Encompass Health completes acquisition of Frontier Home Health and Hospice expanding into three new states

Rhea-AI Summary

Encompass Health Corp. (NYSE: EHC) has finalized its acquisition of Frontier Home Health and Hospice, enhancing its service capabilities. Effective June 1, 2021, this acquisition adds 9 home health and 11 hospice locations, allowing entry into Alaska, Montana, and Washington, while expanding its presence in Colorado and Wyoming. Encompass Health is a leading provider of Medicare-certified health services, boasting a network of 139 hospitals, 250 home health, and 93 hospice locations across 42 states and Puerto Rico.

Positive

• Expansion into three new states: Alaska, Montana, and Washington.
• Addition of nine home health and eleven hospice locations, enhancing service capacity.
• Strengthening of existing presence in Colorado and Wyoming.

Negative

• None.

BIRMINGHAM, Ala., June 1, 2021 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC), a national leader in integrated healthcare services, today announced it has completed its previously announced acquisition of Frontier Home Health and Hospice. Effective today, this acquisition adds nine home health and 11 hospice locations to the Company's footprint, allowing the Company to serve markets in Alaska, Montana and Washington, three new states for the Company, and expand its existing presence in Colorado and Wyoming.

Encompass Health is the country's fourth largest provider of Medicare-certified skilled home health services and a top 10 largest hospice provider in the country based on Medicare reimbursements.

About Encompass Health
As a national leader in integrated healthcare services, Encompass Health (NYSE: EHC) offers both facility–based and home–based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. With a national footprint that includes 139 hospitals, 250 home health locations, and 93 hospice locations in 42 states and Puerto Rico, the Company provides high–quality, cost-effective integrated healthcare. Encompass Health is ranked as one of Fortune's 100 Best Companies to Work For. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook.

FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of the Frontier Home Health and Hospice acquisition, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays, including in connection with the regulatory review and approval process; the continued spread of COVID-19, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to the COVID-19 pandemic; the ability to successfully complete and integrate this project consistent with Encompass Health's growth strategy, including realization of anticipated revenues, cost savings, and productivity improvements arising from the related operations and avoidance of unforeseen exposure to liabilities; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; each hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended Dec. 31, 2020 and Form 10-Q for the quarter ended March 31, 2021.

Media Contact:
Hillary Carnel | 205-970-5912
hillary.carnel@encompasshealth.com 

Investor Relations Contact:
Crissy Carlisle | 205-970-5860
crissy.carlisle@encompasshealth.com 

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SOURCE Encompass Health Corp.

FAQ

What is the significance of Encompass Health's acquisition of Frontier Home Health and Hospice?

The acquisition allows Encompass Health to expand into three new states and enhance its service offerings, potentially leading to increased revenues.

How many new locations will Encompass Health gain from this acquisition?

Encompass Health will acquire nine home health and eleven hospice locations.

When was the acquisition of Frontier Home Health and Hospice completed?

The acquisition was completed on June 1, 2021.

What are the expected benefits of the acquisition for Encompass Health?

The acquisition is expected to increase Encompass Health's market footprint and enhance its capacity to serve patients in new regions.

How does this acquisition impact Encompass Health's position in the market?

This acquisition strengthens Encompass Health's position as a major player in the home health and hospice sectors by increasing its service locations and market reach.