A 2.5% bump in fourth-quarter net operating revenues helped boost profits for Encompass Health Corp., one of the country’s largest home health providers, to $86 million in the quarter from $67.6 million the year before. But earnings for the year fell to $284.2 million from $358.7 million on stronger net operating revenues of $4.64 billion.
The fourth quarter’s higher operating revenues “demonstrates the resiliency of our business model,” according to Encompass Health President and Chief Executive Officer Mark Tarr in an earnings call last week summing up the company’s financial report. Net operating revenues for the quarter rose to $1.21 billion in the fourth quarter of 2020 from $1.18 billion in the same quarter last year.
While favorable pricing in the company’s inpatient rehabilitation segment helped raise net operating revenues for this business, home health volumes declined by 3,900 admissions, resulting in a 3.9% drop in fourth quarter operating revenue — to $227.7 million from $236.9 million in the same quarter last year. Also affecting home health revenue for the quarter was the company’s average of 360 home health employees per day on COVID-related quarantine, which limited its ability to accept referrals.
On Dec. 9, 2020, the company announced that it is “exploring strategic alternatives for its home health and hospice business.” At this time, however, no decisions have been announced.
