Inpatient Rehabilitation - Patient Census Information      •  Inpatient rehabilitation patient census reached a low point on April 12, 2020 (Easter Weekend).      •  By the end of June 2020, patient census rebounded to 95% of pre-pandemic levels.      •  Patient census dipped in July 2020 primarily due to the ongoing effects of the COVID-19 pandemic,          including staffing constraints in certain markets due to increased COVID-19 related community exposures.      •  In August, patient census was 98% of pre-pandemic levels.      8,000      7,000  6,782                                                                       6,672  6,651                                                      6,453  6,537  6,506         6,422                   6,359                       6,233                       6,361                                        5,989     6,000                          5,349                                 5,139     5,000      4,000      3,000      2,000      1,000          0              9      8      1      2      9      3      3      7      1      5     9      9      2              2      1     r       1     2      1      n      1      l      1      2      1      t             b      r      p      r      r     y      u      n      u      l      l      g      p            e      a      A      p      p      a      J      u      J      u      u     u      e            F      M             A     A      M             J             J      J      A      S                                                   Day of  Encompass Health                                                                                       1
 Home Health - Starts of Episodes               (Includes Starts of Care and Recertifications)     •  Home health starts of episodes reached a low point the week ended April 12, 2020 (Easter Weekend).     •  By the end of June 2020, starts of episodes rebounded to pre-pandemic levels.     •  Home health starts of episodes decreased in July 2020 primarily due to the resurgence of COVID-19 cases and        corresponding suspension of elective procedures in certain states.      •  In August, starts of episodes were above pre-pandemic levels.     6,000                                                                           5,514                5,495                                                                    5,368         5,339           5,242  5,263                       5,239          5,250                       5,317     5,000                                             4,786                         4,540                                       4,241                                4,073    4,000      3,000      2,000      1,000             1      5      9      2      6      7      1      4      8       9      2      6      0           ar      1      2      1      2      1      3       1      2     l 1     g      1      3                 ar     ar      pr     pr     ay     ay     n       n     u       u     ug     ug          M     M       M      A      A      M      M      Ju     Ju      J      A      A      A                                                Week Ended   Encompass Health                                                                                       2
 Hospice - Admissions      •  Hospice admissions experienced an initial drop in March 2020 but rebounded quickly.      300                                                                                          285           270                                                                     267                                                             262                                                                    257                          256                                                      250    250                                 239                                 236           233                         235                   213                         197    200      150      100       50        0            r 1    15      29     12     26     17     31     14      28     19      2     16     30          a       r      r      r      r      y      y      n      n      ul      ug     g      g         M      Ma     Ma     Ap      Ap    Ma      Ma     Ju     Ju      J      A     Au      Au                                              Week Ended  Encompass Health                                                                                       3
 Personal Protective Equipment (PPE) – Utilization, Cost and Inventory  u  Increased PPE Utilization    due to COVID-19                                                            INPATIENT REHABILITATION    ñ       Utilization of PPE has increased as                 Avg. Monthly Utilization       Avg. Monthly Spend          Months of       a result of new Infection control                                                                               Current       policies in response to the                                                           Historical    Current*      Historical     Current*      Utilization in       COVID-19 pandemic, including                                                                                   Inventory       mandatory masking for employees       and patients.                              MASKSMASKS  130,000      1,020,000 $      10,400  $   1,111,080        4.5                                            RESPIRATORSRESPIRATORS 5,000      62,000 $       2,200  $    249,500         3.8                                                 GOWNSGOWNS   137,500        343,000 $      45,375  $    729,410         3.8 u  Impact on Pricing                          **GLOVES**GLOVES 9,500,000 10,640,000 $     350,000  $    732,450          -    ñ       As the pandemic spread, our             TotalTotal  PPEPPE                    $    407,975   $  2,822,440       demand for PPE increased beyond       the capacity of our primary       suppliers. We have diversified       sourcing to secondary vendors,       generally at significantly higher       prices. Average pricing for masks       and gowns have increased 13x and                                       HOME HEALTH AND HOSPICE       6x, respectively, during the       pandemic.                                           Avg. Monthly Utilization       Avg. Monthly Spend          Months of                                                                                                                       Current    ñ  We have implemented a multi-tier                    Historical    Current*      Historical     Current*      Utilization in       approach to obtaining necessary                                                                                Inventory       PPE that includes maximizing the       allocated inventory from our               MASKSMASKS   -             177,000        -       $     144,170        3.5       primary suppliers (at a lower        RESPIRATORSRESPIRATORS -          44,000        -       $     167,900        6.0       contractual price) and contracting       with multiple secondary suppliers         GOWNSGOWNS    -              63,000        -       $     161,600        5.8       to source clinically-approved,       price-protected products which           **GLOVESGLOVES 1,735,400   2,969,000 $      58,657  $      99,400        1.0       are distributed through our       centralized warehouses.                 TotalTotal  PPEPPE                    $      58,657  $    573,070     Encompass Health                      *April through August 2020                                                             4                                       ** Purchases made in early September are expected to provide 2 to 3 months of glove inventory in Q4.
 Items that Impacted Q2 2020     Adjusted EBITDA of $162.2 million in Q2 2020 was impacted by:             (in millions)              Award of additional paid time off                          ($43)              Group medical reserve adjustment                             9              Workers' compensation reserve adjustment                     3              Hospital professional and general liability reserve adjustment 5              Business interruption insurance recovery                     2                      Net impact to Adjusted EBITDA                     ($24)        In Q2 2020, we adjusted our insurance reserves primarily due to the deferral of healthcare by     individuals covered by our group health and workers' compensation plans, as well as a reduction in            professional and general liability exposures due to the decline in patient volumes.       Other considerations:         Suspension of sequestration began May 1, 2020 and is currently expected to end December 31,          2020.         Increased pricing and utilization of PPE is expected to continue at least through 2020.   Encompass Health                                                                              5