Encompass Health Corporation reported significant financial growth for the third quarter and the first nine months of 2024, driven by increased patient volumes and strategic expansions. For the three months ended September 30, 2024, net operating revenues reached $1,351.0 million, an 11.9% increase from $1,206.9 million in the same period of 2023. For the nine months, revenues totaled $3,968.2 million, up 11.6% from $3,554.4 million year-over-year. This growth was primarily attributed to a 6.8% increase in same-store discharges and the opening of new facilities, including hospitals in Florida, Georgia, Kentucky, and Rhode Island.
Total operating expenses for Q3 2024 were $1,141.9 million, reflecting an 11.1% increase from $1,027.5 million in Q3 2023. For the nine-month period, operating expenses rose to $3,336.0 million from $3,012.5 million, a 10.7% increase. Despite rising costs, income from continuing operations before income tax for Q3 2024 was $183.8 million, a 26.8% increase from $145.0 million in Q3 2023. Net income for the quarter was $147.1 million, up 29.7% from $113.4 million in the prior year, with net income attributable to Encompass Health increasing to $108.2 million from $85.3 million.
The company’s balance sheet showed improvements, with cash and cash equivalents rising to $147.8 million as of September 30, 2024, compared to $69.1 million at the end of 2023. Total assets increased to $6,458.4 million from $6,102.4 million, while total current liabilities rose to $897.4 million from $656.4 million. Shareholders’ equity also improved, reaching $2,669.1 million, up from $2,255.2 million.
Strategically, Encompass Health expanded its joint ventures, notably with Piedmont Healthcare, contributing a 70-bed hospital in Augusta, Georgia, which resulted in a post-tax gain of $22.9 million. The company also redeemed $150 million of its 5.75% Senior Notes due 2025, incurring a minor loss on early extinguishment of debt.
The company continues to focus on enhancing its operational capacity and adapting to regulatory changes, particularly in Medicare reimbursement. The anticipated net increase of approximately 3.3% in Medicare payment rates effective October 1, 2024, is expected to further support revenue growth. Encompass Health remains committed to providing high-quality, cost-effective care while navigating the challenges of the healthcare landscape.
About Encompass Health Corp
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