Encompass Health Business Summary

Encompass Health Corporation (EHC) is the nation’s largest owner and operator of inpatient rehabilitation hospitals, generating revenue primarily through fee-for-service reimbursements from Medicare, Medicare Advantage, and private managed care providers. Following the 2022 spin-off of its home health and hospice segment, the company operates as a pure-play provider focused on intensive post-acute care for patients recovering from strokes, neurological disorders, and complex orthopedic injuries. Revenue is driven by patient discharge volume and acuity-based pricing across a network of 173 hospitals in 39 states and Puerto Rico. EHC maintains a dominant market position through its clinical scale and specialized outcomes, competing directly with Select Medical Holdings, Tenet Healthcare, and Universal Health Services, while consistently outperforming peers in same-store discharge growth and facility expansion. The company is led by President and CEO Mark J. Tarr, a veteran executive who joined the organization in 1993 and has overseen its strategic transition from the legacy HealthSouth brand (founded in 1984) to its current market leadership. Supporting him are EVP and CFO Douglas E. Coltharp, who brings extensive corporate finance experience from Saks Inc., and EVP and COO Pat Tuer, a former Select Medical executive appointed in April 2025 to lead hospital operations. Clinical and technological integration is managed by SVP and CIO Rusty Yeager. The board is chaired by Greg D. Carmichael, former CEO of Fifth Third Bancorp, and recently added veteran health plan executive Cain A. Hayes in February 2026. Major institutional investors include The Vanguard Group and BlackRock, which maintain significant positions in the company’s public equity.