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Encompass Health (EHC) Ties Up to Better Serve Florida Residents
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Encompass Health Corporation (EHC - Free Report) recently announced a partnership with the wholly owned subsidiary of Southwest Florida’s renowned integrated healthcare services organization Lee Health — Lee Healthcare Holdings, LLC.
Through the tie-up, both the healthcare providers intend to co-own and collectively operate new inpatient rehabilitation hospitals (two in number) in Southwest Florida. EHC’s proven post-acute services expertise will be utilized to deliver improved health outcomes to patients across the region.
Lee Health’s management recently gave the nod to pursuing investment in order to make the partnership more effective, which in turn will strengthen the partnership. Among the two hospitals likely to be formed as part of the venture, the first one comprising 40 beds located in Cape Coral is set to commence operations from May 2022 and is currently under construction. The second one, which is anticipated to open in 2024 and situated in Fort Myers, will be equipped with 60 beds. Lee Health plans to relocate its Lee Memorial Hospital’s rehabilitation unit (containing 60 beds) to the Fort Myers hospital once the latter starts operating.
The recent partnership is reflective of Encompass Health’s efforts to boost its presence in Florida. EHC already boasts of a well-established presence in the state, and Lee Health, which has more than ten decades of experience in catering to the health needs of Florida residents, seems to be the apt partner for complementing Encompass Health’s endeavor.
EHC has been able to substantiate the credibility of its affordable and high-quality inpatient rehabilitative services across 35 states and Puerto Rico, as a result of which it remains the trusted partner for several healthcare providers. Encompass Health delivers these services through the Inpatient Rehabilitation segment. The segment, in fact, usually contributes the most to EHC’s top-line growth and the trend sustained in 2021 as well (78.4% of revenues).
Considering the solid demand for high-quality rehabilitation care, the healthcare provider pursues continuous expansion plans for bolstering its inpatient rehabilitation portfolio. The past year has been an active one with respect to EHC’s expansion endeavors. It seems to be following a similar path from the beginning of 2022. With the inauguration of the Rehabilitation Institute of Southern Illinois in February 2022, the healthcare provider’s inpatient rehabilitation hospital count rose to 146.
EHC aims to intensify its focus on growing its Inpatient Rehabilitation segment, as a result of which it looked for strategic alternatives aimed at partial or complete separation of the home health and hospice business. To this effect, Encompass Health announced spin off of its home health and hospice business in January 2022. The transaction is anticipated to complete in the first half of 2022.
Apart from Encompass Health, healthcare providers like Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Community Health Systems, Inc. (CYH - Free Report) deliver high-quality rehabilitative services and boast a solid nationwide portfolio.
Tenet Healthcare operates a network of hospitals and related healthcare facilities for offering high-quality rehabilitative services and other healthcare-related services. THC has been continuously undertaking numerous acquisitions, partnerships and strategic alliances for driving scale of business, operating capacity and expanding geographical presence. At the end of 2021, Tenet Healthcare comprises an expansive care network encompassing 60 hospitals and 535 other healthcare facilities.
HCA Healthcare operates as one of the leading U.S. healthcare services providers, with a portfolio consisting of 182 hospitals, five psychiatric hospitals and two rehabilitation hospitals at the 2021-end. HCA manages 125 freestanding surgery centers and 21 freestanding endoscopy centers. HCA Healthcare has been pursuing acquisitions, which have been bolstering its portfolio, leading to network expansion and driving patient volumes.
Being a well-established operator of general acute care hospitals and outpatient facilities across U.S. communities, Community Health either owned or leased 81 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals at the end of 2021. CYH has over 1,000 outpatient facilities in place. Community Health aims to add facilities and pursue buyouts for bolstering its capabilities and nationwide network.
Shares of Encompass Health have gained 2.7% year to date against the industry’s decline of 13.1%.
Tenet Healthcare stock has gained 4.9% on a year-to-date basis. Meanwhile, shares of HCA Healthcare and Community Health have lost 1.4% and 20.2%, respectively, in the same time frame.
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Encompass Health (EHC) Ties Up to Better Serve Florida Residents
Encompass Health Corporation (EHC - Free Report) recently announced a partnership with the wholly owned subsidiary of Southwest Florida’s renowned integrated healthcare services organization Lee Health — Lee Healthcare Holdings, LLC.
Through the tie-up, both the healthcare providers intend to co-own and collectively operate new inpatient rehabilitation hospitals (two in number) in Southwest Florida. EHC’s proven post-acute services expertise will be utilized to deliver improved health outcomes to patients across the region.
Lee Health’s management recently gave the nod to pursuing investment in order to make the partnership more effective, which in turn will strengthen the partnership. Among the two hospitals likely to be formed as part of the venture, the first one comprising 40 beds located in Cape Coral is set to commence operations from May 2022 and is currently under construction. The second one, which is anticipated to open in 2024 and situated in Fort Myers, will be equipped with 60 beds. Lee Health plans to relocate its Lee Memorial Hospital’s rehabilitation unit (containing 60 beds) to the Fort Myers hospital once the latter starts operating.
The recent partnership is reflective of Encompass Health’s efforts to boost its presence in Florida. EHC already boasts of a well-established presence in the state, and Lee Health, which has more than ten decades of experience in catering to the health needs of Florida residents, seems to be the apt partner for complementing Encompass Health’s endeavor.
EHC has been able to substantiate the credibility of its affordable and high-quality inpatient rehabilitative services across 35 states and Puerto Rico, as a result of which it remains the trusted partner for several healthcare providers. Encompass Health delivers these services through the Inpatient Rehabilitation segment. The segment, in fact, usually contributes the most to EHC’s top-line growth and the trend sustained in 2021 as well (78.4% of revenues).
Considering the solid demand for high-quality rehabilitation care, the healthcare provider pursues continuous expansion plans for bolstering its inpatient rehabilitation portfolio. The past year has been an active one with respect to EHC’s expansion endeavors. It seems to be following a similar path from the beginning of 2022. With the inauguration of the Rehabilitation Institute of Southern Illinois in February 2022, the healthcare provider’s inpatient rehabilitation hospital count rose to 146.
EHC aims to intensify its focus on growing its Inpatient Rehabilitation segment, as a result of which it looked for strategic alternatives aimed at partial or complete separation of the home health and hospice business. To this effect, Encompass Health announced spin off of its home health and hospice business in January 2022. The transaction is anticipated to complete in the first half of 2022.
Apart from Encompass Health, healthcare providers like Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Community Health Systems, Inc. (CYH - Free Report) deliver high-quality rehabilitative services and boast a solid nationwide portfolio.
Tenet Healthcare operates a network of hospitals and related healthcare facilities for offering high-quality rehabilitative services and other healthcare-related services. THC has been continuously undertaking numerous acquisitions, partnerships and strategic alliances for driving scale of business, operating capacity and expanding geographical presence. At the end of 2021, Tenet Healthcare comprises an expansive care network encompassing 60 hospitals and 535 other healthcare facilities.
HCA Healthcare operates as one of the leading U.S. healthcare services providers, with a portfolio consisting of 182 hospitals, five psychiatric hospitals and two rehabilitation hospitals at the 2021-end. HCA manages 125 freestanding surgery centers and 21 freestanding endoscopy centers. HCA Healthcare has been pursuing acquisitions, which have been bolstering its portfolio, leading to network expansion and driving patient volumes.
Being a well-established operator of general acute care hospitals and outpatient facilities across U.S. communities, Community Health either owned or leased 81 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals at the end of 2021. CYH has over 1,000 outpatient facilities in place. Community Health aims to add facilities and pursue buyouts for bolstering its capabilities and nationwide network.
Shares of Encompass Health have gained 2.7% year to date against the industry’s decline of 13.1%.
Image Source: Zacks Investment Research
EHC currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tenet Healthcare stock has gained 4.9% on a year-to-date basis. Meanwhile, shares of HCA Healthcare and Community Health have lost 1.4% and 20.2%, respectively, in the same time frame.