Encompass Health Corporation EHC continues to expand its inpatient rehabilitation footprint with the opening of Eastside Rehabilitation Hospital in Loganville, GA. The more than 52,000-square-foot, 40-bed facility, developed through a joint venture with Piedmont Healthcare, expands the company's capacity in eastern Georgia.
The opening marks Encompass Health's ninth inpatient rehabilitation hospital in the state and its eighth joint venture with Piedmont. The hospital will provide specialized rehabilitation services for patients recovering from strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions.
Equipped with advanced rehabilitation technologies and specialized treatment areas, the facility is designed to support patients with complex recovery needs. The partnership with Piedmont Healthcare, one of Georgia's leading health systems, strengthens Encompass Health's referral network and should support patient volumes and occupancy growth while further solidifying the company's presence in the market.
The opening aligns with Encompass Health's broader expansion strategy. The company plans to open six to 10 de novo hospitals and add 80-120 beds annually through 2027 to meet rising demand for inpatient rehabilitation services. Consistent with this objective, Encompass Health opened a 49-bed rehabilitation hospital in Irmo, SC, and added 44 beds across existing facilities during the first quarter of 2026.
These investments are already contributing to growth. In the first quarter of 2026, net operating revenues increased 9.1% year over year to $1.59 billion, while total discharges rose 4.3%. Net patient revenue per discharge improved 3.7%, reflecting favorable pricing trends. Supported by a trailing 12-month return on invested capital of 10.1%, well above the industry average of 6.7%, the latest expansion reinforces Encompass Health's long-term growth strategy and its ability to generate value from ongoing capacity investments.
EHC’s Stock Price Performance
Shares of Encompass Health have gained 3.5% over the past three month, outperforming the industry’s 0.1% decline over the same period.
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EHC’s Zacks Rank & Key Picks
EHC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are The Pennant Group, Inc. PNTG, Aveanna Healthcare Holdings Inc. AVAH and DaVita Inc. DVA, each carryinga Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Pennant Group’s 2026 earnings is pegged at $1.35 per share, indicating 14.4% year-over-year growth. PNTG beat earnings estimates in each of the trailing four quarters, with the average surprise being 5.1%. The consensus estimate for 2026 revenues is pinned at $1.17 billion, implying 23.3% year-over-year growth.
The Zacks Consensus Estimate for Aveanna Healthcare’s 2026 earnings is pegged at 66 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. AVAH beat earnings estimates in each of the trailing four quarters, with the average surprise being 129.4%. The consensus estimate for 2026 revenues is pinned at $2.56 billion, implying 5% year-over-year growth.
The Zacks Consensus Estimate for DaVita’s 2026 earnings is pegged at $15.07 per share, indicating 39.8% year-over-year growth. DVA beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.4%. The consensus estimate for 2026 revenues is pinned at $14.3 billion, implying 4.8% year-over-year growth.
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This article originally published on Zacks Investment Research (zacks.com).