Encompass Health announces plans to build a 50-bed inpatient rehabilitation hospital in Flowood, Mississippi

Rhea-AI Summary

Encompass Health (NYSE: EHC) announced plans to build a freestanding 50-bed inpatient rehabilitation hospital in Flowood, Mississippi, expected to open in 2027. The facility will offer 24-hour nursing, physical, occupational and speech therapies, private rooms, a therapy gym with advanced technologies, an in-house dialysis suite and supportive amenities.

This will be Encompass Health's second Mississippi hospital, expanding access to specialized post-acute rehabilitation services for the Jackson area and central Mississippi.

Positive

• 50-bed inpatient rehabilitation hospital planned
• Facility expected to open in 2027
• Adds second Mississippi hospital location
• Includes advanced therapy gym and in-house dialysis suite

Negative

• None.

News Market Reaction – EHC

-1.71%

1 alert

-1.71% News Effect

On the day this news was published, EHC declined 1.71%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Hospital capacity: 50 beds Nursing coverage: 24-hour Opening year: 2027

3 metrics

Hospital capacity 50 beds Planned Flowood inpatient rehabilitation hospital

Nursing coverage 24-hour Continuous nursing care at the new hospital

Opening year 2027 Expected opening of Flowood, Mississippi hospital

Market Reality Check

Price: $106.55 Vol: Volume 2,129,819 vs 20-da...

normal vol

$106.55 Last Close

Volume Volume 2,129,819 vs 20-day average 1,610,782 (1.32x average) ahead of this expansion news. normal

Technical Shares at $112.06, trading below 200-day MA of $115.6 and 12.45% under the 52-week high.

Peers on Argus

While EHC was down 1.21%, key peers like DVA (+3.9%) and THC (+2.61%) traded hig...

While EHC was down 1.21%, key peers like DVA (+3.9%) and THC (+2.61%) traded higher, suggesting stock-specific pressure rather than a sector move.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	Q4 2025 earnings	Positive	+4.1%	Strong Q4 2025 revenue, EBITDA and EPS with 2026 guidance provided.
Feb 02	Board appointment	Positive	-0.7%	Appointment of Cain A. Hayes to board, adding payor expertise.
Jan 09	Earnings call date	Neutral	-2.0%	Announcement of Q4 2025 earnings release and conference call timing.
Dec 02	Hospital opening	Positive	-0.7%	Opening of a new 50-bed rehabilitation hospital in Lake Worth, Florida.
Nov 25	JV hospital plan	Positive	+2.7%	Announcement of plans for a 40-bed JV rehab hospital with Vanderbilt.

Pattern Detected

Growth and strategic news (new hospitals, joint ventures, strong earnings) have often been received positively, but several such announcements also saw muted or negative next-day moves.

Recent Company History

Over the past several months, Encompass Health has combined balance-sheet strength with steady capacity expansion. On Feb 5, 2026, it reported strong Q4 2025 results, with net operating revenue of $1,544.6M and a 4.08% next-day gain, alongside 517 beds added in 2025. Prior news included a new 50-bed Florida hospital opening on Dec 2, 2025 and plans for a 40-bed joint-venture hospital in Tennessee, plus board refreshment via Cain Hayes’ appointment. Today’s Flowood, Mississippi hospital plan continues this pattern of network expansion.

Market Pulse Summary

This announcement extends Encompass Health’s network with a freestanding, 50-bed inpatient rehabilit...

Analysis

This announcement extends Encompass Health’s network with a freestanding, 50-bed inpatient rehabilitation hospital in Flowood, expected to open in 2027 as its second Mississippi location. It follows recent capacity additions, including a new 50-bed hospital in Florida and a planned 40-bed joint-venture facility in Tennessee. Investors may monitor execution on these builds, integration into the existing footprint, and how future earnings updates reflect returns on the company’s expanding bed base and capital plan.

Key Terms

inpatient rehabilitation hospital, neurological disorders, dialysis, activities of daily living, +2 more

6 terms

inpatient rehabilitation hospital medical

"plans to build a freestanding, 50-bed inpatient rehabilitation hospital"

A inpatient rehabilitation hospital is a medical facility where patients stay overnight to receive intensive, coordinated therapy and nursing care after a serious illness, injury or surgery—think of it as a specialized recovery “hotel” where the focus is on helping patients regain independence. It matters to investors because these hospitals have distinct payment rules, steady demand tied to aging and injury rates, and measurable metrics (like patient volume and length of stay) that directly affect revenue and profitability.

neurological disorders medical

"including strokes and other neurological disorders, brain and spinal cord injuries"

Conditions that affect the brain, spinal cord or nerves, causing problems with movement, thinking, sensation, mood or bodily control—think of them as glitches in the body’s wiring or control center. Investors care because these disorders drive demand for new treatments, influence the size of patient markets, affect regulatory approval pathways and R&D costs, and can create long-term revenue opportunities or liabilities depending on treatment success and competitive landscape.

dialysis medical

"an in-house dialysis suite, and a dining room, pharmacy and therapy courtyard"

Dialysis is a medical treatment that cleans the blood and removes extra fluid when the kidneys can no longer do that job, using a machine or a filtered solution much like an external water filter for the body. It matters to investors because dialysis creates steady demand for specialized clinics, machines, supplies and drugs, driving predictable revenue streams, capital and regulatory risks, and long-term patient volumes that affect healthcare company valuations.

activities of daily living medical

"an activities of daily living suite, an in-house dialysis suite"

Activities of daily living are the basic self-care tasks a person needs to live independently, such as bathing, dressing, eating, using the toilet, moving around, and getting in and out of bed. Investors use this measure as a practical gauge of demand for healthcare services, long-term care, assistive devices and home-based support—think of it as a way to estimate how many people will need ongoing care or equipment and how that affects revenue and costs.

occupational therapy medical

"offer physical, occupational and speech therapies designed to help patients"

Occupational therapy is a healthcare service that helps people recover, adapt, or learn everyday skills needed for work, self-care and daily activities after illness, injury, or developmental challenges. For investors, it signals a market for durable services, training devices, home modifications and long-term care spending — think of it as a practical rehabilitation “coach” that creates steady demand for equipment, clinics and related technology.

speech therapy medical

"offer physical, occupational and speech therapies designed to help patients"

Speech therapy is a process that helps individuals improve their ability to speak clearly and communicate effectively. It often involves guided practice and exercises to overcome speech difficulties or language challenges. For investors, understanding speech therapy highlights how health-related services and innovations can impact companies, markets, and economic growth in the healthcare sector.

AI-generated analysis. Not financial advice.

BIRMINGHAM, Ala. and FLOWOOD, Miss., Feb. 13, 2026 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced plans to build a freestanding, 50-bed inpatient rehabilitation hospital in Flowood, Mississippi.

The hospital will serve patients recovering from debilitating illnesses and injuries, including strokes and other neurological disorders, brain and spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24-hour nursing care, the hospital will offer physical, occupational and speech therapies designed to help patients restore function and improve their quality of life. Care will be provided by specialized nurses, therapists and physicians.

The hospital will feature private patient rooms, a spacious therapy gym with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, and a dining room, pharmacy and therapy courtyard.

"We are proud to expand Encompass Health's presence in Mississippi," said Brad Kennedy, Encompass Health group president. "This new hospital will bring high-quality, specialized rehabilitation services closer to home for residents in the Jackson area and across central Mississippi. We look forward to breaking ground and beginning the work that will ultimately help patients regain independence and return to the lives they love."

The hospital, expected to open in 2027, will be part of Encompass Health's national network of rehabilitation hospitals and its second location in Mississippi, with an existing location in Gulfport.

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 173 hospitals in 39 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 recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is 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.

Forward-Looking Statements 
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this hospital project, 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, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including development and maintenance of relationships with referral sources; 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; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems; 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 December 31, 2025, when filed.

Media contact:
Polly Manuel | 205-970-5912
media@encompasshealth.com

Investor Relations contact: 
Mark Miller | 205-970-5860
mark.miller@encompasshealth.com

 

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SOURCE Encompass Health Corp.

FAQ

What did Encompass Health (EHC) announce on February 13, 2026 about Flowood, Mississippi?

Encompass Health announced plans to build a 50-bed inpatient rehabilitation hospital in Flowood. According to Encompass Health, the facility will serve patients recovering from strokes, neurological disorders, spinal cord injuries and complex orthopedic conditions and offer specialized therapies and 24-hour nursing.

When will the new Encompass Health (EHC) Flowood hospital open and what is the timeline?

The Flowood hospital is expected to open in 2027, with site development and construction to follow groundbreaking. According to Encompass Health, the project timeline targets a 2027 opening to join its national network and expand regional rehabilitation capacity.

What services and features will the Encompass Health (EHC) Flowood hospital provide?

The hospital will offer 24-hour nursing plus physical, occupational and speech therapies and specialized physician care. According to Encompass Health, features include private rooms, a therapy gym with advanced rehab technologies, an activities-of-daily-living suite and an in-house dialysis suite.

How does the Flowood hospital affect local access to rehabilitation services from Encompass Health (EHC)?

The Flowood hospital will bring specialized inpatient rehabilitation closer to Jackson-area residents and central Mississippi. According to Encompass Health, the new location aims to improve local access to post-acute care for serious injuries and neurological conditions.

What does the Flowood expansion mean for Encompass Health (EHC) in Mississippi?

The project establishes a second Encompass Health hospital in Mississippi, expanding the company's regional presence. According to Encompass Health, the new Flowood facility complements its existing Gulfport location and broadens its statewide rehabilitation footprint.