The following is a summary of the Encompass Health Corporation (EHC) Q3 2024 Earnings Call Transcript:
Financial Performance:
Encompass Health reported a revenue increase of 11.9% reaching $1.35 billion, and an adjusted EBITDA increase of 13.4% to $269.3 million in Q3 2024.
Discharges increased by 8.8%, with total revenue per discharge growth of 2.5%.
Business Progress:
Encompass Health has expanded its capacity by adding 99 beds in Q3, including two new de novo hospitals with a total of 89 beds and an expansion of 10 beds in existing facilities.They anticipate opening one more de novo, a 61-bed hospital in Houston in 2024, and adding approximately 22 more beds to existing hospitals, marking a move towards full prefabrication in construction to reduce costs and expedite completion.
Opportunities:
The aging US population and the chronic health conditions that accompany aging fuel demand for inpatient rehabilitation services, suggesting a growing market for Encompass Health's services.
Risks:
Hurricanes Helene and Milton impacted several operational aspects, including hospital evacuations and damage to facilities, although the financial implications appear to be minor with an estimated expense of less than $1 million for Q4.
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