Encompass Health Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Encompass Health Corp has filed its 2023 10-K annual report detailing its financial performance and corporate information.</b>

AI Summary

Encompass Health Corp (EHC) filed a Annual Report (10-K) with the SEC on February 28, 2024. Encompass Health Corp filed its annual report for the fiscal year ended December 31, 2023. The filing is a 10-K report, indicating a comprehensive overview of the company's financial performance and condition. The company's principal executive offices are located at 9001 Liberty Parkway, Birmingham, AL 35242. Encompass Health Corp was formerly known as HealthSouth Corp and HealthSouth Rehabilitation Corp. The report covers the fiscal year from January 1, 2023, to December 31, 2023.

Why It Matters

For investors and stakeholders tracking Encompass Health Corp, this filing contains several important signals. This 10-K filing provides investors and analysts with a detailed look at Encompass Health's financial health, operational performance, and strategic direction for the fiscal year 2023. Understanding the information within this report is crucial for assessing the company's stability, growth prospects, and potential risks in the healthcare services sector.

Risk Assessment

Risk Level: medium — Encompass Health Corp shows moderate risk based on this filing. The filing is a standard annual report (10-K), which typically contains a broad range of information including financial statements, risk factors, and management discussion. While it doesn't inherently signal immediate positive or negative news, the depth of information requires careful analysis to identify specific risks or opportunities.

Analyst Insight

Review the 'Risk Factors' section of the 10-K to understand potential challenges and threats to Encompass Health's business operations and financial performance.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period.)
• 2024-02-28 — Filing Date (The date the 10-K was filed.)
• 1934 Act — SEC Act (The act under which the filing was made.)
• 001-10315 — SEC File Number (The company's SEC file number.)

Key Players & Entities

• Encompass Health Corp (company) — Filer of the 10-K report.
• HealthSouth Corp (company) — Former name of Encompass Health Corp.
• HealthSouth Rehabilitation Corp (company) — Former name of Encompass Health Corp.
• Birmingham, AL (location) — Location of the company's principal executive offices.

FAQ

Industry Context

Encompass Health Corp operates within the healthcare services industry, specifically focusing on inpatient rehabilitation and home health services.

Regulatory Implications

The company is subject to regulations governing healthcare providers, including those related to patient care, billing, and reimbursement, as overseen by federal and state agencies.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue trends, profitability, and balance sheet health.
2. Examine the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' for insights into performance drivers and outlook.
3. Review the 'Risk Factors' section to identify potential challenges impacting the company's future operations and financial results.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — The date Encompass Health Corp filed its 10-K report.

Year-Over-Year Comparison

This filing represents the company's comprehensive annual performance review for the fiscal year 2023, following previous quarterly and annual filings.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value EHC New York Stock Exchange

Filing Documents

• ehc-20231231.htm (10-K) — 2825KB
• ehc10k12_31x23ex19.htm (EX-19) — 118KB
• ehc10k123123ex211.htm (EX-21.1) — 173KB
• ehc10k12_31x23ex221.htm (EX-22.1) — 49KB
• ehc10k123123ex231.htm (EX-23.1) — 2KB
• ehc10k123123ex311.htm (EX-31.1) — 13KB
• ehc10k123123ex312.htm (EX-31.2) — 13KB
• ehc10k123123ex321.htm (EX-32.1) — 8KB
• ehc10k123123ex322.htm (EX-32.2) — 8KB
• ehc10k12_31x23ex97.htm (EX-97) — 25KB
• ehc-20231231_g1.jpg (GRAPHIC) — 99KB
• 0000785161-24-000009.txt (&nbsp;) — 14331KB
• ehc-20231231.xsd (EX-101.SCH) — 81KB
• ehc-20231231_cal.xml (EX-101.CAL) — 152KB
• ehc-20231231_def.xml (EX-101.DEF) — 401KB
• ehc-20231231_lab.xml (EX-101.LAB) — 1126KB
• ehc-20231231_pre.xml (EX-101.PRE) — 781KB
• ehc-20231231_htm.xml (XML) — 2141KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 42 Item 1C. Cybersecurity 43 Item 2.

Properties

Properties 45 Item 3.

Legal Proceedings

Legal Proceedings 47 Item 4. Mine Safety Disclosures 47 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48 Item 6. Reserved 50 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 70 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 71 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 71 Item 9A.

Controls and Procedures

Controls and Procedures 71 Item 9B. Other Information 72 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 72 PART III Item 10. Directors and Executive Officers of the Registrant 73 Item 11.

Executive Compensation

Executive Compensation 73 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 73 Item 13. Certain Relationships and Related Transactions and Director Independence 73 Item 14. Principal Accountant Fees and Services 73 PART IV Item 15. Exhibits and Financial Statement Schedules 74 Item 16. Form 10-K Summary 74 Exhibit Index NOTE TO READERS As used in this report, the terms "Encompass Health," "we," "us," "our," and the "Company" refer to Encompass Health Corporation and its consolidated subsidiaries, unless otherwise stated or indicated by context. This drafting style is suggested by the Securities and Exchange Commission and is not meant to imply that Encompass Health Corporation, the publicly traded parent company, owns or operates any specific asset, business, or property. The hospitals, operations, and businesses described in this filing are primarily owned and operated by subsidiaries of the parent company. In addition, we use the term "Encompass Health Corporation" to refer to Encompass Health Corporation alone wherever a distinction between Encompass Health Corporation and its subsidiaries is required or aids in the understanding of this filing. i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND SUMMARY OF RISK FACTORS This annual report contains historical information, as well as forward-looking statements that involve known and unknown risks and relate to, among other things, future events, the spread and impact of an infectious disease outbreak, changes to Medicare reimbursement and other healthcare laws and regulations from time to time, our business strategy, dividend and stock repurchase strategies, our financial plans, our growth plans, our future financial performance, our projected business results, or our projected capital expenditures. In some cases, the reader can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "b

Business

Item 1. Business Overview of the Company General We are a national leader in post-acute healthcare services and the nation's largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals. We provide specialized rehabilitative treatment on an inpatient basis. We operate hospitals in 37 states and Puerto Rico, with concentrations in Florida and Texas. As of December 31, 2023, we operate 161 inpatient rehabilitation hospitals. We are committed to delivering high-quality, cost-effective patient care. For 2024, we were again named to Fortune's list of the World's Most Admired Companies. Effective January 1, 2018, we changed our corporate name from HealthSouth Corporation to Encompass Health Corporation and the NYSE ticker symbol for our common stock from "HLS" to "EHC." Our principal executive offices are located at 9001 Liberty Parkway, Birmingham, Alabama 35242, and the telephone number of the principal executive offices is (205) 967-7116. Our website address is www.encompasshealth.com. On July 1, 2022, we completed the previously announced separation of our home health and hospice business through the distribution (the "Spin Off") of all of the outstanding shares of common stock, par value $0.01 per share, of Enhabit, Inc. ("Enhabit") to the stockholders of record of Encompass Health as of the close of business on June 24, 2022 (the "Record Date"). The Spin Off was effective at 12:01 a.m., Eastern Time, on July 1, 2022. The Spin Off was structured as a pro rata distribution of one share of Enhabit common stock for every two shares of Encompass Health common stock held of record as of the Record Date. No fractional shares were distributed. A cash payment was made in lieu of any fractional shares. As a result of the Spin Off, Enhabit is now an independent public company and its common stock is listed under the symbol "EHAB" on the New York Stock Exchange. In addition to the discussion here, we enco

View Full Filing

View this 10-K filing on SEC EDGAR