Encompass Health Shares Plummet Amid New York Times Report

Encompass Health Corp's shares fell following a New York Times report. The company operates inpatient rehabilitation hospitals in the US, with a focus on Florida and Texas. Their hospitals provide specialized care for patients with cognitive disabilities, injuries, and debilitating conditions such as strokes and COVID-19.

Encompass Health Corporation (EHC), a leading provider of inpatient rehabilitation services in the United States, experienced a significant drop in its stock price following a report by The New York Times. The stock fell by 3.6% after the publication highlighted safety concerns at several rehabilitation hospitals operated by Encompass Health and other for-profit corporations.

The New York Times investigation revealed that some rehabilitation hospitals, including those run by Encompass Health, have experienced rare but serious incidents of patient harm. These incidents include fatal incidents at Encompass Health facilities, such as a 73-year-old patient who was fatally poisoned by carbon monoxide during construction at the company’s Huntington, West Virginia hospital. Additionally, a 68-year-old patient was found dead in a "pool of blood" after a bed alarm had been turned off at the company’s Jackson, Tennessee facility. Another patient died following a medication error at the company’s Sioux Falls, South Dakota hospital.

The report also noted that federal health officials do not inform consumers about these incidents or impose fines on rehabilitation hospitals the way they do for nursing homes. Medicare does not provide easy-to-understand five-star ratings for these facilities as it does for general hospitals.

Encompass Health operates a network of inpatient rehabilitation facilities across the United States, with a significant presence in Florida and Texas. The company provides specialized care for patients with cognitive disabilities, injuries, and debilitating conditions such as strokes and COVID-19. Despite the recent stock decline, Encompass Health continues to expand its services, with the recent opening of Encompass Health Rehabilitation Hospital of Daytona Beach, a 50-bed inpatient rehabilitation hospital located at 1952 N. Williamson Blvd. in Daytona Beach, Florida.

The new hospital provides essential rehabilitative services to help patients recovering from strokes, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions regain function and independence. Patients receive a minimum of three hours of intensive therapy five days each week, frequent physician visits, and 24-hour nursing care. The hospital features advanced rehabilitation technologies, private patient rooms, and an interdisciplinary team of highly specialized nurses, therapists, and physicians.

Despite the challenges faced due to the New York Times report, Encompass Health remains committed to providing high-quality, compassionate rehabilitative care. The company is ranked as one of Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America.

References:
[1] https://www.investing.com/news/stock-market-news/encompass-health-stock-falls-after-new-york-times-report-on-rehab-hospitals-93CH-4136190
[2] https://www.prnewswire.com/news-releases/encompass-health-rehabilitation-hospital-of-daytona-beach-now-open-in-florida-302505928.html
[3] https://www.marketscreener.com/quote/stock/ENCOMPASS-HEALTH-CORPORAT-39742680/news/Encompass-Health-Rehabilitation-Hospital-of-Daytona-Beach-now-open-in-Florida-50516129/
[4] https://finance.yahoo.com/news/encompass-health-rehabilitation-hospital-daytona-180000055.html