ehc-20250424
false000078516100007851612025-04-242025-04-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 24, 2025
Encompass Health Corporation
(Exact name of Registrant as specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
001-1031563-0860407
(Commission File Number)(IRS Employer Identification No.)
9001 Liberty Parkway, Birmingham, Alabama 35242
(Address of Principal Executive Offices, Including Zip Code)
(205) 967-7116
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.     Emerging growth company   ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareEHCNew York Stock Exchange


The information contained herein is being furnished pursuant to Item 2.02 of Form 8‑K, “Results of Operations and Financial Condition,” and Item 7.01 of Form 8-K, “Regulation FD Disclosure.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 2.02. Results of Operations and Financial Condition.
On April 24, 2025, Encompass Health Corporation (“Encompass Health” or the “Company”) issued a press release reporting the financial results of the Company for the three months ended March 31, 2025. A copy of the press release is attached to this report as Exhibit 99.1 and incorporated herein by reference.
The Company uses “same-store” comparisons to explain the changes in certain performance metrics within its financial statements. Same-store comparisons are calculated based on hospitals open throughout both the full current and prior periods presented. These comparisons include the financial results of market consolidation transactions and capacity expansions (including the addition of satellite and remote hospitals) in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company's results of operations.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of Certain Officers.
On April 24, 2025, Encompass Health issued a press release announcing the appointment of Patrick W. Tuer as Executive Vice President and Chief Operating Officer, a copy of which is attached to this report as Exhibit 99.3.
Mr. Tuer, age 41, has held a number of leadership positions with the Company. Mr. Tuer has served as Group President since August 1, 2023, overseeing three of the Company’s geographic operating regions, consisting of a total of 69 hospitals. Prior to that, he served as Northeast Regional President beginning in March 2021 and as Regional Vice President, Operations beginning in November 2018. Before joining Encompass Health, he held leadership roles with both acute and post-acute hospital companies. Mr. Tuer serves on the board of directors of the American Medical Rehabilitation Providers Association.
Mr. Tuer’s current compensation arrangements are set forth below:
Element of Total Direct Compensation
Annual Base Salary$450,000
Target Senior Management Bonus Plan Opportunity65% of base
Target Long-term Equity Incentive Plan Opportunity150% of base
The structure of the incentive awards and other benefits are subject to substantially the same terms and conditions as those of the Company’s other senior vice presidents, which are also discussed in more detail in the Executive Compensation section of the Company’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 1, 2025. The Compensation and Human Capital Committee of the Board of Directors of Encompass Health will address Mr. Tuer’s compensation associated with his promotion at its next regularly scheduled meeting.
The Company has not entered into a written employment agreement with Mr. Tuer. There are no family relationships between Mr. Tuer and any of the directors or executive officers identified in the proxy or other arrangements or understandings pursuant to which he was selected as an officer, other than any arrangements or understandings with persons acting solely as officers of the Company. Since January 1, 2024, there has not been, nor is there currently proposed, any non-compensation transaction or series of similar transactions between Mr. Tuer and the Company in which the amount involved exceeds $120,000.




ITEM 7.01. Regulation FD Disclosure.
See Item 2.02, “Results of Operations and Financial Condition,” above.
In addition, a copy of the supplemental information which will be discussed during the Company’s earnings call at 9:00 a.m. Eastern Time on Friday, April 25, 2025 is attached to this report as Exhibit 99.2 and incorporated herein by reference.
Note Regarding Presentation of Non-GAAP Financial Measures
The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company’s adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow.
The Company is providing adjusted earnings per share from continuing operations attributable to Encompass Health (“adjusted earnings per share”). The Company believes the presentation of adjusted earnings per share provides useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods given that it excludes the impact of government, class action, and related settlements; professional fees—accounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging and equity instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be non-indicative of its ongoing operating performance. It is reasonable to expect that one or more of these excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period and may not directly relate to the Company’s ongoing operating performance. Accordingly, they can complicate comparisons of the Company’s results of operations across periods and comparisons of the Company’s results to those of other healthcare companies. Adjusted earnings per share should not be considered as a measure of financial performance under generally accepted accounting principles in the United States (“GAAP”) as the items excluded from it are significant components in understanding and assessing financial performance. Because adjusted earnings per share is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, it may not be comparable as presented to other similarly titled measures of other companies. The Company reconciles adjusted earnings per share to earnings per share in the press release attached as Exhibit 99.1 and the supplemental information attached as Exhibit 99.2.
The leverage ratio referenced therein is defined as the ratio of consolidated total debt to Adjusted EBITDA for the trailing four quarters. The Company believes its leverage ratio and Adjusted EBITDA are measures of its ability to service its debt and its ability to make capital expenditures. Additionally, the leverage ratio is a standard measurement used by investors to gauge the creditworthiness of an institution. The Company’s credit agreement also includes a maximum leverage ratio financial covenant which allows the Company to deduct cash on hand from consolidated total debt. In calculating the leverage ratio under our credit agreement, we are permitted to use pro forma Adjusted EBITDA, the calculation of which includes historical income statement items and pro forma adjustments, subject to certain limitations, resulting from (1) dispositions and repayments or incurrence of debt and (2) investments, acquisitions, mergers, amalgamations, consolidations and other operational changes to the extent such items or effects are not yet reflected in our trailing four-quarter financial statements. The Company reconciles Adjusted EBITDA to net cash provided by operating activities and net income in the press release attached as Exhibit 99.1 and the supplemental information attached as Exhibit 99.2.
The Company uses Adjusted EBITDA on a consolidated basis as a liquidity measure. The Company believes this financial measure on a consolidated basis is important in analyzing its liquidity because it is the key component of certain material covenants contained within the Company’s credit agreement, which is discussed in more detail in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, “Liquidity and Capital Resources,” and Note 9, Long-term Debt, to the consolidated financial statements included in its Annual Report on Form 10‑K for the year ended December 31, 2024 (the “2024 Form 10‑K”). These covenants are material terms of the credit agreement. Noncompliance with these financial covenants under the credit agreement—its interest coverage ratio and its leverage ratio—could result in the Company’s lenders requiring the Company to immediately repay all amounts borrowed. If the Company anticipated a potential covenant violation, it would seek relief from its lenders, which would have some cost to the Company, and such relief might be on terms less favorable to those in the Company’s existing credit agreement. In addition, if the Company cannot satisfy these financial covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying common stock dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the Company’s assessment of its liquidity.
In general terms, the credit agreement definition of Adjusted EBITDA, therein referred to as “Adjusted Consolidated EBITDA,” allows the Company to add back to consolidated net income interest expense, income taxes, and depreciation and amortization and then add back to consolidated net income (1) all unusual or nonrecurring items reducing consolidated net income (of which only up to $10 million in a year may be cash expenditures), (2) any losses from discontinued operations,


(3) non-ordinary course fees, costs and expenses incurred with respect to any litigation or settlement, (4) share-based compensation expense, (5) costs and expenses associated with changes in the fair value of marketable securities, (6) costs and expenses associated with the issuance or prepayment of debt and acquisitions, and (7) any restructuring charges and certain pro-forma cost savings and synergies related to transactions and initiatives, which in the aggregate are not in excess of 25% of Adjusted Consolidated EBITDA. The Company also subtracts from consolidated net income all unusual or nonrecurring items to the extent they increase consolidated net income.
The calculation of Adjusted EBITDA under the credit agreement does not require us to deduct net income attributable to noncontrolling interests or gains on fair value adjustments of hedging and equity instruments, disposal of assets, and development activities. It also does not allow us to add back losses on fair value adjustments of hedging instruments or unusual or nonrecurring cash expenditures in excess of $10 million. These items and amounts, in addition to the items falling within the credit agreement’s “unusual or nonrecurring” classification, may occur in future periods, but can vary significantly from period to period and may not directly relate to, or be indicative of, the Company's ongoing liquidity or operating performance. Accordingly, the Adjusted EBITDA calculation presented here includes adjustments for them.
Adjusted EBITDA is not a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Therefore, Adjusted EBITDA should not be considered a substitute for net income or cash flows from operating, investing, or financing activities. Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. Revenues and expenses are measured in accordance with the policies and procedures described in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2024 Form 10‑K.
The Company also uses adjusted free cash flow as an analytical indicator to assess its performance. Management believes the presentation of adjusted free cash flow provides investors an efficient means by which they can evaluate the Company’s capacity to reduce debt, pursue development activities, and return capital to its common stockholders. The calculation of adjusted free cash flow and a reconciliation of net cash provided by operating activities to adjusted free cash flow are included in the press release attached as Exhibit 99.1 and the supplemental information attached as Exhibit 99.2. This measure is not a defined measure of financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities. The Company's definition of adjusted free cash flow is net cash provided by operating activities of continuing operations minus capital expenditures for maintenance, distributions to noncontrolling interests, and certain items deemed to be non-indicative of ongoing operating performance. Common stock dividends are not included in the calculation of adjusted free cash flow. The Company’s definition of adjusted free cash flow is limited and does not represent residual cash flows available for discretionary spending. Because this measure is not determined in accordance with GAAP and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. See the consolidated statements of cash flows included in the 2024 Form 10‑K, the condensed consolidated statements of cash flows included in the Company's quarterly report on Form 10-Q for the quarterly period ended March 31, 2025 (the "March 2025 Form 10-Q"), when filed, and in the press release attached as Exhibit 99.1 for the GAAP measures of cash flows from operating, investing, and financing activities.


Forward-Looking Statements
The information contained in the press release and supplemental information includes certain estimates, projections, and other forward-looking statements that involve known and unknown risks and relate to, among other things, future events, the business model, strategy, outlook and guidance, growth targets, labor cost trends, financial plans, dividend strategies or payments, effective income tax rates, plans to repurchase its debt or equity securities, future financial performance, projected business results, ability to return value to its shareholders, projected capital expenditures and development plans, leverage ratio, guidance considerations, and the impact of future legislation or regulation. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. These estimates, projections, and other forward-looking statements are based on assumptions the Company believes, as of the date hereof, are reasonable. Inevitably, there will be differences between such estimates and actual results, and those differences may be material.
There can be no assurance that any estimates, projections, or forward-looking statements will be realized.
All such estimates, projections, and forward-looking statements speak only as of the date hereof. The Company undertakes no duty to publicly update or revise that information.
You are cautioned not to place undue reliance on the estimates, projections, and other forward-looking statements in this report, the press release, and supplemental information 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 attached press release and in the 2024 Form 10‑K, the March 2025 Form 10-Q, when filed, and in other documents the Company previously filed with the SEC, many of which are beyond the Company’s control. These factors may cause actual results to differ materially from the views, beliefs, and estimates expressed herein.
ITEM 9.01. Financial Statements and Exhibits.
(d)    Exhibits.
Exhibit NumberDescription
104Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
ENCOMPASS HEALTH CORPORATION
By:
/S/   DOUGLAS E. COLTHARP
Name:Douglas E. Coltharp
Title:Executive Vice President and Chief Financial Officer
Dated: April 24, 2025

Exhibit 99.1

encompasshealthnewlogoa15a.jpg
Media ContactApril 24, 2025
Polly Manuel, 205 969-4532
[email protected]
Investor Relations Contact
Mark Miller, 205 970-5860
[email protected]

Encompass Health reports results for first quarter 2025

Increases full-year guidance

BIRMINGHAM, Ala. - Encompass Health Corporation (NYSE: EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported its results of operations for the first quarter ended March 31, 2025.
Summary results
Growth
Q1 2025Q1 2024DollarsPercent
(In Millions, Except Per Share Data)
Net operating revenue$1,455.4 $1,316.0 $139.4 10.6 %
Income from continuing operations attributable to Encompass Health per diluted share
1.48 1.11 0.37 33.3 %
Adjusted earnings per share1.37 1.12 0.25 22.3 %
Cash flows provided by operating activities
288.6 238.8 49.8 20.9 %
Adjusted EBITDA313.6 273.0 40.6 14.9 %
Adjusted free cash flow222.4 167.6 54.8 32.7 %
(Actual Amounts)
Discharges64,98561,1116.3 %
   Same-store discharge growth4.4 %
Net patient revenue per discharge$21,816 $20,990 3.9 %
See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.
•Revenue growth of 10.6% resulted from increased discharges and pricing. Total discharges grew 6.3%, inclusive of same-store growth of 4.4%. Net patient revenue per discharge grew 3.9%.
•Cash flows provided by operating activities increased 20.9% to $288.6 million, primarily due to an increase in net income.

•Adjusted EBITDA increased 14.9% from increased revenue and expense leverage.

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“We are very pleased with our first quarter performance, which drove a 10.6% increase in revenue and a 14.9% increase in Adjusted EBITDA,” said President and Chief Executive Officer of Encompass Health Mark Tarr. “During the quarter, we further increased our capacity, opening one new 40-bed hospital and adding 25 beds to existing hospitals. Our value proposition and operating strategy continue to be validated and we remain highly optimistic about the long-term prospects of our business.”
2025 Guidance
The Company increased its full-year guidance as follows:
Full-Year 2025 Guidance
Previous GuidanceUpdated Guidance
(In Millions, Except Per Share Data)
Net operating revenue$5,800 to $5,900$5,850 to $5,925
Adjusted EBITDA$1,160 to $1,200$1,185 to $1,220
Adjusted earnings per share from continuing operations attributable to Encompass Health$4.67 to $4.96$4.85 to $5.10
For considerations regarding the Company’s 2025 guidance, see the supplemental information posted on the Company’s website at http://investor.encompasshealth.com. See also the “Other information” section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.
Earnings conference call and webcast
The Company will host an investor conference call at 9:00 a.m. Eastern Time on Friday, April 25, 2025 to discuss its results for the first quarter of 2025. For reference during the call, the Company will post certain supplemental information at http://investor.encompasshealth.com.
The conference call may be accessed by dialing 800 245-3047 and giving the conference ID EHCQ125. International callers should dial 203 518-9765 and give the same conference ID. Please call approximately ten minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available for on-line replay at http://investor.encompasshealth.com by clicking on an available link.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 167 hospitals in 38 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune's World’s Most Admired CompaniesTM, Becker’s Hospital Review’s 150 Top Places to Work in Healthcare and Forbes’ Most Trusted Companies in America.1 For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.






1 Fortune © 2025 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World’s Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health. Forbes © 2024 Forbes Media LLC. All rights reserved. Used under license.
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Other information
The information in this press release is summarized and should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 (the “March 2025 Form 10-Q”), when filed, as well as the Company’s Current Report on Form 8-K filed on April 24, 2025 (the “Q1 Earnings Form 8-K”), to which this press release is attached as Exhibit 99.1. In addition, the Company will post supplemental information today on its website at http://investor.encompasshealth.com for reference during its April 25, 2025 earnings call.
The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company’s adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow. Reconciliations to their most comparable GAAP measure, except with regard to non-GAAP guidance, are included below or in the Q1 Earnings Form 8-K. Readers are encouraged to review the “Note Regarding Presentation of Non-GAAP Financial Measures” included in the Q1 Earnings Form 8-K which provides further explanation and disclosure regarding the Company’s use of these non-GAAP financial measures.
Excluding net operating revenues, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise not indicative of its ongoing operating performance. Such items include government, class action, and related settlements; professional fees—accounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be not indicative of its ongoing operations. These items cannot be reasonably predicted and will depend on several factors, including industry and market conditions, and could be material to the Company’s results computed in accordance with GAAP.
However, the following reasonably estimable GAAP measures for 2025 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:
•Interest expense and amortization of debt discounts and fees - approximately $125 million
•Amortization of debt-related items - approximately $10 million
The Q1 Earnings Form 8-K and, when filed, the March 2025 Form 10-Q can be found on the Company’s website at http://investor.encompasshealth.com and the SEC's website at www.sec.gov.
3
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended March 31,
 20252024
(In Millions, Except Per Share Data)
Net operating revenues$1,455.4 $1,316.0 
Operating expenses:
Salaries and benefits762.3 711.6 
Other operating expenses217.5 203.9 
Occupancy costs14.9 14.0 
Supplies62.2 58.5 
General and administrative expenses52.3 50.2 
Depreciation and amortization79.2 70.3 
Total operating expenses1,188.4 1,108.5 
Interest expense and amortization of debt discounts and fees31.8 35.2 
Other income(2.5)(5.4)
Equity in net income of nonconsolidated affiliates(0.9)(0.7)
Income from continuing operations before income tax expense238.6 178.4 
Provision for income tax expense41.6 38.3 
Income from continuing operations197.0 140.1 
Loss from discontinued operations, net of tax (0.5)(1.3)
Net and comprehensive income196.5 138.8 
Less: Net and comprehensive income attributable to noncontrolling interests(45.0)(26.3)
Net and comprehensive income attributable to Encompass Health$151.5 $112.5 
Weighted average common shares outstanding:  
Basic100.5 99.8 
Diluted102.1 102.2 
Earnings per common share:
Basic earnings per share attributable to Encompass Health common shareholders:
 
Continuing operations
$1.50 $1.13 
Discontinued operations
— (0.01)
Net income
$1.50 $1.12 
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations
$1.48 $1.11 
Discontinued operations
— (0.01)
Net income
$1.48 $1.10 
Amounts attributable to Encompass Health common shareholders: 
Income from continuing operations$152.0 $113.8 
Loss from discontinued operations, net of tax (0.5)(1.3)
Net income attributable to Encompass Health$151.5 $112.5 
4
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, 2025December 31, 2024
 (In Millions)
Assets  
Current assets:  
Cash and cash equivalents$95.8 $85.4 
Restricted cash27.0 37.7 
Accounts receivable623.4 598.8 
Other current assets164.7 165.0 
Total current assets910.9 886.9 
Property and equipment, net3,723.7 3,643.1 
Operating lease right-of-use assets218.7 203.7 
Goodwill1,284.0 1,284.0 
Intangible assets, net294.5 297.8 
Other long-term assets209.5 219.2 
Total assets$6,641.3 $6,534.7 
Liabilities and Shareholders’ Equity
Current liabilities:  
Current portion of long-term debt$138.7 $138.6 
Current operating lease liabilities26.7 26.3 
Accounts payable159.1 171.0 
Accrued expenses and other current liabilities531.5 505.1 
Total current liabilities856.0 841.0 
Long-term debt, net of current portion2,333.2 2,359.2 
Long-term operating lease liabilities204.2 189.7 
Deferred income tax liabilities114.0 105.2 
Other long-term liabilities196.3 190.4 
Total liabilities3,703.7 3,685.5 
Commitments and contingencies
Redeemable noncontrolling interests56.1 56.5 
Shareholders’ equity:  
Encompass Health shareholders’ equity2,159.1 2,067.0 
Noncontrolling interests722.4 725.7 
Total shareholders’ equity2,881.5 2,792.7 
Total liabilities and shareholders’ equity$6,641.3 $6,534.7 
5
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended March 31,
 20252024
 (In Millions)
Cash flows from operating activities:  
Net income$196.5 $138.8 
Loss from discontinued operations, net of tax0.5 1.3 
Adjustments to reconcile net income to net cash provided by operating activities—  
Depreciation and amortization79.2 70.3 
Stock-based compensation9.5 9.3 
Deferred tax expense8.8 6.5 
Other, net2.3 14.9 
Change in assets and liabilities, net of acquisitions—  
Accounts receivable(24.7)(7.7)
Other assets0.7 (16.0)
Accounts payable(2.1)(3.8)
Other liabilities18.6 25.9 
Net cash used in operating activities of discontinued operations(0.7)(0.7)
Total adjustments91.6 98.7 
Net cash provided by operating activities288.6 238.8 
Cash flows from investing activities:
Purchases of property, equipment, and intangible assets(163.1)(139.4)
Proceeds from sale of restricted investments11.0 16.0 
Other, net(6.4)(6.3)
Net cash used in investing activities(158.5)(129.7)
Cash flows from financing activities:  
Borrowings on revolving credit facility60.0 50.0 
Payments on revolving credit facility(80.0)(50.0)
Taxes paid on behalf of employees for shares withheld(19.8)(12.1)
Contributions from noncontrolling interests of consolidated affiliates— 18.4 
Dividends paid on common stock(18.0)(15.9)
Distributions paid to noncontrolling interests of consolidated affiliates(32.9)(24.7)
Repurchases of common stock, including fees and expenses(32.1)— 
Other, net(7.6)(6.3)
Net cash used in financing activities(130.4)(40.6)
(Decrease) increase in cash, cash equivalents, and restricted cash(0.3)68.5 
Cash, cash equivalents, and restricted cash at beginning of period123.1 104.2 
Cash, cash equivalents, and restricted cash at end of period$122.8 $172.7 
6
Encompass Health Corporation and Subsidiaries
Supplemental Information
Earnings Per Share
Three Months Ended March 31,
20252024
(In Millions, Except Per Share Data)
Adjusted EBITDA$313.6 $273.0 
Depreciation and amortization
(79.2)(70.3)
Interest expense and amortization of debt discounts and fees
(31.8)(35.2)
Stock-based compensation(9.5)(9.3)
Loss on disposal or impairment of assets(0.2)(13.7)
192.9 144.5 
Items not indicative of ongoing operating performance:
Change in fair market value of equity securities
0.7 0.3 
Asset impairment impact on noncontrolling interests— 7.3 
Pre-tax income193.6 152.1 
Income tax expense
(41.6)(38.3)
Income from continuing operations (1)
$152.0 $113.8 
Basic shares100.5 99.8 
Diluted shares102.1 102.2 
Basic earnings per share (1)
$1.50 $1.13 
Diluted earnings per share (1)
$1.48 $1.11 
(1)Income from continuing operations attributable to Encompass Health
7
Encompass Health Corporation and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share

Three Months Ended March 31,
20252024
Earnings per share, as reported$1.48 $1.11 
Adjustments, net of tax:
Asset impairment impact— 0.02 
Income tax adjustments
(0.12)(0.01)
Adjusted earnings per share*
$1.37 $1.12 
*    Adjusted EPS may not sum due to rounding.

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Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

Three Months Ended March 31,
20252024
(In Millions)
Net cash provided by operating activities
$288.6 $238.8 
Interest expense and amortization of debt discounts and fees
31.8 35.2 
(Loss) gain on sale of investments, excluding impairments(0.1)1.3 
Equity in net income of nonconsolidated affiliates
0.9 0.7 
Net income attributable to noncontrolling interests in continuing operations
(45.0)(26.3)
Amortization of debt-related items
(2.4)(2.4)
Distributions from nonconsolidated affiliates
(0.5)(0.8)
Current portion of income tax expense32.8 31.8 
Change in assets and liabilities7.5 1.6 
Cash used in operating activities of discontinued operations0.7 0.7 
Asset impairment impact on noncontrolling interests— (7.3)
Change in fair market value of equity securities(0.7)(0.3)
Adjusted EBITDA$313.6 $273.0 

9
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share
For the Three Months Ended March 31, 2025
Adjustments
As ReportedIncome Tax AdjustmentsChange in Fair Market Value of Equity SecuritiesAs Adjusted
(In Millions, Except Per Share Amounts)
Adjusted EBITDA*$313.6 $— $— $313.6 
Depreciation and amortization(79.2)— — (79.2)
Interest expense and amortization of debt discounts and fees
(31.8)— — (31.8)
Stock-based compensation(9.5)— — (9.5)
Loss on disposal or impairment of assets(0.2)— — (0.2)
Change in fair market value of equity securities
0.7 — (0.7)— 
Income from continuing operations before income tax expense
193.6 — (0.7)192.9 
Provision for income tax expense(41.6)(12.0)0.2 (53.4)
Income from continuing operations attributable to Encompass Health
$152.0 $(12.0)$(0.5)$139.5 
Diluted earnings per share from continuing operations**$1.48 $(0.12)$— $1.37 
Diluted shares used in calculation102.1 

*    Reconciliation to GAAP provided on page 9
**    Adjusted EPS may not sum across due to rounding.
10
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share
For the Three Months Ended March 31, 2024
Adjustments
As ReportedAsset Impairment ImpactIncome Tax AdjustmentsChange in Fair Market Value of Equity SecuritiesAs Adjusted
(In Millions, Except Per Share Amounts)
Adjusted EBITDA*$273.0 $— $— $— $273.0 
Depreciation and amortization(70.3)— — — (70.3)
Interest expense and amortization of debt discounts and fees
(35.2)— — — (35.2)
Stock-based compensation(9.3)— — — (9.3)
Loss on disposal or impairment of assets(13.7)10.4 — — (3.3)
Change in fair market value of equity securities
0.3 — — (0.3)— 
Asset impairment impact on noncontrolling interests7.3 (7.3)— — — 
Income from continuing operations before income tax expense
152.1 3.1 — (0.3)154.9 
Provision for income tax expense(38.3)(1.3)(0.6)0.1 (40.1)
Income from continuing operations attributable to Encompass Health
$113.8 $1.8 $(0.6)$(0.2)$114.8 

Diluted earnings per share from continuing operations**
$1.11 $0.02 $(0.01)$— $1.12 

Diluted shares used in calculation		102.2 

*    Reconciliation to GAAP provided on page 9
**    Adjusted EPS may not sum across due to rounding.
11
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA

 Three Months Ended March 31,
 20252024
(In Millions)
Net income$196.5 $138.8 
Loss from discontinued operations, net of tax, attributable to Encompass Health0.5 1.3 
Net income attributable to noncontrolling interests included in continuing operations(45.0)(26.3)
Provision for income tax expense41.6 38.3 
Interest expense and amortization of debt discounts and fees
31.8 35.2 
Depreciation and amortization79.2 70.3 
Loss on disposal or impairment of assets0.2 13.7 
Stock-based compensation9.5 9.3 
Change in fair market value of equity securities(0.7)(0.3)
Asset impairment impact on noncontrolling interests— (7.3)
Adjusted EBITDA$313.6 $273.0 


12
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
Three Months Ended March 31,
20252024
(In Millions)
Net cash provided by operating activities$288.6 $238.8 
Impact of discontinued operations0.7 0.7 
Net cash provided by operating activities of continuing operations
289.3 239.5 
Capital expenditures for maintenance(34.0)(38.7)
Distributions paid to noncontrolling interests of consolidated affiliates
(32.9)(24.7)
Items not indicative of ongoing operating performance:
Transaction costs and related liabilities— (8.5)
Adjusted free cash flow$222.4 $167.6 
For the three months ended March 31, 2025, net cash used in investing activities was $158.5 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended March 31, 2025 was $130.4 million and resulted primarily from distributions paid to noncontrolling interests of consolidated affiliates, repurchases of common stock, net debt payments, and cash dividends paid on common stock.
For the three months ended March 31, 2024, net cash used in investing activities was $129.7 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended March 31, 2024 was $40.6 million and resulted primarily from distributions paid to noncontrolling interests of consolidated affiliates and cash dividends paid on common stock partially offset by contributions from noncontrolling interests of consolidated affiliates.
13
Encompass Health Corporation and Subsidiaries
Forward-Looking Statements
Statements contained in this press release and the supplemental information which are not historical facts, such as those relating to the business, strategy, outlook, growth targets and guidance considerations, dividend strategies, effective income tax rates, cost trends, legislative and regulatory developments or their impacts, financial guidance, ability to return value to shareholders, projected capital expenditures, acquisition opportunities, development projects, addressable market size, other balance sheet and cash flow plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, infectious disease outbreak, including the speed, depth, geographic reach and duration of its spread, which could decrease our patient volumes and revenues and lead to staffing and supply shortages and associated cost increases; Encompass Health's infectious disease prevention and control efforts; the demand for Encompass Health’s services, including based on any downturns in the economy, consumer confidence, or the capital markets; the price of Encompass Health's common stock as it affects Encompass Health's willingness and ability to repurchase shares and the financial and accounting effects of any repurchases; any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving Encompass Health, including any matters related to yet undiscovered issues, if any, in acquired operations; Encompass Health's ability to attract and retain key management personnel; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or its vendors' or partners’ information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information or inability to provide patient care because of system unavailability; Encompass Health's ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures consistent with its growth strategy; Encompass Health’s ability to realize construction time and cost savings from prefabrication of hospitals; increases in Medicare audit activity, including increased use of sampling and extrapolation, resulting in additional unpaid reimbursement claims and an increase in the backlog of appealed claims denials; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; changes in the regulation of the healthcare industry at either or both of the federal and state levels, including as part of national healthcare reform and deficit reduction and Encompass Health's ability to adapt operations to those changes, including in connection with the CMS inpatient rehabilitation review choice demonstration project; competitive pressures in the healthcare industry and Encompass Health's response thereto; Encompass Health's ability to obtain and retain favorable arrangements with third-party payors; Encompass Health's ability to control costs, particularly labor and employee benefit costs, including group medical expenses; adverse effects resulting from coverage determinations made by Medicare Administrative Contractors regarding its Medicare reimbursement claims and lengthening delays in Encompass Health's ability to recover improperly denied claims through the administrative appeals process on a timely basis; Encompass Health's ability to adapt to changes in the healthcare delivery system, including value-based purchasing and involvement in coordinated care initiatives or programs that may arise with its referral sources; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages, which may be worsened by infectious disease outbreaks, and the impact on Encompass Health's labor expenses from potential union activity, staffing shortages, and competitive compensation practices; general conditions in the economy and capital markets, including any instability or uncertainty related to trade war, armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; the increase in the cost of, or the decrease in the availability of, construction materials and necessary supplies, including as a result of tariffs and import restrictions; the increase in the costs of defending and insuring against
14
Encompass Health Corporation and Subsidiaries
Forward-Looking Statements
alleged professional liability claims, and Encompass Health's ability to predict the estimated costs related to such claims; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2024 and Form 10-Q for the quarter ended March 31, 2025, when filed.
15
2025 First Quarter Earnings Call April 25, 2025 Supplemental information

 
Encompass Health 2 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 the business outlook, guidance and growth targets, labor availability and costs, the effect of tariffs on costs, legislative and regulatory developments, strategy, capital expenditures, acquisition and other development activities, such as the de novo pipeline, costs, growth and timelines, operational initiatives, dividend strategies, leverage, repurchases of securities, outstanding shares of common stock, effective tax rates, financial performance, financial assumptions and considerations, balance sheet and cash flow plans, market barriers to entry, and addressable market size. 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 earnings release attached as Exhibit 99.1 to the Company’s Form 8-K dated April 24, 2025 (the “Q1 Earnings Release Form 8-K”), the Form 10-K for the year ended December 31, 2024, the Form 10-Q for the quarter ended March 31, 2025, when filed, 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 The following 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. Schedules are attached 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. The Q1 Earnings Release Form 8-K provides further explanation and disclosure regarding Encompass Health’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information. Forward-looking statements

 
Encompass Health 3 Summary ................................................................................................................................................................................ 4 Revenue ................................................................................................................................................................................. 5 Adjusted EBITDA .................................................................................................................................................................. 6 Earnings per share ............................................................................................................................................................... 7-8 Adjusted free cash flow ..................................................................................................................................................... 9 2025 Guidance and guidance considerations ............................................................................................................... 10-11 Adjusted free cash flow assumptions ............................................................................................................................. 12 Uses of free cash flow ........................................................................................................................................................ 13 Appendix Map of locations ................................................................................................................................................................... 15 Growth targets, fundamentals and value drivers ........................................................................................................ 16 Development activity ......................................................................................................................................................... 17 Debt maturity profile and schedule ................................................................................................................................ 18-19 New-store/same-store growth .......................................................................................................................................... 20 Payment sources .................................................................................................................................................................. 21 Operational metrics ............................................................................................................................................................ 22 Share information ................................................................................................................................................................ 23 Reconciliations to GAAP ..................................................................................................................................................... 24-29 End notes ............................................................................................................................................................................... 30-31 Table of contents

 
Encompass Health 4 Q1 2025 Summary Q1 ($ in millions, except per share data) 2025 2024 % △ Encompass Health Net operating revenue $ 1,455.4 $ 1,316.0 10.6 % Adjusted EBITDA $ 313.6 $ 273.0 14.9 % Adjusted EPS $ 1.37 $ 1.12 22.3 % Adjusted free cash flow $ 222.4 $ 167.6 32.7 % Reconciliations to GAAP provided on pages 24-29. u Capacity additions Ÿ Opened 1 de novo hospital with 40 beds in Athens, GA Ÿ Net pre-opening and ramp up costs of $2.1 million Ÿ Added 25 beds to existing hospitals u Balance sheet Ÿ Net leverage of 2.1x u Shareholder distributions Ÿ Paid quarterly cash dividend of $0.17 per share in January 2025 Ÿ Repurchased 333,679 shares of common stock for $32.1 million

 
Encompass Health 5 Revenue Q1 Q1 % Change* ($ in millions) 2025 2024 Net operating revenue: Inpatient $ 1,417.7 $ 1,282.7 10.5% Outpatient and other 37.7 33.3 13.2% Total revenue $ 1,455.4 $ 1,316.0 10.6% (Actual Amounts) Discharges 64,985 61,111 6.3% New-store discharge growth 1.9% Same-store discharge growth 4.4% Net patient revenue per discharge $ 21,816 $ 20,990 3.9% Revenue reserves related to bad debt as a percent of revenue 2.0 % 2.2 % (20) bps u Outpatient and other revenue includes a $5.3 million increase in Medicaid supplemental payments.(1) *Except for Revenue reserves related to bad debt as a percent of revenue, which is increase (decrease) Refer to pages 30-31 for end notes.

 
Encompass Health 6 Adjusted EBITDA(2) Q1 % of Revenue Q1 % of Revenue($ in millions) 2025 2024 Net operating revenue $ 1,455.4 $ 1,316.0 Operating expenses: Salaries and benefits (762.3) 52.4 % (711.6) 54.1 % Other operating expenses(a) (217.3) 14.9 % (190.2) 14.5 % Supplies (62.2) 4.3 % (58.5) 4.4 % Occupancy costs (14.9) 1.0 % (14.0) 1.1 % Hospital operating expenses (294.4) 20.2 % (262.7) 20.0 % General and administrative expenses(b) (43.3) 3.0 % (38.9) 3.0 % Other income(c) 2.3 3.1 Equity in nonconsolidated affiliates 0.9 0.7 Noncontrolling interests in continuing operations(d) (45.0) (33.6) Adjusted EBITDA $ 313.6 $ 273.0 Percent change 14.9 % Q1 Q1 ($ in millions) 2025 2024 In arriving at Adjusted EBITDA, the following were excluded: (a) Loss on disposal or impairment of assets (3) $ 0.2 $ 13.7 (b) Stock-based compensation and the change in fair market value of the non- qualified deferred comp plan $ 9.0 $ 11.3 (c) Change in fair market value of equity securities and the non-qualified deferred comp plan $ (0.2) $ (2.3) (d) Asset impairment impact on noncontrolling interests(3) $ — $ (7.3) Reconciliations to GAAP provided on pages 24-29. Refer to pages 30-31 for end notes. u Other operating expenses includes a $7.1 million increase in provider tax expenses.(1)

 
Encompass Health 7 Earnings per share - as reported Q1 ($ in millions, except per share data) 2025 2024 Adjusted EBITDA $ 313.6 $ 273.0 Depreciation and amortization (79.2) (70.3) Interest expense and amortization of debt discounts and fees (31.8) (35.2) Stock-based compensation (9.5) (9.3) Loss on disposal or impairment of assets(3) (0.2) (13.7) 192.9 144.5 Items not indicative of ongoing operating performance: Change in fair market value of equity securities 0.7 0.3 Asset impairment impact on noncontrolling interests(3) — 7.3 Pre-tax income 193.6 152.1 Income tax expense (41.6) (38.3) Income from continuing operations* $ 152.0 $ 113.8 Diluted shares (see page 23) 102.1 102.2 Diluted earnings per share* $ 1.48 $ 1.11 * Earnings per share are determined using income from continuing operations attributable to Encompass Health. Reconciliations to GAAP provided on pages 24-29. Refer to pages 30-31 for end notes.

 
Encompass Health 8 Adjusted earnings per share(4) Refer to pages 30-31 for end notes. Q1 2025 2024 Diluted earnings per share, as reported $ 1.48 $ 1.11 Adjustments, net of tax: Asset impairment impact(3) — 0.02 Income tax adjustments(5) (0.12) (0.01) Adjusted earnings per share* $ 1.37 $ 1.12 u Adjusted earnings per share removes from GAAP earnings per share the impact of items the Company believes are not indicative of its ongoing operating performance. * Adjusted EPS may not sum due to rounding. See complete calculations of adjusted earnings per share on pages 27-29.

 
Encompass Health 9 $167.6 $40.6 $— $3.4 $6.1 $4.7 $222.4 Adjusted free cash flow 3 mos. 2024 Adjusted EBITDA Working capital and other Cash interest payments Cash tax payments, net of refunds Maintenance capital expenditures Adjusted free cash flow 3 mos. 2025 Q1 2025 Adjusted free cash flow(6) Reconciliations to GAAP provided on pages 24-29. Refer to pages 30-31 for end notes. ($ in millions)

 
Encompass Health 10 2025 Guidance - updated as of April 24, 2025 Previous Guidance Updated Guidance ($ in millions, except per share data) Net Operating Revenue $5,800 to $5,900 $5,850 to $5,925 Adjusted EBITDA(2) $1,160 to $1,200 $1,185 to $1,220 Adjusted earnings per share from continuing operations attributable to Encompass Health(4) $4.67 to $4.96 $4.85 to $5.10 Reconciliations to GAAP provided on pages 24-29. Refer to pages 30-31 for end notes.

 
Encompass Health 11 2025 Guidance considerations - updated as of April 24, 2025 u Pricing Ÿ Medicare pricing increase of 3.3% for Q2 and Q3 and an estimated 2.7% for Q4 Ÿ Managed Care pricing increase of 2.0% to 3.0% Ÿ Bad debt reserves of 2.0% to 2.5% of revenue u Labor Ÿ SWB per FTE* increase of 3.25% to 3.75% u Capacity additions Ÿ 7 de novo hospitals with 340 beds and a 50-bed satellite hospital(7) Ÿ Net pre-opening and ramp-up costs of $18 million to $22 million (inclusive of costs associated with 2026 openings incurred in 2025) Ÿ 100 to 120 beds to existing hospitals u Corporate Ÿ Adjusted EBITDA impact of $11.5 million to $13.5 million ü Oracle Fusion implementation costs of $5.5 million to $6.5 million ($2.3 million in 2024) ü Addition of Augusta, GA, hospital to Piedmont joint venture increasing income attributable to noncontrolling interests (NCI) by $6.0 million to $7.0 million ($3.2 million in 2024) Ÿ Tax rate of approximately 26% Ÿ Diluted share count of 102 to 103 million shares Refer to pages 30-31 for end notes. *Includes contract labor and sign-on and shift bonuses

 
Encompass Health 12 Adjusted free cash flow(6) assumptions Certain cash flow items ($ in millions) 3 Months  2025 Actuals 2024 Actuals 2025 Assumptions Cash interest payments (net of amortization of debt discounts and fees) $29.4 $127.7 $110 to $120 Cash payments for income taxes, net of refunds $0.5 $163.8 $160 to $180 Working capital and other $27.3 $(62.7) $20 to $40 Maintenance CAPEX $34.0 $184.6 $215 to $225 Adjusted free cash flow $222.4 $690.3 $620 to $715 Increased working capital due to growth in revenue and normalized growth in group medical reserves Reconciliations to GAAP provided on pages 24-29. Refer to pages 30-31 for end notes. Increased maintenance CAPEX related to major renovation projects and programmatic hospital asset replacements Cash tax payments include an increase in pre-tax income offset by overpayment from 2024 Decreased cash interest payments due to repayment of $250 million of Senior Notes during 2024

 
Encompass Health 13 Uses of free cash flow ($ in millions) 3 Months 2025 Actuals 2024 Actuals 2025 Assumptions Growth IRF bed expansions $41.4 $96.8 $160 to $175 New IRFs - De novos 87.7 358.1 380 to 390 - Replacement IRFs and other — 3.0 TBD $129.1 $457.9 $540 to $565 Debt reduction Change in total debt(8) $25.9 $214.8 TBD Shareholder distributions Cash dividends on common stock $18.0 $62.8 ~ $72 Common stock repurchases $32.1 $31.1 TBD Refer to pages 30-31 for end notes. Ÿ ~$458 million remaining under current authorization as of March 31, 2025(9)

 
Appendix

 
Encompass Health 15 Rehabilitation hospitals “IRFs” De novos under development* * De novos under development - previously announced de novo hospitals under development as of April 23, 2025 ** IRFs under development include de novo and remote and satellite locations(7) Refer to pages 30-31 for end notes. Encompass Health Largest owner and operator of rehabilitation hospitals Company profile as of 03/31/25 167 Rehabilitation hospitals “IRFs” 66 are joint ventures 17 38 IRFs under development** States and Puerto Rico Key statistics trailing four quarters ~252,400 patient discharges ~$5.5 Billion in revenue ~40,900 employees 2025 Fortune World’s Most Admired CompaniesTM 2025 Forbes Most Trusted Companies in America 2024 Becker’s Top Places to Work in Healthcare Fortune © 2025 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World’s Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health. Forbes © 2024 Forbes Media LLC. All rights reserved. Used under license.

 
Encompass Health 16 Growth targets, fundamentals and value drivers u 2023 - 2027 Growth targets Ÿ 6 to 10 de novos per year Ÿ 80 to 120 bed additions per year Ÿ 6% to 8% discharge CAGR u Large, under penetrated, and growing inpatient rehabilitation market Ÿ Large addressable market indicated by low conversion rate of presumptively eligible inpatient rehabilitation patients Ÿ Favorable demographics driving increased demand for rehabilitation services Ÿ Unparalleled clinical expertise for treating inpatient rehabilitation conditions with consistent delivery of high-quality, cost-effective care Ÿ De novo and bed addition strategy delivers attractive financial returns Ÿ Cash flow and capital availability to fund capacity additions Ÿ Fragmented sector presents unit acquisition and joint venture opportunities Ÿ Significant barriers to entry and economies of scale Ÿ Resilient business model with focus on non-discretionary conditions occurring predominantly in an aging population u Shareholder distributions Ÿ Cash dividend (currently $0.17 per share per quarter) Ÿ Approximately $458 million remaining under current stock repurchase authorization as of March 31, 2025(9) Refer to pages 30-31 for end notes.

 
Encompass Health 17 Inpatient Rehabilitation Hospitals opened or under development Joint venture Expected open date 2025 2026 2027 De novos* Athens, GA ü 40 — — 1 Fort Myers, FL ü 2Q25 60 — — 2 Daytona Beach, FL 2Q25 50 — — 3 Danbury, CT 3Q25 40 — — 4 Lake Worth, FL 4Q25 50 — — 5 St. Petersburg, FL 4Q25 50 — — 6 Amarillo, TX 4Q25 50 — — 7 Irmo, SC — 50 — 8 Concordville, PA — 50 — 9 Loganville, GA ü — 40 — 10 Norristown, PA — 50 — 11 Avondale, AZ — 60 — 12 San Antonio, TX — 50 — 13 Wesley Chapel, FL — — 50 14 Palm Beach Gardens, FL — — 50 15 Bangor, ME — — 50 16 St. George, UT — — 50 Remote and satellite(7)* 17 Wildwood, FL (in The Villages, FL) 3Q25 50 — — Other bed additions ~110 ~120 ~120 *All dates are tentative and subject to change ~500 ~420 ~320 Development activity 1Q 2025 Development activity highlights uOpened de novos # of beds JV Ÿ Athens, GA 40 ü Beds added to existing hospitals 25 IRF development projects announced and underway** 17 ** IRFs under development include de novo and remote and satellite locations(7) Refer to pages 30-31 for end notes.

 
Encompass Health 18 2024 2025 2026 2027 2028 2029 2030 2031 * This chart does not include ~$313 of finance lease obligations or ~$92 of other notes payable. See the debt schedule on page 19. Debt maturity profile - face value ($ in millions) Revolver capacity $800 Senior Notes 4.75% $800 Senior Notes 4.5% As of March 31, 2025* $953 Available $— Drawn + $47 reserved for LCs Callable at par Callable at par $400 Senior Notes 4.625% Callable beginning April 2026 $100 Senior Notes 5.75% Callable at 102.375 Refer to pages 30-31 for end notes.

 
Encompass Health 19 Debt schedule Change in March 31, December 31, Debt vs. ($ in millions) 2025 2024 YE 2024 Advances under $1 billion revolving credit facility $ — $ 20.0 $ (20.0) Bonds Payable: 5.75% Senior Notes due 2025 99.9 99.8 0.1 4.50% Senior Notes due 2028 789.3 788.4 0.9 4.75% Senior Notes due 2030 784.9 784.2 0.7 4.625% Senior Notes due 2031 392.8 392.5 0.3 Other notes payable 92.4 94.5 (2.1) Finance lease obligations 312.6 318.4 (5.8) Long-term debt $ 2,471.9 $ 2,497.8 $ (25.9) Debt to Adjusted EBITDA 2.2 x 2.3 x Leverage net of cash and cash equivalents 2.1 x 2.2 x Reconciliations to GAAP provided on pages 24-29. The leverage ratio for 1Q25 stated in terms of the most comparable GAAP measurement would be Debt to Net cash provided by operating activities: 2.3x The leverage ratio for 2024 stated in terms of the most comparable GAAP measurement would be Debt to Net cash provided by operating activities: 2.5x

 
Encompass Health 20 0.0% 5.0% 10.0% 15.0% 20.0% New-store/same-store growth Johnston, RI (50 beds) Fort Mill, SC (39 beds) Discharges Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 New store 3.3% 3.4% 3.1% 3.5% 3.6% 3.0% 3.0% 3.3% 1.9% 2.0% 2.0% 1.9% Same store(10) 1.6% 4.1% 4.2% 5.9% 6.2% 4.3% 5.3% 6.7% 4.8% 6.8% 5.8% 4.4% Total by quarter 4.9% 7.5% 7.3% 9.4% 9.8% 7.3% 8.3% 10.0% 6.7% 8.8% 7.8% 6.3% Total by year 6.8% 8.7% 8.3% Same store by year(10) 3.1% 4.8% 5.6% Athens, GA (40 beds) Moline, IL (40 beds) Naples, FL (50 beds) Grand Forks, ND (40 beds) Lakeland, FL (50 beds) Cape Coral, FL (40 beds) Jacksonville, FL (50 beds) Knoxville, TN (73 beds) Owasso, OK (40 beds) Clermont, FL (50 beds) Bowie, MD (60 beds) Columbus, GA (40 beds) Prosper, TX (40 beds) Fitchburg, WI (56 beds) Kissimmee, FL (50 beds) Atlanta, GA (40 beds) Louisville, KY (40 beds) Refer to pages 30-31 for end notes. Houston, TX (61 beds)

 
Encompass Health 21 Payment sources (percent of revenues) Q1 Full Year 2025 2024 2024 Medicare 67.0 % 64.9 % 65.1 % Medicare Advantage 16.5 % 17.0 % 16.8 % Managed care 10.0 % 10.9 % 10.8 % Medicaid 2.9 % 3.4 % 3.3 % Other third-party payors 0.6 % 0.7 % 0.8 % Workers’ compensation 0.4 % 0.5 % 0.5 % Patients 0.2 % 0.3 % 0.3 % Other income 2.4 % 2.3 % 2.4 % Total 100.0 % 100.0 % 100.0 %

 
Encompass Health 22 Operational metrics Q1 Q4 Q3 Q2 Q1 Full Year 2025 2024 2024 2024 2024 2024 Net patient revenue-inpatient $ 1,417.7 $ 1,366.1 $ 1,316.2 $ 1,265.5 $ 1,282.7 $ 5,230.5 Net patient revenue-outpatient and other revenues 37.7 38.9 34.8 35.7 33.3 142.7 Net operating revenues $ 1,455.4 $ 1,405.0 $ 1,351.0 $ 1,301.2 $ 1,316.0 $ 5,373.2 Discharges(11) 64,985 63,839 62,715 60,833 61,111 248,498 Net patient revenue per discharge $ 21,816 $ 21,399 $ 20,987 $ 20,803 $ 20,990 $ 21,048 Outpatient visits 19,955 26,434 28,544 29,312 29,744 114,034 Average length of stay 12.2 12.0 12.2 12.2 12.3 12.2 Occupancy % 78.8 % 75.3 % 75.4 % 74.5 % 76.7 % 74.6 % # of licensed beds 11,159 11,094 11,041 10,948 10,781 11,094 Occupied beds 8,793 8,354 8,325 8,156 8,269 8,276 Full-time equivalents (FTEs) - internal 28,572 28,188 27,938 27,297 27,209 27,658 Contract labor FTEs 375 394 430 450 434 427 Total FTEs(12) 28,947 28,582 28,368 27,747 27,643 28,085 EPOB(13) 3.29 3.42 3.41 3.40 3.34 3.39 Refer to pages 30-31 for end notes.

 
Encompass Health 23 Share information Weighted Average for the Period Q1 Full Year (in millions) 2025 2024 2024 2023 2022 Basic shares outstanding 100.5 99.8 99.9 99.5 99.2 Restricted stock awards, dilutive stock options, and restricted stock units 1.6 2.4 2.3 1.8 1.2 Diluted shares outstanding 102.1 102.2 102.2 101.3 100.4 End of Period Q1 Full Year (in millions) 2025 2024 2024 2023 2022 Basic shares outstanding 100.9 100.7 100.8 100.3 99.8

 
Encompass Health 24 Net cash provided by operating activities reconciled to Adjusted EBITDA(2) Q1 Full Year ($ in millions) 2025 2024 2024 Net cash provided by operating activities $ 288.6 $ 238.8 $ 1,002.8 Interest expense and amortization of debt discounts and fees 31.8 35.2 137.4 (Loss) gain on sale of investments, excluding impairments (0.1) 1.3 2.7 Equity in net income of nonconsolidated affiliates 0.9 0.7 3.0 Net income attributable to noncontrolling interests in continuing operations (45.0) (26.3) (140.9) Amortization of debt-related items (2.4) (2.4) (9.7) Distributions from nonconsolidated affiliates (0.5) (0.8) (4.0) Current portion of income tax expense 32.8 31.8 139.5 Change in assets and liabilities 7.5 1.6 (21.9) Cash used in operating activities of discontinued operations 0.7 0.7 3.1 Asset impairment impact on noncontrolling interests(3) — (7.3) (7.3) Change in fair market value of equity securities (0.7) (0.3) (1.0) Adjusted EBITDA $ 313.6 $ 273.0 $ 1,103.7 Refer to pages 30-31 for end notes.

 
Encompass Health 25 Reconciliation of net income to Adjusted EBITDA(2) Q1 Full Year ($ in millions) 2025 2024 2024 Net income $ 196.5 $ 138.8 $ 596.6 Loss from discontinued operations, net of tax, attributable to Encompass Health 0.5 1.3 2.8 Net income attributable to noncontrolling interests included in continuing operations (45.0) (26.3) (140.9) Provision for income tax expense 41.6 38.3 150.2 Interest expense and amortization of debt discounts and fees 31.8 35.2 137.4 Depreciation and amortization 79.2 70.3 299.6 Loss on early extinguishment of debt(14)(15) — — 0.6 Loss on disposal or impairment of assets(3) 0.2 13.7 17.4 Stock-based compensation 9.5 9.3 48.3 Change in fair market value of equity securities (0.7) (0.3) (1.0) Asset impairment impact on noncontrolling interests(3) — (7.3) (7.3) Adjusted EBITDA $ 313.6 $ 273.0 $ 1,103.7 Refer to pages 30-31 for end notes.

 
Encompass Health 26 Reconciliation of net cash provided by operating activities to adjusted free cash flow(6) Q1 Full Year ($ in millions) 2025 2024 2024 Net cash provided by operating activities $ 288.6 $ 238.8 $ 1,002.8 Impact of discontinued operations 0.7 0.7 3.1 Net cash provided by operating activities of continuing operations 289.3 239.5 1,005.9 Capital expenditures for maintenance (34.0) (38.7) (184.6) Distributions paid to noncontrolling interests of consolidated affiliates (32.9) (24.7) (125.0) Items not indicative of ongoing operating performance: Transaction costs and related liabilities — (8.5) (6.0) Adjusted free cash flow $ 222.4 $ 167.6 $ 690.3 Cash dividends on common stock $ 18.0 $ 15.9 $ 62.8 Refer to pages 30-31 for end notes.

 
Encompass Health 27 Adjusted EPS(4) - Q1 2025 For the Three Months Ended March 31, 2025 Adjustments As Reported Income Tax Adjustments Change in Fair Market Value of Equity Securities As Adjusted ($ in millions, except per share amounts) Adjusted EBITDA $ 313.6 $ — $ — $ 313.6 Depreciation and amortization (79.2) — — (79.2) Interest expense and amortization of debt discounts and fees (31.8) — — (31.8) Stock-based compensation (9.5) — — (9.5) Loss on disposal or impairment of assets (0.2) — — (0.2) Change in fair market value of equity securities 0.7 — (0.7) — Income from continuing operations before income tax expense 193.6 — (0.7) 192.9 Provision for income tax expense (41.6) (12.0) 0.2 (53.4) Income from continuing operations attributable to Encompass Health $ 152.0 $ (12.0) $ (0.5) $ 139.5 Diluted earnings per share from continuing operations* $ 1.48 $ (0.12) $ — $ 1.37 Diluted shares used in calculation 102.1 * Adjusted EPS may not sum across due to rounding. Refer to pages 30-31 for end notes.

 
Encompass Health 28 For the Three Months Ended March 31, 2024 Adjustments As Reported Asset Impairment Impact Income Tax Adjustments Change in Fair Market Value of Equity Securities As Adjusted ($ in millions, except per share amounts) Adjusted EBITDA $ 273.0 $ — $ — $ — $ 273.0 Depreciation and amortization (70.3) — — — (70.3) Interest expense and amortization of debt discounts and fees (35.2) — — — (35.2) Stock-based compensation (9.3) — — — (9.3) Loss on disposal or impairment of assets(3) (13.7) 10.4 — — (3.3) Change in fair market value of equity securities 0.3 — — (0.3) — Asset impairment impact on noncontrolling interests(3) 7.3 (7.3) — — — Income from continuing operations before income tax expense 152.1 3.1 — (0.3) 154.9 Provision for income tax expense (38.3) (1.3) (0.6) 0.1 (40.1) Income from continuing operations attributable to Encompass Health $ 113.8 $ 1.8 $ (0.6) $ (0.2) $ 114.8 Diluted earnings per share from continuing operations* $ 1.11 $ 0.02 $ (0.01) $ — $ 1.12 Diluted shares used in calculation 102.2 Adjusted EPS(4) - Q1 2024 * Adjusted EPS may not sum across due to rounding. Refer to pages 30-31 for end notes.

 
Encompass Health 29 Adjusted EPS(4) - 2024 For the Year Ended December 31, 2024 Adjustments As Reported Asset Impairment Impact Loss on Early Exting. of Debt Income Tax Adjustments Change in Fair Market Value of Equity Securities As Adjusted ($ in millions, except per share amounts) Adjusted EBITDA $ 1,103.7 $ — $ — $ — $ — $ 1,103.7 Depreciation and amortization (299.6) — — — — (299.6) Interest expense and amortization of debt discounts and fees (137.4) — — — — (137.4) Stock-based compensation (48.3) — — — — (48.3) Loss on disposal or impairment of assets(3) (17.4) 10.4 — — — (7.0) Loss on early extinguishment of debt(14)(15) (0.6) — 0.6 — — — Change in fair market value of equity securities 1.0 — — — (1.0) — Asset impairment impact on noncontrolling interests(3) 7.3 (7.3) — — — — Income from continuing operations before income tax expense 608.7 3.1 0.6 — (1.0) 611.4 Provision for income tax expense (150.2) (1.3) (0.2) (7.7) 0.3 (159.1) Income from continuing operations attributable to Encompass Health $ 458.5 $ 1.8 $ 0.4 $ (7.7) $ (0.7) $ 452.3 Diluted earnings per share from continuing operations* $ 4.49 $ 0.02 $ — $ (0.08) $ (0.01) $ 4.43 Diluted shares used in calculation 102.2 * Adjusted EPS may not sum across due to rounding. Refer to pages 30-31 for end notes.

 
Encompass Health 30 End notes Reconciliations to GAAP provided on pages 24-29. (1) Historically, we have used the term “provider tax revenues” to refer to “Medicaid supplemental payments,” both of which represent amounts received in connection with state Medicaid programs that are not included in the specific Medicaid claim reimbursements we receive. These amounts include state directed and supplemental payment programs associated with Medicaid. Provider taxes are amounts paid by us to fund, in part, state Medicaid programs. We have used the term “net provider tax revenues” to represent the difference between provider taxes paid and the Medicaid supplemental payments received. (2) Adjusted EBITDA is a non-GAAP financial measure. The Company’s leverage ratio (total consolidated debt to Adjusted EBITDA for the trailing four quarters) is, likewise, a non-GAAP measure. Management and some members of the investment community utilize Adjusted EBITDA as a financial measure and the leverage ratio as a liquidity measure on an ongoing basis. These measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance or liquidity. In evaluating Adjusted EBITDA, the reader should be aware that in the future the Company may incur expenses similar to the adjustments set forth. (3) In January 2024, we received notice that our joint venture partner, Hospital Sisters Health System, intended to close its acute-care hospital, Sacred Heart Hospital in Eau Claire, WI, in which our joint venture inpatient rehabilitation hospital is located. We closed that joint venture hospital in February 2024 and incurred a one-time impairment charge of $10.4 million. The impact to net income attributable to Encompass Health during the three months ended March 31, 2024 and the twelve months ended December 31, 2024 resulting from the impairment was $1.8 million after reductions for net income attributable to noncontrolling interests of $7.3 million and the provision for income tax expense of $1.3 million. (4) The Company is providing adjusted earnings per share from continuing operations attributable to Encompass Health (“adjusted earnings per share”), which is a non-GAAP measure. The Company believes the presentation of adjusted earnings per share provides useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods given that it excludes the impact of government, class action, and related settlements, professional fees - accounting, tax, and legal, mark-to-market adjustments for stock appreciation rights, gains or losses related to hedging and equity instruments, loss on early extinguishment of debt, adjustments to its income tax provision (such as valuation allowance adjustments, settlements of income tax claims and windfall tax benefits), items related to corporate and facility restructurings, and certain other items deemed to be non-indicative of ongoing operating performance. It is reasonable to expect that one or more of these excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period and may not directly relate to the Company's ongoing operating performance. Accordingly, they can complicate comparisons of the Company's results of operations across periods and comparisons of the Company's results to those of other healthcare companies. Adjusted earnings per share should not be considered as a measure of financial performance under generally accepted accounting principles in the United States as the items excluded from it are significant components in understanding and assessing financial performance. Because adjusted earnings per share is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, it may not be comparable as presented to other similarly titled measures of other companies. (5) Income tax adjustments for the first quarter 2025, first quarter 2024, and year ended 2024 relate primarily to removal of windfall tax benefits from GAAP earnings per share. (6) The definition of adjusted free cash flow, which is a non-GAAP measure, is net cash provided by operating activities of continuing operations minus capital expenditures for maintenance, distributions to noncontrolling interests, and certain items deemed to be non-indicative of ongoing operating performance. Common stock dividends are not included in the calculation of adjusted free cash flow. Because this measure is not determined in accordance with GAAP and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies.

 
Encompass Health 31 End notes (continued) (7) Our inpatient rehabilitation hospitals (“IRFs”) may operate one or more satellite and/or remote locations. Satellite and remote locations are located proximate to one of our existing IRFs but do not have a separate Medicare provider number. As such, they are considered a bed addition, are included in same store results from the day of opening, and are not included in our count of total open hospitals. As of March 31, 2025, we operate 11 satellite and remote locations. (8) Cash used for net debt redemptions were $27.8 million and $242.1 million during the three months ended March 31, 2025 and twelve months ended December 31, 2024, respectively. (9) On October 28, 2013, the Company announced its board of directors authorized the repurchase of up to $200 million of its common stock. On February 14, 2014, the Company's board approved an increase in this common stock repurchase authorization from $200 million to $250 million. As of June 30, 2018, the remaining repurchase authorization was approximately $58 million. On July 24, 2018, the Company's board approved resetting the aggregate common stock repurchase authorization to $250 million. As of June 30, 2024, the remaining repurchase authorization was approximately $181 million. On July 24, 2024, the Company’s board approved resetting the aggregate common stock repurchase authorization to $500 million. As of March 31, 2025, the remaining repurchase authorization was approximately $458 million. (10) Same-store comparisons are calculated based on hospitals open throughout both the full current periods and prior periods presented. These comparisons include the financial results of market consolidation transactions and capacity expansions (including the addition of satellite and remote hospitals) in existing markets. (11) Represents discharges from 167 consolidated hospitals in Q1 2025; 166 consolidated hospitals in Q4 2024; 165 consolidated hospitals in Q3 2024; 163 consolidated hospitals in Q2 2024; 160 consolidated hospitals in Q1 2024. (12) Total full-time equivalents included in the table represent Encompass Health employees who participate in or support the operations of our hospitals and include full-time equivalents related to contract labor. (13) Employees per occupied bed, or “EPOB,” is calculated by dividing the number of total full-time equivalents, including full-time equivalents from the utilization of contract labor, by the number of occupied beds during each period. (14) In the third quarter of 2024, the Company redeemed $150 million of its 5.75% Senior Notes due 2025. The redemption was completed at 100% of par using cash on hand. As a result of the redemption, the Company recorded a $0.4 million loss on early extinguishment of debt in the third quarter of 2024. (15) In the fourth quarter of 2024, the Company redeemed $100 million of its 5.75% Senior Notes due 2025. The redemption was completed at 100% of par using cash on hand. As a result of the redemption, the Company recorded a $0.2 million loss on early extinguishment of debt in the fourth quarter of 2024. Reconciliations to GAAP provided on pages 24-29.

 
Exhibit 99.3
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Media contact    
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Investor Relations contact
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Encompass Health announces promotion of Patrick Tuer to newly established COO position


BIRMINGHAM, Ala., April 24, 2025 – Encompass Health Corp. (NYSE: EHC) today announced the promotion of Patrick Tuer from group president to the newly established position of chief operating officer (COO), effective immediately. As COO, Tuer will oversee hospital operations across the organization and will continue reporting to Mark Tarr, president and chief executive officer (CEO) of Encompass Health.
“Pat brings consequential experience and a broad depth of knowledge to this role and is a great example of the management talent we have within the Company,” said Tarr, adding that the promotion was prompted by Encompass Health’s significant growth.
“Our accelerated de novo program and capacity additions to existing hospitals are integral to our strategy of expanding access to high-quality rehabilitative care while improving performance across the board,” Tarr said. “Our development pipeline is robust, and we expect this growth to continue. As COO, Pat is perfectly suited to oversee our expanding portfolio of hospitals. He has been instrumental in shaping our operational success across several regions. His leadership has driven strong volume growth, operational improvements and enhanced patient outcomes.”
Tuer added, “I’m incredibly proud to take on the role of COO. At Encompass Health, we have a powerful platform supported by a talented and mission-driven workforce. Together, we’ll continue to grow strategically, innovate thoughtfully and most importantly, deliver exceptional care to the patients and communities we serve.”
As group president, Tuer oversaw three of the Company’s geographic operating regions, consisting of a total of 69 hospitals. Since joining Encompass Health in 2018, he has held several leadership positions in addition to group president, including regional president and regional vice president. Prior to joining Encompass Health, he progressed through a number of leadership roles with both acute and post-acute hospital companies.





About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 167 hospitals in 38 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune's World’s Most Admired Companies™, Becker’s Hospital Review’s 150 Top Places to Work in Healthcare and Forbes’ Most Trusted Companies in America. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

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Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to the growth prospects and the development pipeline, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health’s actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health’s response thereto; Encompass Health’s ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health’s labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health’s services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health’s SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended Dec. 31, 2024.