Encompass Health Corporation · NYSE:EHC
Encompass Health — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
17 slides from Encompass Health's conference presentation, Jan 14, 2020
Slide 1: 38th Annual J.P. Morgan Healthcare Conference
38th Annual J.P. Morgan Healthcare Conference Mark Tarr, President and Chief Executive Officer January 14, 2020
Slide 2: 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 3: Company overview
Company overview 133 245 83 37 Encompass Health 3
Slide 4: Company overview - Inpatient Rehabilitation
Company overview - Inpatient Rehabilitation 133 23% 31% 47 33 123 ~31,600 ~186,800 ~$3.5 billion Encompass Health 4
Slide 5: Company overview - Home Health and Hospice
Company overview - Home Health and Hospice - 4th largest provider of Medicare-certified skilled home health services - Top 11 provider of hospice services 98% 245 83 31 98% ~11,800 ~159,700 ~10,500 ~$1.1 billion Encompass Health 5
Slide 6: Updated 2019 guidance
Updated 2019 guidance 2019 2019 previous guidance updated guidance Net operating revenues Net operating revenues $4,500 million to $4,600 million $4,590 million to $4,610 million Adjusted EBITDA Adjusted EBITDA $940 million to $960 million $962 million to $967 million Adjusted earnings per share Adj
Slide 7: 2019 Highlights
2019 Highlights GROWTH Opened Expanded existing Acquired or opened 27 Acquired or opened 25 3 new hospitals home health locations hospice locations hospitals by 152 beds • IRF discharge growth of 3.9%; • Home health admissions growth of 16.3%; same store = 1.8% same store = 7.7% • Medicare Advantage
Slide 8: 2020 Guidance
2020 Guidance 2019 2020 updated guidance preliminary guidance Net operating revenues Net operating revenues $4,590 million to $4,610 million $4,850 million to $4,950 million Adjusted EBITDA Adjusted EBITDA $962 million to $967 million $935 million to $965 million Adjusted earnings per share Adjusted
Slide 9: 2020 Guidance considerations
2020 Guidance considerations Inpatient Rehabilitation Home Health and Hospice u Estimated 0% to 0.75% increase in Medicare u Estimated 2.0% to 3.0% net Medicare pricing pricing for Q1 through Q3 and anticipated 2.5% decrease for CY 2020 for home health increase for Q4 u Salary increase of approx. 3.
Slide 10: 2020 Priorities
2020 Priorities GROWTH Home health Hospice Hospitals locations locations OPERATIONAL INITIATIVES Develop and Continue Implement Increase Build stroke implement transition to PDGM clinical market share post-acute Section GG and RCD collaboration solutions CAPITAL STRUCTURE Consider Continue Maintain
Slide 11: Responding to 2020 regulatory changes
Responding to 2020 regulatory changes On Oct. 1, 2019, IRF-PAI Section GG functional measures replaced FIM™ Section GG for reporting and payment purposes. (CARE Tool) This new payment system makes substantial changes to the case mix groups, thereby impacting Medicare revenue per discharge. On Jan.
Slide 12: Demographics driving increasing demand across all business lines
Demographics driving increasing demand Sustained across all business lines growth Projected Population of Age 65+ Millions Baby Boomer wave reaches average age of an Encompass 80 Health Medicare patient (~76). 70 60 ~3% CAGR CAGR (Population Growth by Age) 50 Age 2014 2018 2022 to 2018 to 2022 to 20
Slide 13: Multi-faceted growth strategy
Multi-faceted growth strategy Sustained growth Track record of consistent market share gains in both segments • Four new IRFs targeted to open ü Murrieta, California ü Sioux Falls, South Dakota Inpatient ü Coralville, Iowa Rehabilitation ü Toledo, Ohio •Expand existing IRF capacity by 100 to 120 bed
Slide 14: The Company continues to improve the patient experience and outcomes through integrated care delivery
The Company continues to improve the patient experience and outcomes through integrated Quality care delivery Inpatient Rehabilitation–Home Health Clinical Collaboration (All Payors) Overlap Markets 35.6% 34.0% Collaboration Collaboration rate 29.5% rate Collaboration 25.4% rate 24,560 89 Collaborat
Slide 15: Building stroke market share
Building stroke market share Sustained growth Leveraging our: Independent research concludes IRFs are a better rehabilitation option for stroke patients than SNFs. • strategic sponsorship of the AHA/ASA Focus on IRF-eligible patients going to SNFs and • clinical collaboration non-EHC IRFs • joint co
Slide 16: Post-acute innovation
Post-acute innovation Post-acute innovation Our post-acute solutions leverage our clinical expertise, large post-acute datasets, EMR technologies, and strategic partnerships to drive improved patient outcomes and lower cost of care across the entire post-acute episode. 2020 Deploy a post-acute rea
Slide 17: Committed to delivering high-quality, cost-effective care across the post-acute continuum
Committed to delivering high-quality, cost-effective care across the post-acute continuum
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