Encompass Health to build 40-bed rehab hospital in Cleveland, Tennessee

BIRMINGHAM, Ala. - Encompass Health Corp. (NYSE:EHC), an $11.1 billion healthcare provider with an impressive 11.2% revenue growth over the last twelve months, announced plans to build a 40-bed inpatient rehabilitation hospital in Cleveland, Tennessee, according to a press release statement issued Friday. According to InvestingPro data, the company maintains a "GREAT" financial health score, positioning it well for continued expansion.

The facility, to be located on Stuart Road, will operate as a satellite location of Encompass Health Rehabilitation Hospital of Chattanooga. The hospital is expected to open in 2026. Analysts maintain a strong bullish consensus on the company’s prospects, with InvestingPro reporting 8 analysts recently revising their earnings expectations upward for the upcoming period.

The new hospital will treat patients recovering from conditions including strokes, neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. It will provide 24-hour nursing care alongside physical, occupational and speech therapies.

Facility features will include private patient rooms, a therapy gym with rehabilitation technologies, an activities of daily living suite, in-house dialysis, a pharmacy and therapy courtyard.

"We are excited to add another Encompass Health location in the greater Chattanooga area," said Abe Sims, president of Encompass Health’s MidAtlantic region. "We look forward to serving patients in Cleveland and surrounding communities with high-quality, compassionate inpatient rehabilitative care, close to home."

The Cleveland facility will join Encompass Health’s network of 169 inpatient rehabilitation hospitals currently operating across 38 states and Puerto Rico.

The company did not disclose the financial details of the project in its announcement.

In other recent news, Encompass Health Corporation has been in the spotlight due to various developments. The company announced plans to build a new 50-bed rehabilitation hospital in North Las Vegas, Nevada, which is expected to open by 2028, subject to regulatory approvals. This expansion aims to provide specialized rehabilitation care to the local community. Meanwhile, KeyBanc Capital Markets has raised its price target for Encompass Health from $122 to $135, maintaining an Overweight rating. The firm cites a supply-demand imbalance in the inpatient rehabilitation facility sector as a driving factor for future growth.

Additionally, Encompass Health’s shareholders approved the 2025 Omnibus Performance Incentive Plan, aligning executive compensation with company performance. This decision was part of several proposals voted on during the company’s Annual Meeting, including the election of board members and the ratification of PricewaterhouseCoopers LLP as the accounting firm. However, a recent New York Times report raised safety concerns about Encompass Health’s rehabilitation hospitals, citing serious incidents at various facilities. Despite these challenges, the company continues to expand its footprint and enhance its service offerings.

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