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Encompass Health: De Novo Domination – A High-Velocity Expansion Engine Igniting Regional Growth!

Encompass Health, a major player in providing rehabilitation services, presented a mixed yet largely promising picture in its fourth-quarter earnings call for 2025. The company’s robust performance this year rooted in a 10.5% increase in annual revenue alongside a notable 14.9% growth in EBITDA, showcases impressive financial management and operational growth. Encompass Health’s strategic actions have significantly helped in improving patient outcomes, thereby enhancing their market position. The company experienced a beneficial decline in premium labor costs, as $21 million in savings were realized compared to the prior year thanks to strong recruitment and retention strategies. This reduction in expenses, alongside operating leverage from a 6% growth in discharges, underpins Encompass Health’s notable EBITDA improvement. The company continued to expand its capacity by adding 517 beds, with plans to include small-format hospitals by 2027.