Q3 2024 Encompass Health Corp Earnings Call Transcript
Key Points
- Encompass Health Corp (EHC) reported a strong third quarter with an 11.9% increase in revenue and a 13.4% rise in adjusted EBITDA.
- Total discharges increased by 8.8%, with same-store discharges up by 6.8%, indicating broad-based growth across geographies and payer types.
- The company successfully added 99 beds during the quarter, including two new hospitals and expansions at existing facilities, supporting future growth.
- Encompass Health Corp (EHC) is investing in prefabricated hospital construction, which is expected to lower costs and reduce construction times.
- The company raised its 2024 guidance, reflecting confidence in continued strong performance and demand for inpatient rehabilitation services.
- The company faced challenges with the Review Choice Demonstration (RCD) program, with some hospitals not meeting the required affirmation rate, leading to continued 100% prepayment claim reviews.
- Hurricane impacts in the Southeast and Mid-Atlantic regions caused temporary hospital closures and could affect Q4 volumes and length of stay.
- Group medical costs increased significantly, driven by large claims and higher prescription costs, impacting benefits expenses.
- Despite strong discharge growth, the company anticipates potential disruptions in healthcare systems in hurricane-affected communities, which may impact Q4 results.
- The company is still gathering estimates for hurricane-related repairs, which are expected to incur expenses of less than $1 million in Q4.
Good morning, everyone, and welcome to Encompass Health's third-quarter 2024 earnings conference call.
(Operator Instructions) Today's conference call is being recorded.
If you have any objections, you may disconnect at this time.
I will now turn the call over to Mark Miller, Encompass Health's Chief Investor Relations Officer. Please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining Encompass Health's third-quarter 2024 earnings call.
Before we begin, if you do not already have a copy, the third quarter earnings release, supplemental information and related Form 8-K filed with the SEC are available on our website at encompasshealth.com.
On page 2 of the supplemental information, you will find the Safe Harbor statements which are also set forth in greater detail on the last page of the earnings release.
During the call, we will make forward-looking statements which are subject to risks and uncertainties,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
