Yahoo Finance Encompass Health (EHC) Opens New 50-Bed Hospital in Naples
Encompass Health Corporation EHC recently commenced operations in the Encompass Health Rehabilitation Hospital in Naples. Located at 14305 Collier Boulevard, the habilitation hospital was earlier expected to open in August 2022. but the opening of the joint venture facility, with partner NCH Healthcare System, a not-for-profit, multi-facility healthcare alliance, got delayed.
The 50-bed inpatient rehabilitation facility offers services to patients recovering from brain, spinal cord and other injuries, amputations, strokes, neurological disorders and complex illnesses. The inpatient rehabilitation services complement acute care solutions and help patients to restore their functional abilities.
With the opening of the new facility, EHC now has 19 hospitals in the state of Florida and 153 inpatient rehabilitation units in total. The move is in line with Encompass Health’s strategy of intensifying its focus on profitable inpatient rehabilitation operations. The company streamlined its overall business through a spin-off of its home health and hospice business on Jul 1, 2022. Following the separation, Encompass Health has a single reportable segment, inpatient rehabilitation.
Encompass Health is on schedule to add the planned de novo locations and increase the bed counts in existing facilities for this year. Further, it expects to open nine de novo locations in 2023 with 100-150 bed additions in existing hospitals. This year, management anticipates net operating revenues within $4,250-$4,300 million, up from $4,015 million in 2021. Adjusted EBITDA is projected in the range of $820-$840 million for 2022, increasing from $817 million a year ago. Adjusted earnings per share from continuing operations are forecast between $2.77 and $2.91 for the current year, down from $2.93 in 2021.
Price Performance
Shares of Encompass Health have declined 31.6% in the past year compared with a 31.4% fall in the industry.
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Zacks Rank and Key Picks
Encompass Health currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the medical space are Molina Healthcare, Inc. MOH, Akumin Inc. AKU and Alignment Healthcare, Inc. ALHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Molina Healthcare’s earnings is currently pegged at $17.66 per share, indicating a year-over-year increase of 30.4%. MOH beat earnings estimates in each of the trailing four quarters, with an average surprise of 3.2%.
The Zacks Consensus Estimate for Akumin’s revenues indicates an 80% increase from the prior-year reported number. AKU has witnessed one upward estimate revision and no downward movement in the past 60 days.
The Zacks Consensus Estimate for Alignment Healthcare’s 2022 bottom line indicates a 29% year-over-year increase. ALHC earnings beat estimates in three of the last four quarters and missed once, the average surprise being 7.9%.
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