Encompass Health Corporation (EHC) SEC Filings & Earnings Calls

Increased debt leverage with $100M additional notes, though used to repay revolver.

“Issuance of $100M additional 5.875% senior notes due 2034.”

Medicare review choice demonstration expansion

“As of June 30, 2026, we have 33 of our IRFs (representing approximately 11.9% of our IRF Medicare claims) subject to RCD.” · word for word

Regulatory compliance cost

“RCD increases administrative burden and potential claim denials.”

Reimbursement risk

“Reductions or delays in, or suspension of, reimbursement for our services by governmental or private payors... could decrease our revenues.” · word for word

Labor cost pressure and reimbursement risk in healthcare.

“No explicit risk factors discussed, but industry-wide labor and reimbursement pressures are typical.”

Medicare reimbursement dependency

“We are highly concentrated in our primary line of business, particularly with respect to Medicare regulations and reimbursement.” · word for word

Regulatory compliance burden from RCD expansion

“With the expansion to those two states, we expect 33 of our current inpatient rehabilitation hospitals (representing approximately 11.9% of our IRF Medicare claims) to be subject to RCD.” · word for word

Staffing shortages

“Our inability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and potential union activity could increase staffing costs and adversely affect other financial and operating results and has done so in the past.” · word for word

Regulatory and reimbursement risk

“Healthcare is a highly regulated industry. Successful healthcare providers are those able to adapt to changes in the regulatory and operating environments.” · word for word

Workforce composition risk

“Approximately 43% of our workforce consists of employees working less than full-time, which is a common employment arrangement in the healthcare services sector.” · word for word

Payer mix shift to lower reimbursement

“We have in recent years experienced, and in the future may, experience shifts in our payor mix or the acuity of our patients that could adversely affect our reimbursement, Net operating revenues, and profitability.” · word for word

Convener influence reducing patient volumes

“Conveners may influence referral source decisions on which post-acute setting to recommend, as well as how long to remain in a particular setting.” · word for word

Medicare/Medicaid reimbursement changes

“The ongoing evolution of the healthcare delivery system, including alternative payment models and value-based purchasing initiatives, in the United States may significantly affect our business and results of operations.” · word for word

Dependence on aging population trends and regulatory reimbursement environment.

“need for the services we provide continues to grow as the U.S. population ages” · word for word

Guidance unchanged; no new risks disclosed beyond standard forward-looking statements.

“Standard risk factors listed in forward-looking statements; no specific new risks.”

Medicare reimbursement risk

“Reductions or delays in, or suspension of, reimbursement for our services by governmental or private payors... could decrease our revenues and adversely affect other operating results.” · word for word

Staffing shortage risk

“Our inability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages... could increase staffing costs and adversely affect other financial and operating results” · word for word

Adjusted free cash flow declined 8.2% YoY despite revenue growth

“Adjusted free cash flow $174.2M vs $189.7M, -8.2%”