Encompass reports increased revenue, lower net income

Birmingham, Ala.-based Encompass Health, the largest owner and operator of inpatient rehabilitation hospitals in the United States, has reported increased operating revenue of $1.09 billion for the third quarter of 2022.

That figure compares with $1.01 billion for the same quarter last year. The figure for the first nine months of the year was also up on the same period in 2021, totaling $3.2 billion versus $2.97 billion.

That said, the company is revising its forecasts for the whole year because of the continued burden of labor costs affecting its profitability. While total operating revenue may be slightly elevated from previous predictions, overall earnings are expected to decrease from a previous high of $840 million earnings before interest, tax, depreciation and amortization to a high of $820 million.

The company, which spun off its Enhabit Home Health and Hospice company into an independently traded entity during the quarter, reported net income for the third quarter of $45.4 million versus $100 million in the same period 2021. Nine-month net income was down from $320.6 million to $181.6 million.

Encompass Health trades on the New York Stock Exchange under the ticker EHC.

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