation and Home Health                                                                81 of EHC's IRFs                                                               have an EHC                                                               home health                                                              location within                                                                the service                                                                  area.   Encompass Health                                                           6
 Quality               Inpatient                               Home Health              Rehabilitation                       Discharge to                           30-day hospital                      community                              readmission                              300 bps                             better                     79.3%                          17.2%                                                                    140 bps                                                                     better            76.3%                                          15.8%       Industry Average Encompass Health       Industry Average Encompass Health      295 certified clinical programs         Developed programs to create    including 113 hospitals with stroke-    physician-specific custom treatment         specific certifications           protocols for higher acuity patients   Encompass Health                                                           7
 Cost Effectiveness        Inpatient                   Average          Average    Average       Rehabilitation     Average  Medicare  Case     Cost    Payment                           Beds  Discharges Mix      per       per                          per IRF per IRF  Index  Discharge  Discharge       Encompass Health     67      951     1.28   $13,622   $20,315       Industry Average     34      358     1.25   $18,388   $21,159                                                   (25.9)%                                                    lower                                    Average Average           Average                                  Revenue   Visits  Average  Revenue      Home Health          2018      per     per     Cost    per Visit                          Episodes Episode Episode per Visit (all payors)       Encompass Health   243,698  $2,968    17.6    $76      $162       Public Peer Average 315,713 $2,869    17.9    $86      $145                                                    (11.6)%                                                     lower  Encompass Health                                                       8
 Both Segments Benefit from a Demographic Tailwind:     Growth in the Medicare Beneficiary Population                  Projected Population of Age 65+                                Baby Boomer wave       Millions               reaches average age of                              an Encompass Health       80                     Medicare patient (~76).      70       60      ~3% CAGR                                                                        CAGR (Population Growth by Age)      50                                                                          Age     2014   2018    2022      40                                         46%        46%                 to 2018 to 2022 to 2026                                     45%       (30.7M)     (33.3M)                          43%       (26.8M)                              70-74    4.9%    3.7%   2.5%      30       41%       (22.7M)              (19.0M)                                                                         75-79    4.0%    5.0%   4.9%      20      10       0              2014       2018       2022       2026        2030                    Age 65-69          Age 70-79        Age 80+   Encompass Health                                                                                       9
 Multi-faceted Growth Strategy            Track record of consistent market share gains driven          by clinical programs            IRF organic growth supplemented by bed additions            De novos and acquisitions complement organic growth            Maturation of acquired home health locations           Home health acquisitions and new-location growth prioritized            in Encompass Health IRF markets without current overlap           Build additional scale in hospice via acquisitions and de novos   Encompass Health                                               10
 IRF Growth                         Target 4 to 6 new IRFs per year                             Inpatient Rehabilitation Facilities                                       # of New Beds...         2019         2020           De Novo:             1) Murrieta, CA                                    50            —             2) Katy, TX                                        40            —             3) Sioux Falls, SD                                  —            40             4) Coralville, IA                                   —            40             5) Lubbock, TX (joint venture)                     40            —             6) Boise, ID (joint venture)                       40            —            Bed Additions                                       ~150          ~100                                                                ~320         ~180   Encompass Health                                                                              11
 Home Health and Hospice Growth                                                              Camellia                                                                Home Health  14                                                                Hospice          18                   Other Acquisitions &                  Other Acquisitions &                  New Locations Opened                  New Locations Opened                     Home Health      10                   Home Health       9                     Hospice               8               Hospice               4         2015              2016              2017              2018              2019      CareSouth                      Other Acquisitions &                     Alacare        Home Health  44             New Locations Opened                        Home Health  23        Hospice            3           Home Health     15                       Hospice          23                                       Hospice              2  Other Acquisitions &                                                    Other Acquisitions & New Locations Opened                                                    New Locations Opened    Home Health     15                                                      Home Health      2    Hospice              4                                                  Hospice              1   Encompass Health                                                                              12
 Operational initiatives support our growth strategy        Increase clinical collaboration         Build stroke market share         Further develop post-acute solutions   Encompass Health                     13
 Clinical collaboration in overlap markets      Improving the patient experience and outcomes while reducing total costs through Encompass Health IRF discharges to:integrated care delivery                                   33.5%                 36.0%                               Collaboration rate   Collaboration rate     EHC Home Health      Non-EHC Home Health           5,409                5,830        250 Basis points                                                                      year-over-year                                                                         increase                                                                         Near-term                                                                       objective =  81 of the Company's IRFs  have an EHC home health          10,726               10,348            40%  location within the service  area.                                     Q1 2018              Q1 2019   Encompass Health                                                                14
 Building stroke market share   Leveraging our:    • strategic sponsorship with the AHA/ASA    • clinical collaboration    • joint commission certifications  ~800,000    strokes                ~142,000          113 EHC IRFs     per year               deaths from stroke hold stroke-specific     in the U.S.                              certifications.                            ~32,000           Continue to increase market                           strokes treated in                            EHC IRFs          share by focusing on IRF- eligible                                             stroke patients going to SNFs                 ~626,000  EHC’s 3-year stroke and non-EHC IRFs; view our Life                  strokes  CAGR is ~6%.      After Stroke guide at:                                               https://ehc.news/LifeAfterStroke                                              Stroke cases account for ~1/3 of                                             EHC’s Medicare Advantage                                             volume.  Encompass Health                                                       15
 Post-acute solutions   Our post-acute solutions will leverage our clinical expertise, large post-acute datasets,  EMR technologies, and strategic partnerships to drive improved patient outcomes and  lower cost of care across the entire post-acute episode.    2018                                     2019     Modified and implemented Cerner’s      Refine 90-day post-acute readmission      HealtheCare module; created a           prediction model; deploy to additional      longitudinal patient record to manage   EHC hospitals      patients across the post-acute      continuum                                – expanded pilot to seven hospitals in                                                 the Houston, Texas market in April      – piloting in Tyler, Texas                 2019                                             Design and implement post-acute care                                              clinical decision support tools     Deployed ReAct in all of our hospitals                                             Design and implement quality reporting                                             tool for building preferred provider      Developed 90-day post-acute             networks      readmission prediction model                                             Create a provider hub to automate      – piloting in Tyler, Texas and          market analysis tools for quality        Petersburg, Virginia                  reporting across episodes                                                                                         Use Medalogix for home health care      Began utilizing care navigators to follow plan optimization and to reduce      a patient throughout an episode of care emergency room visits and hospital                                              readmissions  Encompass Health                                                                16
 Free cash flow priorities                                                                                                                       (In Millions)                                             2018                   2019                                             Actuals            Assumptions  Growth in core business  IRF bed expansions                          $22.3               $40 to $50  New IRFs    - De novos                                76.4                 85 to 115    - Acquisitions                              -                opportunistic    - Replacement IRFs and other              24.5                 90 to 110  Home health and hospice acquisitions    - Alacare Home Health and Hospice           -                   217.5    - Camellia Healthcare                     131.4                   -    - All other                               12.5                   ~50                                                             $482 to $543, excluding                                             $267.1             IRF acquisitions  Debt reduction  Debt redemptions (borrowings), net          $63.3              opportunistic  Shareholder distributions  Cash dividends on common stock             $100.8                 ~$108  Purchase of Home Health Rollover   shares and exercise of SARs                69.4                   TBD  Common stock repurchases                      -                 opportunistic                                             $233.5                  $TBD  Encompass Health                                                                17
 Strong and sustainable business fundamentals        Attractive  healthcare sectors     Industry leading      positions     Cost-effectiveness      Real estate     ownership     Financial strength          Growth    opportunities  Encompass Health                                               18
 Committed to delivering high-quality, cost-effective integrated care across      the healthcare continuum