Encompass Health Corporation · NYSE:EHC

Encompass Health — Q3 2020 Earnings Presentation

114 slides from Encompass Health's earnings presentation, Nov 13, 2020

  1. Slide 1: Investor Reference Book

    DckZhidg� MZ�ZgZcXZ� =dd� H�de�I/�.,.,�VRc���Xd�cV�VRdV� GVhi�jeYViZY�IdkZbWZg�.0)�/-/-

  2. Slide 2: ?�chRcU)������X�deReV�V�ed COL�PUMVYTH�PVU�JVU�HPULK�PU��OP��8U�L��VY�ALMLYLUJL�1VVR�PUJS�KL��JLY�HPU�L��PTH�L����YVQ…

    ?�chRcU)������X�deReV�V�ed COL�PUMVYTH�PVU�JVU�HPULK�PU��OP��8U�L��VY�ALMLYLUJL�1VVR�PUJS�KL��JLY�HPU�L��PTH�L����YVQLJ�PVU��HUK�V�OLY�MVY�HYK$ SVVRPUN�PUMVYTH�PVU��OH��YLMSLJ��4UJVT�H����LHS�Og��J�YYLU��V��SVVR���PL���HUK��SHU���P�O�YL��LJ���V�M���YL�L�LU���� PUJS�KPUN��OL�2�E83$(/��HUKLTPJ�HUK�P��

  3. Slide 3: Table of contents

    LRS�V��W�T��eV�ed >dbeVcn�dkZgk�Zl�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+� 1*// DckZhibZci�i�Zh�h�VcY�higViZ�n�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+�+� /0*/5 =jh�cZhh�djiadd�)��cXajY�c���j�YVcXZ�+�+�+�+�

  4. Slide 4: Encompass Health overview

    ���aR�j��gVcg�Vh ��T��aRdd�AVR�eY��d�R��Re���R���VRUVc������eVXcReVU�YVR�eYTRcV�dVcg�TVd� �WWVc��X�S�eY�WRT���ej)SRdVU�R�U�Y��V)SRdVU�aRe�V�e�TRcV�eYc�fXY��ed� �Veh�c���W���aRe�V�e�cVYRS���eRe����Y�da�eR�d(�Y��V�YVR�eY�RXV�T�Vd(�R�U� Y�da�TV�RXV�T�Vd*�LYV����aR�j��d�T����eeVU�e��UV��gVc��X�Y�XY)bfR�

  5. Slide 5: V�aZVY�c��egdk�YZg�d���ceVi�Zci�gZ�VW�a�iVi�dc� ��T��aRdd�AVR�eY VcY��dbZ*WVhZY�XVgZ ERc�Ve��gVc�Ra 56�d���C>zh�DMAh�…

    V�aZVY�c��egdk�YZg�d���ceVi�Zci�gZ�VW�a�iVi�dc� ��T��aRdd�AVR�eY VcY��dbZ*WVhZY�XVgZ ERc�Ve��gVc�Ra 56�d���C>zh�DMAh��VkZ�Vc� �C>��dbZ��ZVai��adXVi�dc� l�i��c�i�Z�hZgk�XZ�VgZV+' H�ceW�����Rd��W��VaeV�SVc�/,(�.,.,&& DceVi�Zci�gZ�VW�a�iVi�dc��dhe�iVah�%xDMAhy& CdbZ��ZVai��adXVi�dch Cdhe�XZ�adXVi�dch .

  6. Slide 6: Inpatient rehabilitation overview

    ���aR�j��gVcg�Vh �ceVi�Zci�gZ�VW�a�iVi�dc -.0��W�eYV����aR�jtd�BJ?d�Y��U���V��c���cV�U�dVRdV)daVT�W�T� B�aRe�V�e�cVYRS���eRe��� TVce�W�TRe���d�Wc���LYV�C���e������dd���td�=�dVRdV)�aVT�W�T� Y�da�eR�d �RcV��Vce�W�TRe����Hc�XcR�*$-% ER��c�dVcg�TVd� m JVYRS���eRe����aYjd�T�R�d6�bVcV�Z�VcY�igZVi�bZY�XVa�

  7. Slide 7: Home health and hospice

    ���aR�j��gVcg�Vh �dbZ��ZVai��VcY��dhe�XZ LYV����aR�j��WWVcd�Vg�UV�TV)SRdVU�daVT�R�ej�ac�XcR�d� A��V�YVR�eY�RXV�T�Vd cV�ReVU�e�6�a�de)�aVcRe�gV�TRcV(�WR���acVgV�e���(�TYc���T�U�dVRdV� �R�RXV�V�e(�R�U�ecR�d�e���R��TRcV* ER��c�dVcg�TVd� m �����VU��fcdVd6�XdbegZ�Zch�kZan�VhhZhh)�iZVX�)�igV�c)�VcY�bVcV�Z

  8. Slide 8: BJ?�aRe�V�e���i A��V�YVR�eY�aRe�V�e���i :U��dd����d�fcTVd6 :U��dd����d�fcTVd6 �XjiZ�XVgZ��dhe�iVah�v�5,� �XjiZ�XVgZ��…

    BJ?�aRe�V�e���i A��V�YVR�eY�aRe�V�e���i :U��dd����d�fcTVd6 :U��dd����d�fcTVd6 �XjiZ�XVgZ��dhe�iVah�v�5,� �XjiZ�XVgZ��dhe�iVah�v�/3� K�nh�X�Vc�d���XZh�,�Xdbbjc�in�v�4� K�nh�X�Vc�d���XZh�,�Xdbbjc�in�v�/2� N��aaZY�cjgh�c���VX�a�i�Zh�v�.� DMAh�,�GO>Ch�,�NIAh�v�.3� QL=� =V��XcRaY�Td��W�R���EVU�TRcV�Y��V�

  9. Slide 9: Quality outcomes

    A�XY)bfR��ej�TRcV BJ?�bfR��ej A��V�YVR�eY�bfR��ej =�dTYRcXV�e��T���f��ej& KZgXZci�d��XVhZh� /*4 5.+/" 5-+6" IfR��ej��W�TRcV 46+6" 46+6" Y�hX�Vg�ZY�id� �eRc�cRe��Xd&&$0% i�Z�Xdbbjc�in)� /*1 53��d��djg��dbZ��ZVai��V�ZcX�Zh� �cXajY�c���dbZ� dg��dbZ�l�i�� VgZ�/�NiVgh�dg�����Zg8 �dbZ��ZVai�+ 04��VgZ�0�Ni

  10. Slide 10: Inpatient rehabilitation results

    DVRU��X�a�d�e�������T�de�VWWVTe�gV�Vdd �ceVi�Zci�gZ�VW�a�iVi�dc �k�+�Zhi+ �k�+�Zhi+ idiVa �k�+ idiVa�Xdhi eVnbZci �k�+ HZY�XVgZ� eZg eZg 5A�E��MA�L�TN� WZYh Y�hX�Vg�Zh Y�hX�Vg�Z Y�hX�Vg�Z ����IL�NN��A�HOD� eZg�DMA eZg�DMA$2% �dg�AT�/-/. �dg�AT�/-/. HANN�LAM��EN�D�MCA�� ��T��aRdd� $1% -// 24 523 -0(0

  11. Slide 11: Discharge and revenue per discharge

    D�h�T�de��VRUVc �dbZ��ZVai� -�NO�LAM��ENEO�EN����(�� H�RAM��PA�O��I�MGAO� �A�NEOT������LAM�OE���H� �kZgV�Z� ABBE�EA��T� �kZgV�Z� �kZgV�Z� gZkZcjZ /-.6 gZkZcjZ� k�h�ih eZg�k�h�i >dhi ��-�MACE�AM �e�hdYZh eZg�Ze�hdYZ' eZg�Ze�hdYZ %Vaa�eVndgh& eZg�k�h�i �����LOEIE��OE�� ��T��aRdd� ���LOEIE��OE����B��-�

  12. Slide 12: Same-store discharge growth

    FVh)de�cV+dR�V)de�cV�Xc�heY DceVi�Zci�MZ�VW�a�iVi�dc %6& N�ZaWn�>djcin)��G�%01�WZYh& TjbV)��U�%2.�WZYh& =aj��idc)�N>�%05�WZYh& =d�hZ)�D?�%1-�WZYh& FVin)�OS�%1-�WZYh& HjggZaah�DcaZi)�N>� N�djm�AVaah)�N?�%1-�WZYh& .2+- KZVgaVcY)�OS� %/6�WZYh& GjWWdX�)�OS� %1-�WZYh& %1-�WZYh& >dgVak�aaZ)�D��%1-�WZYh& .

  13. Slide 13: Census

    B�aRe�V�e�JVYRS���eRe����p�HRe�V�e��V�dfd�B�W�c�Re��� + =Z��cc�c���c�b�Y*HVgX��/-/-)�eVi�Zci�XZchjh�lVh��beVXiZY�Wn�i�Z�>JQD?*.6�eVcYZb�X+ 4(,,, 3(,,, 2(5-, 2(31. 2(12, 2(13. 2(1/3 2(01. 2(021 2(0,5 2(1.2 2(0-/ 2(,,, 2(/-- 2(.50 2(/5, 2(.2/ 2(/00 2(//- 2(/33 1(021 1(,,, 0(,,, /(,,, .(,,, -(,,, , CR

  14. Slide 14: Home health admissions

    FVh)de�cV+dR�V)de�cV�Xc�heY CdbZ�CZVai� �Xfj�gZY��aVXVgZ�CdbZ�CZVai��#�Cdhe�XZ� %/0��dbZ��ZVai��adXVi�dch��c��aVWVbV& 0-+- �Xfj�gZY�>VbZaa�V�CZVai�XVgZ� �c�Ejan�/-.6 %.1��dbZ��ZVai��adXVi�dch��c�0�hiViZh& �c�HVn�/-.5 /-+- .-+- -+- *.-+- */-+- L1�/-.4 L.�/-.5 L/�/-.5 L0�/-.5 L1�/-.5 L.�/-.6 L/�/-.6 L

  15. Slide 15: Home health episodes

    A��V�AVR�eY�)��eRced��W��a�d�UVd �$B�T�fUVd��eRced��W��RcV�R�U�JVTVce�W�TRe���d% * =Z��cc�c���c�b�Y*HVgX��/-/-)�hiVgih�d��Ze�hdYZh�lZgZ��beVXiZY�Wn�i�Z�>JQD?*.6�eVcYZb�X+ * O�Z�VXfj�h�i�dc�d���aVXVgZ�Vcc�kZghVg�ZY�dc�Ejan�.)�/-/-+ * CdbZ��ZVai��hiVgih�d��Ze�hdYZh�YZXgZVhZY�hZfjZci�Vaan��c��j�jhi�/-/

  16. Slide 16: Hospice admissions

    FVh)de�cV+dR�V)de�cV�Xc�heY Cdhe�XZ �Xfj�gZY�>VbZaa�V�CZVai�XVgZ� %.5��dhe�XZ�adXVi�dch��c�0�hiViZh& �Xfj�gZY��aVXVgZ�CdbZ�CZVai��#�Cdhe�XZ� 4-+- �c�HVn�/-.5 %/0��dhe�XZ�adXVi�dch��c��aVWVbV& �c�Ejan�/-.6 3-+- 2-+- 1-+- 0-+- /-+- .-+- -+- *.-+- L1�/-.4 L.�/-.5 L/�/-.5 L0�/-.5 L1�/-.5 L.�/-.6 L/�/-.6

  17. Slide 17: Hospice volume

    A�da�TV�)�:U��dd���d + Cdhe�XZ�VYb�hh�dch�ZmeZg�ZcXZY�Vc��c�i�Va�Ygde��c�HVgX��/-/-�Wji�gZWdjcYZY�fj�X�an+ + O�Z�VXfj�h�i�dc�d���aVXVgZ�Vcc�kZghVg�ZY�dc�Ejan�.)�/-/-+ -(.,, -(-03 -(-01 -(--2 -(,5. -(,5/ -(,,, -(,/1 -(,,4 -(,,- 535 533 5-1 5,2 4,, 4-, 4,2 4,/ 345 321 3.5 2,, 0,, .,, , CR ?V ER :a ER

  18. Slide 18: Q3 2020 sequestration and rate updates

    HRj�cd�$QL=�I/�.,.,% HRj�c�d�fcTV ���W�JVgV�fVd HRj�V�e��VeY�U���Xj Hc�daVTe�gV�HRj�V�e��jdeV��$rHH�s% �*�BJ?7�eV�Y�eZg�Y�hX�Vg�Z�Wn�>VhZ�H�m�Bgdje�%x>HBy& �EVU�TRcV B�aRe�V�e A��V �*�A��V�YVR�eY7�eV�Y�eZg�0-*YVn�eZg�dY�d��XVgZ cVYRS YVR�eY��� r ��eZg�dY��h�eV�Y��c�ild��chiVaabZcih7� .&�MZfjZhi��dg�

  19. Slide 19: Operating and business model strengths

    �ec��X�R�U�dfdeR��RS�V�Sfd��Vdd�Wf�UR�V�eR�d � AVkdgVWaZ�YZbd�gVe��X�igZcYh�Yg�k�c���cXgZVh�c��YZbVcY � �iigVXi�kZ��ZVai�XVgZ�hZXidgh IdcY�hXgZi�dcVgn�cVijgZ�d��bVcn�XdcY�i�dch�igZViZY � C���an��gV�bZciZY�edhi*VXjiZ�hZXidgh�egZhZci�VXfj�h�i�dc�VcY��d�ci�kZcijgZ� deedgijc�i�Zh � GVg�Zhi�egdk�YZg�d���

  20. Slide 20: IRF PPS FY2021 final rule

    BJ?)HH��W�dTR��jVRc�.,.-�W��R��cf�V6��Vj�ac�g�d���d MaUReV�e��aRj�V�e�cReVd -�IL��T���NAM��OE��N O�Z���cVa�gjaZ�l�aa7 r �beaZbZci�V��Ve�.*0��bVg�Zi�WVh�Zi���TcVRdV8 r jeYViZ�XVhZ�b�m��gdje�gZaVi�kZ�lZ���ih�VcY�VkZgV�Z�aZc�i��d��hiVn�kVajZh8 8ME�E�C�� r YZXgZVhZ�i�Z�djia�Zg���mZY�adhh�i�gZh�daY8�VcY

  21. Slide 21: HH PPS CY2021 final rule

    AA)HH��TR�V�URc�jVRc�.,.-�W��R��cf�V6��Vj�ac�g�d���d ?��R��cf�V�faUReVd�e��.,.-�aRj�V�e�cReVd O�Z���cVa�gjaZ�l�aa7 r �beaZbZci�V��Ve�.*,��bVg�Zi�WVh�Zi���TcVRdV�%/+0"�bVg�Zi�WVh�Zi� -�IL��T���NAM��OE��N jeYViZ�gZYjXZY�Wn�V�-+0"�egdYjXi�k�in�VY�jhibZci&8 r �beaZbZci�V�-+."�gZYjXi�dc�gZaViZY�id�i�Z�gj

  22. Slide 22: IRF Medicare Rule

    BEH:�L�:Te��W�.,-0�)�V�RTeVU�GTe*�2(�.,-0 ���aR�j��SdVcgRe���d�R�U�T��d�UVcRe���d�h�eY�cVdaVTe�e��eYV�BEH:�L�:Te6 ��Di�lVh�YZkZadeZY�dc�V�W�*eVgi�hVc�WVh�h�Wn�i�Z�CdjhZ�RVnh�VcY�HZVch�VcY�NZcViZ�A�cVcXZ�>dbb�iiZZh� � VcY��cXdgedgViZY��ZZYWVX���gdb��ZVai�XVgZ�egdk�YZgh�VcY�egdk�YZg�dg�Vc�oVi�dch�i�Vi

  23. Slide 23: Business outlook

    B�gVde�V�e�eYVd�d�� R�U�decReVXj ��T��aRdd�AVR�eYtd�RS���ej�e��RURae�e��TYR�XVd(�Sf��U�decReVX�T� cV�Re���dY�ad(�R�U�T��d�deV�e�j�ac�g�UV�Y�XY)bfR��ej(�T�de)VWWVTe�gV�TRcV� a�d�e���d�eYV����aR�j�W�c�dfTTVdd����eYV�Vg��g��X�YVR�eYTRcV���Ufdecj* �cXdbeVhh�CZVai� /0

  24. Slide 24: Industry outlook

    B�gVde�V�e�eYVd�d �cXdbeVhh�CZVai���h�dcZ�d��i�Z�cVi�dc$h�aZVY�c��egdk�YZgh�d���ciZ�gViZY�edhi*VXjiZ�hZgk�XZh+� O�Z��ZVai�XVgZ��cYjhign��h�Zkdak�c��idlVgY��ciZ�gViZY�YZa�kZgn�bdYZah�VcY�kVajZ*WVhZY�XVgZ+� Kgdk�YZgh�bjhi�WZ�VWaZ�id�VYVei�id�X�Vc�Zh)�Wj�aY�higViZ��X�gZaVi�dch��eh�VXgdhh�i�Z��ZVai�XVgZ

  25. Slide 25: Strategy

    �ecReVXj O�Z�>dbeVcnzh�higViZ�n��h�id�ZmeVcY��ih�cZildg��d���ceVi�Zci�gZ�VW�a�iVi�dc� �dhe�iVah�VcY��dbZ��ZVai��VcY��dhe�XZ�adXVi�dch)��jgi�Zg�higZc�i�Zc��ih�gZaVi�dch��eh� l�i���ZVai�XVgZ�hnhiZbh)�egdk�YZg�cZildg�h)�VcY�eVndgh��c�dgYZg�id�XdccZXi�eVi�Zci� XVgZ�VXgdhh�i�Z��ZVai�XVgZ�Xdci�cjjb)�VcY�i

  26. Slide 26: Strategic pillars

    ��V�V�ed��W�decReVXj ?�V�cdh�h*heZX���X�igZVibZci�egdidXdah�Yg�kZ�����*fjVa�in�djiXdbZh OZX�cdad�n��VX�a�iViZh��c�dgbVi�dc��adl�VXgdhh�i�Z�egdk�YZg�Xdci�cjjb�VcY�hjeedgih�i�Z�jhZ�d�� >a�c�XVa� egZY�Xi�kZ�VcVani�Xh ZmeZgi�hZ� DciZ�gVi�dc�d��XVgZ�igVch�i�dc�XddgY�cVidgh��c�V�eVi�Zcizh�XVgZ�eaVch�Zchjg

  27. Slide 27: Post-acute care continuum

    LYV�a�de)RTfeV��R�UdTRaV�T��e��fVd�e��Vg��gV* >jggZci�edhi*VXjiZ�egdk�YZgh AjijgZ�edhi*VXjiZ�egdk�YZgh c �LKPJHYL��H�TLU���YLN�SH�PVU��HYL��P�L� c �LKPJHYL��H�TLU���YLN�SH�PVU���PSS�IL ��LJPMPJ��L%N%��-� �A�SL���$�V�Y�A�SL�� JVUKP�PVU�HUK�V��JVTL�MVJ��LK% e�YL�VUKLYHUJLf�VM�VUL$�V$VUL��OLYH���� c �H

  28. Slide 28: Home health and hospice offering

    OV�SV��VgV�eYV����aR�j��d�hV��)a�d�e���VU�W�c�eYV�ac�XcVdd����e�hRcUd���eVXcReVU�UV��gVcj���UV�d� R�U�a�de)RTfeV�d�eV��VfecR��ej�Rd��e�h����SV�RS�V�e��ecVRe�R���ejaVd��W�a�de)RTfeV�aRe�V�ed�Sj� �VgVcRX��X��ed��aVcRe���R��ViaVce�dV�RTc�dd��ed��Veh�c���W�WRT���ej)SRdVU�R�U�Y��V)SRdVU�RddVed* �DA�-�IL�

  29. Slide 29: Business outlook and guidance

    ;fd��Vdd��fe����(���T�fU��X�Xf�UR�TV $Rd��W�F�gV�SVc�-/(�.,.,% �cXdbeVhh�CZVai� /6

  30. Slide 30: Guidance for 2020

    �f�UR�TV�W�c�I0�.,., I0�.,-5� I0�.,., :TefR�d �f�UR�TV FVe��aVcRe��X�cVgV�fVd FVe��aVcRe��X�cVgV�fVd -(-40*0�������� -(-1,���������e�� -(..,�������� :U�fdeVU��;BL=:$-/% :U�fdeVU��;BL=:$-/% ./4*.�������� ..1���������e�� .0,�������� :U�fdeVU�VRc���Xd�aVc�dYRcV� :U�fdeVU�VRc���Xd�aVc�dYRcV� Wc���T��e��

  31. Slide 31: 2020 guidance considerations

    I0�.,.,��f�UR�TV�T��d�UVcRe���d :U�fdeVU��;BL=:��W� ./4*.������������I0�.,-5�hRd���aRTeVU�Sj6� %�c�b�aa�dch& �V�W)��dfcR�TV�ac�XcR�d�cVdVcgV�RU�fde�V�ed 3*, ;fd��Vdd���eVccfae������dfcR�TV�cVT�gVcj .*1 FVe���aRTe�e��I0�.,-5�:U�fdeVU��;BL=: 5*1 B�aRe�V�e�JVYRS���eRe��� � �hi�bViZY��cXgZVhZ��c�HZY�XVg

  32. Slide 32: Adjusted free cash flow assumptions

    :U�fdeVU�WcVV�TRdY�W��h$-1%�Rddf�ae���d �VceR���TRdY�W��h��eV�d 5�E��eYdo .,.,� .,-5 $�������d% .,.,�:TefR�d :ddf�ae���d :TefR�d � DcXgZVhZY�XVh���ciZgZhi� eVnbZcih�ZmeZXiZY��c� /-/-�YjZ�id�cZl� Wdggdl�c�h��c�/-.6�id��jcY� >Vh���ciZgZhi�eVnbZcih�%cZi�d�� i�Z�VXfj�h�i�dc�d���aVXVgZ� Vbdgi�oVi�dc�d��Y

  33. Slide 33: Uses of cash

    MdVd��W�WcVV�TRdY�W��h� 5�E��eYd� .,., .,., .,-5 %�b�aa�dch& :TefR�d :ddf�ae���d :TefR�d DMA�WZY�ZmeVch�dch� �00+/ �1-�id��2- �06+5 IZl�DMAh� ��*�?Z�cdkdh 64+/ .5-�id�.6- ..1+/ �c�heY���� T�cV� ��*��Xfj�h�i�dch w deedgijc�hi�X w Sfd��Vdd ��*�MZeaVXZbZci�DMAh�VcY�di�Zg /4+1 02�id�12 50+. CdbZ��ZVai��

  34. Slide 34: Growth

    �c�heY ��T��aRdd�AVR�eY��d�R��VRUVc����dVcg��X�eYV�a�de)RTfeV�aRe�V�e�a�af�Re���� R�U�YRd��f�e�a�V�RgV�fVd�RgR��RS�V�W�c�dfdeR��VU�Xc�heY����S�eY�dVX�V�ed*� ?Rg�cRS�V�UV��XcRaY�T�ecV�Ud�RcV�Uc�g��X���TcVRd��X�UV�R�U* �cXdbeVhh�CZVai� 01

  35. Slide 35: Company growth opportunities

    LYV����aR�j�YRd��f�e�a�V�RgV�fVd�RgR��RS�V� W�c�dfdeR��VU�Xc�heY����S�eY�dVX�V�ed LYV����aR�j�T��e��fVd�e��YRgV�ViTV��V�e��cXR��T�Xc�heY��aa�cef��e�Vd������aRe�V�e� � cVYRS���eRe���(�Y��V�YVR�eY(�R�U�Y�da�TV* w OgVX��gZXdgY�d��Xdch�hiZci��gdli� w DMA�dg�Vc�X��gdli��hjeeaZbZciZY�Wn�WZY�VYY�i�dch � =Z

  36. Slide 36: Demographics

    :���Sfd��Vdd����Vd�SV�VW�e�Wc���R�UV��XcRaY�T�eR��h��U6 Xc�heY����eYV�EVU�TRcV�SV�VW�T�Rcj�a�af�Re��� Hc��VTeVU�H�af�Re�����W�:XV�21' r O�Z��gdli��gViZ�d��HZY�XVgZ� H�aa�dch WZcZ��X�Vg�Zh��cXgZVhZY��c�/-..�id�Vc� =VWn�=ddbZg�lVkZ�gZVX�Zh� Veegdm+�/���:�J�Vh�x=VWn�=ddbZghy� VkZgV�Z�V�Z�d��Vc��cXdbeVh

  37. Slide 37: Hospital portfolio

    Ef�e�)WRTVeVU���aRe�V�e�cVYRS���eRe����Xc�heY�decReVXj .,-5�;VU�T�f�e� �L��ILK� CV�HS�8A5� ��TcVRdV 1-- .1- .02 � ��IIVJR��CF�����ILK�� .0- � 1VP�L��83�����ILK�� =V���g�d 0-- ./2 ./- � �H����CF�����ILK�� ..2 /-- ..- � 1LK�L��HU�PVU���(,)�ILK�� :Tbf�d�e���d .-2 .-- .,.,�Hc��VTeVU�SVU� .-- 62 T�f�e���

  38. Slide 38: Hospital growth considerations

    B�aRe�V�e�cVYRS���eRe����Xc�heY�a�aV���V =�dT�a���VU�Raac�RTY�e���Vh�de�cV�Xc�heY � LYV����aR�jtd�gR�fV�ac�a�d�e��� v��� 4�S�������EVU�TRcV�BJ?��Rc�Ve���v� >�K�S�id�Wj�aY��gZZ*hiVcY�c��DMA)��gZZ�c��je�heVXZ��dg� >dch�YZgVi�dch7 � bZY�XVa,hjg��XVa�WZYh��c�Vc�VXjiZ�XVgZ��VX�a�in��dg�V�EQ�eVgicZg v HVg

  39. Slide 39: Joint venture partners

    B�aRe�V�e�cVYRS���eRe����RTfeV�TRcV�����e�gV�efcV�aRce�VcdY�ad m LYV����aR�jtd�BJ?�����e�gV�efcVd�SVXR�����-55-�h�eY�NR�UVcS��e�M��gVcd�ej�EVU�TR���V�eVc* m LYV����aR�jtd�����e�gV�efcV�RTfeV�TRcV�Y�da�eR��aRce�Vcd��h��Vbf�ej�eYRe�cR�XVd�Wc���.*1��e�� 1,�* 05&�BJ?�����e�gV�efcV�Y�da�eR�d����a�RTV�h�e

  40. Slide 40: New hospital pipeline

    =V���g��BJ?d�R�U�RTbf�d�e���d GaVcRe���d� C���e �d��IZl�=ZYh D�TRe���� UReV gV�efcV9 /-/- /-/. /-// B�gVde�V�e�T��d�UVcRe���d =V���g��BJ?d6 Hjgg�ZiV)�>� L.�/-/- 2- r DMM�dW�ZXi�kZ�d��.0"�%V�iZg�iVm&� N�djm�AVaah)�N? L/�/-/- 1- r Ed�ci�kZcijgZ�XVe�iVa�oVi�dc >dgVak�aaZ)�D� L/�/-/- TZh 1- r >Zgi���XVi

  41. Slide 41: Hospital cost and returns

    =V���g��T�ded�R�U�e��V���V r KgdidineZ��cXajYZh�Vaa�eg�kViZ�gddbh �Ra�eR��T�de�$�������d%��������������� D�h A�XY r >dgZ��c�gVhigjXijgZ�d��Wj�aY�c��Vci�X�eViZh� >dchigjXi�dc)�YZh��c)�eZgb�ii�c�)�ZiX+ �// �/6 �jijgZ�ZmeVch�dc�%VXXgZi�kZ�id���cVcX�Va� GVcY / 3 gZijgch& �fj�ebZci�%�cXajY�c��>DN& 0 2 r

  42. Slide 42: Ramp-up and EBITDA trends

    BJ?�UV���g���TTfaR�Tj�R�U��;BL=:&�ecV�Ud� ����������fdeR��VU�a�d�e�gV��;BL=: GTTfaR�Tj .--" 6-" 5-" 4-" 3-" 2-" 1-" 0-" /-" .-" -" . / 0 1 2 3 4 5 6 .- .. ./ E��eYd N�ZaWn�>djcin�%-1,/-.5& =aj��idc�%-3,/-.5& HjggZaah�DcaZi''�%-6,/-.5& GjWWdX��%-2,/-.6& FVin�%-6,/-.6& Hjgg�ZiV�%-/,/-/-& >dgVak�aaZ�%-

  43. Slide 43: Home health and hospice opportunity

    Ef�e�)WRTVeVU�Y��V�YVR�eY�R�U�Y�da�TV�Xc�heY�decReVXj r Nigdc��YZbVcY�YjZ�id�Xdhi�Z��ZXi�kZcZhh�d���dbZ*WVhZY�XVgZ�VcY� �cXgZVh�c��egZ�ZgZcXZ�d��eVi�Zcih�id�WZ�igZViZY�Vi��dbZ GcXR��T�Xc�heY r Nigdc��dg�Vc�X��gdli���gdb�Zm�hi�c��adXVi�dch r ?Zbd�gVe��Xh ' >jggZcian�adXViZY��c�hiViZh�i�Vi�gZegZhZci�p

  44. Slide 44: Home health market

    A��V�YVR�eY�Xc�heY�a�aV���V� IjbWZg�d���dbZ��ZVai��V�ZcX�Zh�dkZg�i�bZ � -3*5�S�������HZY�XVgZ��dbZ� �ZVai��bVg�Zi��h�����an� .0)--- COL�U�TILY�VM�OVTL�OLHS�O�HNLUJPL�� �gV�bZciZY�l�i��dkZg�--(1,,� P��ULHY�HU�HSS$�PTL�OPNO�HUK��YL�LU��� �dbZ��ZVai��V�ZcX�Zh+ ./)--- �PNUPMPJHU��JVU�VSPKH�PVU�V��VY��UP

  45. Slide 45: Hospice market

    A�da�TV�Xc�heY�a�aV���V � HZY�XVgZ��dhe�XZ�bVg�Zi��h�Veegdm+� -5*.� S������+ � -*1���������HZY�XVgZ�WZcZ��X�Vg�Zh�gZXZ�kZY� :Tbf�d�e����decReVXj�W�c�Y�da�TV �dhe�XZ�hZgk�XZh��gdb�Veegdm+�0(2,,�egdk�YZgh� � �LKPJHYL�MVJ��LK �c�/-.5+ � �VJH�LK�PU�THYRL����P�O��PNUPMPJHU�� � Cdhe�XZ�jhZ�Vbdc��HZY�XVgZ�

  46. Slide 46: Operational initiatives

    GaVcRe���R��B��e�Re�gVd� Gfc��aVcRe���R�����e�Re�gVd�RcV�UVd�X�VU�e�� cVda��U�e��cVXf�Re�cj�TYR�XVd(�ViaR�U��fc�dVcg�TVd�e����cV�aRe�V�ed���� �VVU��W��fc�Y�XYVc��VgV���W�TRcV(�V�YR�TV��fc�T����TR��ViaVce�dV(�R�U V�dfcV�eYV�UV��gVcj��W�Y�XY)bfR��ej��feT��Vd*� �cXdbeVhh�CZVai� 13

  47. Slide 47: Operational initiatives

    B�aRe�V�e�cVYRS���eRe���6����e��fV�ecR�d�e����e��BJ?�H:B��VTe������� ������Re���� � ���ZXi�kZ�JXi+�.)�/-.6)�>HN�gZeaVXZY�i�Z�ADHs� LE� �jcXi�dcVa��cYZeZcYZcXZ�bZVhjgZh�l�i��i�Z� �W�?BE NZXi�dc�BB��jcXi�dcVa�djiXdbZ�bZVhjgZh�dc�i�Z� Wf�Te���R�� DMA*K�D��dg�gZedgi�c��VcY�eVnbZci�ejgedhZh+ RddVdd�V�e�

  48. Slide 48: Inpatient rehabilitation initiatives

    A��V�YVR�eY6�HRe�V�e)=c�gV���c�fa��Xd�E�UV��$H=�E% �WWVTe�gV�CR�fRcj�-(�.,.,(�H=�E(�hY�TY�cV��Vd���cV� YVRg��j����T����TR��TYRcRTeVc�de�Td6 E�gV�e��eYV� � �beaZbZciZY�V�1+03"�gZYjXi�dc��c�i�Z�WVhZ�gViZ�jh�c��VhhjbZY� HRe�V�e�=c�gV�� egdk�YZg�WZ�Vk�dgVa�X�Vc�Zh8 �c�fa��Xd� � Za�b�cViZY�i�ZgVen�hZgk�X

  49. Slide 49: Clinical collaboration rate

    LYV����aR�j�T��e��fVd�e����ac�gV�eYV�aRe�V�e�ViaVc�V�TV�R�U� �feT��Vd�eYc�fXY���eVXcReVU�TRcV�UV��gVcj* B�aRe�V�e�cVYRS���eRe���pY��V�YVR�eY�T����TR��T���RS�cRe���� � LYV���hVc�T����TR�� T���RS�cRe����cReV�W�c�QL=� $R���aRj�cd%��gVc�Ra��Rc�Ved& .,.,�hRd�Uc�gV��Sj�R�Y�XYVc� ��i��W�EVU�TRcV�:UgR�eRXV�

  50. Slide 50: Stroke volume growth

    ;f��U��X�dec��V��Rc�Ve�dYRcV DVgVcRX��X��fc6 m bfR��ej��feT��Vd m decReVX�T�da��d�cdY�a�h�eY�eYV�:A:+:�: m T����TR��T���RS�cRe��� m ����e�T����dd����TVce�W�TRe���d l4,,(,,, ./1��C>�DMAh� dec��Vd� p.1/)---� �daY�higd�Z*heZX���X� aVc�jVRc� YZVi�h��gdb�higd�Z� XZgi���XVi�dch+ ���eYV�M*�* p01)2--� >dci�

  51. Slide 51: Stroke market

    ;f��U��X�dec��V��Rc�Ve�dYRcV �ec��V��Rc�Ve�dYRcV� �A��dec��V�aRj�c���i 1*/� 1*.� .,-5 QL=�I/�.,., ERc�Ve�dYRcV ERc�Ve�dYRcV 0*5� ERc�Ve�dYRcV GeYVc GeYVc .1*/� .2*1� 0*3� EVU�TRcV�??�� EVU�TRcV�??�� /0(021 /0(111 ERc�Ve�dYRcV EVU�TRcV�:Ug*� 10*4� 04*1� -5*5� EVU�TRcV�:Ug*� /.(/,5 .1*,� /,(20/ QL=�I/

  52. Slide 52: Stroke rehabilitation guidelines

    B�UVaV�UV�e�cVdVRcTY�T��T�fUVd�BJ?d�RcV�R�SVeeVc� cVYRS���eRe�����ae����W�c�dec��V�aRe�V�ed�eYR���F?d rOYV�VgVc�a�dd�S�V(�eYV�:�Vc�TR�� �ec��V�:dd�T�Re����dec��X�j� cVT���V�Ud�eYRe�dec��V�aRe�V�ed� SV�ecVReVU�Re�R����aRe�V�e� cVYRS���eRe����WRT���ej�cReYVc�eYR��R� d����VU��fcd��X�WRT���ej*s� rBJ?�aR

  53. Slide 53: Stroke rehabilitation guidelines

    LYV�=VaRce�V�e��W�NVeVcR�d�:WWR�cd�V�U�cdVd�eYV� :A:+:�:��f�UV���Vd����eYV�c�.,-5��f�UV���Vd���� �ec��V�JVYRS���eRe���� LYVcV�RcV�-4*.���������gVeVcR�d� R�U�5���������RcV�dVcgVU�Sj�eYV� NVeVcR�d�:U����decRe����VRTY�jVRc* �cXdbeVhh�CZVai� xO�Z�HVcV�ZbZci�d��Nigd�Z�MZ�VW�a�iVi�dcy��hhjZY�IdkZbWZg�/-.6

  54. Slide 54: Stroke study

    .,-5�C:E:�afS��dYVU�Rce�T�V�T��aRc��X�Wf�Te���R�� ��ac�gV�V�ed��W�dec��V�aRe�V�ed�cVTV�g��X�TRcV����BJ?�gd� �F?� ���T�fd���d O��h�Xd�dgi�hijYn��djcY�i�Vi�HZY�XVgZ�WZcZ��X�Vg�Zh�l�d�gZXZ�kZY�hZgk�XZh�Vi�Vc�DMA�V�iZg�V� higd�Z�YZbdchigViZY��gZViZg��begdkZbZci��c�bdW�a�in�VcY�hZa�*XVgZ�XdbeVgZY�l�i��eV

  55. Slide 55: Hospital-wide rollout

    H�de)RTfeV�����gRe��� Gfc�a�de)RTfeV�d��fe���d�h�����VgVcRXV��fc�T����TR��ViaVce�dV(��RcXV�a�de)RTfeV�UReRdVed(��EJ� eVTY����X�Vd(�R�U�decReVX�T�aRce�VcdY�ad�e��Uc�gV���ac�gVU�aRe�V�e��feT��Vd�R�U���hVc�T�de� �W�TRcV�RTc�dd�eYV�V�e�cV�a�de)RTfeV�Va�d�UV* .,-4 .,-5 .,., � HdY���ZY�VcY��beaZbZciZY� �

  56. Slide 56: Home health value-based purchasing

    A��V�YVR�eY6�JVg�Vh��Y��TV�=V���decRe����$J�=%& ���GgVcg�Vh �eReV �eRce�UReV ���aR�j� ��TRe���d ?����h��X�eYV�aRfdV��W�eYV�HcV)��R���JVg�Vh� Daa�cd�h EjcZ�.)�/-.6 0 =V���decRe����$rH�J=s%����:ac���-(�.,-3(��E��h�c�VU� J��d NZeiZbWZg�0-)�/-.6 . e��cVg�dV�H�J=�e���WWVc���cV�W�Vi�S���ej�R�U�TY��TV�W�c�

  57. Slide 57: Initiatives to reduce readmissions

    �g�UV�TV)SRdVU�T����TR�����e�Re�gVd�e��cVUfTV� cVRU��dd���d�R�U���ac�gV�aRe�V�e��feT��Vd MZYjXZ�VXjiZ� Dc�ZXi�dc� NZeh�h,NDMN� HZY�XVi�dc� MZYjXZ�de�d�Y� XVgZ�igVch�Zgh� Xdcigda� VaZgi� gZXdcX�a�Vi�dc� jhZ� �MZ�>O� r NiVcYVgY�oZY�VcY� r ?ZkZadeZY� �begdkZY��c�ZXi�dc� r ?ZkZadeZY�Vc� r DbeaZbZciZY�V�

  58. Slide 58: Capital structure

    �Ra�eR��decfTefcV ��T��aRdd�AVR�eY��d�a�d�e���VU�h�eY�R� T�de)VWW�T�V�e(�W�Vi�S�V�TRa�eR��decfTefcV* �cXdbeVhh�CZVai� 25

  59. Slide 59: Debt maturity and liquidity

    =VSe��Refc�ej�ac�W��V�)�WRTV�gR�fV Hc��W�c�R�Rd��W��VaeV�SVc�/,(�.,.,&%.4& ���PU�TPSSPVU�� >VaaVWaZ�WZ��cc�c�� 520� >VaaVWaZ�WZ��cc�c�� AZWgjVgn�/-/0%.5& :gR��RS�V AZWgjVgn�/-/2%.5& ,�=cRh��'� /2�cVdVcgVU� >VaaVWaZ�WZ��cc�c�� W�c�D�d� JVg��gVc� �eg�a�/-/3%.4& TRaRT�ej >VaaVWaZ�WZ��cc�c�� NZeiZbWZg�/

  60. Slide 60: Debt and leverage

    ?��R�T�R���VgVcRXV�R�U���bf�U�ej D�bf�U�ej %=�aa�dch& L�eR��UVSe Hc��?�c�R �VaeV�SVc�/,(� =VTV�SVc�/-(� & �VaeV�SVc�/,(� DVgVcRXV�cRe�� .,.,%.4& .,., .,-5 >Vh��VkV�aVWaZ �� .2/+0� �� 12-+-� �� 61+5� /*4i&& /*4i&&& MZkdakZg � .)---+-� � .)---+-� � .)---+-� GZhh7 *�?gVlh � w� � w� � %12+-&� /*.4 *�GZi

  61. Slide 61: Debt schedule

    =VSe�dTYVUf�V Hc��W�c�R �YR�XV��� �VaeV�SVc�/,( �VaeV�SVc�/,( =VTV�SVc�/-( �=VSe�gd* ��TPSSPVU�� .,.,$-3% .,., .,-5 Q��.,-5 �YkVcXZh�jcYZg��.�W�aa�dc�gZkdak�c��XgZY�i��VX�a�in) ���IdkZbWZg�/-/1�*�GD=JM�(.2-Weh �� w� �� w� �� 12+-� �� %12+-&� OZgb�adVc��VX�a�in)�IdkZbWZg�/-/1�*�GD=JM�(.2-Weh � /21+5�

  62. Slide 62: Real estate

    BJ?�cVR��VdeReV�a�ceW���� -/2���aRe�V�e�cVYRS���eRe����Y�da�eR�d6�5(0/3���TV�dVU�SVUd /(341���TV�dVU�SVUd� Gh��l3,���W�BJ?�cVR��VdeReV ����GF�deReVd :d��W��VaeV�SVc�/,(�.,., 22�dlc�Wj�aY�c��VcY�aVcY /.�dlc�Wj�aY�c�8�aZVhZ�aVcY /4�aZVhZ�Wj�aY�c��VcY�aVcY 1(21.���TV�dVU�SVUd� ������)�GF�deReVd ��>JI��

  63. Slide 63: Franchise transactions

    GgVcg�Vh��W�c����gVc�dYRcVd�R�U��:Jd�acVg��fd�j�YV�U�Sj� �V�SVcd��W�eYV�Y��V�YVR�eY�R�U�Y�da�TV��R�RXV�V�e� eVR� ;RT�Xc�f�U ����Dc�XdccZXi�dc�l�i��i�Z�/-.1�VXfj�h�i�dc�d���cXdbeVhh�CdbZ�CZVai��VcY�Cdhe�XZ7 r >ZgiV�c�bZbWZgh�d��i�Vi�bVcV�ZbZci�iZVb�gdaaZY�V�edgi�dc�d��i�Z�g�egZ*VXfj�h�i�dc�Zfj�in��ci

  64. Slide 64: Alternative payment models

    :�eVc�Re�gV�aRj�V�e���UV�d E�de���UV�d�cV�R������eYV�VRc�j��c�a���e�deRXV�R�U�cVdf�ed�YRgV�SVV����iVU*� ;�eY��W��fc�dVX�V�ed�T��e��fV�e��aRce�T�aReV����gRc��fd�R�eVc�Re�gV�aRj�V�e� ��UV�����e�Re�gVd* �cXdbeVhh�CZVai� 31

  65. Slide 65: Accountable care organizations

    :TT�f�eRS�V��RcV�GcXR��kRe���d�$r:�Gds%& EVU�TRcV��YRcVU��Rg��Xd�Hc�XcR��$E��H%��� $.,.,�)�1-3�:�Gd�+�--*.���������EVU�TRcV�SV�VW�T�Rc�Vd% m Jg���cVa�HNNK�KZg�dgbVcXZ�TZVg�4�%/-.6&�gZhjaih7 v 015�d��142��>Jh�%40"&��ZaY�heZcY�c��WZadl�i�Z�g�WZcX�bVg�+ >jggZcian)�>HN� u .-6�d��i�ZhZ��>Jh�gZYjXZY��ZVai

  66. Slide 66: Home health value-based purchasing model

    A��V�AVR�eY�NR�fV);RdVU�HfcTYRd��X�E�UV� GgVc�eYV����X�eVc�(�eYV����aR�j�SV��VgVd��e��d�hV��)a�d�e���VU�e��SV�VW�e�Wc���R�UV��gVcj� djdeV��eYRe�cVhRcUd�ac�g�UVcd�hY��RcV�T����eeVU�e��ac�g�U��X�Y�XY)bfR��ej�TRcV* B��eYV�TR�V�URc�jVRc�.,-2�AA)HH��W��R��cf�V(� �E��W��R��kVU�R�A��V�AVR�eY�NR�fV);RdVU� O

  67. Slide 67: Information technology

    B�W�c�Re����eVTY����Xj ��T��aRdd�AVR�eY�fe���kVd���W�c�Re����eVTY����Xj�e�� ��ac�gV�aRe�V�e�TRcV�R�U�XV�VcReV��aVcRe��X�VWW�T�V�T�Vd* �cXdbeVhh�CZVai� 34

  68. Slide 68: Clinical information system

    BJ?�T����TR����W�c�Re����djdeV�6���ac�gVU�aRe�V�e� �feT��Vd�R�U�decVR����VU��aVcRe���R��VWW�T�V�T�Vd� �C��E���E�B��� -C������DD�A���DD�DD���E� � �A�B�E�C�����-�ID�������C��C� (A�����E� ��BBCA��� )�ECI����-�)�" ������� � ���������(���D�A����BBACE� ���(��" � -C����E�������AC�E���������������� BCAEA�A�

  69. Slide 69: Home health information technology

    BJ?�Hc�ac�VeRcj��R�RXV�V�e�djdeV�6�;VRT�� �LAM�OE��N�I���CAIA�O�O��H :PLLHT��D�E��LM��PMAIA�O �cXdbeVhh�CZVai� 36

  70. Slide 70: Home health and hospice technology

    A��V�YVR�eY�R�U�Y�da�TV���W�c�Re����djdeV�6�A��VTRcV�A��VSRdV A��VTRcV�A��VSRdV� �����TR� ER�RXV�V�e�R�U��aVcRe���d $rA�A;s%�hRd�S�c�� r C>C=�bVcV�Zh�i�Z�Zci�gZ�eVi�Zci� r =Zhi*�c*XaVhh�YViV�bVcV�ZbZci�VcY� ldg��adl�VcY�egdk�YZh���ZaY�Xa�c�X�Vch� gZedgi�c��ZchjgZh�bVcV�Zgh��VkZ�VXXZhh� �fe��W�eYV���

  71. Slide 71: Predictive tool for home health

    EVUR��X�itd�acVU�Te�gV���UV�d�W�c�Y��V�YVR�eY�TRcV�YV�a��UV�e�Wj� aRe�V�ed�Re�c�d��W�c�f�a�R��VU�cVY�da�eR��kRe���*� Kgdbeih�Xdci�cjZY� KgdVXi�kZan��YZci���Zh��dbZ� idjX��ed�cih�l�i��Y�hX�Vg�ZY� �ZVai��eVi�Zcih�l�d�VgZ� eVi�Zcih�id��YZci��n�VcY� ediZci�Vaan�WZiiZg�hj�iZY� egZkZci�edhi*Y�hX�Vg�Z� VcY

  72. Slide 72: Operational metrics

    GaVcRe���R���Vec�Td �cXdbeVhh�CZVai� 4/

  73. Slide 73: Hospital operating metrics

    m �:D:JB���:F=�;�F�?BL���cXajYZh��gdje� BJ?��aVcRe���R���Vec�Td6� bZY�XVa�Xdhih�VcY��h��beVXiZY�Wn�hiV���c��aZkZah� ViaV�dV�VWW�T�V�T�Vd� WVhZY�dc�eVi�Zci�kdajbZh+ m BJ?)J�D:L�=��PH�F�����cXajYZh�di�Zg� deZgVi�c��ZmeZchZh�%ZmXajY�c��adhh�dc�Y�hedhVa� dg��beV�gbZci�d��VhhZih&)�hjeea�Zh)�VcY� $HVcTV�e

  74. Slide 74: COVID-19 impact on volumes

    HVcd��R��ac�eVTe�gV�Vbf�a�V�e�$HH�%�p�fe���kRe���(�T�de�R�U���gV�e�cj B�TcVRdVU�HH��Me���kRe���� � UfV�e���GNB=)-5 BFH:LB�FL�J�A:;BDBL:LBGF � Pi�a�oVi�dc�d��KK���Vh��cXgZVhZY�Vh� :gX*�E��eY�j�Me���kRe��� :gX*�E��eY�j��aV�U V�gZhjai�d��cZl��c�ZXi�dc�Xdcigda� E��eYd��W��fccV�e� eda�X�Zh��c�gZhedchZ�id

  75. Slide 75: Medicare claim denials

    HcV)aRj�V�e�T�R��d�UV��R�d�)���aRe�V�e�cVYRS���eRe����dVX�V�e ,��GCM�P�� �cXdbeVhh�CZVai��gZhZgkZh�egZ*eVnbZci�XaV�b�YZc�Vah�Vh�V� � Adg�hZkZgVa�nZVgh�eg�dg�id�/-.5)�jcYZg�egd�gVbh�YZh��cViZY�Vh� gZYjXi�dc�d��cZi�deZgVi�c��gZkZcjZh�jedc�cdi�XZ��gdb�V�H�>�V� xl�YZhegZVY�egdWZh)y�XZgiV�c�HZY�XVgZ��Yb�

  76. Slide 76: Post-payment audit activity

    H�de)aRj�V�e�RfU�e�c�RTe�g�ej�)���aRe�V�e�cVYRS���eRe����dVX�V�e �E��dfaa�V�V�ed��ed�acV)aRj�V�e�RfU�ed�h�eY�a�de)aRj�V�e�RfU�ed*� �E��fdVd����acVYV�d�gV��cc�c�JReV�LVde��X�$r��JLs%�RfU�e�cd�e���UV�e�Wj�ecV�Ud�Uc�g��X�Vcc�cd*� �E��R�d��fdVd�eYV���JL�Vcc�c�cReV�e��VgR�fReV�eYV�aVcW�c�R�TV��W�EVU�TRcV

  77. Slide 77: Inpatient rehabilitation operating metrics

    B�aRe�V�e�cVYRS���eRe�����aVcRe���R��R�U��RS�c��Vec�Td I/ I. I- I0 I/ I. I- ?f���QVRc .,., .,., .,., .,-5 .,-5 .,-5 .,-5 .,-5 $B��E������d% IZi�eVi�Zci�gZkZcjZ*�ceVi�Zci �� 550+/� �� 5-5+-� �� 56-+-� �� 540+2� �� 52-+3� �� 52.+5� �� 514+3� �� 0)1/0+2� IZi�eVi�Zci�gZkZcjZ*djieVi�Zci�VcY�di�Zg� gZkZcj

  78. Slide 78: Home health and hospice operating metrics

    A��V�YVR�eY�R�U�Y�da�TV��aVcRe���R���Vec�Td I/ I. I- I0 I/ I. I- ?f���QVRc .,., .,., .,., .,-5 .,-5 .,-5 .,-5 .,-5 IZi��dbZ��ZVai��gZkZcjZ �� //0+0� �� /-.+5� �� //1+5� �� /03+6� �� /05+6� �� ///+4� �� /.6+2� �� 6.5+-� IZi��dhe�XZ�gZkZcjZ � 2.+/� � 14+5� � 15+-� � 2-+5� � 2-+1� � 05+1� � 01+1� � .41

  79. Slide 79: Payor mix

    HRj�V�e�d�fcTVd�$aVcTV�e��W�cVgV�fVd% B�aRe�V�e� A��V�AVR�eY� JVYRS���eRe���� R�U�A�da�TV� ���d���UReVU �VX�V�e �VX�V�e I/ I/ I/ 5�E��eYd ?f���QVRc .,., .,-5 .,., .,-5 .,., .,-5 .,., .,-5 .,-5 HZY�XVgZ �32+5�" �4.+2�" �50+0�" �52+5�" �36+6�" �42+0�" �36+5�" �42+0�" �42+.�" HZY�XVgZ��YkVciV�Z �.2+4�"

  80. Slide 80: Industry structure

    B�Ufdecj�decfTefcV �cXdbeVhh�CZVai� 5-

  81. Slide 81: Medicare post-acute spending

    GgVcR���YVR�eYTRcV�daV�U��X FRe���R��YVR�eYTRcV�daV�U��X6� /(205�S����������.,-4 $S������d% �.41 B�gVde�V�e �15 ��gVc��V�e�RU����decRe��� �60 ��gVc��V�e�afS��T�YVR�eY �123 JVeR����W��VU�TR��ac�UfTed �.-/ A��V�YVR�eY�TRcV �.6/ GeYVc�YVR�eY(�cVd�UV�e�R��R�U�aVcd��R��TRcV �632 Hc�WVdd���R��dVcg�TVd �.3

  82. Slide 82: Medicare spending

    EVU�TRcV�.,-4�daV�U��X�8� 30-�S������ 4�S�������$-�%�� �c�W�aa�dch DceVi�Zci�gZ�VW�a�iVi�dc��dhe�iVah� %DcXajYZY��c��ceVi�Zci��dhe�iVah& ��.5 N��aaZY�cjgh�c� EVU�TRcV�HRce�: -02 DceVi�Zci��dhe�iVa 0� 25�� K�nh�X�Vc�eVnbZcih .,� EVU�TRcV�HRce�; -/� 13�� JjieVi�Zci��dhe�iVa 5� -4�� CdbZ��ZVai� -5� Cdh

  83. Slide 83: Post-acute service categories

    ���e��ff���W�YVR�eYTRcV�dVcg�TVd HcVgV�e�gV :�Sf�Re�cj :TfeV H�de)RTfeV HR���Re�gV Mdji�cZ��ZVai��XVgZ� HZY�XVa�XVgZ� HZY�XVa� HZY�XVa�XVgZ� HZY�XVauXVgZu %hXgZZc�c�h)�X�ZX�* YZa�kZgZY�dc�Vc� igZVibZci�d�� egdk�YZY�V�iZg�V� i�Viu�h��dXjhZY� jeh)�eVi�Zci� djieVi�Zci�WVh�h� Y�hZVhZh��dg� eZg�dY�d��VXj

  84. Slide 84: Post-acute provider comparison

    H�de)RTfeV�WVV)W�c)dVcg�TV�TRcV�dVcg�TVd �ECDANO���PEOT� 4�RANO���PEOT� D��X)eVc�� B�aRe�V�e� �����VU� :TfeV�TRcV� A��V� =�dTYRcXV RTfeV�TRcV� cVYRS���eRe���� �fcd��X� Y�da�eR� YVR�eY Y�da�eR� Y�da�eR� WRT���ej EVU�TRcV�daV�U��X�$S������d% �1+/ �5+- �/5+2 �.4+6' ���W�=�dTYRcXVd p.-/)--- p1-5)--- p/)

  85. Slide 85: Medicare post-acute spending

    EVU�TRcV�WVV)W�c)dVcg�TV�daV�U��X����a�de)RTfeV�dVcg�TVd 3 0*4 CdbZ��ZVai���ZZ*�dg* 0*/ 0*- 0*- hZgk�XZ�heZcY�c�'�%"�d�� /*5 /*4 /*3 /*1 /*1 idiVa�HZY�XVgZ�heZcY�c�& ZgXZci& 0 %K DceVi�Zci�gZ�VW�a�iVi�dc� -*2 -*1 -*1 -*2 -*1 -*2 -*2 -*2 -*2 �ZZ*�dg*hZgk�XZ�heZcY�c� - %"�d��idiVa�HZY�XVgZ� /-.- /-..

  86. Slide 86: Hospital admission requirements

    =�WWVcV�e�WVV)W�c)dVcg�TV��VgV�d��W�dVcg�TVd B�aRe�V�e�cVYRS���eRe����Y�da�eR� Ffcd��X�Y��V :gVcRXV��V�XeY��W�deRj�����������������������������8�-.*3�URjd :gVcRXV��V�XeY��W�deRj�����������������������������������������8�/4*.�URjd =�dTYRcXV�e��T���f��ej��������������������������8�32*0� =�dTYRcXV�e��T

  87. Slide 87: Full-year IRF supply

    �faa�j��W�BJ?d��d�cV�Re�gV�j�deRS�V �YRcV��W� :gVcRXV�R��fR�� EVU�TRcV� Ff�SVc��W�BJ?d TYR�XV ??�� U�dTYRcXVd� .,-/) .,-3) LjaV��W�BJ? .,-4 .,-/ .,-0 .,-1 .,-2 .,-3 .,-4 .,-3 .,-4 �aa�DMAh .--" .).3. .).44 .).5/ .).55 .).45 .).4- -+1" *-+4" PgWVc 60 644 .)-.0 .)-/- .)-/3 .)-.6 .)-.1 .+. *-+2 MjgVa 4

  88. Slide 88: Population growth and IRF supply

    �faa�j��W�BJ?d�cV�R��d�cV�Re�gV�j�deRS�V�hY��V�eYV�RXV�21'� a�af�Re����T��e��fVd�e��Xc�h DMA�hjeean�VcY�YZbVcY r Agdb�/-.-�id�/-.5)�i�Z�32(�edejaVi�dc� �gZl�Wn�./+2HH�dg�p0/")�XdbeVgZY�id� p/"��gdli���dg�i�Z�31�VcY�jcYZg� ��Z�32*36 ��Z�4-*46 ��Z�5-( OdiVa�DMAh edejaVi�dc�%idiVa�edejaVi�dc��gdli��d��

  89. Slide 89: Market share of discharges

    B�aRe�V�e�cVYRS���eRe����dVTe�c��RcX��d :XXcVXReV�??��EVU�TRcV�BJ?��RcX��d����.,-4 �YRcV��W� EVU�TRcV� WVV)W�c) ERcX��d dVcg�TV� U�dTYRcXVd� LjaV��W�BJ? .,-4 .,,4 .,-, .,-. .,-0 .,-1 .,-2 .,-3 .,-4 �aa�DMAh .--" 6+1" 5+3" ..+/" ./+/" .0+6" .0+0" .0+6" .1+4" PgWVc 60 6+3 6+- ..+2 ./+3 .1+0 .0+3 .1+/

  90. Slide 90: 75% Rule

    r2,��Jf�Vs6�EVU�TRcV�cVXf�Re����W�c�BJ?d%/& LYV�2,��Jf�V�cVbf�cVd�Re��VRde�2,���W�R���aRe�V�ed�RU��eeVU��fde�YRgV�Re��VRde� ��V��VU�TR��U�RX��d�d��c�Wf�Te���R����aR�c�V�e�Wc���R���de��W�-/�T��a��R�e� T��U�e���d�$R*�*R*�rT��a��R�e�T��U�e���ds��c�r�E�)-/s%*$.%� -54/ .,,.��������������������.,,0�������

  91. Slide 91: IRF qualifying conditions

    BJ?�bfR��Wj��X�T��U�e���d$.% Gc�X��R��bfR��Wj��X�T��U�e���d �fccV�e�bfR��Wj��X�T��U�e���d .+� Nigd�Z .+� Nigd�Z /+� =gV�c��c�jgn /+� =gV�c��c�jgn 0+� �bejiVi�dc 0+� �bejiVi�dc 1+� Ne�cVa�XdgY 1+� Ne�cVa�XdgY 2+� AgVXijgZ�d��i�Z��Zbjg 2+� AgVXijgZ�d��i�Z��Zbjg 3+� IZjgdad��XVa�Y�hdgYZg 3+� IZjgdad��X

  92. Slide 92: Outlier payments by discharge

    B�aRe�V�e�cVYRS���eRe�����fe��Vc�aRj�V�ed$3% ��������������W�BJ?d L�eR���fe��Vc�aRj�V�ed �:gX��fe��Vc�aRj�V�e�aVc�U�dTYRcXV F��) F��) F��) BJ?� ��T��aRdd� ��T��aRdd� ��T��aRdd� ��T��aRdd� ��T��aRdd� ��T��aRdd� UVT��Vd AVR�eY AVR�eY L�eR� AVR�eY AVR�eY L�eR� �� AVR�eY AVR�eY L�eR� 6-*.-- � w� � ...�

  93. Slide 93: Segment results

    �VX�V�e��aVcRe��X�cVdf�ed �cXdbeVhh�CZVai� 60

  94. Slide 94: Segment results

    B�aRe�V�e�cVYRS���eRe����dVX�V�e�:U�fdeVU��;BL=: I/ I. I- I0 I/ I. I- ?f���QVRc %Dc�H�aa�dch& .,., .,., .,., .,-5 .,-5 .,-5 .,-5 .,-5 IZi�deZgVi�c��gZkZcjZh7 DceVi�Zci �� 550+/� �� 5-5+-� �� 56-+-� �� 540+2� �� 52-+3� �� 52.+5� �� 514+3� �� 0)1/0+2� JjieVi�Zci�VcY�di�Zg � .3+/� � .3+2� � .6+/� � /0+

  95. Slide 95: Segment results

    A��V�YVR�eY�R�U�Y�da�TV�dVX�V�e�:U�fdeVU��;BL=: I/ I. I- I0 I/ I. I- ?f���QVRc %Dc�H�aa�dch& .,., .,., .,., .,-5 .,-5 .,-5 .,-5 .,-5 IZi�deZgVi�c��gZkZcjZh7 CdbZ��ZVai��gZkZcjZ �� //0+0� �� /-.+5� �� //1+5� �� /03+6� �� /05+6� �� ///+4� �� /.6+2� �� 6.5+-� Cdhe�XZ�gZkZcjZ � 2.+/� � 14+5� � 15+-� � 2

  96. Slide 96: Segment results

    �VX�V�e��aVcRe��X�cVdf�ed I/�.,., I/�.,-5 A��V� A��V� AVR�eY�R�U� AVR�eY�R�U� $B��E������d% BJ? A�da�TV JVT�RddVd ���d���UReVU BJ? A�da�TV JVT�RddVd ���d���UReVU IZi�deZgVi�c��gZkZcjZh �� 566+1� �� /41+2� �� w� �� .).40+6� �� 54/+0� �� /56+0� �� w� �� .).3.+3� JeZgVi�c���meZchZh7 DceVi�Zci�MZ�VW�a�i

  97. Slide 97: Segment results

    �VX�V�e��aVcRe��X�cVdf�ed F��V�E��eYd���UVU��VaeV�SVc�/,(�.,., F��V�E��eYd���UVU��VaeV�SVc�/,(�.,-5 A��V� A��V� AVR�eY�R�U� AVR�eY�R�U� $B��E������d% BJ? A�da�TV JVT�RddVd ���d���UReVU BJ? A�da�TV JVT�RddVd ���d���UReVU IZi�deZgVi�c��gZkZcjZh �� /)300+.� �� 463+6� �� w� �� 0)10-+-� �� /)3.3+0� �� 5-

  98. Slide 98: Segment results

    �VX�V�e��aVcRe��X�cVdf�ed QVRc���UVU�=VTV�SVc�/-(�.,-5 A��V� AVR�eY�R�U� $B��E������d% BJ? A�da�TV JVT�RddVd ���d���UReVU IZi�deZgVi�c��gZkZcjZh �� 0)2.0+-� �� .)-6/+-� �� w� �� 1)3-2+-� JeZgVi�c���meZchZh7 DceVi�Zci�MZ�VW�a�iVi�dc7 NVaVg�Zh�VcY�WZcZ��ih � %.)5.0+.&�� w� � %425+6&�� %/)24/+-&� Ji�Zg

  99. Slide 99: Reconciliations to non-GAAP

    JVT��T���Re���d�e���::H R�U�dYRcV���W�c�Re��� �cXdbeVhh�CZVai� 66

  100. Slide 100: Reconciliation of net income

    JVT��T���Re�����W��Ve���T��V�e��:U�fdeVU��;BL=:$-/% .,., I- I. I/ 5�E��eYd %�c�b�aa�dch)�ZmXZei�eZg�h�VgZ�YViV& OdiVa KZg�N�VgZ OdiVa KZg�N�VgZ OdiVa KZg�N�VgZ OdiVa KZg�N�VgZ FVe�B�T��V �� .-5+4� �� 15+0� �� .--+.� �� /24+.� Gdhh�%�cXdbZ&��gdb�Y�hX�deh)�cZi�d��iVm)�Viig�WjiVWaZ�id� �cXdbeVhh�CZVai�

  101. Slide 101: Reconciliation of net income

    JVT��T���Re�����W��Ve���T��V�e��:U�fdeVU��;BL=:$-/% .,-5 I- I. I/ I0 ?f���QVRc KZg� KZg� KZg� KZg� KZg� %�c�b�aa�dch)�ZmXZei�eZg�h�VgZ�YViV& OdiVa N�VgZ OdiVa N�VgZ OdiVa N�VgZ OdiVa N�VgZ OdiVa N�VgZ FVe�B�T��V �� ./2+/� �� ..-+6� �� ..6+2� �� 6-+/� �� 112+5� Gdhh��gdb�Y�hX�deh)�cZi�d��iVm)�Viig�Wj

  102. Slide 102: Reconciliation of segment adjusted EBITDA

    JVT��T���Re�����W�dVX�V�e�:U�fdeVU��;BL=:�e����T��V� Wc���T��e��f��X��aVcRe���d�SVW�cV���T��V�eRi�ViaV�dV I/ I. I- I0 I/ I. I- ?f���QVRc .,., .,., .,., .,-5 .,-5 .,-5 .,-5 .,-5 $����������d% L�eR��dVX�V�e�:U�fdeVU��;BL=: � .2-*,� � -51*/� � .12*1� � .30*3� � .2-*0� � .4/*,� � .32*/� � -(,51*0� BZcZg

  103. Slide 103: Adjusted EBITDA

    :U�fdeVU��H�$-0%�)�I/�.,.,� ?�c�eYV�LYcVV�E��eYd���UVU��VaeV�SVc�/,(�.,., :U�fde�V�ed �YR�XV����?R�c� :d� B�T��V�LRi� ERc�Ve�NR�fV��W� :d� JVa�ceVU :U�fde�V�ed �bf�ej��VTfc�e�Vd :U�fdeVU $B��E������d(��iTVae�HVc��YRcV�:��f�ed% :U�fdeVU��;BL=: � ./,*.� � q� � q� � ./,*.� ?ZegZX�Vi�dc�VcY�Vbdgi�oVi�dc

  104. Slide 104: Adjusted EBITDA

    :U�fdeVU��H�$-0%�)�I/�.,-5� ?�c�eYV�LYcVV�E��eYd���UVU��VaeV�SVc�/,(�.,-5 :U�fde�V�ed ERc�)e�) ERc�Ve� :U�fde�V�e� HRjc���� W�c��e�T�� �R������ LRiVd������ :d� ���a*� B�T��V�LRi� LcR�dRTe���� ���d���URe���� �:Jd� :d� JVa�ceVU �iaV�dV :U�fde�V�ed ��ded �W�Qf�R �iVcT�dV :U�fdeVU $B��E������d(��iTVae�H

  105. Slide 105: Adjusted EBITDA

    :U�fdeVU��H�$-0%�)�QL=�.,., ?�c�eYV�F��V�E��eYd���UVU��VaeV�SVc�/,(�.,., :U�fde�V�ed �YR�XV���� ��gte(���Rdd� ?R�c�ERc�Ve� �R������ HRjc���� :Te���(��� NR�fV��W� ���d���URe���� LRiVd������ :d� JV�ReVU� B�T��V�LRi� �bf�ej� �W�LcVRdfcV� �:Jd� :d� JVa�ceVU �Vee�V�V�ed :U�fde�V�ed �VTfc�e�Vd ��Rde �iVcT

  106. Slide 106: Adjusted EBITDA

    :U�fdeVU��H�$-0%�)�QL=�.,-5 ?�c�eYV�F��V�E��eYd���UVU��VaeV�SVc�/,(�.,-5 :U�fde�V�ed ERc�)e�) ERc�Ve� �YR�XV���� :U�fde�V�e� D�dd���� ?R�c�ERc�Ve� HRjc���� W�c��e�T�� �Rc�j� NR�fV��W� �R������ LRiVd���� :d� ���a*� �ie��X*� B�T��V�LRi� LcR�dRTe���� �bf�ej� ���d���URe���� �:Jd� :d� JVa�ceVU �iaV�dV �W

  107. Slide 107: Adjusted EBITDA

    :U�fdeVU��H�$-0%�)�.,-5 ?�c�eYV�QVRc���UVU�=VTV�SVc�/-(�.,-5 :U�fde�V�ed ERc�)e�) D�dd� ERc�Ve� ��� �YR�XV���� :U�fde�V�e� �Rc�j� ?R�c�ERc�Ve� HRjc���� W�c��e�T�� �ie��X*� NR�fV��W� �R������ LRiVd� :d� ���a*� �W� B�T��V�LRi� LcR�dRTe���� �bf�ej� ���d���URe���� ����:Jd� :d� JVa�ceVU �iaV�dV =VSe :U�f

  108. Slide 108: Adjusted free cash flow

    :U�fdeVU�WcVV�TRdY�W��h�Y�de�cj$-1% I/ 5�E��eYd ?f���QVRc %Dc�H�aa�dch& .,., .,-5 .,., .,-5 .,-5 FVe�TRdY�ac�g�UVU�Sj��aVcRe��X�RTe�g�e�Vd �� .40+1� �� ..1+1� �� 1/2+-� �� 1.6+4� �� 302+0� DbeVXi�d��Y�hXdci�cjZY�deZgVi�dch � -+.� � -+.� � -+/� � 1+3� � 1+1� FVe�TRdY�ac�g�UVU�Sj��aVcRe��X�RTe�g�e�Vd�

  109. Slide 109: Adjusted free cash flow reconciliation

    FVe�TRdY�ac�g�UVU�Sj��aVcRe��X�RTe�g�e�Vd�cVT��T��VU� e��:U�fdeVU��;BL=: I/ 5�E��eYd ?f���QVRc %Dc�H�aa�dch& .,., .,-5 .,., .,-5 .,-5 .,-4 .,-3 .,-2 .,-1 FVe�TRdY�ac�g�UVU�Sj��aVcRe��X�RTe�g�e�Vd �� .40+1� �� ..1+1� �� 1/2+-� �� 1.6+4� �� 302+0� �� 43/+1� �� 325+0� �� 31-+/� �� 2-2+6� Kgd�Zhh�dcVa��

  110. Slide 110: Share reconciliation

    �YRcV���W�c�Re��� OV�XYeVU�:gVcRXV�W�c�eYV�HVc��U I/ 5�E��eYd ����� ��� %H�aa�dch& .,., .,-5 .,., .,-5 .,-5 .,-4 .,-3 ;Rd�T�dYRcVd��fedeR�U��X$.3% 65+4 64+5 65+2 65+. 65+- 64+6 60+4 >dckZgi�WaZ�hZc�dg�hjWdgY�cViZY�cdiZh%/4& w w w w w w 1+- MZhig�XiZY�hidX��VlVgYh)�Y�aji�kZ�hidX��dei�dch)� gZhig�XiZY

  111. Slide 111: Endnotes

    ��U���eVd �cXdbeVhh�CZVai� ...

  112. Slide 112: Endnotes

    ��U���eVd %.& PcYZg�i��h�egd�gVb)�Ed�ci�>dbb�hh�dc�VXXgZY�iZY�dg�Vc�oVi�dch)�a��Z�i�Z�>dbeVcnzh�DMAh)�bVn�hZZ��XZgi���XVi�dc��dg�X�gdc�X�Y�hZVhZh�dg�XdcY�i�dch�hjX��Vh�WgV�c��c�jgn�dg� higd�Z�gZ�VW�a�iVi�dc�Wn�Xdbean�c��l�i��Ed�ci�>dbb�hh�dc�hiVcYVgYh)�Z��ZXi�kZan�jh�c��Zk�YZcXZ*WVhZY�Xa�c�XVa�egVXi

  113. Slide 113: Endnotes, continued

    ��U���eVd(�T��e��fVU %..& Jc��j�jhi�1)�/-/-)�>HN�gZaZVhZY��ih�Idi�XZ�d��A�cVa�MjaZbV��c���dg�A�hXVa�TZVg�/-/.��dg��ceVi�Zci�gZ�VW�a�iVi�dc��VX�a�i�Zh�jcYZg�i�Z��ceVi�Zci�gZ�VW�a�iVi�dc��VX�a�in� egdheZXi�kZ�eVnbZci�hnhiZb�%i�Z�x/-/.�A�cVa�DMA�MjaZy&+�O�Z�/-/.�A�cVa�DMA�MjaZ��beaZbZcih�V�cZi�/+1"�bVg

  114. Slide 114: Endnotes, continued

    ��U���eVd(�T��e��fVU %.3& Jc�JXi+�/5)�/-.0)�i�Z�>dbeVcn�VccdjcXZY��ih�WdVgY�d��Y�gZXidgh�Vji�dg�oZY�i�Z�gZejgX�VhZ�d��je�id��/--�b�aa�dc�d���ih�Xdbbdc�hidX�+�Jc�AZW+�.1)�/-.1)�i�Z�>dbeVcn$h� WdVgY�VeegdkZY�Vc��cXgZVhZ��c�i��h�Xdbbdc�hidX��gZejgX�VhZ�Vji�dg�oVi�dc��gdb��/--�b�aa�dc�id��/2-�b�aa�dc+��

Encompass Health — Q3 2020 Earnings Presentation on 6ix