Encompass Health reports results for first quarter 2026
Rhea-AI Summary
Encompass Health (NYSE: EHC) reported Q1 2026 results: net operating revenue $1,586.6M, up 9.0%; Adjusted EBITDA $348.8M, up 11.2%; and income from continuing operations per diluted share $1.77, up 19.6%.
The company opened a new 49-bed hospital in Irmo, SC; added 44 beds at existing sites; and plans to open eight hospitals (389 beds) and add ~175 beds in 2026. Full-year guidance was modestly raised for revenue, Adjusted EBITDA, and adjusted EPS.
AI-generated analysis. Not financial advice.
Positive
- Adjusted EBITDA +11.2% to $348.8M in Q1 2026
- Income per diluted share +19.6% to $1.77 in Q1 2026
- Planned openings: 8 hospitals adding 389 beds in 2026
Negative
- Adjusted free cash flow down 12.9% to $193.8M in Q1 2026
News Market Reaction – EHC
On the day this news was published, EHC gained 7.48%, reflecting a notable positive market reaction. Argus tracked a peak move of +11.1% during that session. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $756M to the company's valuation, bringing the market cap to $10.87B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
EHC is up 0.9% on strong Q1 earnings and raised guidance. Several peers in Medical Care Facilities are also positive (e.g., UHS +4.97%, THC +2.37%, DVA +2.47%), but no broad sector momentum signal was flagged.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | Q4 2025 earnings | Positive | +5.9% | Strong Q4 2025 results and initial 2026 guidance with revenue and EPS growth. |
| Oct 29 | Q3 2025 earnings | Positive | -7.0% | Q3 2025 revenue, EPS and EBITDA growth with a full-year 2025 guidance raise. |
| Aug 04 | Q2 2025 earnings | Positive | +4.0% | Q2 2025 revenue, EPS and EBITDA growth plus higher 2025 guidance and expansion. |
| Apr 24 | Q1 2025 earnings | Positive | +11.8% | Q1 2025 revenue, EPS and cash flow growth with a guidance increase. |
| Apr 09 | Earnings call timing | Neutral | -1.0% | Administrative change to the timing of the Q1 2025 earnings call. |
Earnings reports with revenue/EPS growth and guidance raises often see positive reactions, though there was at least one notable negative divergence.
Over the past year, Encompass Health has repeatedly posted strong earnings with consistent growth in net operating revenue, adjusted EPS, and Adjusted EBITDA, often coupled with capacity expansion and guidance increases. Q2, Q3, and Q4 2025 all highlighted double-digit earnings growth, while Q1 2025 featured robust revenue and cash flow gains plus a guidance raise. Today’s Q1 2026 update, with higher guidance and continued bed additions, extends this pattern of earnings-driven growth.
Historical Comparison
Past earnings releases for EHC have averaged a 2.72% move, often positive when revenue and EPS growth were paired with guidance hikes. Today’s 0.9% gain sits below that typical reaction, suggesting a more measured response despite raised 2026 guidance.
EHC’s earnings history shows a steady pattern: recurring double-digit growth in adjusted EPS and EBITDA, ongoing hospital and bed additions, and multiple guidance raises from 2025 into 2026, reinforcing a multi-quarter growth trajectory.
Market Pulse Summary
The stock moved +7.5% in the session following this news. A strong positive reaction aligns with EHC’s history of earnings-driven moves, where revenue, EPS and EBITDA growth plus guidance hikes often drew buying interest. However, prior quarters such as Q3 2025 showed that even positive reports could face selling. Elevated insider net selling and the stock’s position below its 200-day MA may temper how sustainable any sharp upside proves.
Key Terms
net operating revenue financial
adjusted ebitda financial
AI-generated analysis. Not financial advice.
Increases full-year guidance
Summary results
Growth | |||||||
Q1 2026 | Q1 2025 | Dollars | Percent | ||||
(In Millions, Except Per Share Data) | |||||||
Net operating revenue | $ 1,586.6 | $ 1,455.4 | $ 131.2 | 9.0 % | |||
Income from continuing operations attributable to | 1.77 | 1.48 | 0.29 | 19.6 % | |||
Adjusted earnings per share | 1.60 | 1.37 | 0.23 | 16.8 % | |||
Cash flows provided by operating activities | 313.1 | 288.6 | 24.5 | 8.5 % | |||
Adjusted EBITDA | 348.8 | 313.6 | 35.2 | 11.2 % | |||
Adjusted free cash flow | 193.8 | 222.4 | (28.6) | (12.9) % | |||
(Actual Amounts) | |||||||
Discharges | 67,763 | 64,985 | 4.3 % | ||||
Same-store discharge growth | 1.6 % | ||||||
Net patient revenue per discharge | $ 22,633 | $ 21,816 | 3.7 % | ||||
See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.
"We are very pleased with our start to 2026 as first quarter revenue increased
2026 Guidance
The Company increased its full-year guidance as follows:
Full-Year 2026 Guidance | |||
Previous Guidance | Updated Guidance | ||
(In Millions, Except Per Share Data) | |||
Net operating revenue | |||
Adjusted EBITDA | |||
Adjusted earnings per share from continuing operations | |||
For considerations regarding the Company's 2026 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 10:00 a.m. Eastern Time on Friday, May 1, 2026 to discuss its results for the first quarter of 2026. 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 800 267-6316 and giving the conference ID EHCQ126. International callers should dial 203 518-9783 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
1 | 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. | ||||
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, 2026 (the "March 2026 Form 10-Q"), when filed, as well as the Company's Current Report on Form 8-K filed on April 30, 2026 (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 May 1, 2026 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 2026 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 2026 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.
Encompass Health Corporation and Subsidiaries | |||
Condensed Consolidated Statements of Operations | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In Millions, Except Per Share Data) | |||
Net operating revenues | $ 1,586.6 | $ 1,455.4 | |
Operating expenses: | |||
Salaries and benefits | 818.1 | 762.3 | |
Other operating expenses | 241.9 | 217.5 | |
Occupancy costs | 15.2 | 14.9 | |
Supplies | 64.3 | 62.2 | |
General and administrative expenses | 58.2 | 52.3 | |
Depreciation and amortization | 87.3 | 79.2 | |
Total operating expenses | 1,285.0 | 1,188.4 | |
Loss on early extinguishment of debt | 0.2 | — | |
Interest expense and amortization of debt discounts and fees | 31.8 | 31.8 | |
Other income | (18.7) | (2.5) | |
Equity in net income of nonconsolidated affiliates | (0.4) | (0.9) | |
Income from continuing operations before income tax expense | 288.7 | 238.6 | |
Provision for income tax expense | 56.4 | 41.6 | |
Income from continuing operations | 232.3 | 197.0 | |
Income (loss) from discontinued operations, net of tax | 15.9 | (0.5) | |
Net income | 248.2 | 196.5 | |
Less: Net income attributable to noncontrolling interests | (53.7) | (45.0) | |
Net income attributable to Encompass Health | $ 194.5 | $ 151.5 | |
Weighted average common shares outstanding: | |||
Basic | 99.2 | 100.5 | |
Diluted | 100.6 | 102.1 | |
Earnings per common share: | |||
Basic earnings per share attributable to Encompass Health | |||
Continuing operations | $ 1.80 | $ 1.50 | |
Discontinued operations | 0.16 | — | |
Net income | $ 1.96 | $ 1.50 | |
Diluted earnings per share attributable to Encompass Health | |||
Continuing operations | $ 1.77 | $ 1.48 | |
Discontinued operations | 0.16 | — | |
Net income | $ 1.93 | $ 1.48 | |
Amounts attributable to Encompass Health common | |||
Income from continuing operations | $ 178.6 | $ 152.0 | |
Income (loss) from discontinued operations, net of tax | 15.9 | (0.5) | |
Net income attributable to Encompass Health | $ 194.5 | $ 151.5 | |
Encompass Health Corporation and Subsidiaries | |||
Condensed Consolidated Balance Sheets | |||
(Unaudited) | |||
March 31, | December 31, | ||
(In Millions) | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 110.5 | $ 72.2 | |
Restricted cash | 52.9 | 30.7 | |
Accounts receivable | 676.0 | 619.2 | |
Other current assets | 189.7 | 183.8 | |
Total current assets | 1,029.1 | 905.9 | |
Property and equipment, net | 4,216.5 | 4,101.6 | |
Operating lease right-of-use assets | 205.3 | 212.6 | |
Goodwill | 1,317.6 | 1,317.6 | |
Intangible assets, net | 300.3 | 308.3 | |
Other long-term assets | 244.4 | 243.7 | |
Total assets | $ 7,313.2 | $ 7,089.7 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Current portion of long-term debt | $ 42.9 | $ 43.6 | |
Current operating lease liabilities | 26.9 | 26.5 | |
Accounts payable | 204.0 | 178.2 | |
Accrued expenses and other current liabilities | 603.0 | 588.1 | |
Total current liabilities | 876.8 | 836.4 | |
Long-term debt, net of current portion | 2,530.9 | 2,447.2 | |
Long-term operating lease liabilities | 188.7 | 196.6 | |
Deferred income tax liabilities | 135.1 | 126.8 | |
Other long-term liabilities | 214.5 | 206.9 | |
Total liabilities | 3,946.0 | 3,813.9 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 58.8 | 58.3 | |
Shareholders' equity: | |||
Encompass Health shareholders' equity | 2,521.7 | 2,438.2 | |
Noncontrolling interests | 786.7 | 779.3 | |
Total shareholders' equity | 3,308.4 | 3,217.5 | |
Total liabilities and shareholders' equity | $ 7,313.2 | $ 7,089.7 | |
Encompass Health Corporation and Subsidiaries | |||
Condensed Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In Millions) | |||
Cash flows from operating activities: | |||
Net income | $ 248.2 | $ 196.5 | |
(Income) loss from discontinued operations, net of tax | (15.9) | 0.5 | |
Adjustments to reconcile net income to net cash provided by | |||
Depreciation and amortization | 87.3 | 79.2 | |
Stock-based compensation | 11.5 | 9.5 | |
Deferred tax expense | 8.5 | 8.8 | |
(Gain) loss on investments | (16.2) | 0.1 | |
Other, net | 2.3 | 2.2 | |
Change in assets and liabilities, net of acquisitions— | |||
Accounts receivable | (53.2) | (24.7) | |
Other assets | (11.6) | 0.7 | |
Accounts payable | (2.0) | (2.1) | |
Other liabilities | 33.0 | 18.6 | |
Net cash provided by (used in) operating activities of | 21.2 | (0.7) | |
Total adjustments | 80.8 | 91.6 | |
Net cash provided by operating activities | 313.1 | 288.6 | |
Cash flows from investing activities: | |||
Purchases of property, equipment, and intangible assets | (162.4) | (163.1) | |
Proceeds from sale of restricted investments | 42.9 | 11.0 | |
Purchases of restricted investments | (26.4) | (2.3) | |
Other, net | (4.2) | (4.1) | |
Net cash used in investing activities | (150.1) | (158.5) | |
Cash flows from financing activities: | |||
Borrowings on revolving credit facility | 420.0 | 60.0 | |
Payments on revolving credit facility | (330.0) | (80.0) | |
Repurchases of common stock, including fees and expenses | (71.6) | (32.1) | |
Dividends paid on common stock | (20.3) | (18.0) | |
Distributions paid to noncontrolling interests of consolidated | (57.8) | (32.9) | |
Taxes paid on behalf of employees for shares withheld | (30.9) | (19.8) | |
Other, net | (11.9) | (7.6) | |
Net cash used in financing activities | (102.5) | (130.4) | |
Increase (decrease) in cash, cash equivalents, and restriced cash | 60.5 | (0.3) | |
Cash, cash equivalents, and restricted cash at beginning of | 102.9 | 123.1 | |
Cash, cash equivalents, and restricted cash at end of period | $ 163.4 | $ 122.8 | |
Encompass Health Corporation and Subsidiaries | |||
Supplemental Information | |||
Earnings Per Share | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In Millions, Except Per Share Data) | |||
Adjusted EBITDA | $ 348.8 | $ 313.6 | |
Depreciation and amortization | (87.3) | (79.2) | |
Interest expense and amortization of debt discounts and fees | (31.8) | (31.8) | |
Stock-based compensation | (11.5) | (9.5) | |
Loss on disposal or impairment of assets | (0.3) | (0.2) | |
217.9 | 192.9 | ||
Items not indicative of ongoing operating performance: | |||
Loss on early extinguishment of debt | (0.2) | — | |
Change in fair market value of marketable securities | (0.2) | 0.7 | |
Gain on sale of Gamma Knife | 17.5 | — | |
Pre-tax income | 235.0 | 193.6 | |
Income tax expense | (56.4) | (41.6) | |
Income from continuing operations (1) | $ 178.6 | $ 152.0 | |
Basic shares | 99.2 | 100.5 | |
Diluted shares | 100.6 | 102.1 | |
Basic earnings per share (1) | $ 1.80 | $ 1.50 | |
Diluted earnings per share (1) | $ 1.77 | $ 1.48 | |
(1) | Income from continuing operations attributable to Encompass Health |
Encompass Health Corporation and Subsidiaries | |||
Supplemental Information | |||
Adjusted Earnings Per Share | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Earnings per share, as reported | $ 1.77 | $ 1.48 | |
Adjustments, net of tax: | |||
Income tax adjustments | (0.05) | (0.12) | |
Gain on sale of Gamma Knife | (0.13) | — | |
Adjusted earnings per share* | $ 1.60 | $ 1.37 | |
* | Adjusted EPS may not sum due to rounding. |
Encompass Health Corporation and Subsidiaries | |||
Supplemental Information | |||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In Millions) | |||
Net cash provided by operating activities | $ 313.1 | $ 288.6 | |
Interest expense and amortization of debt discounts and fees | 31.8 | 31.8 | |
Gain (loss) on investments, excluding impairments | 16.2 | (0.1) | |
Equity in net income of nonconsolidated affiliates | 0.4 | 0.9 | |
Net income attributable to noncontrolling interests in continuing | (53.7) | (45.0) | |
Amortization of debt-related items | (2.4) | (2.4) | |
Distributions from nonconsolidated affiliates | (0.1) | (0.5) | |
Current portion of income tax expense | 47.9 | 32.8 | |
Change in assets and liabilities | 33.8 | 7.5 | |
Cash (provided by) used in operating activities of discontinued | (21.2) | 0.7 | |
Change in fair market value of marketable securities | 0.2 | (0.7) | |
Gain on sale of Gamma Knife | (17.5) | — | |
Other | 0.3 | — | |
Adjusted EBITDA | $ 348.8 | $ 313.6 | |
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, 2026 | |||||||||||
Adjustments | |||||||||||
As | Loss on | Income Tax | Change in Fair | Gain on | As | ||||||
(In Millions, Except Per Share Amounts) | |||||||||||
Adjusted EBITDA* | $ 348.8 | $ — | $ — | $ — | $ — | $ 348.8 | |||||
Depreciation and amortization | (87.3) | — | — | — | — | (87.3) | |||||
Interest expense and amortization of debt discounts and fees | (31.8) | — | — | — | — | (31.8) | |||||
Stock-based compensation | (11.5) | — | — | — | — | (11.5) | |||||
Loss on disposal or impairment of assets | (0.3) | — | — | — | — | (0.3) | |||||
Loss on early extinguishment of debt | (0.2) | 0.2 | — | — | — | — | |||||
Change in fair market value of marketable securities | (0.2) | — | — | 0.2 | — | — | |||||
Gain on sale of Gamma Knife | 17.5 | — | — | — | (17.5) | — | |||||
Income from continuing operations before income tax | 235.0 | 0.2 | — | 0.2 | (17.5) | 217.9 | |||||
Provision for income tax expense | (56.4) | (0.1) | (4.7) | — | 4.5 | (56.7) | |||||
Income from continuing operations attributable to | $ 178.6 | $ 0.1 | $ (4.7) | $ 0.2 | $ (13.0) | $ 161.2 | |||||
Diluted earnings per share from continuing operations** | $ 1.77 | $ — | $ (0.05) | $ — | $ (0.13) | $ 1.60 | |||||
Diluted shares used in calculation | 100.6 | ||||||||||
* | See reconciliation of net income to Adjusted EBITDA. |
** | Adjusted EPS may not sum across due to rounding. |
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 | Income Tax | Change in Fair | As | ||||
(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 marketable 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 | $ 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 | ||||||
* | See reconciliation of net income to Adjusted EBITDA. |
** | Adjusted EPS may not sum across due to rounding. |
Encompass Health Corporation and Subsidiaries | |||
Supplemental Information | |||
Reconciliation of Net Income to Adjusted EBITDA | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In Millions) | |||
Net income | $ 248.2 | $ 196.5 | |
(Income) loss from discontinued operations, net of tax, attributable to | (15.9) | 0.5 | |
Net income attributable to noncontrolling interests included in | (53.7) | (45.0) | |
Provision for income tax expense | 56.4 | 41.6 | |
Interest expense and amortization of debt discounts and fees | 31.8 | 31.8 | |
Depreciation and amortization | 87.3 | 79.2 | |
Loss on early extinguishment of debt | 0.2 | — | |
Loss on disposal or impairment of assets | 0.3 | 0.2 | |
Stock-based compensation | 11.5 | 9.5 | |
Change in fair market value of marketable securities | 0.2 | (0.7) | |
Gain on sale of Gamma Knife | (17.5) | — | |
Adjusted EBITDA | $ 348.8 | $ 313.6 | |
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, | |||
2026 | 2025 | ||
(In Millions) | |||
Net cash provided by operating activities | $ 313.1 | $ 288.6 | |
Impact of discontinued operations | (21.2) | 0.7 | |
Net cash provided by operating activities of continuing operations | 291.9 | 289.3 | |
Capital expenditures for maintenance | (43.8) | (34.0) | |
Distributions paid to noncontrolling interests of consolidated affiliates | (57.8) | (32.9) | |
Items not indicative of ongoing operating performance: | |||
Transaction costs and related liabilities | 3.5 | — | |
Adjusted free cash flow | $ 193.8 | $ 222.4 | |
For the three months ended March 31, 2026, net cash used in investing activities was
For the three months ended March 31, 2025, net cash used in investing activities was
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, possible reductions or other changes in Medicaid, including Medicaid directed and supplemental payment programs and Medicaid waiver programs, which may decrease our revenues and increase our provider tax expenses; 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 and consumer confidence in patient care; 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; 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, including as part of the review choice demonstration; Encompass Health's ability to adapt to changes in the healthcare delivery system, including value-based purchasing such as the transforming episode accountability model 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
Media Contact
Polly Manuel, 205 969-4532
polly.manuel@encompasshealth.com
Investor Relations Contact
Mark Miller, 205 970-5860
mark.miller@encompasshealth.com
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SOURCE Encompass Health Corp.