EHC - Why Shares of Encompass Health Soared Tuesday
2023-04-04 17:18:59 ET
Shares of Encompass Health (NYSE: EHC) were up more 10.8% on Tuesday after the Centers for Medicare and Medicaid Services (CMS) proposed to increase inpatient rehabilitation-facility payment rates by 3% for fiscal 2024. The company is the largest owner and operator of rehabilitation hospitals in the United States, with 156 hospitals in 37 states and Puerto Rico.
The move by CMS was the biggest catalyst for Tuesday's stock jump. Encompass Health also released its full 222-page annual report on Tuesday. The company said it had $4.35 billion in revenue in 2022, up 8.3%. It reported opening nine hospitals in 2022 and plans to open eight more this year.
It also said it expects revenue to be up this year. On top of that, a Barclays (NYSE: BCS) analyst increased its target for the stock's price from $57 to $61 on Tuesday.
For further details see:
Why Shares of Encompass Health Soared Tuesday