Encompass Health sees slight rebound in third quarter


Inpatient rehabilitation hospital and home health operator Encompass Health saw a slight uptick in its third quarter net operating revenue, the company said Wednesday.

The Birmingham, Ala.-based company reported net operating revenue of $1.2 billion during the third quarter that ended Sept. 30, up 1% from the previous year. That compares to a 5% loss in net operating revenue during the second quarter.

“Our teams are doing an extraordinary job in managing through the COVID-19 pandemic,” Encompass Health President and CEO Mark Tarr said in a statement. “Our volumes recovered substantially in the third quarter, and we remain confident in the longer-term outlook for our company.”

Encompass Health attributed revenue growth to inpatient rehabilitation pricing 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.

In the third quarter, the company announced plans for seven new inpatient rehabilitation hospitals. Encompass Health plans to open eight inpatient rehabilitation hospitals in both 2021 and 2022.

Encompass also on Sept. 30 issued $400 million in bonds that will mature in 2031 as part of a $700 million refinancing. The company said it would use the money from the offering, as well as $300 million in cash, to pay off at face value $700 million in 5.75% coupon senior notes due in 2024.

Encompass Health operates 136 hospitals, 242 home health locations and 83 hospice locations in 39 states and Puerto Rico.

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