Inpatient rehabilitation hospital and home health operator Encompass Health saw a jump in operating revenue during the third quarter, the company announced in an earnings report Wednesday.
Encompass Health, based in Birmingham, Alabama, experienced net operating revenue of $1.3 billion during the quarter, a 9.4% increase from the year-ago period.
Encompass Health attributed the increase to favorable pricing and inpatient rehabilitation discharge growth. The company opened several inpatient rehabilitation hospitals this year, and plans more, in Florida, Kentucky, Louisiana, South Carolina, Texas and Wisconsin.
Gains from Encompass Health's inpatient rehab business were countered by poorer a performance from its home health and hospice segment, President and CEO Mark Tarr said in a news release.
"Our home health and hospice business experienced COVID-related headwinds, which limited volume growth and increased costs. We remain very confident in the long-term trends for each of our businesses and in our competitive position," Tarr said.
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Encompass Health has expanded to include 144 hospitals, 249 home health sites and 95 hospice locations in 42 states and Puerto Rico.
The company also disclosed a lawsuit against the former CEO of its home health and hospice operation, April Anthony, which alleges she breached her employment agreement's non-compete and non-solicitation requirements and appropriated trade secrets. Encompass filed the lawsuit in a Texas state court on Tuesday.
