Encompass Health (EHC), Piedmont Tie Up to Better Serve Georgia
Encompass Health Corporation EHC recently joined forces with Georgia-based not-for-profit integrated health system Piedmont to construct a freestanding inpatient rehabilitation hospital in the city of Athens in the state. The partners were even conferred with a certificate of need to build the hospital, which is likely to house 40 beds.
Shares of Encompass Health lost 1% on Oct 6, replicating declines in the broader market.
As Athens continues to witness solid demand for rehabilitative services, EHC seems to unveil the hospital plan, backed by advanced rehabilitation technologies, at an apt time. The future hospital will provide coordinated and connected care extended by well-versed medical teams to patients recovering from debilitating illnesses and injuries and enable them to resume daily life activities.
Powered by the Athens hospital, Encompass Health will be well-equipped to extend accessible and better healthcare services to residents of the city close to their homes. This, in turn, is expected to bring about improved health outcomes across Georgia.
Encompass Health often resorts to renowned healthcare organizations to synergize and construct inpatient rehabilitation hospitals. Tying up with a healthcare provider in the state where the hospitals are built puts EHC at an advantage as it can gain an in-depth knowledge of the healthcare needs in its immediate surroundings.
In the latest collaboration, Piedmont, with more than a 10-decade history of catering to Georgia residents, appears the perfect partner to complement Encompass Health’s endeavor and help boost its presence across the state.
Encompass Health already boasts a solid foothold in Georgia, evident from its five inpatient rehabilitation hospitals in the region. Additionally, the integrated healthcare services provider has plans to inaugurate two hospitals in other parts of the state, such as Atlanta and Columbus, within the next three years.
EHC looks to be o a spree to unveil facility expansion plans and subsequently, make the same come online within the set deadlines. The resultant increase in the inpatient rehabilitation hospital count is likely to drive revenues of the Inpatient Rehabilitation segment, which remains the sole operating segment of EHC.
Such frequent initiatives empowered Encompass Health to devise a robust healthcare portfolio containing 153 inpatient rehabilitation hospitals, through which it continues to provide affordable and high-quality rehabilitation services across the United States.
Shares of Encompass Health have lost 24.8% year to date compared with the industry’s decline of 29.8%.
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Zacks Rank & Key Picks
Encompass Health currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Medical space are Dynavax Technologies Corporation DVAX, Centene Corporation CNC and Phio Pharmaceuticals Corp. PHIO. While Dynavax Technologies flaunts a Zacks Rank #1 (Strong Buy), Centene and Phio Pharmaceuticals carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dynavax Technologies’ earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average being 70.57%. The Zacks Consensus Estimate for DVAX’s 2022 earnings is pegged at $1.73 per share, which indicates an increase of more than three-fold from the prior-year reading. The consensus mark for DVAX’s 2022 earnings has moved 15.3% north in the past 60 days.
The bottom line of Centene outpaced estimates in three of the trailing four quarters and missed the mark once, the average beat being 2.99%. The Zacks Consensus Estimate for CNC’s 2022 earnings indicates a rise of 10.7%, while the same for revenues suggests an improvement of 14% from the respective prior-year tallies. CNC boasts a VGM Score of A.
Phio Pharmaceuticals’ earnings outpaced estimates in three of the trailing four quarters and missed the mark once, the average being 21.32%. The Zacks Consensus Estimate for PHIO’s 2022 earnings is pegged at $1.28 per share. The year-ago figure was reported as a loss of $1.04 per share. The consensus mark for PHIO’s 2022 earnings has moved up 43.8% in the past 60 days.
Shares of Dynavax Technologies, Centene and Phio Pharmaceuticals have lost 23.1%, 9.3% and 43%, respectively, year to date.
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