Enhancing Healthcare: A Closer Look at Encompass Health’s Growth and Prospects
Encompass Health Corporation, a leading provider of post-acute healthcare services in the United States, has been making strides in the industry with its strong patient volumes, continued expansion efforts, and a robust business outlook for 2025 and beyond. Let’s delve deeper into these aspects of the company.
Strong Patient Volumes
Patient volumes have been a significant driving force for Encompass Health. The company operates more than 135 hospitals and 238 inpatient rehabilitation hospitals, making it one of the largest post-acute care providers in the country. In the third quarter of 2021, Encompass Health reported a 12.3% year-over-year increase in patient days, with a 6.4% growth in the number of patients served. This trend is expected to continue due to the aging population and the increasing demand for post-acute care services.
Continued Expansion Efforts
Encompass Health’s expansion strategy includes both organic and inorganic growth. Organic growth is driven by the addition of new inpatient rehabilitation hospitals and outpatient therapy locations, while inorganic growth is achieved through acquisitions. In late 2021, the company announced the acquisition of two inpatient rehabilitation hospitals and an outpatient therapy business from Select Medical, further expanding its footprint in the post-acute care market. Encompass Health aims to increase its presence in strategic markets and broaden its service offerings to cater to a wider range of patients.
Robust 2025 Business Outlook
Encompass Health’s business outlook for 2025 is underpinned by several growth catalysts. These include the aging population, the growing number of patients requiring post-acute care, and the increasing focus on value-based care. The company aims to grow its revenue at a compound annual growth rate (CAGR) of 5.5% between 2021 and 2025, reaching $10.5 billion in revenue by 2025. This growth is expected to be driven by an increase in patient volumes, higher revenue per patient, and the addition of new facilities through acquisitions.
Impact on Individuals
For individuals in need of post-acute care services, Encompass Health’s growth means increased access to high-quality care. With more locations and expanded services, patients can receive the care they need closer to home, reducing the need for lengthy hospital stays and travel. Additionally, Encompass Health’s focus on value-based care means that patients can expect better outcomes and lower costs.
Impact on the World
At a broader level, Encompass Health’s growth contributes to the overall improvement of healthcare services in the United States. The post-acute care market is a critical component of the healthcare ecosystem, and Encompass Health’s expansion efforts help to address the growing demand for these services. Moreover, the company’s focus on value-based care aligns with the broader trend towards more efficient and cost-effective healthcare delivery.
Conclusion
Encompass Health’s strong patient volumes, continued expansion efforts, and robust business outlook position the company as a key player in the post-acute care market. For individuals in need of post-acute care services, this growth means increased access to high-quality care, while for the world, it contributes to the improvement of healthcare services and the trend towards value-based care. As Encompass Health continues to grow and innovate, it is poised to make a significant impact on the healthcare landscape in the United States and beyond.
- Encompass Health reported a 12.3% year-over-year increase in patient days in Q3 2021.
- The company aims to increase its revenue at a CAGR of 5.5% between 2021 and 2025.
- Encompass Health’s growth is driven by the aging population, increasing demand for post-acute care, and focus on value-based care.
