Companies · EHC
Encompass Health
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Latest analysis
Updated Nov 6, 2026
Encompass Health closes 90-bed Florida rehabilitation hospital indefinitely due to flood damage; FY2026 guidance reaffirmed.
Encompass Health's Sea Pines Rehabilitation Hospital in Melbourne, Florida—a 90-bed joint venture facility—sustained catastrophic flood damage on November 1–2, 2026, and remains closed indefinitely. The facility generated approximately $44 million in revenue and $14 million in Adjusted EBITDA for the first nine months of 2026. Management has reaffirmed full-year 2026 guidance, treating closure-related remediation and operating expenses as non-GAAP adjustments outside ongoing operating performance. The company and its joint venture partner are evaluating alternatives for refurbishment or replacement.
Tone: defensiveRevenue
$5.9B
EHC 10-K · FY 2025
Employees
42,000
Revenue growth YoY
+10.5%
Headquarters
Birmingham, AL
Profile
EHC 10-K Item 1 · Feb 26, 2026Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States by patients treated, revenues, and hospital count. The company provides specialized post-acute rehabilitative care across 39 states and Puerto Rico, serving patients recovering from strokes, hip fractures, brain injuries, and other debilitating conditions. Its revenue is derived predominantly from Medicare and Medicare Advantage, which together represent approximately 82% of total revenues.
Read filing description ↓ Collapse description ↑
We are the nation's largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals. We provide specialized rehabilitative treatment, using advanced technology and intensive therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence and quality of life. We operate hospitals in 39 states and Puerto Rico, with concentrations in Florida and Texas. As of December 31, 2025, we operated 173 inpatient rehabilitation hospitals. Our inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver comprehensive, high-quality, cost-effective patient care services. Substantially all (92%) of the patients we serve are admitted from acute-care hospitals following physician referrals for specific acute inpatient rehabilitative care. Most of those patients have experienced significant physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and a variety of debilitating neurological conditions, that are generally nondiscretionary in nature and require rehabilitative healthcare services in a facility-based setting. Our teams of highly skilled nurses and physical, occupational, and speech therapists utilize proven technology and clinical protocols with the objective of restoring our patients' physical and cognitive abilities. Our strategy is to expand our network of inpatient rehabilitation hospitals, add capacity to existing hospitals, further strengthen our relationships with healthcare systems, provider networks, and payors in order to connect patient care across the healthcare continuum, and to deliver superior patient outcomes in a cost-effective manner.
Primary products
- Inpatient rehabilitation hospital services
- Outpatient rehabilitation services
- Post-acute innovation solutions
- Electronic medical record technologies
- Data analytics and predictive analytics
Business segments
End markets
Geographies
Named customers
Revenues from Medicare and Medicare Advantage represent approximately 82% of total revenues.
“We are the nation's largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Net operating revenues increased 10.5% over 2024 due primarily to volume growth and increased pricing.
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