The following is a summary of the Encompass Health Corporation (EHC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Encompass Health reported a revenue growth of 13.4% and adjusted EBITDA increased by 19.2%, leading to an increased 2024 guidance.
Discharge rate grew by 10% while same-store growth remained at 6.7%.
The Q1 revenue included a $6.9 million increase due to higher provider tax receipts from prior periods.
Free cash flow for the quarter increased by 5.6% to $167.6 million, driven by higher adjusted EBITDA, but was partially affected by increased working capital and cash tax payments.
Net leverage reduced to 2.5x, indicating healthy financial status.
Business Progress:
Encompass Health has planned to expand by opening six de novo hospitals and adding 51 beds to existing hospitals in 2024.
The company announced three more de novo projects, taking the tally to 14 hospitals under development opening beyond 2024.
Encompass is extending its in-house dialysis capabilities to more hospitals in 2024. Dialysis service is currently offered in 88 hospitals.
A noteworthy Patient Quality of Life Improvement project to provide personalized inpatient care is in progress.
The company managed to minimize the impact of Disruptions caused by cyber-attacks by implementing efficient workarounds.
Encompass managed labor inflation efficiently with a slight increase from CMS compensating for the cost.
More details: Encompass Health IR
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