Q4 2024 Encompass Health Corp Earnings Call Transcript
Key Points
- Revenue increased by 12.7% to $1.4 billion, with adjusted EBITDA up 13.6% to $289.6 million.
- Adjusted EPS rose by 23.2%, and adjusted free cash flow increased by 103.7%.
- Total discharge growth for the quarter was 7.8%, with strong performance across patient mix, payers, and geographies.
- Encompass Health Corp (EHC) opened 36 new hospitals and added 474 beds from 2020 to 2024, increasing total bed supply by approximately 20%.
- The company plans to open seven new hospitals and add approximately 100 beds to existing hospitals in 2025, with significant expansion in Florida.
- Group medical and prescription drug costs are expected to remain elevated through the first half of 2025.
- The company faces challenges with pre-authorization requirements by Medicare Advantage plans, impacting access to care.
- There is a potential risk of increased construction costs and tariffs affecting future expansion plans.
- The 2025 guidance includes anticipated startup and ramp-up costs, which may impact EBITDA margins.
- Provider tax benefits in 2024 may not recur in 2025, adding uncertainty to financial projections.
Good morning, everyone, and welcome to Encompass Health's fourth-quarter 2024 earnings conference call.
(Operator Instructions)
Today's conference call is being recorded, and if you have any objections, you may disconnect at this time. I will now turn the call over to Mark Miller, Encompass Health's Chief Investor Relations Officer.
Thank you, operator, and good morning, everyone. Thank you for joining Encompass Health's fourth-quarter 2024 earnings call.
Before we begin, if you do not already have a copy, the fourth quarter earnings release, sublingual information and related 8-K filed with the SEC are available on our website at encompasshealth.com.
On page 2 of the supplemental information, you will find the Safe Harbor statements, which are also set forth in greater detail on the last page of the earnings release. During this call, we will make forward-looking statements such as guidance and growth projections, which are subject to risks and
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