Encompass Health (EHC) Expands in Louisville With New Rehab Unit
Encompass Health Corporation EHC recently inaugurated the Baptist Health Rehabilitation Hospital. Equipped with 40 beds, the facility operates as a joint venture hospital between EHC and the Kentucky-based health system, Baptist Health. Plans to establish the hospital were laid in October 2021.
The hospital offers an array of amenities, including private patient rooms, a spacious therapy gym equipped with cutting-edge rehabilitation technologies, a daily living suite, a therapy courtyard, a dining area, a pharmacy and a dayroom area. In addition to this, the facility is armed with well-trained nurses, therapists and physicians. Patients can avail intensive therapy for a minimum of three hours five days a week and can also opt for frequent physician visits and round-the-clock nursing care.
The efficient care team will extend vital rehabilitative services in the form of physical, occupational and speech therapies to patients suffering from debilitating injuries and illnesses, which can be strokes, other neurological disorders, brain injuries, spinal cord injuries, amputations and complicated orthopedic conditions. This, in turn, is likely to play a great role in the speedy recovery of patients across the Louisville community and enable them to return to their daily lives.
The recent announcement is expected to further strengthen the presence of Encompass Health in Kentucky. Baptist Health seems to be an apt partner for complementing EHC’s endeavor since it has been offering inpatient rehabilitation services in Louisville for more than four decades. Joint ventures with regional healthcare providers are beneficial for EHC since they serve as a means to gain an in-depth knowledge of the diversified healthcare needs of a particular region.
The latest hospital opening takes the overall count of Encompass Health’s inpatient rehabilitation hospitals to 163. Before this, the last hospital added to the list was the Rehabilitation Hospital of Atlanta, which was inaugurated this May.
Encompass Health follows a remarkable expansion endeavor throughout the year and aims to delve deeper into several U.S. communities grappling with inadequate access to rehabilitative care through the opening of inpatient rehabilitation hospitals. An increase in the facility count is likely to provide an opportunity for EHC to treat more patients and bring higher revenues.
Management estimates operating revenues to be between $5.25 billion and $5.325 billion for 2024, the midpoint of which indicates a 10.1% rise from the 2023 reported figure.
Shares of Encompass Health have gained 27.9% in the past year compared with the industry’s 15.6% growth. EHC currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks in the Medical space are Bioventus Inc. BVS, LeMaitre Vascular, Inc. LMAT and Tenet Healthcare Corporation THC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bioventus’ earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 151.67%. The Zacks Consensus Estimate for BVS’ 2024 earnings is pegged at 27 cents per share, which indicates a nearly 14-fold increase from the prior-year figure. The consensus mark for revenues implies an improvement of 6% from the prior-year tally. The consensus mark for BVS’ earnings has moved 68.8% north in the past 60 days.
The bottom line of LeMaitre Vascular outpaced estimates in each of the trailing four quarters, the average surprise being 10.12%. The Zacks Consensus Estimate for LMAT’s 2024 earnings indicates a rise of 31.1% while the same for revenues implies an improvement of 11.3% from the respective prior-year tallies. The consensus mark for LMAT’s earnings has moved 6.6% north in the past 60 days.
Tenet Healthcare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 56.50%. The Zacks Consensus Estimate for THC’s 2024 earnings indicates a rise of 22.5% from the prior-year tally. The consensus mark for THC’s earnings has moved up 4.5% in the past 30 days.
Shares of Bioventus, LeMaitre Vascular and Tenet Healthcare have gained 80.2%, 22.4% and 70.6%, respectively, in the past year.
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