Encompass Health and BSA Health System form joint venture for rehab hospital

BIRMINGHAM/AMARILLO - Encompass Health Corp. (NYSE:EHC), a healthcare provider with "GREAT" financial health according to InvestingPro analysis, and BSA Health System announced today a joint venture to own and operate a 50-bed inpatient rehabilitation hospital in Amarillo, Texas. The company’s stock is currently trading near its 52-week high, reflecting strong market confidence in its expansion strategy.

The facility, currently under construction at 7950 Wallace Boulevard, will replace BSA’s existing 24-bed inpatient rehabilitation unit. BSA plans to use the vacated space to expand its acute care capacity at BSA Hospital.

The new rehabilitation hospital will serve patients recovering from strokes, neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. It will feature private patient rooms, a therapy gym with rehabilitation technologies, an activities of daily living suite, in-house dialysis, pharmacy and therapy courtyard.

"We are excited to partner with BSA to help patients in the Amarillo community reach their rehabilitation goals," said Craig Funk, president of Encompass Health’s Southwest region, in a press release statement.

Michael Cruz, CEO of BSA Health System, noted that the partnership would enhance healthcare in Amarillo while allowing BSA’s rehabilitation team to continue serving patients at the new facility.

The hospital is expected to open in late 2025 and will join Encompass Health’s network of 169 inpatient rehabilitation hospitals across 38 states and Puerto Rico.

BSA Health System, an affiliate of Ardent Health, is the fourth largest employer in Amarillo and operates a 445-bed flagship hospital along with cancer center and clinical network.

Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States.

In other recent news, Encompass Health Corp reported strong financial results for the second quarter of 2025, with both earnings per share (EPS) and revenue exceeding expectations. The company posted an EPS of $1.40, surpassing the forecasted $1.21, and revenue reached $1.46 billion, beating the anticipated $1.43 billion. These results indicate a positive performance for the healthcare provider. Additionally, Truist Securities raised its price target for Encompass Health to $140 from $135, maintaining a Buy rating due to an upbeat management meeting that highlighted strong demand trends and significant unmet sector demand.

In expansion news, Encompass Health announced plans to build a 50-bed inpatient rehabilitation hospital in Haslet, Texas. The facility, expected to open in 2027, will cater to patients recovering from various conditions, including strokes and complex orthopedic injuries. These developments reflect Encompass Health’s ongoing growth and strategic planning in the healthcare sector.

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