Encompass Health Plans To Split Into Two - Inpatient Rehabilitation And Home Health & Hospice

Encompass Health Corp EHC plans to spin off its home health and hospice (HH&H) business into an independent, publicly-traded company and rebrand as Enhabit Home Health & Hospice. 

• Encompass Health offers facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies. 
• Its footprint includes 145 hospitals, 251 home health locations, and 96 hospice locations.
• The spin-off, which is expected to be tax-free to Encompass Health's shareholders, will result in Encompass Health's shareholders owning stock in both companies.
• The company intends to consummate the spin-off in 1H of 2022, including the effectiveness of a Form 10 registration statement, regulatory approvals, and receipt of a favorable IRS private letter ruling.
• The establishment of Enhabit Home Health & Hospice will further strengthen Enhabit's focus on high-quality, cost-effective care delivered in the home setting. 
• The rebranding is expected to begin in mid-April 2022.
• Price Action: EHC shares closed 0.67% lower at $61.22 on Wednesday.