EHC - Encompass Health up 11% on proposed Medicare rehab payment increase

2023-04-04 11:31:30 ET

• Encompass Health ( NYSE: EHC ) shot up 11% on Tuesday morning following a CMS proposal Tuesday that payments to rehab patient facilities increase in 2024.
• The Impatient Rehab Facility Proposed Rule would equate to ~3.7%, or a $335M increase, in payments in fiscal 2024 compared to FY 2023.
• Street analysts lauded CMS' proposal , saying it would benefit companies in the rehab services space like Encompass Health ( EHC ).
• Barclays Steve Valiquette increased his price target to $61 from $57 (~13% upside) but maintained his equal weight rating.
• "We believed Encompass's ( EHC ) outlook last quarter incorporated some conservatism with regard to the 2024 rule and think that this update combined with strong volumes and a robust de novo pipeline will set the company up well for fourth quarter 2023 and 2024," William Blair's Matt Larew wrote.
• Mizuho analyst Ann Hynes maintained her buy rating and said the company is a top pick for 2023.
• Read why Seeking Alpha contributor Zach Bristow also says Encompass Health ( EHC ) is a buy.

For further details see: