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Encompass Health has completed a spin-off of Enhabit, its home health and hospice business, the companies announced Friday.
Encompass Health’s board of directors characterized the separation as a way for each entity to be more flexible and strategic in operations and acquisitions. The company expects Enhabit to earn more than $1 billion this year, according to guidance issued last month.
“Today marks a new and exciting chapter for our company, and we look forward to embarking on this next phase of growth with our team,” Enhabit President and CEO Barb Jacobsmeyer said in a news release. “As an independent company, we will have enhanced strategic and operational flexibility to put the interests of our patients, people and investors first.”
Enhabit is now an independent public company traded on the New York Stock Exchange. Stockholders were given one share of Enhabit stock for every two shares of Encompass Health stock they owned as of June 24.
The home health industry has been exploding in growth as the country’s population ages and providers look to meet their needs. By 2040, 81 million U.S. residents will be 65 or older, up from 54 million in 2019, according to Health and Human Services Department data.
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