As our population ages, demand for home health and hospice services will only increase – this segment is an essential revenue growth source at Encompass.
Jeffries analyst Brian Tanquilut says it’s encouraging that in June, the company appointed Barb Jacobsmeyer as CEO of the home health and hospice business and Crissy Carlisle as CFO – two changes that indicate their importance to this business division.
What We Do
Home health and hospice industries are experiencing steady expansion, driven by an aging population entering Medicare more quickly. According to research firm Precedence, their total market could hit $662 billion by 2027 if unchecked. Home health services offer intermittent skilled nursing and therapy services for those unable to receive treatments at hospitals or clinics; hospice is targeted explicitly towards terminally ill patients with six months or less to live who require emotional and spiritual support services; both services are Medicare-certified, so qualified patients will receive coverage.
Jana Partners has been pressuring Birmingham-based Encompass Health Corporation (NYSE: EHC) to pursue strategic options for its home health and hospice unit, which generated $274.5 million in quarterly revenues and total 2019 revenues of $1.09 billion, per financial filings from Encompass. These options include a public spinoff or a third-party merger with another healthcare provider.
Encompass Health’s board believes separating its home health and hospice businesses from inpatient rehabilitation hospitals will enhance each business’s strategic flexibility, strengthen management teams, and allow each company to create its ideal capital structure, according to a Dec 14 statement by Encompass’s board. Enhabit Home Health & Hospice plans to spin off its home health unit into its publicly traded entity by the first half of 2022, with current Encompass shareholders holding stock in both companies following this split transaction.
Enhabit will select its name because it intuitively conveys the concept of inhabiting one’s home and reflects the compassionate service delivered to patients and families in their own environments. Enhabit will use the same brand standards used by its parent company – a green color palette and a promise of “empowering” its people in delivering high-quality patient care are just two examples.
HealthMEDX Vision was also selected as its EMR system for Encompass Pediatric Services private duty home health operations, providing care coordination services for Texas and Kansas children suffering from various health concerns. When selecting, enterprise functionality, comprehensive care coordination capabilities, and seamless telephony interface capabilities were all factors.
Our Mission
Encompass Home Health & Hospice is the nation’s premier post-acute care provider. It was established in 1984 as HealthSouth Corporation and later rebranded in 2018 to reflect its dedication to helping all age groups recover from illness or injury. The company’s facility-based post-acute care service offerings include inpatient rehabilitation hospitals and home health and hospice agencies. Rehabilitation hospitals specialize in offering inpatient rehabilitation care to individuals recovering from debilitating illnesses and injuries such as stroke, other neurological disorders, cardiac conditions, brain and spinal cord injuries, complex orthopedic conditions, or amputations.
Home Health and Hospice services include physical, occupational, and speech therapy and nursing care for terminally ill patients and their families. Services help patients regain functional ability, quality of life, and confidence after illness or injury, with an established reputation for providing high-level clinical care and compassionate and professional support to their patients and loved ones.
For its mission to be accomplished, the company relies on core values guiding all business decisions. These values centered around excellence, innovation, and accountability, with integrity and compassion as primary tenets.
Due to these values, the company dramatically emphasizes quality and patient satisfaction. Their organization constantly looks for ways to enhance customer experiences while increasing efficiency; additionally, they ensure employees have growth and personal development opportunities.
Our company is developing a 60-bed inpatient rehabilitation hospital in Bowie, Maryland. The facility will offer physical, occupational, and speech therapies and 24-hour nursing care services; anticipated completion is set for mid-2022 and complements local acute care services.
Encompass Health operates 137 inpatient rehabilitation hospitals nationwide and 245 home health and hospice locations. In addition, its Encompass Pediatric Services division offers private duty home care for children who require ongoing medical treatment in their home environment. According to its most recent financial report, Encompass reported nearly $1.3 billion in revenue.
Our Values
Home health and hospice care services require a team of highly skilled professionals working together. To be effective, this requires sharing information, providing guidance, and meeting individual patients’ needs – which is why we’re proud to partner with home health and hospice leaders. Working closely together, we aim to achieve excellence while upholding compassion, integrity, and collaboration – which the Encompass Health Way stands for.
During an earnings call, Encompass Health of Birmingham, Alabama (NYSE: EHC) recently unveiled an exciting partnership between themselves and Right at Home – one of the nation’s largest home care providers. Both entities intend to collect and share data regarding patients’ vital signs, risks, and mobility with each other to meet both populations better as healthcare moves towards value-based care models.
This partnership, which includes an agreement to develop home health and hospice products jointly, forms part of Encompass Health CEO April Anthony’s larger strategy to enhance and innovate home-based care. “Through our collective efforts, we hope to make an immediate difference for our shared customers,” Anthony noted. “There’s great potential in providing more value-based care and more integrated care services to patients.”
According to Levinson, Encompass Health has taken steps in preparation for its spinoff to bolster inpatient rehabilitation hospital operations and, separate from its home health and hospice segment, to focus on its strengths and create additional value for its stockholders.
Encompass Health’s core values can be seen throughout its operations, from making an impactful difference for its patients and prioritizing employee development and innovation to operating 245 home health and hospice locations throughout the US and its inpatient rehabilitation hospitals. These core values permeate every aspect of Encompass Health’s operations.
At the core of these values lies compassion, which employees demonstrate by empathizing with patients’ physical, emotional, and social needs and taking the time to comprehend them fully. Furthermore, it’s evident in our culture of encouraging all employees to express themselves authentically and remain true to themselves.
Our People
At encompass Home Health & Hospice, our employees are more than employees; they’re caregivers. Our nurses, therapists, and support staff collaborate closely to help patients reach their healthcare goals with knowledge, compassion, and a dedication to quality care as the driving force of our success.
Encompass Home Health & Hospice is pleased to be named one of PEOPLE magazine’s “50 Companies That Care,” announced today. This ranking recognizes companies based on employee feedback emphasizing people and community involvement.
Companies eligible to be on this list must have at least 1,000 U.S.-based employees and have been in operation for at least ten years – the complete list can be viewed online at People.com/50CompaniesThatCare.
Encompass Home Health & Hospice stands out as an employer of choice with competitive benefits and a supportive culture that makes working at Encompass an enjoyable and enriching experience for its employees. Devoted to providing top-quality patient care through skilled nursing, physical and occupational therapy services, medical social work support, and hospice, Encompass boasts more than 350 locations in 34 states nationwide and remains an industry leader in home healthcare services.
Dallas-based Promedica Health Solutions ranks as one of the nation’s most considerable post-acute care and home health providers, operating hospitals for rehabilitation therapy patients as well as home health agencies and hospice offices across the U.S. Additionally, Promedica owns VitalCaring home health chain founded by industry veteran April Anthony in 1998 – through acquisitions, he built it up through 17 distressed home health companies.
In 2021, the company claimed to have 252 home health sites and 99 hospice sites, with its home health division seeing significant growth as it assisted patients transition back home after hospital or acute-care stays; its hospice division experienced slower growth as demand for its service remained low, and it needed to focus on streamlining its cost structure to keep profitable.
