Encompass Health Corp (NYSE:EHC) plans to spin off its home health and hospice (HH&H) business into an independent, publicly-traded company and rebrand as Enhabit Home Health & Hospice.
- Encompass Health offers facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies.
- Its footprint includes 145 hospitals, 251 home health locations, and 96 hospice locations.
- The spin-off, which is expected to be tax-free to Encompass Health's shareholders, will result in Encompass Health's shareholders owning stock in both companies.
- The company intends to consummate the spin-off in 1H of 2022, including the effectiveness of a Form 10 registration statement, regulatory approvals, and receipt of a favorable IRS private letter ruling.
- The establishment of Enhabit Home Health & Hospice will further strengthen Enhabit's focus on high-quality, cost-effective care delivered in the home setting.
- The rebranding is expected to begin in mid-April 2022.
- Price Action: EHC shares closed 0.67% lower at $61.22 on Wednesday.
