Encompass Health (NYSE: EHC) has completed its spin-off of Enhabit Home Health & Hospice (NYSE: EHAB), which as of today is a separate, publicly traded company on the New York Stock Exchange (NYSE).
Encompass announced the strategic repositioning of its home health and hospice segment in December 2020. The new company expects to earn nearly $1.08 billion to $1.12 billion this year, with an adjusted EBITDA of $197 million, according to a previous Encompass Health earnings call.
“Today marks a new and exciting chapter for our company, and we look forward to embarking on this next phase of growth with our team,” said Enhabit President and CEO Barb Jacobsmeyer. “We remain rooted in our philosophy of providing a better way to care for patients and their loved ones,”
As of day one, Enhabit has 10,000 employees at 351 locations in 34 states. During the first quarter of the year, the former Encompass Health’s hospice segment saw net operating revenues fall 2.4% in Q1 2022 to $49.4 million, down from $50.6 million in the prior year’s quarter. Home health revenues rose 2.3% to $224.9 million.
From the outset, Enhabit seeks expansion.
The company has allocated $2 million to $3 million to fund de novo locations for the remainder of the year, according to 2022 guidance. Enhabit has also put aside $50 million to $100 million per year for acquisitions, with the goal of co-locating its home health and hospice operations.
Enhabit has set its sights on increasing hospice admissions by 10% to 15% during 2022, as well as 10% for home health.
“As an independent company, we will have enhanced strategic and operational flexibility to put the interests of our patients, people, and investors first as we strive to bring high-quality, compassionate care to every patient where they are most comfortable: in their homes,” Jacobsmeyer said.
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