Inpatient rehabilitation hospital and home health operator Encompass Health had a minor increase in its 2020 fourth quarter net operating revenue but predicts it will have a stronger 2021, the company said Tuesday.
The Birmingham, Ala.-based company reported net operating revenue of $1.2 billion during the fourth quarter of 2020, up 3% from the previous year. During the third quarter, Encompass experienced a 1% increase in net operating revenue.
“We are pleased with our performance in 2020, which demonstrates the resiliency of our business model,” said Encompass Health President and CEO Mark Tarr said in a prepared statement. “As we look ahead into 2021, we remain confident in our business and long-term prospects.”
The provider projected its operating revenue will rise 8% in 2021.
Encompass Health said growth was tied to favorable pricing in the inpatient rehabilitation segment but noted that those gains were partially offset by lower volumes in both inpatient rehabilitation and home health and hospice operations, as well as lower pricing in the home health and hospice segment.
Encompass Health in December said it was looking at options for its home health and hospice segment. At the time, the company said “a range of options are under consideration,” including separating the home health and hospice business through an initial public offering, spin-off, merger or sale.
The company on Tuesday said no decision on that segment has been made, and that its 2021 projections are based on its current business structure.
In 2021, Encompass Health expects to see net operating revenue of $5 billion to $5.17 billion. In 2020, the company reported $4.6 billion in net operating revenue.
Encompass Health operates 137 hospitals, 241 home health locations and 82 hospice locations in 39 states and Puerto Rico.