Encompass Health Corporation · NYSE:EHC
Encompass Health — Investor Day (March 2020)
108 slides from Encompass Health's investor day presentation, Mar 4, 2020
Slide 1: Encompass Health
Encompass Health 1
Slide 2: Encompass Health presenters
Encompass Health Mark J. Tarr Doug Coltharp Barb Jacobsmeyer President and Chief Executive Vice President and Executive Vice President, Executive Officer Chief Financial Officer President Inpatient Hospitals April Anthony Luke James Rusty Yeager Chief Executive Officer, President, Senior Vice Presid
Slide 3: Encompass Health Investor Relations Team
Encompass Health Investor Relations Team Crissy Carlisle Amy Rayborn Brittany Jager Chief Investor Relations Officer Administrative Coordinator Investor Relations Manager Encompass Health 3
Slide 4: Forward-looking statements
Forward-looking statements The information contained in this presentation includes certain estimates, projections and other forward-looking information that reflect Encompass Health’s current outlook, views and plans with respect to future events, including legislative and regulatory developments, s
Slide 5: Company Overview, Strategy and Outlook
Company Overview, Strategy and Outlook Presented by Mark Tarr Encompass Health 5
Slide 6: Primary elements of our strategy
Primary elements of our strategy Quality Workforce Enhance clinical Serve as an engaged and expertise and deliver productive workforce high-quality outcomes Financial resources Sustained growth Maintain a strong Expand our footprint to financial foundation reach more in need of our high-quality, con
Slide 7: Key takeaways
Key takeaways Our integrated We use We are executing care model technology our growth produces the to leverage strategy high-quality, and enhance to meet the cost-effective care our clinical needs of an aging desired by and business population. providers, payors, processes. and patients. Encompass H
Slide 8: Largest provider positions across inpatient rehabilitation, home health and hospice
# 1 Owner and operator of inpatient rehabilitation hospitals in terms of patients treated and 4 th Largest provider of Medicare-certified skilled home health services discharged, revenues and number of hospitals 11 th Largest provider of Medicare-certified hospice services ~31% Number of states in w
Slide 9: Strength in our unique position
Strength in our unique position Inpatient rehabilitation hospitals (“IRFs”) Home health locations Hospice locations 9 Future IRFs Unique combination of facility-based and home-based assets National scale across all service lines Encompass Health 9
Slide 10: EHC strategic plan - summary
EHC strategic plan - summary STRATEGY To be the leading integrated provider of post-acute services, providing facility-based and home-based services Expand Network Invest in Complementary GOALS Expand Network Build Scale in of Freestanding Operational Financial of HHAs Hospice IRFs Excellence Strate
Slide 11: Our competitive strengths
Our competitive strengths Unique combination of assets Quality of our clinical outcomes Cost effectiveness Extensive application of technology Financial strength Encompass Health 11
Slide 12: Progression to site neutrality in post-acute care
The Company’s IRFs have the physical construct, clinical staffing, and operating expertise to address the full spectrum of inpatient post-acute needs in a site neutral environment. Always available LTACs IRFs SNFs Sometimes available Seldom available Present Therapy gym Therapy gym Therapy gym & tra
Slide 13: Demographic tailwind
Demographic tailwind CAGR (population growth by age) Age 2014 2018 2022 2026 to 2018 to 2022 to 2026 to 2030 65-69 2.8% 2.6% 1.6% (0.1)% 70-74 4.9% 3.7% 2.5% 2.1% 75-79 4.0% 5.0% 4.9% 2.0% 80+ 1.5% 2.4% 3.6% 5.2% Total 3.2% 3.3% 2.9% 2.2% The average age of our Medicare patients: Inpatient rehabilit
Slide 14: Sustained growth
Sustained growth Encompass Health 14
Slide 15: Supply of IRFs remains stable while 65+ population grows
Supply of IRFs remains relatively stable while the age 65+ population continues to grow Total IRFs Population in millions 60 1,400 1,200 50 1,000 40 Number of IRFs 800 30 600 20 400 10 200 - - 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: MedPAC, Medicare Payment Policy, March 2019 – page 262
Slide 16: Proven ability to enter new markets and boost returns with bed additions
Proven ability to enter new markets and boost returns with subsequent bed additions Location 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mesa, AZ 40 40 60 60 60 60 60 60 60 60 70 70 Aldie, VA 40 40 40 40 55 55 60 60 60 60 60 Bristol, VA 25 25 25 25 25 25 25 25 25 25 25 Houston, TX 40
Slide 17: More joint ventures than competitors have freestanding IRFs
Encompass Health has more joint ventures than competitors have freestanding IRFs 47* IRF joint venture hospitals in place with major healthcare systems such as: Barnes-Jewish Cleveland Clinic Martin Health Mercy Health System Geisinger Health System Maine Health System Monmouth Medical Center (RWJBa
Slide 18: More certificate of need beds and IRFs than any single competitor
Encompass Health has more certificate of need beds and IRFs than any single competitor has total beds or locations Total Licensed Beds Total Provider Numbers Ernest 726 18 Kindred 1,080 21 Post Acute Medical 786 18 HCA Healthcare 1,643 62 Select Medical 1,821 30 Vibra 445 9 Grand Total 6,501 158 CON
Slide 19: Repeal of CON laws in Florida – bed additions
Repeal of CON laws creates accelerated growth opportunity in Florida – bed additions Est. Current # of Total Location Completion Beds Add’l Beds Bed Size Altamonte Q3 2020 60 10 70 Springs Largo TBD 70 16 86 Stuart Q4 2020 64 16 80 Sarasota Q1 2021 96 20 116 Ocala Q3 2020 70 10 80 Total 72 Encompass
Slide 20: Repeal of CON laws in Florida – new markets
Repeal of CON laws creates accelerated growth opportunity in Florida – new markets Identified 15 high potential de novo markets Existing hospital De novo market opportunities Encompass Health 20
Slide 21: Inpatient Rehabilitation growth targets
Inpatient Rehabilitation growth targets Sustained growth BEGINNING IN 2021 De novos per year 6 to 10 Discharge CAGR (25% JVs) 4% to 6% BEGINNING IN 2021 for 2020 Bed additions per year through 2025 100 to 150 Encompass Health 21
Slide 22: Home-Based Care: Demand is growing / efficacy is undeniable
Home-Based Care: Demand is growing / efficacy is undeniable Patient Preference for Home Health Care 9 in 10 American seniors want to age at home Cost Efficiency of Home Health Care Annual Medicare Medicare Cost Per Post-Acute Service Sector Spending Day Skilled Nursing Facilities (SNF) $28.4 billion
Slide 23: Multi-faceted home health growth strategy
Multi-faceted home health growth strategy Organic Growth • Geographic coverage for 70% of total Medicare home care spend • Cost effective solution for a growing number of patients with multiple chronic conditions Average organic • Focused specialty programs (heart and vascular; ortho; admissions com
Slide 24: Hospice growth drivers
Hospice growth drivers 11th largest provider of Medicare-certified hospice services 83 18 Hospice locations States Hospice acquisitions and de novos % of Medicare decedents using hospice • Medicare focused • Located in markets with significant Medicare spend • Growing societal preference 2000 2017 •
Slide 25: Home Health and Hospice growth targets
Home Health and Hospice growth targets Sustained growth Home Health Hospice Acquisitions admissions CAGR admissions CAGR $50 million to 10%+ 10% to 15% $100 million for 2020 through for 2020 through 2025 2025 per year Not inclusive of larger scale acquisitions Encompass Health 25
Slide 26: Clinical collaboration growth targets
Clinical collaboration growth targets 100 overlap markets by 2025 45% all payor goal by 2025 Encompass Health 26
Slide 27: Consolidated CAGR targets
Consolidated CAGR targets Sustained growth Consolidated Consolidated Adjusted net operating adjusted free cash revenues EBITDA flow 7% to 9% 7% to 9% 8% to 10% 2020 through 2025 Encompass Health 27
Slide 28: Patient Journey Video
Patient Journey Video Encompass Health 28
Slide 29: Inpatient Rehabilitation
Inpatient Rehabilitation Presented by Barb Jacobsmeyer Encompass Health 29
Slide 30: Overview - Inpatient Rehabilitation
Overview - Inpatient Rehabilitation 134 23% 31% 47 33 123 ~31,600 ~186,800 ~$3.5 billion Encompass Health 30
Slide 31: Who are these patients, and why did they come our way?
Who are these patients, and why did they come our way? Encompass Health 31
Slide 32: Hospital level care
Hospital level care Encompass Health 32
Slide 33: Physician Engagement
Physician Engagement Encompass Health 33
Slide 34: Full Care Team
Full Care Team Encompass Health 34
Slide 35: On-Site Pharmacy
On-Site Pharmacy Encompass Health 35
Slide 36: Specialized and Intensive Therapy
Specialized and Intensive Therapy Encompass Health 36
Slide 37: Minimum of 3 hours of therapy 5 days a week
Minimum of 3 hours of therapy 5 days a week Encompass Health 37
Slide 38: We invest significantly in rehabilitation technologies
We invest significantly in rehabilitation technologies to further improve patient outcomes ReoGO Burt VitalStim Bioness H200 DynaVision Biodex FreeStep Biodex Balance System Bioness Integrated Therapy System (BITS) Encompass Health 38
Slide 39: Activities of Daily Living Suite
Activities of Daily Living Suite Encompass Health 39
Slide 40: Who provides this great care?
Who provides this great care? Nurse turnover Therapist turnover Clinical teams of nurses, 25% 10% physical therapists, occupational therapists, speech 7% language pathologists, respiratory therapists, 23% physicians, case managers, pharmacists, and dieticians Encompass Health Benchmark Encompass Hea
Slide 41: Patient-focused approach leads to quality clinical results
Encompass Health’s patient-focused approach leads to quality clinical results Discharge to Discharge to Discharge to Community SNF Acute 80.4% 12.7% 10.7% 79.9% 12.3% 79.4% 10.8% 10.4% 10.4% 79.0% 10.2% 10.2% 9.3% 9.1% 8.7% 76.7% 76.0% 9.5% 2017 2018 2019 2017 2018 2019 2017 2018 2019 Higher is bett
Slide 42: Technology Supports Our Staff
Technology Supports Our Staff Encompass Health 42
Slide 43: ReACT readmission program integrated into clinician workflow
EHC’s readmission program, ReACT, is integrated into the clinicians workflow to identify risk of acute care transfer (ACT) and promote early intervention BACKGROUND Braden Score • Clinical tool designed in EHC’s Vital proprietary EMR to identify a Therapy Signs patient’s risk of acute care transfer
Slide 44: ReACT
ReACT Details on the variables contributing to the risk throughout the stay Encompass Health 44
Slide 45: Encompass Health Readmission Prevention Program
What is the Encompass Health Readmission Prevention Program? The Readmission Prevention Program is an established, proven set of tools and standards to mitigate the risk a patient will readmit to an acute hospital within 30 days PREDICTIVE MODEL • Co-developed with Cerner through the Innovation Cent
Slide 46: Our IRF value proposition
Our IRF value proposition Encompass Health developed the proprietary Joint Jointventures venturesbegan beganin in1991 1991 Post-Acute Care Strategic Assessment (PACSA) tool to identify specific areas of opportunity • 47 IRFs are joint ventures for EHC with an acute care hospital. For-Profit 4% Acade
Slide 47: Data at the diagnosis level
The picture may look different when you examine the data at the diagnosis level First Post-Acute 30-Day Readmission Total Post-Acute 30-Day Readmission First PAC 30 day Post Acute Provider Type readmission rate EHC Albuquerque IRF 19.8% Lovelace (#1 based on volume) IRF 19.6% Advanced (#2 based on v
Slide 48: Readmissions add significant costs to 90-day average spend
Readmissions add significant costs to the 90-day average spend When analyzed by DRG for the right patient, IRF is the right setting for quality outcomes and cost 90-Day Avg. 90-Day Avg. EHC Spend DRG Total Spend Total Spend vs. SNF EHC IRF SNF 61 Acute ischemic stroke w MCC $59,086 $93,449 -37% 62 A
Slide 49: Research concludes IRFs are better for stroke patients than SNFs
Independent research concludes IRFs are a better rehabilitation option for stroke patients than SNFs AHA/ASA Stroke JAMA Guidelines Network Veterans Affairs Stroke Guidelines Patients “who received services at an IRF after a “Whenever possible, the stroke demonstrated American Stroke Association gre
Slide 50: Stroke outcomes for an acute care hospital's patients
For this acute care hospital’s stroke patients, outcomes are superior and acute length of stay is shorter when discharged to an EHC hospital Stroke Patients’ Discharge Stroke Results Destination Acute Avg. Readmission Rate # (%) of Length of 30-Days Post- Discharges Stay Discharge PAC SNF 122 (29%)
Slide 51: Post Acute Care Strategic Assessment (PACSA)
Encompass Health developed the proprietary Post Acute Care Strategic Assessment (PACSA) to address opportunities with a specific acute care hospital Market Perception • 31% of patients referred to 25.4% home health did not receive 2018 30-Day Readmission Rate care within 3 days 16.1% • 24% of patien
Slide 52: AHA/ASA strategic sponsorship – by the numbers
AHA/ASA strategic sponsorship – by the numbers 51,777 Life After Stroke 11.2M+ 4 guides distributed by Encompass Health Reach on AHA/ASA- hospitals 11,000 owned channels (e.g. 42 blog, hospitals Number of guests e-newsletters, reached through AHA home page) 9,460 Life After included in the 20 Go Red
Slide 53: Hospital volume trends in Medicare Advantage
Encompass Health’s hospital volume trends in Medicare Advantage are outpacing beneficiary enrollment 18,788 6,248 16,419 5,425 14,751 13,320 4,822 4,391 2016 2017 2018 2019 2016 2017 2018 2019 Total Medicare Advantage Discharges Medicare Advantage Stroke Discharges From 2016 thru 2019, the Medicare
Slide 54: Stuart, Florida IRF – opened June 2013
Stuart, Florida IRF – opened June 2013 with 34 beds 50/50 Joint Venture with Cleveland Clinic Martin Health 365 acute care beds in the market 193,000 65+ population in primary and secondary service area 2013 2014 Licensed Beds 34 34 Hospital floor plan Avg. Daily Census 16 33 Occupancy 46.9% 96.0% R
Slide 55: Stuart, Florida IRF – expanded in August 2015
Stuart, Florida IRF – expanded in August 2015 AUGUST 2015 Hospital floor plan Added 10 beds for a total of 44 2015 2016 Licensed 44 44 Beds Avg. Daily 37 43 Census Occupancy 84.8% 98.5% MAY 2017 Revenue Added 10 beds $20.5 $23.5 (millions) EBITDA for a total of 54 $5.2 $6.0 (millions) FTEs 121 140 E
Slide 56: Stuart, Florida IRF – expanded in May 2017
Stuart, Florida IRF – further expanded in May 2017 AUGUST 2015 Hospital floor plan 2017 2018 Licensed 54 54 Beds Avg. Daily 48 53 Census Occupancy 89.7% 97.3% Revenue $26.5 $29.7 (millions) EBITDA $6.7 $7.6 (millions) MAY 2017 FTEs 152 166 Added 10 beds for a total of 54 Encompass Health 56
Slide 57: Stuart, Florida IRF – expanded in 2019 and 2020
Stuart, Florida IRF – further expanded in 2019 and 2020 DECEMBER 2019 Hospital floor plan Added 10 beds for a total of 64 OCTOBER 2020 Adding 16 beds 3 Disease Specific Certifications: Stroke, Amputee, for a total of 80 and Hip Fracture Encompass Health 57
Slide 58: Leading position in cost effectiveness
Leading position in cost effectiveness Avg. est. Avg. est. total Avg. total cost payment Avg. Medicare Case per per beds discharges mix discharge discharge # per IRF per IRF index for FY 2019 for FY 2019 Encompass 126 67 951 1.28 $13,622 $20,315 Health= Medicare pays Free-standing = (Non-Encompass 1
Slide 59: Patient-centered technology allows benchmarking and improvement
Patient-centered technology allows for benchmarking and continual improvement Standardize the process, then automate it Enterprise Proprietary large Clinical and business Continuous scalability patient datasets knowledge improvement Proprietary Management System • Proprietary operations management s
Slide 60: Labor productivity
Labor productivity Select date range Select by region Combines time & attendance system with patient accounting system to show labor metrics Encompass Health 60
Slide 61: Labor productivity
Labor productivity Select by hospital within a region Encompass Health 61
Slide 62: Labor productivity
Labor productivity Encompass Health 62
Slide 63: Labor productivity
Labor productivity Select by department within a hospital Encompass Health 63
Slide 64: Care management
Care management Patient level outcomes combined into one report for easy of comparison by hospital Encompass Health 64
Slide 65: Care management
Care management Select by impairment category (diagnosis) Encompass Health 65
Slide 66: Care management
Care management Trend individual quality metrics by month or quarter Encompass Health 66
Slide 67: Care management
Care management Patient level outcomes combined by case manager Encompass Health 67
Slide 68: Hospital business development (volume analysis)
Hospital business development (volume analysis) High level overview of hospital level volume performance versus budget Encompass Health 68
Slide 69: Hospital business development (sales and marketing)
Hospital business development (sales and marketing) Demonstrates how contacts are impacting referrals and admissions Encompass Health 69
Slide 70: Physician dashboard
Physician dashboard Encompass Health 70
Slide 71: Clinical collaboration
Clinical collaboration Encompass Health 71
Slide 72: Clinical collaboration
Clinical collaboration Encompass Health 72
Slide 73: Clinical collaboration - integrated care drives quality metrics
Clinical collaboration - integrated care drives quality metrics Of the 89 overlap markets, 34 are at collaboration rates of 40% or higher. Score increases Overall Discharge Discharge to satisfaction satisfaction community Overlap 2.27 pts 2.26 pts 110 bps Non overlap 0.71 pts 0.67 pts 80 bps Encompa
Slide 74: Clinical Collaboration
Clinical Collaboration Encompass Health 74
Slide 75: Home Health
Home Health Presented by April Anthony and Luke James Encompass Health 75
Slide 76: Overview – Home Health
Overview – Home Health 4th largest provider of Medicare-certified skilled home health services 89 overlap markets with Encompass Health Rehabilitation 245 31 Hospitals 82% Home Health locations States of revenue is Medicare ~9,900 ~159,700 ~$900 million employees home health revenues admissions Enco
Slide 77: Why we are excited about Home Health
Why we are excited about Home Health 90.0 Number of people age 65 or older, by age group (millions) 80.0 70.0 We are 60.0 here 50.0 40.0 30.0 20.0 10.0 - 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 65 to 74 75 to 84 85 to 94 95 or Older So
Slide 78: Growing share of seniors with chronic conditions
Why we are excited about Home Health Growing % of seniors are experiencing chronic conditions Currently, 36% of Medicare beneficiaries have 4+ chronic conditions and consume 75% of Medicare spending. Source: American Hospital Association, 2014 Encompass Health 78
Slide 79: Cost Efficiency of Home Health Care
Why we are excited about Home Health Cost Efficiency of Home Health Care Annual Post-Acute Medicare Medicare Service Sector Cost Per Day Spending Skilled Nursing $28.4 billion $490 Facilities (SNF) Hospice $17.9 billion $168 Home Health $17.7 billion $47 Source: MedPAC; kff.org Encompass Health 79
Slide 80: Patient Preference for Home Health Care
Why we are excited about Home Health Patient Preference for Home Health Care 9 in 10 American seniors want to age at home Source: AginginPlace.org Encompass Health 80
Slide 81: How we grow
How we grow Clinical Care Specialty Traditional Collaboration Transitions Programs Referrals 14% of admits 34% of admits 32% of admits 20% of admits • Clinical collaboration • Care Transitions • Heart & Vascular • Internal Medicine rate for Medicare is Coordinators • Joint & Ortho • Family practice
Slide 82: How we grow: FTEs per Branch
How we grow Total EHC Home Health Sales Personnel Sales FTEs 800 3.5 2.9 700 2.7 2.8 3.0 600 2.2 2.3 2.5 FTEs per Branch 500 Sales FTEs 2.0 400 722 1.5 300 630 537 1.0 200 429 297 0.5 100 0 0.0 2015 2016 2017 2018 2019 Sales FTEs Sales FTEs/Branch Encompass Health 82
Slide 83: The results of our efforts
The results of our efforts New-Store/Same-Store Growth* New-Store Same-Store 13.7% 29.9% 7.7% 11.4% 5.6% 8.6% 5.6% 4.4% 2016 2017 2018 2019 *Acquired CareSouth (44 locations in 7 states) in November 2015; acquired Camellia (14 locations in 3 Encompass Health 83 states) in May 2018; acquired Alacare
Slide 84: Proven track record of successful acquisitions and integrations
Clinical Collaboration How we expand Proven Track Record of Successful Acquisitions and Integrations As of Date of Acquisition As of Q4 2019 Purchase Annual Annual Year of EBITDA EBITDA Price Revenue Revenue Acquisition Multiple Multiple (millions) (millions) (millions) 2015 $200.7 $145.9 7.9 $186.7
Slide 85: Expanding sophistication in care management
Expanding sophistication in care management Clinical decision support tools that ensure better and more consistent outcomes Prompts continued Proactively identifies home touch points with discharged health patients who are patients to identify and potentially better suited prevent post-discharge and
Slide 86: Medalogix Care
Medalogix Care Patient Name Physician Name Encompass Health 86
Slide 87: How therapy changes at home
How therapy changes at home Medicine reconciliation allows us to see what the patient is really taking and train them to take the correct medicines Therapy is no longer about high-tech equipment but rather about navigating the patient’s home and surrounding environment Teaching and training extends
Slide 88: Technology-enabled outcomes
Technology-enabled outcomes Homecare Homebase is an exceptional tool. We make it more effective by our disciplined use and response to the guidance and information it provides. Produces Promotes Ensures Enhances operational clinical compliant financial efficiency consistency processes opportunity En
Slide 89: Real-time dashboard tools in Homecare Homebase
Real-time dashboard tools in Homecare Homebase Encompass Health 89
Slide 90: Home health quality outcomes
Outcomes HOME HEALTH QUALITY 3.8 99% of our home health 3.3 agencies are 3 Stars or higher; Quality of 47% are 4 Stars or higher Care Star Ratings 3.7 3.5 95% of our home health agencies are 3 Stars or higher; Patient 62% are 4 Stars or higher Satisfaction Star Ratings 17.5% Percent of patients 16.0
Slide 91: Best place to work culture
Best place to work culture 2016 2017 2018 2019 2020 Encompass Health 91
Slide 92: 2020+: Evolving payment models and payor relationships
2020+: Evolving payment models and payor relationships PDGM requires the combination of accurate coding and assessment, efficient care planning and effective care delivery RCD will require thorough upfront processes including timely face-to-face and timely document signatures Expansion in non-Medica
Slide 93: Keys to success in Patient-Driven Groupings Model (PDGM)
Keys to success in Patient-Driven Groupings Model (PDGM) Focus Area Need Result Referral Documentation Complete referral ‘Whole picture’ information from every information for better referral source coding & care planning Coding & Assessment Precise information Enhanced ability to care collected in
Slide 94: 2020+ Review Claim Demonstration (RCD)
2020+ Review Claim Demonstration (RCD) RCD Changes Potential delays in cash Significantly reduced risk flow as information is of post-payment audits collected and submitted on affirmed episodes Strategies for Success 1 2 3 Gather robust, Prompt correction Automated workflow timely referral of errors
Slide 95: 2020+ Growth in non-Medicare payor mix
2020+ Growth in non-Medicare payor mix Our Approach included value-based achieve desired acceptable rates & arrangement concepts growth rates with terms with all since 2019 current payors applicable payors Examples of differentiators Largest home health For over 5 years, we have Leading the way in p
Slide 96: Hospice
Hospice Presented by April Anthony Encompass Health 96
Slide 97: Overview - Hospice
Overview - Hospice 11th largest provider of Medicare-certified hospice services 77 overlap markets with Encompass Health Home Health 83 18 98% Hospice States of revenue is Medicare locations ~1,900 ~10,500 ~$200 million employees admissions revenues Encompass Health 97
Slide 98: How we grow
How we grow Demographics and cost efficiency % of Medicare beneficiaries using hospice Increasing patient and family preference Opportunity to serve a larger percentage of 2000 Medicare beneficiaries and begin ~23% treatment earlier in their end of life process Grow the scale of our currently small
Slide 99: Financial Strategy
Financial Strategy Presented by Doug Coltharp Encompass Health 99
Slide 100: Growth requires investment. Investment requires funding.
Growth requires investment. Investment requires funding. Encompass Health 100
Slide 101: Managing the balance sheet to support our growth
Managing the balance sheet to support our growth As of December 31, 2019* Focus Leverage Ratio: 3.2x Total Liquidity: $1.0 billion Liquidity Duration Optionality Cost Flexibility ($ in millions) Revolver Capacity $916 $700 Senior Notes 5.75% $500 $500 Senior Senior $350 Notes Notes $300 Senior 4.5%
Slide 102: Managing the balance sheet: YE 2018 to YE 2019
Managing the balance sheet to support our growth Financial resources Comparison of YE 2018 to YE 2019 Liquidity • Increased revolving credit facility from $700M to ~$1.0B • Bank credit facilities extended 2+ years Duration • Average remaining maturity of senior notes extended from ~6 years to ~7 yea
Slide 103: Summary
Summary Presented by Mark Tarr Encompass Health 103
Slide 104: Key takeaways
Key takeaways Our integrated We use We are executing care model technology our growth produces the to leverage strategy high-quality, and enhance to meet the cost-effective care our clinical needs of an aging desired by and business population. providers, payors, processes. and patients. Encompass H
Slide 105: Q&A
Q&A Moderated by Crissy Carlisle Encompass Health 105
Slide 106: Closing Remarks
Closing Remarks Presented by Crissy Carlisle Encompass Health 106
Slide 107: Video
Video Encompass Health 107
Slide 108: Committed to delivering integrated high-quality, cost-effective care
Committed to delivering integrated high-quality, cost-effective care across the healthcare continuum Encompass Health 108