Encompass Health Corporation - EHC STOCK NEWS

Encompass Health (NYSE: EHC) has achieved recognition on Forbes' inaugural list of the Most Trusted Companies in America. The company, which stands as the nation's largest owner and operator of inpatient rehabilitation hospitals, secured the fourth position among companies in the Health Care Equipment and Services category.

The evaluation process, conducted in partnership with HundredX, Signal AI, and Glassdoor, examined over 2,000 large U.S.-based public companies. The assessment focused on four key areas: customer trust, employee trust, investor trust, and media sentiment, analyzing hundreds of millions of data points. Only 300 companies made the final list.

Mark Tarr, president and CEO, emphasized the company's dedication to being the trusted choice in inpatient rehabilitation and highlighted their commitment to providing compassionate, high-quality, individualized care to achieve optimal patient outcomes. The company aims to continue expanding its presence nationwide to meet service demands.

Encompass Health (NYSE: EHC) has announced preliminary plans to construct a 50-bed inpatient rehabilitation hospital in Bangor, Maine, at 1017 Union Street. The facility, set to open in 2027, will be the company's second hospital in Maine and will provide specialized care for patients recovering from various conditions including strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions.

The new hospital will feature private rooms, advanced rehabilitation technologies, an activities suite, in-house dialysis, pharmacy, and therapy courtyard. It will offer 24-hour nursing care along with physical, occupational, and speech therapies, delivered by specialized healthcare professionals.

Encompass Health and Enhabit have won a significant lawsuit in the Delaware Court of Chancery against former senior officers April Anthony, Luke James, and Chris Walker for breaches of fiduciary duty. The Court also ruled against private equity firms Vistria Group and Nautic Partners for aiding these breaches.

The Court found that the defendants misappropriated acquisition opportunities, used confidential information, and recruited key employees while still employed at Encompass Health. As compensation, the Court awarded 43% of VitalCaring Group's profits to Encompass Health and Enhabit, plus $1.62 million in mitigation damages and attorneys' fees.

The defendants were found to have deliberately concealed their actions through falsifying records, deleting evidence, and manipulating communications. The Court's decision sends a clear message about the consequences of breaching fiduciary duties and self-dealing by corporate officers.

Encompass Health and Enhabit have won a significant legal victory in the Delaware Court of Chancery against former senior officers April Anthony, Luke James, and Chris Walker for breaches of fiduciary duty. The court found that while employed at Encompass Health, these officers misappropriated acquisition opportunities, used confidential information, and recruited employees for a competing venture.

The Court awarded damages against private equity firms Vistria Group and Nautic Partners for aiding these breaches. The remedy includes a constructive trust entitling Encompass Health and Enhabit to 43% of VitalCaring Group's profits and future exit proceeds, approximately $1.62 million in mitigation damages, and attorneys' fees due to defendants' bad faith conduct including evidence tampering.

Encompass Health announced the opening of a new 61-bed inpatient rehabilitation hospital in Houston, Texas. This facility marks a significant milestone as the company's first hospital fully constructed using prefabricated modules. The innovative construction method, developed in collaboration with BLOX, utilized 80 uber-modules manufactured off-site and assembled on location. This approach resulted in enhanced quality control, reduced waste, and faster construction timelines. The hospital, located at 3010 Yellowstone Blvd., represents an evolution of a partnership that began in the early 2000s, progressing from bathroom pods to complete hospital prefabrication.

Encompass Health (NYSE: EHC) has announced plans to construct a 50-bed inpatient rehabilitation hospital in Wesley Chapel, Florida's Wiregrass Ranch community. The facility will provide specialized care for patients recovering from various conditions including strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions. The hospital will feature private rooms, advanced rehabilitation technologies, therapy facilities, and comprehensive medical services including 24-hour nursing care, physical, occupational, and speech therapies. Expected to open in 2027, the facility will join Encompass Health's national network of rehabilitation hospitals.

Encompass Health reported strong Q3 2024 results with net operating revenue increasing 11.9% to $1,351.0 million. The growth was driven by an 8.8% increase in discharges, including 6.8% same-store growth, and a 2.5% rise in net patient revenue per discharge. Income per diluted share grew 25.9% to $1.07, while adjusted EBITDA increased 13.4% to $269.3 million. The company raised its full-year 2024 guidance, with net operating revenue now expected between $5,325 to $5,375 million and adjusted earnings per share projected at $4.19 to $4.33.

Encompass Health (NYSE: EHC) has announced the partial redemption of its 5.75% senior notes due 2025. The company will redeem $100 million of the outstanding principal balance, with the redemption date set for November 21, 2024. The redemption price will be 100.0% of par, plus accrued and unpaid interest as per the terms of the 2025 Notes.

Encompass Health plans to use cash on hand to fund this redemption. As a result of this action, the company anticipates recording an approximate $0.2 million loss on early extinguishment of debt in the fourth quarter of 2024.

Encompass Health (NYSE: EHC) has announced a quarterly cash dividend on its common stock. The board of directors has declared a dividend of $0.17 per share, which will be payable on January 15, 2025. Shareholders who are holders of record on January 2, 2025, will be eligible to receive this dividend.