Yahoo Finance Encompass Health (EHC) JV Opens Atlanta Rehabilitation Hospital
Encompass Health Corporation EHC recently opened the Rehabilitation Hospital of Atlanta at 1968 Peachtree Road NW. This new 40-bed inpatient rehabilitation hospital is a joint venture (JV) between Encompass Health and Piedmont, the largest healthcare system in the state of Georgia.
The new hospital in Atlanta, GA, will help patients recover from amputations, brain injuries, complex orthopedic conditions, spinal cord injuries and strokes and regain function. Patients will receive at least three hours of intensive therapy five days a week, along with whole-day nursing care and frequent physician visits.
The move further strengthens Encompass Health’s partnership with Piedmont, which includes several other JV rehabilitation hospital locations. Notably, the new facility marks the 162nd inpatient rehabilitation hospital of EHC in the country (in 37 states and Puerto Rico). It helped the company to expand its footprint in Georgia, where it now has seven locations.
The company is well on its way to achieving its expansionary goals. A few days back, it announced the opening of The Rehabilitation Institute of St. Louis – West County at 998 Woods Mill Road. The 40-bed inpatient rehabilitation facility is a JV between EHC and BJC HealthCare.
For this year, Encompass Health had plans to expand its capacity by adding six new hospitals (de novos) with a total of 280 beds and increasing the bed count in existing hospitals by 150. For the 2023-2027 period, the company has plans to open 6-10 new hospitals annually and add 80-120 beds each year. Encompass Health also targets an annual discharge growth rate (CAGR) of 6-8% during this period.
These strategic growth initiatives are designed to meet the rising demand for rehabilitation services and to gain a stronger foothold in the highly fragmented market. It will position Encompass Health to capture a larger market share and achieve strong financial returns.
Price Performance
Shares of Encompass Health have gained 40.6% in the past year compared with the 21.7% growth of the industry.
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Zacks Rank & Other Key Picks
Encompass Health currently has a Zacks Rank #2 (Buy). Some other top-ranked players in the broader Medical space are Sera Prognostics, Inc. SERA, HealthEquity, Inc. HQY and Brookdale Senior Living Inc. BKD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Sera Prognostics’ 2024 bottom line suggests a 19% year-over-year improvement. SERA‘s average earnings surprise for the past four quarters is at 3.7%. The consensus mark for its current-year revenues indicates a 14.4% year-over-year increase.
The Zacks Consensus Estimate for HealthEquity’s current-year earnings implies a 28.9% increase from the year-ago reported figure. HQY beat earnings estimates in each of the last four quarters, with an average surprise of 17.4%. The consensus mark for its current-year revenues is pegged at almost $1.2 billion, which indicates a 15.5% year-over-year increase.
The Zacks Consensus Estimate for Brookdale Senior’s full-year 2024 earnings suggests a 38.1% year-over-year improvement. It has witnessed one upward estimate revision over the past month against no movement in the opposite direction. BKD beat earnings estimates in two of the past four quarters and missed on the other occasions.
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