Encompass Health Corporation (EHC) is strategically expanding its rehabilitative care footprint with the July 2025 opening of a new 50-bed inpatient rehabilitation hospital in Daytona Beach, Florida. This move targets Florida’s rapidly growing elderly population, addressing both chronic conditions common among seniors and acute injuries linked to popular activities like pickleball. The facility’s design and services reflect a deep understanding of aging patients’ needs, while the phased bed expansion and full ownership model optimize operational control and financial returns. With 23 Florida facilities already and plans for further growth, EHC leverages a proven, scalable care model supported by predictable Medicare reimbursements and strong occupancy rates.
From a valuation and investment perspective, EHC presents an attractive opportunity with a P/E ratio below the healthcare sector average and robust EBITDA performance. The company’s focus on high-margin rehabilitative care amid demographic tailwinds positions it as a defensive growth stock, balancing stability with upside potential. While regulatory and competitive risks exist, EHC’s entrenched network and specialized services mitigate these concerns. Investors are advised to watch occupancy trends and bed utilization in Daytona Beach as indicators of successful scaling and future valuation gains.
