Encompass Health (EHC) 10-Q 31 Jul 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2020	Jul. 23, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-10315
Entity Registrant Name	Encompass Health Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	63-0860407
Entity Address, Address Line One	9001 Liberty Parkway
Entity Address, City or Town	Birmingham
Entity Address, State or Province	AL
Entity Address, Postal Zip Code	35242
City Area Code	205
Local Phone Number	967-7116
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EHC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		99,445,949
Entity Central Index Key	0000785161
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Comprehensive Income And Income Statement [Abstract]
Net operating revenues	$ 1,074.1	$ 1,135	$ 2,256.1	$ 2,259
Operating expenses:
Salaries and benefits	651.9	622.9	1,331	1,243.7
Other operating expenses	148.3	149.8	307.9	299.9
Occupancy costs	20.3	20.3	40.5	39.9
Supplies	50.6	41.7	96.3	81.8
General and administrative expenses	43	77.1	78.6	130.5
Depreciation and amortization	60.7	52.7	119.5	105.2
Government, class action, and related settlements	0	0	2.8	0
Total operating expenses	974.8	964.5	1,976.6	1,901
Loss on early extinguishment of debt	0	2.3	0	2.3
Interest expense and amortization of debt discounts and fees	45.8	37.7	89	74.9
Other income	(5.8)	(2.2)	(3.9)	(5.9)
Equity in net income of nonconsolidated affiliates	(0.7)	(1.8)	(1.5)	(4.3)
Income from continuing operations before income tax expense	60	134.5	195.9	291
Provision for income tax expense	11.8	23.5	38.9	54.3
Income from continuing operations	48.2	111	157	236.7
Income (loss) from discontinued operations, net of tax	0.1	(0.1)	0	(0.6)
Net and comprehensive income	48.3	110.9	157	236.1
Comprehensive income	48.3	110.9	157	236.1
Less: Net and comprehensive income attributable to noncontrolling interests	(14.8)	(19.7)	(36.5)	(42.6)
Less: Comprehensive income attributable to noncontrolling interests	(14.8)	(19.7)	(36.5)	(42.6)
Net income attributable to Encompass Health	33.5	91.2	120.5	193.5
Comprehensive income attributable to Encompass Health	$ 33.5	$ 91.2	$ 120.5	$ 193.5
Weighted average common shares outstanding:
Basic (shares)	98.7	98	98.5	98.2
Diluted (shares)	99.9	99.3	99.6	99.5
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.34	$ 0.93	$ 1.22	$ 1.97
Discontinued operations (in dollars per share)	0	0	0	(0.01)
Net income (in dollars per share)	0.34	0.93	1.22	1.96
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	0.34	0.92	1.21	1.95
Discontinued operations (in dollars per share)	0	0	0	(0.01)
Net income (in dollars per share)	$ 0.34	$ 0.92	$ 1.21	$ 1.94
Amounts attributable to Encompass Health common shareholders:
Income from continuing operations	$ 33.4	$ 91.3	$ 120.5	$ 194.1
Income (loss) from discontinued operations, net of tax	0.1	(0.1)	0	(0.6)
Net income attributable to Encompass Health	$ 33.5	$ 91.2	$ 120.5	$ 193.5

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions		Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents		$ 419	$ 94.8
Restricted cash		56.4	57.4
Accounts receivable		553.2	506.1
Other current assets		73.1	97.5
Total current assets		1,101.7	755.8
Property and equipment, net		2,041.4	1,959.3
Operating lease right-of-use assets		268.5	276.5
Goodwill		2,318.7	2,305.2
Intangible assets, net		455.8	476.3
Deferred income tax assets		11.1	2.9
Other long-term assets		305.3	304.7
Total assets	[1]	6,502.5	6,080.7
Current liabilities:
Current portion of long-term debt		36.9	39.3
Current operating lease liabilities		42.2	40.4
Accounts payable		93.1	94.6
Accrued expenses and other current liabilities		492.2	546.7
Total current liabilities		664.4	721
Long-term debt, net of current portion		3,546.7	3,023.3
Long-term operating lease liabilities		234.9	243.8
Other long-term liabilities		191.7	159.9
Total liabilities		4,637.7	4,148
Commitments and contingencies
Redeemable noncontrolling interests		33.4	239.6
Shareholders’ equity:
Encompass Health shareholders’ equity		1,462.8	1,352.2
Noncontrolling interests		368.6	340.9
Total shareholders’ equity		1,831.4	1,693.1
Total liabilities and shareholders' equity	[1]	$ 6,502.5	$ 6,080.7
[1]	Our consolidated assets as of June 30, 2020 and December 31, 2019 include total assets of variable interest entities of $221.1 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of June 30, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $42.1 million and $41.1 million , respectively. See Note 3 , Variable Interest Entities .

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions		Jun. 30, 2020	Dec. 31, 2019
Assets	[1]	$ 6,502.5	$ 6,080.7
Liabilities		4,637.7	4,148
VIE
Assets		221.1	215
Liabilities		$ 42.1	$ 41.1
[1]	Our consolidated assets as of June 30, 2020 and December 31, 2019 include total assets of variable interest entities of $221.1 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of June 30, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $42.1 million and $41.1 million , respectively. See Note 3 , Variable Interest Entities .

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Capital in Excess of Par Value	Accumulated Deficit	Treasury Stock	Noncontrolling Interests
Balance at beginning of period at Dec. 31, 2018	$ 1,557	$ 1.1	$ 2,588.7	$ (885.2)	$ (427.9)	$ 280.3
Balance at beginning of period (shares) at Dec. 31, 2018		98.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	229.7			193.5		36.2
Receipt of treasury stock	(16.1)				(16.1)
Receipt of treasury stock (shares)		(0.3)
Dividends declared	(53.7)		(53.7)
Stock-based compensation	16.3		16.3
Distributions declared	(32.6)					(32.6)
Capital contributions from consolidated affiliates	12.8					12.8
Fair value adjustments to redeemable noncontrolling interests	(100.7)		(100.7)
Repurchases of common stock in open market	(43.8)				(43.8)
Repurchases of common stock in open market (shares)		(0.7)
Other	14.9		5		(1.3)	11.2
Other (shares)		0.7
Balance at end of period at Jun. 30, 2019	1,583.8	$ 1.1	2,455.6	(691.7)	(489.1)	307.9
Balance at end of period (shares) at Jun. 30, 2019		98.6
Balance at beginning of period at Mar. 31, 2019	1,616.5	$ 1.1	2,551.3	(782.9)	(455.2)	302.2
Balance at beginning of period (shares) at Mar. 31, 2019		99.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	108.5			91.2		17.3
Receipt of treasury stock	(0.2)				(0.2)
Dividends declared	(26.8)		(26.8)
Stock-based compensation	9.3		9.3
Distributions declared	(17.3)					(17.3)
Capital contributions from consolidated affiliates	5.7					5.7
Fair value adjustments to redeemable noncontrolling interests	(80.4)		(80.4)
Repurchases of common stock in open market	(32.8)				(32.8)
Repurchases of common stock in open market (shares)		(0.5)
Other	1.3		2.2		(0.9)
Balance at end of period at Jun. 30, 2019	1,583.8	$ 1.1	2,455.6	(691.7)	(489.1)	307.9
Balance at end of period (shares) at Jun. 30, 2019		98.6
Balance at beginning of period at Dec. 31, 2019	1,693.1	$ 1.1	2,369.9	(526.5)	(492.3)	340.9
Balance at beginning of period (shares) at Dec. 31, 2019		98.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	153.5			120.5		33
Receipt of treasury stock	(15.7)				(15.7)
Receipt of treasury stock (shares)		(0.2)
Dividends declared	(55.9)		(55.9)
Exchange of Holding shares	46.3		27.1		19.2
Exchange of Holding shares (shares)		0.6
Stock-based compensation	17		17
Distributions declared	(29.1)					(29.1)
Capital contributions from consolidated affiliates	24.7					24.7
Repurchases of common stock in open market	(4.9)				(4.9)
Repurchases of common stock in open market (shares)		(0.1)
Other	2.4		4.3		(1)	(0.9)
Other (shares)		0.5
Balance at end of period at Jun. 30, 2020	1,831.4	$ 1.1	2,362.4	(406)	(494.7)	368.6
Balance at end of period (shares) at Jun. 30, 2020		99.4
Balance at beginning of period at Mar. 31, 2020	1,797.2	$ 1.1	2,376.2	(439.5)	(493.9)	353.3
Balance at beginning of period (shares) at Mar. 31, 2020		99.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	46.8			33.5		13.3
Receipt of treasury stock	(0.1)				(0.1)
Dividends declared	(28)		(28)
Stock-based compensation	9.9		9.9
Distributions declared	(13.6)					(13.6)
Capital contributions from consolidated affiliates	18.9					18.9
Other	0.3		4.3		(0.7)	(3.3)
Balance at end of period at Jun. 30, 2020	$ 1,831.4	$ 1.1	$ 2,362.4	$ (406)	$ (494.7)	$ 368.6
Balance at end of period (shares) at Jun. 30, 2020		99.4

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock (in dollars per share)	$ 0.28	$ 0.27	$ 0.56	$ 0.54

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 157	$ 236.1
Loss from discontinued operations, net of tax	0	0.6
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	119.5	105.2
Stock-based compensation	17	65.3
Deferred tax (benefit) expense	(9.1)	0.5
Other, net	7.8	3.8
Change in assets and liabilities, net of acquisitions—
Accounts receivable	(38.5)	(22.6)
Other assets	20	(11.8)
Accounts payable	(0.4)	(4.5)
Accrued payroll	58.4	(7.7)
Other liabilities	(80)	(55.1)
Net cash used in operating activities of discontinued operations	(0.1)	(4.5)
Total adjustments	94.6	68.6
Net cash provided by operating activities	251.6	305.3
Cash flows from investing activities:
Purchases of property and equipment	(166.6)	(155.8)
Additions to capitalized software costs	(4.4)	(6.6)
Acquisitions of businesses, net of cash acquired	(1.1)	(13.7)
Other, net	(3)	(15.5)
Net cash used in investing activities	(175.1)	(191.6)
Cash flows from financing activities:
Proceeds from bond issuance	592.5	0
Principal payments on debt, including pre-payments	(11)	(112.1)
Borrowings on revolving credit facility	330	400
Payments on revolving credit facility	(375)	(95)
Principal payments under finance lease obligations	(10.9)	(9.3)
Repurchases of common stock, including fees and expenses	(4.9)	(43.8)
Dividends paid on common stock	(56.7)	(54.9)
Purchase of equity interests in consolidated affiliates	(162.3)	0
Distributions paid to noncontrolling interests of consolidated affiliates	(37.4)	(36.5)
Taxes paid on behalf of employees for shares withheld	(15.7)	(16.1)
Other, net	5.3	8.2
Net cash provided by financing activities	253.9	40.5
Increase in cash, cash equivalents, and restricted cash	330.4	154.2
Cash, cash equivalents, and restricted cash at beginning of period	159.6	133.5
Cash, cash equivalents, and restricted cash at end of period	490	287.7
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period	94.8	69.2
Restricted cash at beginning of period	57.4	59
Restricted cash included in other long-term assets at beginning of period	7.4	5.3
Cash, cash equivalents, and restricted cash at beginning of period	159.6	133.5
Cash and cash equivalents at end of period	419	221.7
Restricted cash at end of period	56.4	56.8
Restricted cash included in other long-term assets at end of period	14.6	9.2
Cash, cash equivalents, and restricted cash at end of period	490	287.7
Supplemental schedule of noncash financing activity:
Adoption of ASC 842	$ 0	$ 349.4

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Encompass Health Corporation, incorporated in Delaware in 1984, including its subsidiaries, is one of the nation’s largest providers of post-acute healthcare services, offering both facility-based and home-based patient services in 39 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies. We manage our operations and disclose financial information using two reportable segments: (1) inpatient rehabilitation and (2) home health and hospice. See also Note 11 , Segment Reporting . The accompanying unaudited condensed consolidated financial statements of Encompass Health Corporation and Subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes contained in Encompass Health’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 27, 2020 (the “ 2019 Form 10‑K ”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC applicable to interim financial information. Certain information and note disclosures included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted in these interim statements, as allowed by such SEC rules and regulations. The condensed consolidated balance sheet as of December 31, 2019 has been derived from audited financial statements, but it does not include all disclosures required by GAAP. However, we believe the disclosures are adequate to make the information presented not misleading. The unaudited results of operations for the interim periods shown in these financial statements are not necessarily indicative of operating results for the entire year. In our opinion, the accompanying condensed consolidated financial statements recognize all adjustments of a normal recurring nature considered necessary to fairly state the financial position, results of operations, and cash flows for each interim period presented. Net Operating Revenues — Our Net operating revenues disaggregated by payor source and segment are as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2020 2019 2020 2019 2020 2019 Medicare $ 502.9 $ 629.0 $ 204.1 $ 221.1 $ 707.0 $ 850.1 Medicare Advantage 166.1 97.0 29.2 26.7 195.3 123.7 Managed care 88.4 86.5 11.5 8.0 99.9 94.5 Medicaid 34.7 27.1 4.1 4.6 38.8 31.7 Other third-party payors 9.3 10.5 — — 9.3 10.5 Workers’ compensation 4.2 6.5 0.3 0.3 4.5 6.8 Patients 4.2 5.6 0.2 0.1 4.4 5.7 Other income 14.7 11.7 0.2 0.3 14.9 12.0 Total $ 824.5 $ 873.9 $ 249.6 $ 261.1 $ 1,074.1 $ 1,135.0 Inpatient Rehabilitation Home Health and Hospice Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 2020 2019 Medicare $ 1,145.9 $ 1,268.4 $ 430.4 $ 436.1 $ 1,576.3 $ 1,704.5 Medicare Advantage 277.0 181.5 58.7 52.2 335.7 233.7 Managed care 178.3 170.1 23.5 16.3 201.8 186.4 Medicaid 65.2 53.4 8.4 8.9 73.6 62.3 Other third-party payors 20.3 20.5 — — 20.3 20.5 Workers’ compensation 11.1 14.7 0.5 0.4 11.6 15.1 Patients 9.7 11.7 0.6 0.5 10.3 12.2 Other income 26.2 23.7 0.3 0.6 26.5 24.3 Total $ 1,733.7 $ 1,744.0 $ 522.4 $ 515.0 $ 2,256.1 $ 2,259.0 See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2019 Form 10-K for our policy related to Net operating revenues . Risks and Uncertainties — The novel coronavirus disease 2019 (“COVID-19”) pandemic has caused a disruption to our nation’s healthcare system. Such disruption includes reductions in the availability of personal protective equipment (“PPE”) to prevent spread of the disease during patient treatment and increases in the cost of PPE. Elective procedures were postponed by physicians and acute-care hospitals and limited by governmental order to preserve capacity for the expected volume of COVID-19 patients and reduce the risk of the spread of COVID-19. Initially, these postponements and limitations were widespread. Now, they are more market or state specific and driven by the extent of the pandemic in those areas. Beginning in mid-March, we experienced decreased volumes in both segments which we believe resulted from a number of conditions related to the COVID-19 pandemic including: lower acute-care hospital censuses due to the deferral of elective surgeries and shelter-in-place orders, restrictive visitation policies in place at acute-care hospitals that severely limit access to patients and caregivers by our clinical rehabilitation liaisons and care transition coordinators, lock down of assisted living facilities, and heightened anxiety among patients and their family members regarding the risk of exposure to COVID-19 during acute-care and post-acute care treatment. In the home health and hospice segment, we also experienced decreases in visits per episode and institutional referrals because of the COVID-19 pandemic, both of which negatively impacted pricing for home health. In March and April 2020, the federal government began to undertake numerous legislative and regulatory initiatives designed to provide relief to the healthcare industry during the COVID-19 pandemic . A specific initiative impacting us is the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) which temporarily suspends the automatic 2% reduction of Medicare program payments known as “sequestration” for the period of May 1 through December 31, 2020 and authorizes the cash distribution of relief funds from the United States Department of Health and Human Services (“HHS”) to healthcare providers in response to the COVID-19 pandemic. On April 10, 2020, we began to receive the CARES Act relief fund payments, for which we did not apply, from HHS. We informed HHS we would not accept any of the CARES Act relief funds. We have repaid all of the initial funds received and intend to return any additional funds received. Additionally, the CARES Act and a series of waivers and guidance issued by the Centers for Medicare and Medicaid Services (“CMS”) suspend various Medicare patient coverage criteria and documentation and care requirements in an effort to provide regulatory relief. For inpatient rehabilitation, the regulatory relief includes the temporary suspension of the requirement that patients must be able to tolerate a minimum of 3 hours of therapy per day for 5 days per week, waiver of certain of the requirements that at least 60% of a facility’s patients must have a diagnosis from at least 1 of 13 specified medical conditions, and waiver of the requirement for a physician to conduct and document a post-admission evaluation. In addition, the requirement of physician face-to-face visits at least 3 days a week may be fulfilled using telehealth. For home health, the relief includes the allowance of nurse practitioners and physician assistants under certain conditions to certify, establish and periodically review the plan of care, as well as supervise the provision of items and services for beneficiaries under the Medicare home health benefit and expands the use of telehealth. Additionally, CMS expanded the definition of “homebound” to include patients needing skilled services who are homebound due solely to their COVID-19 diagnosis or patients susceptible to contract COVID-19. For hospice, the relief includes the temporary waiver of the requirement to use volunteers and to conduct a nurse visit every two weeks to evaluate aides, as well as the expanded use of telehealth for routine services and patient recertification. As discussed in Note 4, Long-term Debt , in April 2020, we amended our credit agreement primarily to provide covenant relief due to business disruptions from the COVID-19 pandemic. The amendment included, among other things, the carve-out of the COVID-19 pandemic from the definition of material adverse effect for 364 days and modifications to the interest coverage and leverage ratios under the agreement. Recently Adopted Accounting Pronouncements — In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which provides guidance for accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance resulted in an immaterial change to our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. It requires entities to account for such costs consistent with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance did not have a material impact to our condensed consolidated financial statements. In March 2020, the Securities and Exchange Commission adopted final rules that amend the financial disclosure requirements in Rule 3-10 of Regulation S-X for guarantors of registered debt securities and subsidiary issuers. The new rules are effective January 4, 2021, but early adoption is permitted. The new rules permit alternative disclosures of summarized financial information, rather than our previous footnote presentation of condensed consolidating financial statements. The new rules also permit the summarized financial information and related disclosures to be presented outside of the condensed consolidated financial statements and accompanying notes. We elected to early adopt the new rules effective for the quarter ended June 30, 2020 and the summarized financial information and related disclosures are presented in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this report. Recent Accounting Pronouncements Not Yet Adopted — In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The standard removes certain exceptions to the general principles of ASC 740 and simplifies other areas such as accounting for outside basis differences of equity method investments. Either prospective or retrospective transition of this standard is dependent upon the specific amendments. The new guidance is effective for us beginning January 1, 2021, including interim periods within that reporting period. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. We do not believe any other recently issued, but not yet effective, accounting standards will have a material effect on our condensed consolidated financial position, results of operations, or cash flows.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Business Combinations	Business Combinations Inpatient Rehabilitation During the six months ended June 30, 2020 , we completed the following inpatient rehabilitation acquisitions, none of which were individually material to our financial position, results of operations, or cash flows. Each acquisition was made to enhance our position and ability to provide inpatient rehabilitation services to patients in the applicable geographic areas. • In January 2020, we acquired 68% of the operations of a 13 -bed inpatient rehabilitation unit in Denver, Colorado through a joint venture with Portercare Adventist Health System. The acquisition was funded through a contribution of our existing 40 -bed inpatient rehabilitation hospital in Littleton, Colorado and the contributions of funds were utilized by the consolidated joint venture to build a 20 -bed expansion to the Littleton hospital. • In May 2020, we acquired 51% of the operations of a 45 -bed inpatient rehabilitation unit in Dayton, Ohio through a joint venture with Premier Health Partners. The acquisition was funded through contributions of funds which were utilized by the consolidated joint venture to build a 60 -bed de novo inpatient rehabilitation hospital. We accounted for these transactions under the acquisition method of accounting and reported the results of operations of the acquired hospitals from its respective date of acquisition. Assets acquired were recorded at their estimated fair values as of the acquisition date. Estimated fair values were based on various valuation methodologies including: an income approach using primarily discounted cash flow techniques for the noncompete intangible assets and an income approach utilizing the relief from royalty method for the trade name intangible asset. The aforementioned income methods utilize management’s estimates of future operating results and cash flows discounted using a weighted-average cost of capital that reflects market participant assumptions. The excess of the fair value of the consideration conveyed over the fair value of the assets acquired was recorded as goodwill. The goodwill reflects our expectations of our ability to gain access to and penetrate the acquired hospital’s historical patient base and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in this market. None of the goodwill recorded as a result from these transactions are deductible for federal income tax purposes. The fair value of the assets acquired at the acquisition date were as follows (in millions): Property and equipment, net $ 0.1 Identifiable intangible assets: Noncompete agreements (useful lives of 2 to 3 years) 0.7 Trade name (useful life of 20 years) 0.9 Goodwill 9.2 Total assets acquired $ 10.9 Information regarding the net cash paid for the inpatient rehabilitation acquisitions during each period presented is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Fair value of assets acquired $ 1.4 $ — $ 1.7 $ — Goodwill 6.6 — 9.2 — Fair value of noncontrolling interest owned by joint venture partner (8.0 ) — (10.9 ) — Net cash paid for acquisitions $ — $ — $ — $ — Home Health and Hospice In March 2020, we acquired the assets of Generation Solutions of Lynchburg, LLC in Lynchburg, Virginia. This acquisition was made to enhance our position and ability to provide post-acute healthcare services to patients in Central Virginia. The acquisition was funded using cash on hand and was immaterial to our financial position, results of operations, and cash flows. We accounted for this transaction under the acquisition method of accounting and reported the results of operations of the acquired location from the date of acquisition. Assets acquired were recorded at their estimated fair values as of the acquisition date. The fair values of identifiable intangible assets were based on valuations using an income approach. The income approach is based on management’s estimates of future operating results and cash flows discounted using a weighted-average cost of capital that reflects market participant assumptions. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill. The goodwill reflects our expectations of our ability to utilize the acquired location’s mobile workforce and established relationships within the community and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in this market. All of the goodwill recorded as a result of this transaction is deductible for federal income tax purposes. The fair value of the assets acquired at the acquisition date were as follows (in millions): Identifiable intangible assets: Licenses (useful lives of 10 years) $ 0.1 Goodwill 1.0 Total assets acquired $ 1.1 Information regarding the net cash paid for the home health and hospice acquisitions during each period presented is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Fair value of assets acquired $ — $ — $ 0.1 $ 3.2 Goodwill — — 1.0 10.8 Fair value of liabilities assumed — — — (0.3 ) Net cash paid for acquisitions $ — $ — $ 1.1 $ 13.7 Pro Forma Results of Operations The following table summarizes the results of operations of the above mentioned acquisitions from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2019 (in millions): Net Operating Revenues Net Income Attributable to Encompass Health Acquired entities only: Actual from acquisition date to June 30, 2020 Inpatient Rehabilitation $ — $ — Home Health and Hospice 0.6 — Combined entity: Supplemental pro forma from 04/01/2020-06/30/2020 1,076.0 33.7 Combined entity: Supplemental pro forma from 04/01/2019-06/30/2019 1,140.3 91.7 Combined entity: Supplemental pro forma from 01/01/2020-06/30/2020 2,262.0 121.1 Combined entity: Supplemental pro forma from 01/01/2019-06/30/2019 2,269.5 194.5 The information presented above is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisitions had occurred as of the beginning of our 2019 reporting period. See Note 2, Business Combinations , to the consolidated financial statements accompanying the 2019 Form 10‑K for information regarding acquisitions completed in 2019 .

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities As of June 30, 2020 and December 31, 2019 , we consolidated nine and eight , respectively, limited partnership-like entities that are variable interest entities (“VIEs”) and of which we are the primary beneficiary. Our ownership percentages in these entities range from 50.0% to 75.0% as of June 30, 2020 . Through partnership and management agreements with or governing each of these entities, we manage all of these entities and handle all day-to-day operating decisions. Accordingly, we have the decision making power over the activities that most significantly impact the economic performance of our VIEs and an obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. These decisions and significant activities include, but are not limited to, marketing efforts, oversight of patient admissions, medical training, nurse and therapist scheduling, provision of healthcare services, billing, collections, and creation and maintenance of medical records. The terms of the agreements governing each of our VIEs prohibit us from using the assets of each VIE to satisfy the obligations of other entities. The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions): June 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 0.5 $ 0.2 Accounts receivable 33.0 29.3 Other current assets 7.2 6.4 Total current assets 40.7 35.9 Property and equipment, net 120.6 122.6 Operating lease right-of-use assets 5.5 6.0 Goodwill 19.2 15.9 Intangible assets, net 4.1 3.3 Other long-term assets 31.0 31.3 Total assets $ 221.1 $ 215.0 Liabilities Current liabilities: Current portion of long-term debt $ 0.9 $ 0.8 Current operating lease liabilities 1.5 1.4 Accounts payable 6.6 6.7 Accrued expenses and other current liabilities 17.5 17.0 Total current liabilities 26.5 25.9 Long-term debt, net of current portion 10.1 10.5 Long-term operating lease liabilities 4.0 4.7 Other long-term liabilities 1.5 — Total liabilities $ 42.1 $ 41.1

Long-term Debt

Long-term Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt outstanding consists of the following (in millions): June 30, 2020 December 31, 2019 Credit Agreement— Advances under revolving credit facility $ — $ 45.0 Term loan facilities 258.0 265.2 Bonds payable— 5.125% Senior Notes due 2023 297.7 297.3 5.75% Senior Notes due 2024 697.6 697.3 5.75% Senior Notes due 2025 346.0 345.6 4.50% Senior Notes due 2028 784.1 491.7 4.75% Senior Notes due 2030 782.5 491.7 Other notes payable 40.4 44.7 Finance lease obligations 377.3 384.1 3,583.6 3,062.6 Less: Current portion (36.9 ) (39.3 ) Long-term debt, net of current portion $ 3,546.7 $ 3,023.3 In April 2020, we amended our existing credit agreement. The following are the changes made to the material provisions of the credit agreement: 1. Amendment of the financial covenants to update the applicable interest coverage ratio and leverage ratio included in that covenant. The revised applicable ratios are set forth below. Fiscal Quarters Ending Interest Coverage Ratio December 31, 2019 and March 31, 2020 3.00 to 1.00 June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 2.00 to 1.00 March 31, 2022 and thereafter 3.00 to 1.00 Fiscal Quarters Ending Leverage Ratio December 31, 2019 and March 31, 2020 4.50 to 1.00 June 30, 2020 4.75 to 1.00 September 30, 2020 5.50 to 1.00 December 31, 2020 6.50 to 1.00 March 31, 2021 6.50 to 1.00 June 30, 2021 6.00 to 1.00 September 30, 2021 5.50 to 1.00 December 31, 2021 5.00 to 1.00 March 31, 2022 and thereafter 4.25 to 1.00 2. Amendment of the definition of “Material Adverse Effect” to carve out the direct and indirect impacts of COVID-19 and the related legislative, regulatory and executive actions on us from that definition for a period of 364 days; and 3. Amendment of the investment limitation covenant and the restricted payment limitation covenant, to add to each a leverage ratio condition (not in excess of 4.50x) to the provisions allowing unlimited investments and restricted payments in the event certain conditions are met including a senior secured leverage ratio (not in excess of 2:00x) and the existence of no events of default in addition to the new leverage ratio condition. All other material terms of the existing credit agreement remain the same and are described in Note 10, Long-term Debt , to the consolidated financial statements accompanying the 2019 Form 10‑K . In May 2020, we issued an additional $300 million of our existing 4.50% Senior Notes due 2028 at a price of 99.0% of the principal amount and an additional $300 million of our existing 4.75% Senior Notes due 2030 at a price of 98.5% of the principal amount, which resulted in approximately $583 million in net proceeds. We used a portion of the net proceeds from this borrowing, together with cash on hand, to repay borrowings under our revolving credit facility.

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interests	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests	Redeemable Noncontrolling Interests The following is a summary of the activity related to our Redeemable noncontrolling interests during the six months ended June 30, 2020 and 2019 (in millions): Six Months Ended June 30, 2020 2019 Balance at beginning of period $ 239.6 $ 261.7 Net income attributable to noncontrolling interests 3.5 6.4 Distributions declared (4.2 ) (4.8 ) Contribution to joint venture 3.1 — Reclassification to noncontrolling interests — (11.2 ) Purchase of redeemable noncontrolling interests (162.3 ) — Exchange transaction (46.3 ) — Change in fair value — 100.7 Balance at end of period $ 33.4 $ 352.8 The following table reconciles the net income attributable to nonredeemable Noncontrolling interests , as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests , as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net and comprehensive income attributable to noncontrolling interests presented in the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income attributable to nonredeemable noncontrolling interests $ 13.3 $ 17.3 $ 33.0 $ 36.2 Net income attributable to redeemable noncontrolling interests 1.5 2.4 3.5 6.4 Net income attributable to noncontrolling interests $ 14.8 $ 19.7 $ 36.5 $ 42.6 On December 31, 2014, we acquired 83.3% of our home health and hospice business when we purchased EHHI Holdings, Inc. (“EHHI”). In the acquisition, we acquired all of the issued and outstanding equity interests of EHHI, other than equity interests contributed to Encompass Health Home Health Holdings, Inc. (“Holdings”), a subsidiary of Encompass Health and an indirect parent of EHHI, by certain sellers in exchange for shares of common stock of Holdings. Those sellers were members of EHHI management, and they contributed a portion of their shares of common stock of EHHI, valued at approximately $64 million on the acquisition date, in exchange for approximately 16.7% of the outstanding shares of common stock of Holdings. At any time after December 31, 2017, each management investor had the right (but not the obligation) to have his or her shares of Holdings stock repurchased by Encompass Health for a cash purchase price per share equal to the fair value. In February 2018, each management investor exercised the right to sell one-third of his or her shares of Holdings stock to Encompass Health, representing approximately 5.6% of the outstanding shares of the common stock of Holdings. On February 21, 2018, Encompass Health settled the acquisition of those shares upon payment of approximately $65 million in cash. In July 2019, we received additional exercise notices, representing approximately 5.6% of the outstanding shares of the common stock of Holdings. In September 2019, Encompass Health settled the acquisition of those shares upon payment of approximately $163 million in cash. In January 2020, we received additional exercise notices, representing approximately 4.3% of the outstanding shares of the common stock of Holdings. On February 18, 2020, Encompass Health settled the acquisition of those shares upon payment of approximately $162 million in cash. Upon settlement of these exercises, approximately $46 million of the shares of Holdings held by two management investors remained outstanding. On February 20, 2020, Encompass Health entered into exchange agreements (each, an “Exchange Agreement”) with these two management investors, pursuant to which they had the right to exchange all of the remaining shares of Holdings held by them for shares of common stock of Encompass Health (the “EHC Shares”). Each of the Exchange Agreements provided that the management investor must deliver a written exchange notice (an “Exchange Notice”) to Encompass Health in order to exchange his or her remaining shares of Holdings for EHC Shares. Each Exchange Agreement further provided that the number of EHC Shares to be delivered to the management investor was to be determined by dividing the fair value of the shares of Holdings held by the management investor on the date of the Exchange Agreement by the last reported sales price of Encompass Health’s common stock on the New York Stock Exchange (the “NYSE”) on the date of delivery of the Exchange Notice. On February 20, 2020, Encompass Health received an Exchange Notice from each of the management investors. Based on the last sales price of Encompass Health’s common stock on the NYSE on February 20, 2020, Encompass Health delivered an aggregate 560,957 EHC Shares to the management investors. The total number of EHC Shares issued pursuant to the exchange agreements on March 6, 2020 represented less than 0.6% of the outstanding shares of Encompass Health common stock. Encompass Health issued the EHC Shares from its treasury shares. Encompass Health now owns 100% of Holdings and EHHI. See also Note 6 , Fair Value Measurements .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions): Fair Value Measurements at Reporting Date Using As of June 30, 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (1) Other long-term assets: Equity securities $ 69.9 $ — $ 69.9 $ — M Debt securities 5.4 5.4 — — M Redeemable noncontrolling interests 33.4 — — 33.4 I As of December 31, 2019 Other long-term assets: Equity securities $ 63.5 $ — $ 63.5 $ — M Debt securities 12.6 12.6 — — M Redeemable noncontrolling interests 239.6 — — 239.6 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). The decrease in Redeemable noncontrolling interests from December 31, 2019 to June 30, 2020 primarily resulted from the final purchase of equity interests in Holdings from management investors discussed in Note 5 , Redeemable Noncontrolling Interests . The fair values of our financial assets and liabilities are determined as follows: • Equity and Debt securities - The fair values of our equity and debt securities are determined based on quoted market prices in active markets or quoted prices, dealer quotations, or alternative pricing sources supported by observable inputs in markets that are not considered to be active. • Redeemable noncontrolling interests - The fair value of the Redeemable noncontrolling interests related to our home health segment was determined using the product of a twelve-month adjusted EBITDA measure and a specified median market price multiple based on a basket of public home health companies and transactions, after adding cash and deducting indebtedness that included the outstanding principal balance under any intercompany notes. To determine the fair value of the Redeemable noncontrolling interests in our joint venture hospitals, we use the applicable hospitals’ projected operating results and cash flows discounted using a rate that reflects market participant assumptions for the applicable facilities. The projected operating results use management’s best estimates of economic and market conditions over the forecasted periods including assumptions for pricing and volume, operating expenses, and capital expenditures. In addition, there are assets and liabilities that are not required to be measured at fair value on a recurring basis. However, these assets may be recorded at fair value as a result of impairment charges or other adjustments made to the carrying value of the applicable assets. During the three and six months ended June 30, 2020 and June 30, 2019 , we did not record any material gains or losses related to these assets. As discussed in Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2019 Form 10‑K , the carrying value equals fair value for our financial instruments that are not included in the table below and are classified as current in our condensed consolidated balance sheets. The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of June 30, 2020 As of December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ — $ — $ 45.0 $ 45.0 Term loan facilities 258.0 259.9 265.2 266.6 5.125% Senior Notes due 2023 297.7 301.5 297.3 306.6 5.75% Senior Notes due 2024 697.6 703.5 697.3 708.8 5.75% Senior Notes due 2025 346.0 359.7 345.6 369.7 4.50% Senior Notes due 2028 784.1 770.0 491.7 519.4 4.75% Senior Notes due 2030 782.5 771.2 491.7 520.0 Other notes payable 40.4 40.4 44.7 44.7 Financial commitments: Letters of credit — 36.3 — 38.9 Fair values for our long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2019 Form 10‑K .

Share-Based Payments

Share-Based Payments	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Payments	Share-Based Payments In the first half of 2020 , we issued a total of 0.4 million restricted stock awards to members of our management team and our board of directors. Approximately 0.2 million of these awards contain only a service condition, while the remainder contain both a service and a performance condition. For the awards that include a performance condition, the number of shares that will ultimately be granted to employees may vary based on the Company’s performance during the applicable two year performance measurement period. Additionally, we granted 0.1 million stock options to members of our management team. The fair value of these awards and options was determined using the policies described in Note 1, Summary of Significant Accounting Policies , and Note 14, Share-Based Payments , to the consolidated financial statements accompanying the 2019 Form 10‑K . In conjunction with the EHHI acquisition discussed in Note 5 , Redeemable Noncontrolling Interests , we granted stock appreciation rights (“SARs”) based on Holdings common stock to certain members of EHHI management at closing. Half of the SARs vested on December 31, 2018 and the remainder vested on December 31, 2019. Upon exercise, each SAR must be settled for cash in the amount by which the per share fair value of Holdings’ common stock on the exercise date exceeds the per share fair value on the grant date. As of December 31, 2019, the fair value of the remaining 115,545 SARs was approximately $101 million , all of which was included in Accrued expenses and other current liabilities in the condensed consolidated balance sheet. In January 2020, members of the management team exercised the remaining SARs, and in February 2020, we settled those awards upon payment of approximately $101 million in cash. For additional information, see Note 14, Share-Based Payments , to the consolidated financial statements accompanying the 2019 Form 10‑K

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our Provision for income tax expense of $11.8 million and $38.9 million for the three and six months ended June 30, 2020 , respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate offset by tax benefits resulting from share-based compensation windfalls. Our Provision for income tax expense of $23.5 million and $54.3 million for the three and six months ended June 30, 2019 , respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate, tax benefits resulting from share-based compensation windfalls and the deductibility of the June 2019 settlement discussed in Note 18, Contingencies and Other Commitments, to the consolidated financial statements accompanying the 2019 Form 10‑K .

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings per Common Share	Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic: Numerator: Income from continuing operations $ 48.2 $ 111.0 $ 157.0 $ 236.7 Less: Net income attributable to noncontrolling interests included in continuing operations (14.8 ) (19.7 ) (36.5 ) (42.6 ) Less: Income allocated to participating securities — (0.3 ) (0.4 ) (0.7 ) Income from continuing operations attributable to Encompass Health common shareholders 33.4 91.0 120.1 193.4 Income (loss) from discontinued operations, net of tax, attributable to Encompass Health common shareholders 0.1 (0.1 ) — (0.6 ) Net income attributable to Encompass Health common shareholders $ 33.5 $ 90.9 $ 120.1 $ 192.8 Denominator: Basic weighted average common shares outstanding 98.7 98.0 98.5 98.2 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.34 $ 0.93 $ 1.22 $ 1.97 Discontinued operations — — — (0.01 ) Net income $ 0.34 $ 0.93 $ 1.22 $ 1.96 Diluted: Numerator: Income from continuing operations $ 48.2 $ 111.0 $ 157.0 $ 236.7 Less: Net income attributable to noncontrolling interests included in continuing operations (14.8 ) (19.7 ) (36.5 ) (42.6 ) Income from continuing operations attributable to Encompass Health common shareholders 33.4 91.3 120.5 194.1 Income (loss) from discontinued operations, net of tax, attributable to Encompass Health common shareholders 0.1 (0.1 ) — (0.6 ) Net income attributable to Encompass Health common shareholders $ 33.5 $ 91.2 $ 120.5 $ 193.5 Denominator: Diluted weighted average common shares outstanding 99.9 99.3 99.6 99.5 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.34 $ 0.92 $ 1.21 $ 1.95 Discontinued operations — — — (0.01 ) Net income $ 0.34 $ 0.92 $ 1.21 $ 1.94 The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic weighted average common shares outstanding 98.7 98.0 98.5 98.2 Restricted stock awards, dilutive stock options, and restricted stock units 1.2 1.3 1.1 1.3 Diluted weighted average common shares outstanding 99.9 99.3 99.6 99.5 See Note 17, Earnings per Common Share , to the consolidated financial statements accompanying the 2019 Form 10‑K

Contingencies and Other Commitm

Contingencies and Other Commitments	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Other Commitments	Contingencies and Other Commitments We operate in a highly regulated industry in which healthcare providers are routinely subject to litigation. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against us. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect our financial position, results of operations, and cash flows in a given period. Nichols Litigation— We were named as a defendant in a lawsuit filed March 28, 2003 by several individual stockholders in the Circuit Court of Jefferson County, Alabama, captioned Nichols v. HealthSouth Corp . In July 2019, we entered into settlement agreements with all but one plaintiff and paid those settling plaintiffs an aggregate amount of cash less than $0.1 million . The remaining plaintiff alleges that we, some of our former officers, and our former investment bank engaged in a scheme to overstate and misrepresent our earnings and financial position. The plaintiff is seeking compensatory and punitive damages. This case was stayed in the circuit court on August 8, 2005. However, the complaint has been amended from time to time, including to request certification as a class action. Additionally, one of the former officers named as a defendant has repeatedly attempted to remove the case to federal district court. We filed our latest motion to remand the case back to state court on January 10, 2013. On September 27, 2013, the federal court remanded the case back to state court. On December 10, 2014, we filed a motion to dismiss on the grounds the plaintiffs lacked standing because their claims were derivative in nature, and the claims were time-barred by the statute of limitations. On May 26, 2016, the trial court granted our motion to dismiss. On appeal, the Supreme Court of Alabama reversed the trial court’s dismissal on March 23, 2018. On April 6, 2018, we filed an application for rehearing with the Alabama Supreme Court. On March 22, 2019, the Alabama Supreme Court denied our application for rehearing and remanded the case to the trial court for further proceedings. The court has not yet set a date for the trial to begin. We intend to vigorously defend ourselves in this case against the sole remaining plaintiff. Based on the stage of litigation, review of the current facts and circumstances as we understand them, the nature of the underlying claim, the results of the proceedings to date, and the nature and scope of the defense we continue to mount, we do not believe an adverse judgment or settlement is probable in this matter, and it is also not possible to estimate an amount of loss, if any, or range of possible loss that might result from an adverse judgment or settlement of this case. Other Matters— The False Claims Act allows private citizens, called “relators,” to institute civil proceedings on behalf of the United States alleging violations of the False Claims Act. These lawsuits, also known as “whistleblower” or “ qui tam ” actions, can involve significant monetary damages, fines, attorneys’ fees and the award of bounties to the relators who successfully prosecute or bring these suits to the government. Qui tam cases are sealed at the time of filing, which means knowledge of the information contained in the complaint typically is limited to the relator, the federal government, and the presiding court. The defendant in a qui tam action may remain unaware of the existence of a sealed complaint for years. While the complaint is under seal, the government reviews the merits of the case and may conduct a broad investigation and seek discovery from the defendant and other parties before deciding whether to intervene in the case and take the lead on litigating the claims. The court lifts the seal when the government makes its decision on whether to intervene. If the government decides not to intervene, the relator may elect to continue to pursue the lawsuit individually on behalf of the government. It is possible that qui tam lawsuits have been filed against us, which suits remain under seal, or that we are unaware of such filings or precluded by existing law or court order from discussing or disclosing the filing of such suits. We may be subject to liability under one or more undisclosed qui tam cases brought pursuant to the False Claims Act. It is our obligation as a participant in Medicare and other federal healthcare programs to routinely conduct audits and reviews of the accuracy of our billing systems and other regulatory compliance matters. As a result of these reviews, we have made, and will continue to make, disclosures to the United States Department of Health and Human Services Office of Inspector General and CMS relating to amounts we suspect represent over-payments from these programs, whether due to inaccurate billing or otherwise. Some of these disclosures have resulted in, or may result in, Encompass Health refunding amounts to Medicare or other federal healthcare programs.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Our internal financial reporting and management structure is focused on the major types of services provided by Encompass Health. We manage our operations using two operating segments which are also our reportable segments: (1) inpatient rehabilitation and (2) home health and hospice. These reportable operating segments are consistent with information used by our chief executive officer, who is our chief operating decision maker, to assess performance and allocate resources. The following is a brief description of our reportable segments: • Inpatient Rehabilitation - Our national network of inpatient rehabilitation hospitals stretches across 35 states and Puerto Rico, with a concentration of hospitals in the eastern half of the United States and Texas. As of June 30, 2020 , we operate 136 inpatient rehabilitation hospitals. We are the sole owner of 87 of these hospitals. We retain 50.0% to 97.5% ownership in the remaining 49 jointly owned hospitals. In addition, we manage three inpatient rehabilitation units through management contracts. We provide specialized rehabilitative treatment on both an inpatient and outpatient basis. Our inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. • Home Health and Hospice - As of June 30, 2020 , we provide home health services in 245 locations and hospice services in 83 locations across 31 states with concentrations in the Southeast and Texas. In addition, one of these home health agencies operates as a joint venture which we account for using the equity method of accounting. We are the sole owner of 320 of these locations. We retain 50.0% to 81.0% ownership in the remaining eight jointly owned locations. Our home health services include a comprehensive range of Medicare-certified home nursing services to adult patients in need of care. These services include, among others, skilled nursing, physical, occupational, and speech therapy, medical social work, and home health aide services. Our hospice services include in-home services to terminally ill patients and their families to address patients’ physical needs, including pain control and symptom management, and to provide emotional and spiritual support. The accounting policies of our reportable segments are the same as those described in Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2019 Form 10‑K . All revenues for our services are generated through external customers. See Note 1 , Basis of Presentation , “Net Operating Revenues,” for the disaggregation of our revenues. No corporate overhead is allocated to either of our reportable segments. Our chief operating decision maker evaluates the performance of our segments and allocates resources to them based on adjusted earnings before interest, taxes, depreciation, and amortization (“Segment Adjusted EBITDA”). Selected financial information for our reportable segments is as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 2020 2019 2020 2019 Net operating revenues $ 824.5 $ 873.9 $ 1,733.7 $ 1,744.0 $ 249.6 $ 261.1 $ 522.4 $ 515.0 Operating expenses: Inpatient rehabilitation: Salaries and benefits 451.4 443.6 933.7 888.6 — — — — Other operating expenses 124.3 127.2 259.0 254.8 — — — — Supplies 42.0 36.7 81.6 72.3 — — — — Occupancy costs 15.4 16.3 30.7 32.1 — — — — Home health and hospice: Cost of services sold (excluding depreciation and amortization) — — — — 136.7 119.9 267.6 236.4 Support and overhead costs — — — — 98.3 89.7 198.5 178.5 633.1 623.8 1,305.0 1,247.8 235.0 209.6 466.1 414.9 Other income (3.4 ) (1.9 ) (1.8 ) (4.7 ) — — — — Equity in net income of nonconsolidated affiliates (0.6 ) (1.4 ) (1.2 ) (3.5 ) (0.1 ) (0.4 ) (0.3 ) (0.8 ) Noncontrolling interests 15.1 19.5 35.9 40.5 (0.3 ) 2.8 0.6 5.5 Segment Adjusted EBITDA $ 180.3 $ 233.9 $ 395.8 $ 463.9 $ 15.0 $ 49.1 $ 56.0 $ 95.4 Capital expenditures $ 88.9 $ 92.0 $ 172.2 $ 162.4 $ 0.6 $ 3.5 $ 2.1 $ 8.0 Inpatient Rehabilitation Home Health and Hospice Encompass Health Consolidated As of June 30, 2020 Total assets $ 4,921.4 $ 1,641.4 $ 6,502.5 Investments in and advances to nonconsolidated affiliates 1.5 3.9 5.4 As of December 31, 2019 Total assets $ 4,501.4 $ 1,612.8 $ 6,080.7 Investments in and advances to nonconsolidated affiliates 2.0 5.4 7.4 Segment reconciliations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Segment Adjusted EBITDA $ 195.3 $ 283.0 $ 451.8 $ 559.3 General and administrative expenses (43.0 ) (77.1 ) (78.6 ) (130.5 ) Depreciation and amortization (60.7 ) (52.7 ) (119.5 ) (105.2 ) Loss on disposal or impairment of assets (3.0 ) (1.3 ) (3.1 ) (2.4 ) Government, class action, and related settlements — — (2.8 ) — Loss on early extinguishment of debt — (2.3 ) — (2.3 ) Interest expense and amortization of debt discounts and fees (45.8 ) (37.7 ) (89.0 ) (74.9 ) Net income attributable to noncontrolling interests 14.8 19.7 36.5 42.6 SARs mark-to-market impact on noncontrolling interests — 2.6 — 3.4 Change in fair market value of equity securities 2.4 0.3 (0.1 ) 1.2 Gain on consolidation of Treasure Coast — — 2.2 — Payroll taxes on SARs exercise — — (1.5 ) (0.2 ) Income from continuing operations before income tax expense $ 60.0 $ 134.5 $ 195.9 $ 291.0 June 30, 2020 December 31, 2019 Total assets for reportable segments $ 6,562.8 $ 6,114.2 Reclassification of deferred income tax liabilities to net deferred income tax assets (60.3 ) (33.5 ) Total consolidated assets $ 6,502.5 $ 6,080.7 Additional detail regarding the revenues of our operating segments by service line follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Inpatient rehabilitation: Inpatient $ 808.0 $ 851.8 $ 1,698.0 $ 1,699.4 Outpatient and other 16.5 22.1 35.7 44.6 Total inpatient rehabilitation 824.5 873.9 1,733.7 1,744.0 Home health and hospice: Home health 201.8 222.7 426.6 442.2 Hospice 47.8 38.4 95.8 72.8 Total home health and hospice 249.6 261.1 522.4 515.0 Total net operating revenues $ 1,074.1 $ 1,135.0 $ 2,256.1 $ 2,259.0

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements — In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which provides guidance for accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance resulted in an immaterial change to our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. It requires entities to account for such costs consistent with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance did not have a material impact to our condensed consolidated financial statements. In March 2020, the Securities and Exchange Commission adopted final rules that amend the financial disclosure requirements in Rule 3-10 of Regulation S-X for guarantors of registered debt securities and subsidiary issuers. The new rules are effective January 4, 2021, but early adoption is permitted. The new rules permit alternative disclosures of summarized financial information, rather than our previous footnote presentation of condensed consolidating financial statements. The new rules also permit the summarized financial information and related disclosures to be presented outside of the condensed consolidated financial statements and accompanying notes. We elected to early adopt the new rules effective for the quarter ended June 30, 2020 and the summarized financial information and related disclosures are presented in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this report. Recent Accounting Pronouncements Not Yet Adopted — In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The standard removes certain exceptions to the general principles of ASC 740 and simplifies other areas such as accounting for outside basis differences of equity method investments. Either prospective or retrospective transition of this standard is dependent upon the specific amendments. The new guidance is effective for us beginning January 1, 2021, including interim periods within that reporting period. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. We do not believe any other recently issued, but not yet effective, accounting standards will have a material effect on our condensed consolidated financial position, results of operations, or cash flows.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Concentration of Net Operating Revenues by Payor	Our Net operating revenues disaggregated by payor source and segment are as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2020 2019 2020 2019 2020 2019 Medicare $ 502.9 $ 629.0 $ 204.1 $ 221.1 $ 707.0 $ 850.1 Medicare Advantage 166.1 97.0 29.2 26.7 195.3 123.7 Managed care 88.4 86.5 11.5 8.0 99.9 94.5 Medicaid 34.7 27.1 4.1 4.6 38.8 31.7 Other third-party payors 9.3 10.5 — — 9.3 10.5 Workers’ compensation 4.2 6.5 0.3 0.3 4.5 6.8 Patients 4.2 5.6 0.2 0.1 4.4 5.7 Other income 14.7 11.7 0.2 0.3 14.9 12.0 Total $ 824.5 $ 873.9 $ 249.6 $ 261.1 $ 1,074.1 $ 1,135.0 Inpatient Rehabilitation Home Health and Hospice Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 2020 2019 Medicare $ 1,145.9 $ 1,268.4 $ 430.4 $ 436.1 $ 1,576.3 $ 1,704.5 Medicare Advantage 277.0 181.5 58.7 52.2 335.7 233.7 Managed care 178.3 170.1 23.5 16.3 201.8 186.4 Medicaid 65.2 53.4 8.4 8.9 73.6 62.3 Other third-party payors 20.3 20.5 — — 20.3 20.5 Workers’ compensation 11.1 14.7 0.5 0.4 11.6 15.1 Patients 9.7 11.7 0.6 0.5 10.3 12.2 Other income 26.2 23.7 0.3 0.6 26.5 24.3 Total $ 1,733.7 $ 1,744.0 $ 522.4 $ 515.0 $ 2,256.1 $ 2,259.0

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date	The fair value of the assets acquired at the acquisition date were as follows (in millions): Identifiable intangible assets: Licenses (useful lives of 10 years) $ 0.1 Goodwill 1.0 Total assets acquired $ 1.1 The fair value of the assets acquired at the acquisition date were as follows (in millions): Property and equipment, net $ 0.1 Identifiable intangible assets: Noncompete agreements (useful lives of 2 to 3 years) 0.7 Trade name (useful life of 20 years) 0.9 Goodwill 9.2 Total assets acquired $ 10.9
Schedule of Noncash or Part Noncash Acquisitions	Information regarding the net cash paid for the inpatient rehabilitation acquisitions during each period presented is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Fair value of assets acquired $ 1.4 $ — $ 1.7 $ — Goodwill 6.6 — 9.2 — Fair value of noncontrolling interest owned by joint venture partner (8.0 ) — (10.9 ) — Net cash paid for acquisitions $ — $ — $ — $ — Information regarding the net cash paid for the home health and hospice acquisitions during each period presented is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Fair value of assets acquired $ — $ — $ 0.1 $ 3.2 Goodwill — — 1.0 10.8 Fair value of liabilities assumed — — — (0.3 ) Net cash paid for acquisitions $ — $ — $ 1.1 $ 13.7
Summary of Actual and Pro Forma Results of Operations for Acquisitions	The following table summarizes the results of operations of the above mentioned acquisitions from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2019 (in millions): Net Operating Revenues Net Income Attributable to Encompass Health Acquired entities only: Actual from acquisition date to June 30, 2020 Inpatient Rehabilitation $ — $ — Home Health and Hospice 0.6 — Combined entity: Supplemental pro forma from 04/01/2020-06/30/2020 1,076.0 33.7 Combined entity: Supplemental pro forma from 04/01/2019-06/30/2019 1,140.3 91.7 Combined entity: Supplemental pro forma from 01/01/2020-06/30/2020 2,262.0 121.1 Combined entity: Supplemental pro forma from 01/01/2019-06/30/2019 2,269.5 194.5

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Carrying Amounts and Classifications of VIE's Assets and Liabilities	The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions): June 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 0.5 $ 0.2 Accounts receivable 33.0 29.3 Other current assets 7.2 6.4 Total current assets 40.7 35.9 Property and equipment, net 120.6 122.6 Operating lease right-of-use assets 5.5 6.0 Goodwill 19.2 15.9 Intangible assets, net 4.1 3.3 Other long-term assets 31.0 31.3 Total assets $ 221.1 $ 215.0 Liabilities Current liabilities: Current portion of long-term debt $ 0.9 $ 0.8 Current operating lease liabilities 1.5 1.4 Accounts payable 6.6 6.7 Accrued expenses and other current liabilities 17.5 17.0 Total current liabilities 26.5 25.9 Long-term debt, net of current portion 10.1 10.5 Long-term operating lease liabilities 4.0 4.7 Other long-term liabilities 1.5 — Total liabilities $ 42.1 $ 41.1

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Outstanding Long-term Debt	Our long-term debt outstanding consists of the following (in millions): June 30, 2020 December 31, 2019 Credit Agreement— Advances under revolving credit facility $ — $ 45.0 Term loan facilities 258.0 265.2 Bonds payable— 5.125% Senior Notes due 2023 297.7 297.3 5.75% Senior Notes due 2024 697.6 697.3 5.75% Senior Notes due 2025 346.0 345.6 4.50% Senior Notes due 2028 784.1 491.7 4.75% Senior Notes due 2030 782.5 491.7 Other notes payable 40.4 44.7 Finance lease obligations 377.3 384.1 3,583.6 3,062.6 Less: Current portion (36.9 ) (39.3 ) Long-term debt, net of current portion $ 3,546.7 $ 3,023.3
Schedule of Financial Covenants	Fiscal Quarters Ending Interest Coverage Ratio December 31, 2019 and March 31, 2020 3.00 to 1.00 June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 2.00 to 1.00 March 31, 2022 and thereafter 3.00 to 1.00 Fiscal Quarters Ending Leverage Ratio December 31, 2019 and March 31, 2020 4.50 to 1.00 June 30, 2020 4.75 to 1.00 September 30, 2020 5.50 to 1.00 December 31, 2020 6.50 to 1.00 March 31, 2021 6.50 to 1.00 June 30, 2021 6.00 to 1.00 September 30, 2021 5.50 to 1.00 December 31, 2021 5.00 to 1.00 March 31, 2022 and thereafter 4.25 to 1.00

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests (Tables)	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests Activity	The following is a summary of the activity related to our Redeemable noncontrolling interests during the six months ended June 30, 2020 and 2019 (in millions): Six Months Ended June 30, 2020 2019 Balance at beginning of period $ 239.6 $ 261.7 Net income attributable to noncontrolling interests 3.5 6.4 Distributions declared (4.2 ) (4.8 ) Contribution to joint venture 3.1 — Reclassification to noncontrolling interests — (11.2 ) Purchase of redeemable noncontrolling interests (162.3 ) — Exchange transaction (46.3 ) — Change in fair value — 100.7 Balance at end of period $ 33.4 $ 352.8
Reconciliation of Noncontrolling Interests	The following table reconciles the net income attributable to nonredeemable Noncontrolling interests , as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests , as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net and comprehensive income attributable to noncontrolling interests presented in the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income attributable to nonredeemable noncontrolling interests $ 13.3 $ 17.3 $ 33.0 $ 36.2 Net income attributable to redeemable noncontrolling interests 1.5 2.4 3.5 6.4 Net income attributable to noncontrolling interests $ 14.8 $ 19.7 $ 36.5 $ 42.6

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis	Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions): Fair Value Measurements at Reporting Date Using As of June 30, 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (1) Other long-term assets: Equity securities $ 69.9 $ — $ 69.9 $ — M Debt securities 5.4 5.4 — — M Redeemable noncontrolling interests 33.4 — — 33.4 I As of December 31, 2019 Other long-term assets: Equity securities $ 63.5 $ — $ 63.5 $ — M Debt securities 12.6 12.6 — — M Redeemable noncontrolling interests 239.6 — — 239.6 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I).
Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments	The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of June 30, 2020 As of December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ — $ — $ 45.0 $ 45.0 Term loan facilities 258.0 259.9 265.2 266.6 5.125% Senior Notes due 2023 297.7 301.5 297.3 306.6 5.75% Senior Notes due 2024 697.6 703.5 697.3 708.8 5.75% Senior Notes due 2025 346.0 359.7 345.6 369.7 4.50% Senior Notes due 2028 784.1 770.0 491.7 519.4 4.75% Senior Notes due 2030 782.5 771.2 491.7 520.0 Other notes payable 40.4 40.4 44.7 44.7 Financial commitments: Letters of credit — 36.3 — 38.9

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Common Share	The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic: Numerator: Income from continuing operations $ 48.2 $ 111.0 $ 157.0 $ 236.7 Less: Net income attributable to noncontrolling interests included in continuing operations (14.8 ) (19.7 ) (36.5 ) (42.6 ) Less: Income allocated to participating securities — (0.3 ) (0.4 ) (0.7 ) Income from continuing operations attributable to Encompass Health common shareholders 33.4 91.0 120.1 193.4 Income (loss) from discontinued operations, net of tax, attributable to Encompass Health common shareholders 0.1 (0.1 ) — (0.6 ) Net income attributable to Encompass Health common shareholders $ 33.5 $ 90.9 $ 120.1 $ 192.8 Denominator: Basic weighted average common shares outstanding 98.7 98.0 98.5 98.2 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.34 $ 0.93 $ 1.22 $ 1.97 Discontinued operations — — — (0.01 ) Net income $ 0.34 $ 0.93 $ 1.22 $ 1.96 Diluted: Numerator: Income from continuing operations $ 48.2 $ 111.0 $ 157.0 $ 236.7 Less: Net income attributable to noncontrolling interests included in continuing operations (14.8 ) (19.7 ) (36.5 ) (42.6 ) Income from continuing operations attributable to Encompass Health common shareholders 33.4 91.3 120.5 194.1 Income (loss) from discontinued operations, net of tax, attributable to Encompass Health common shareholders 0.1 (0.1 ) — (0.6 ) Net income attributable to Encompass Health common shareholders $ 33.5 $ 91.2 $ 120.5 $ 193.5 Denominator: Diluted weighted average common shares outstanding 99.9 99.3 99.6 99.5 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.34 $ 0.92 $ 1.21 $ 1.95 Discontinued operations — — — (0.01 ) Net income $ 0.34 $ 0.92 $ 1.21 $ 1.94
Reconciliation of Weighted Average Number of Shares Outstanding	The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic weighted average common shares outstanding 98.7 98.0 98.5 98.2 Restricted stock awards, dilutive stock options, and restricted stock units 1.2 1.3 1.1 1.3 Diluted weighted average common shares outstanding 99.9 99.3 99.6 99.5

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Selected financial information for our reportable segments is as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 2020 2019 2020 2019 Net operating revenues $ 824.5 $ 873.9 $ 1,733.7 $ 1,744.0 $ 249.6 $ 261.1 $ 522.4 $ 515.0 Operating expenses: Inpatient rehabilitation: Salaries and benefits 451.4 443.6 933.7 888.6 — — — — Other operating expenses 124.3 127.2 259.0 254.8 — — — — Supplies 42.0 36.7 81.6 72.3 — — — — Occupancy costs 15.4 16.3 30.7 32.1 — — — — Home health and hospice: Cost of services sold (excluding depreciation and amortization) — — — — 136.7 119.9 267.6 236.4 Support and overhead costs — — — — 98.3 89.7 198.5 178.5 633.1 623.8 1,305.0 1,247.8 235.0 209.6 466.1 414.9 Other income (3.4 ) (1.9 ) (1.8 ) (4.7 ) — — — — Equity in net income of nonconsolidated affiliates (0.6 ) (1.4 ) (1.2 ) (3.5 ) (0.1 ) (0.4 ) (0.3 ) (0.8 ) Noncontrolling interests 15.1 19.5 35.9 40.5 (0.3 ) 2.8 0.6 5.5 Segment Adjusted EBITDA $ 180.3 $ 233.9 $ 395.8 $ 463.9 $ 15.0 $ 49.1 $ 56.0 $ 95.4 Capital expenditures $ 88.9 $ 92.0 $ 172.2 $ 162.4 $ 0.6 $ 3.5 $ 2.1 $ 8.0
Reconciliation of Assets from Segment to Consolidated	June 30, 2020 December 31, 2019 Total assets for reportable segments $ 6,562.8 $ 6,114.2 Reclassification of deferred income tax liabilities to net deferred income tax assets (60.3 ) (33.5 ) Total consolidated assets $ 6,502.5 $ 6,080.7 Inpatient Rehabilitation Home Health and Hospice Encompass Health Consolidated As of June 30, 2020 Total assets $ 4,921.4 $ 1,641.4 $ 6,502.5 Investments in and advances to nonconsolidated affiliates 1.5 3.9 5.4 As of December 31, 2019 Total assets $ 4,501.4 $ 1,612.8 $ 6,080.7 Investments in and advances to nonconsolidated affiliates 2.0 5.4 7.4
Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense	Segment reconciliations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Segment Adjusted EBITDA $ 195.3 $ 283.0 $ 451.8 $ 559.3 General and administrative expenses (43.0 ) (77.1 ) (78.6 ) (130.5 ) Depreciation and amortization (60.7 ) (52.7 ) (119.5 ) (105.2 ) Loss on disposal or impairment of assets (3.0 ) (1.3 ) (3.1 ) (2.4 ) Government, class action, and related settlements — — (2.8 ) — Loss on early extinguishment of debt — (2.3 ) — (2.3 ) Interest expense and amortization of debt discounts and fees (45.8 ) (37.7 ) (89.0 ) (74.9 ) Net income attributable to noncontrolling interests 14.8 19.7 36.5 42.6 SARs mark-to-market impact on noncontrolling interests — 2.6 — 3.4 Change in fair market value of equity securities 2.4 0.3 (0.1 ) 1.2 Gain on consolidation of Treasure Coast — — 2.2 — Payroll taxes on SARs exercise — — (1.5 ) (0.2 ) Income from continuing operations before income tax expense $ 60.0 $ 134.5 $ 195.9 $ 291.0
Reconciliation of Revenue from Segments to Consolidated	Additional detail regarding the revenues of our operating segments by service line follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Inpatient rehabilitation: Inpatient $ 808.0 $ 851.8 $ 1,698.0 $ 1,699.4 Outpatient and other 16.5 22.1 35.7 44.6 Total inpatient rehabilitation 824.5 873.9 1,733.7 1,744.0 Home health and hospice: Home health 201.8 222.7 426.6 442.2 Hospice 47.8 38.4 95.8 72.8 Total home health and hospice 249.6 261.1 522.4 515.0 Total net operating revenues $ 1,074.1 $ 1,135.0 $ 2,256.1 $ 2,259.0

Basis of Presentation - Textual

Basis of Presentation - Textuals (Details)	6 Months Ended
	Jun. 30, 2020segmentstate
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which entity operates | state	39
Number of operating segments | segment	2

Basis of Presentation - Net Ope

Basis of Presentation - Net Operating Revenues (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 1,074.1	$ 1,135	$ 2,256.1	$ 2,259
Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	824.5	873.9	1,733.7	1,744
Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	249.6	261.1	522.4	515
Medicare
Disaggregation of Revenue [Line Items]
Net operating revenues	707	850.1	1,576.3	1,704.5
Medicare | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	502.9	629	1,145.9	1,268.4
Medicare | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	204.1	221.1	430.4	436.1
Medicare Advantage
Disaggregation of Revenue [Line Items]
Net operating revenues	195.3	123.7	335.7	233.7
Medicare Advantage | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	166.1	97	277	181.5
Medicare Advantage | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	29.2	26.7	58.7	52.2
Managed care
Disaggregation of Revenue [Line Items]
Net operating revenues	99.9	94.5	201.8	186.4
Managed care | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	88.4	86.5	178.3	170.1
Managed care | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	11.5	8	23.5	16.3
Medicaid
Disaggregation of Revenue [Line Items]
Net operating revenues	38.8	31.7	73.6	62.3
Medicaid | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	34.7	27.1	65.2	53.4
Medicaid | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	4.1	4.6	8.4	8.9
Other third-party payors
Disaggregation of Revenue [Line Items]
Net operating revenues	9.3	10.5	20.3	20.5
Other third-party payors | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	9.3	10.5	20.3	20.5
Other third-party payors | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	0	0	0	0
Workers’ compensation
Disaggregation of Revenue [Line Items]
Net operating revenues	4.5	6.8	11.6	15.1
Workers’ compensation | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	4.2	6.5	11.1	14.7
Workers’ compensation | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	0.3	0.3	0.5	0.4
Patients
Disaggregation of Revenue [Line Items]
Net operating revenues	4.4	5.7	10.3	12.2
Patients | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	4.2	5.6	9.7	11.7
Patients | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	0.2	0.1	0.6	0.5
Other income
Disaggregation of Revenue [Line Items]
Net operating revenues	14.9	12	26.5	24.3
Other income | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	14.7	11.7	26.2	23.7
Other income | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 0.2	$ 0.3	$ 0.3	$ 0.6

Business Combinations - Textual

Business Combinations - Textual (Details) - Inpatient Rehabilitation	Jun. 30, 2020USD ($)	May 31, 2020bed	Jan. 31, 2020bed
Portercare Adventist and Premier Health Partners
Business Acquisition [Line Items]
Goodwill expected to be tax-deductible amount | $	$ 0
Corporate Joint Venture | Portercare Adventist
Business Acquisition [Line Items]
Business acquisition percentage of voting interests acquired			68.00%
Number of beds acquired			13
Number of beds contributed			40
Number of beds expanded			20
Corporate Joint Venture | Premier Health Partners
Business Acquisition [Line Items]
Business acquisition percentage of voting interests acquired		51.00%
Number of beds acquired		45
Number of de novo beds		60

Business Combinations - Fair Va

Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill		$ 2,318.7	$ 2,305.2
Inpatient Rehabilitation | Portercare Adventist and Premier Health Partners
Business Acquisition [Line Items]
Property and equipment, net		0.1
Goodwill		9.2
Total assets acquired		10.9
Inpatient Rehabilitation | Portercare Adventist and Premier Health Partners | Noncompete Agreements
Business Acquisition [Line Items]
Identifiable intangible assets		0.7
Inpatient Rehabilitation | Portercare Adventist and Premier Health Partners | Trade Name
Business Acquisition [Line Items]
Identifiable intangible assets		$ 0.9
Finite-lived intangible asset useful life		20 years
Inpatient Rehabilitation | Maximum | Portercare Adventist and Premier Health Partners | Noncompete Agreements
Business Acquisition [Line Items]
Finite-lived intangible asset useful life		3 years
Inpatient Rehabilitation | Minimum | Portercare Adventist and Premier Health Partners | Noncompete Agreements
Business Acquisition [Line Items]
Finite-lived intangible asset useful life		2 years
Home Health and Hospice | Generation Solutions of Lynchburg
Business Acquisition [Line Items]
Goodwill	$ 1
Total assets acquired	1.1
Home Health and Hospice | Generation Solutions of Lynchburg | Licensing Agreements
Business Acquisition [Line Items]
Identifiable intangible assets	$ 0.1
Finite-lived intangible asset useful life	10 years

Business Combinations - Net Cas

Business Combinations - Net Cash Paid for Acquisitions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Net cash paid for acquisitions			$ 1.1	$ 13.7
Inpatient Rehabilitation | Portercare Adventist and Premier Health Partners
Business Acquisition [Line Items]
Fair value of assets acquired	$ 1.4	$ 0	1.7	0
Goodwill	6.6	0	9.2	0
Fair value of noncontrolling interest owned by joint venture partner	(8)	0	(10.9)	0
Net cash paid for acquisitions	0	0	0	0
Home Health and Hospice | Generation Solutions of Lynchburg
Business Acquisition [Line Items]
Fair value of assets acquired	0	0	0.1	3.2
Goodwill	0	0	1	10.8
Fair value of liabilities assumed	0	0	0	(0.3)
Net cash paid for acquisitions	$ 0	$ 0	$ 1.1	$ 13.7

Business Combinations - Pro For

Business Combinations - Pro Forma Results of Operation (Details) - USD ($) $ in Millions	3 Months Ended		4 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Business acquisition, pro forma revenue	$ 1,076	$ 1,140.3		$ 2,262	$ 2,269.5
Business acquisition, pro forma net income	$ 33.7	$ 91.7		121.1	$ 194.5
Portercare Adventist and Premier Health Partners | Inpatient Rehabilitation
Business Acquisition [Line Items]
Business combination, pro forma information, revenue of acquiree since acquisition date, actual				0
Business combination, pro forma information, earnings of acquiree since acquisition date, actual				$ 0
Generation Solutions of Lynchburg | Home Health and Hospice
Business Acquisition [Line Items]
Business combination, pro forma information, revenue of acquiree since acquisition date, actual			$ 0.6
Business combination, pro forma information, earnings of acquiree since acquisition date, actual			$ 0

Variable Interest Entities - Te

Variable Interest Entities - Textual (Details) - VIE - entity	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Number of consolidated limited partnership-like entities	9	8
Minimum
Variable Interest Entity [Line Items]
Ownership interest in consolidated entities (percent)	50.00%
Maximum
Variable Interest Entity [Line Items]
Ownership interest in consolidated entities (percent)	75.00%

Variable Interest Entities - Sc

Variable Interest Entities - Schedule of Carrying Amounts and Classifications of VIE's Assets and Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents		$ 419	$ 94.8	$ 221.7	$ 69.2
Accounts receivable		553.2	506.1
Other current assets		73.1	97.5
Total current assets		1,101.7	755.8
Property and equipment, net		2,041.4	1,959.3
Operating lease right-of-use assets		268.5	276.5
Goodwill		2,318.7	2,305.2
Intangible assets, net		455.8	476.3
Other long-term assets		305.3	304.7
Total assets	[1]	6,502.5	6,080.7
Current liabilities:
Current portion of long-term debt		36.9	39.3
Current operating lease liabilities		42.2	40.4
Accounts payable		93.1	94.6
Accrued expenses and other current liabilities		492.2	546.7
Total current liabilities		664.4	721
Long-term debt, net of current portion		3,546.7	3,023.3
Long-term operating lease liabilities		234.9	243.8
Other long-term liabilities		191.7	159.9
Total liabilities		4,637.7	4,148
VIE
Current assets:
Cash and cash equivalents		0.5	0.2
Accounts receivable		33	29.3
Other current assets		7.2	6.4
Total current assets		40.7	35.9
Property and equipment, net		120.6	122.6
Operating lease right-of-use assets		5.5	6
Goodwill		19.2	15.9
Intangible assets, net		4.1	3.3
Other long-term assets		31	31.3
Total assets		221.1	215
Current liabilities:
Current portion of long-term debt		0.9	0.8
Current operating lease liabilities		1.5	1.4
Accounts payable		6.6	6.7
Accrued expenses and other current liabilities		17.5	17
Total current liabilities		26.5	25.9
Long-term debt, net of current portion		10.1	10.5
Long-term operating lease liabilities		4	4.7
Other long-term liabilities		1.5	0
Total liabilities		$ 42.1	$ 41.1
[1]	Our consolidated assets as of June 30, 2020 and December 31, 2019 include total assets of variable interest entities of $221.1 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of June 30, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $42.1 million and $41.1 million , respectively. See Note 3 , Variable Interest Entities .

Long-term Debt - Long-term Debt

Long-term Debt - Long-term Debt Outstanding (Details) - USD ($) $ in Millions	Jun. 30, 2020	May 31, 2020	Dec. 31, 2019
Schedule of Outstanding Long-term Debt
Finance lease obligations	$ 377.3		$ 384.1
Total debt and finance lease obligations	3,583.6		3,062.6
Less: Current portion	(36.9)		(39.3)
Long-term debt, net of current portion	$ 3,546.7		3,023.3
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtAndCapitalLeaseObligations
Term loan facilities | Term loan facilities
Schedule of Outstanding Long-term Debt
Total debt	$ 258		$ 265.2
Senior Notes | 5.125% Senior Notes due 2023
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.125%		5.125%
Total debt	$ 297.7		$ 297.3
Senior Notes | 5.75% Senior Notes due 2024
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.75%		5.75%
Total debt	$ 697.6		$ 697.3
Senior Notes | 5.75% Senior Notes due 2025
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.75%		5.75%
Total debt	$ 346		$ 345.6
Senior Notes | 4.50% Senior Notes due 2028
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.50%	4.50%	4.50%
Total debt	$ 784.1		$ 491.7
Senior Notes | 4.75% Senior Notes due 2030
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.75%	4.75%	4.75%
Total debt	$ 782.5		$ 491.7
Other notes payable
Schedule of Outstanding Long-term Debt
Total debt	40.4		44.7
Revolving Credit Facility
Schedule of Outstanding Long-term Debt
Total debt	$ 0		$ 45

Long-term Debt - Financial Cove

Long-term Debt - Financial Covenants (Details)	6 Months Ended	9 Months Ended	21 Months Ended
	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Interest Coverage Ratio	3
Leverage Ratio	4.50									4.75
Forecast
Debt Instrument [Line Items]
Interest Coverage Ratio		3	2
Leverage Ratio			5	4.25	5.50	6	6.50	6.50	5.50

Long-term Debt - Textual (Detai

Long-term Debt - Textual (Details) - Senior Notes - USD ($)	1 Months Ended
	May 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Proceeds from debt issuance costs	$ 583,000,000
4.50% Senior Notes due 2028
Debt Instrument [Line Items]
Aggregate principal amount	$ 300,000,000
Debt instrument interest rate (percent)	4.50%	4.50%	4.50%
Issuance of face value (percent)	99.00%
4.75% Senior Notes due 2030
Debt Instrument [Line Items]
Aggregate principal amount	$ 300,000,000
Debt instrument interest rate (percent)	4.75%	4.75%	4.75%
Issuance of face value (percent)	98.50%

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period			$ 239.6
Net income attributable to noncontrolling interests	$ 1.5	$ 2.4	3.5	$ 6.4
Distributions declared	(13.6)	(17.3)	(29.1)	(32.6)
Change in fair value		(80.4)		(100.7)
Balance at end of period	33.4		33.4
Redeemable Noncontrolling Interest
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period			239.6	261.7
Net income attributable to noncontrolling interests			3.5	6.4
Distributions declared			(4.2)	(4.8)
Contribution to joint venture			3.1	0
Reclassification to noncontrolling interests			0	(11.2)
Purchase of redeemable noncontrolling interests			(162.3)	0
Exchange transaction			(46.3)	0
Change in fair value			0	100.7
Balance at end of period	$ 33.4	$ 352.8	$ 33.4	$ 352.8

Redeemable Noncontrolling Int_4

Redeemable Noncontrolling Interests - Reconciliation of Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Noncontrolling Interest [Abstract]
Net income attributable to nonredeemable noncontrolling interests	$ 13.3	$ 17.3	$ 33	$ 36.2
Net income attributable to redeemable noncontrolling interests	1.5	2.4	3.5	6.4
Net income attributable to noncontrolling interests	$ 14.8	$ 19.7	$ 36.5	$ 42.6

Redeemable Noncontrolling Int_5

Redeemable Noncontrolling Interests - Textuals (Details) - USD ($) $ in Millions	Feb. 18, 2020	Feb. 21, 2018	Jan. 31, 2020	Sep. 30, 2019	Jul. 31, 2019	Feb. 28, 2018	Jun. 30, 2020	Mar. 06, 2020	Feb. 20, 2020	Dec. 31, 2019	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interests							$ 33.4			$ 239.6
Percentage of shares exercised by investor			4.30%		5.60%	5.60%
Purchase of redeemable noncontrolling interests	$ 162	$ 65		$ 163
Temporary equity, shares issued (shares)									560,957
Temporary equity, shares to management investors exchange agreements percentages								0.60%
Holdings And EHHI
Noncontrolling Interest [Line Items]
Ownership percentage							100.00%
EHHI
Noncontrolling Interest [Line Items]
Outstanding common stock of Holdings, fair value	$ 46
EHHI | Home Health and Hospice
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest, equity, acquired percent											83.30%
Redeemable noncontrolling interests											$ 64
Subsidiary's common stock held by subsidiary 's management, percent											16.70%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Market Approach
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	$ 69.9	$ 63.5
Debt securities	5.4	12.6
Market Approach | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Debt securities	5.4	12.6
Market Approach | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	69.9	63.5
Debt securities	0	0
Market Approach | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Debt securities	0	0
Income Approach
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	33.4	239.6
Income Approach | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	0	0
Income Approach | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	0	0
Income Approach | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	$ 33.4	$ 239.6

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2020	May 31, 2020	Dec. 31, 2019
Term loan facilities | Term loan facilities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 258		$ 265.2
Term loan facilities | Term loan facilities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 259.9		$ 266.6
Senior Notes | 5.125% Senior Notes due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	5.125%		5.125%
Senior Notes | 5.125% Senior Notes due 2023 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 297.7		$ 297.3
Senior Notes | 5.125% Senior Notes due 2023 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 301.5		$ 306.6
Senior Notes | 5.75% Senior Notes due 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	5.75%		5.75%
Senior Notes | 5.75% Senior Notes due 2024 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 697.6		$ 697.3
Senior Notes | 5.75% Senior Notes due 2024 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 703.5		$ 708.8
Senior Notes | 5.75% Senior Notes due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	5.75%		5.75%
Senior Notes | 5.75% Senior Notes due 2025 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 346		$ 345.6
Senior Notes | 5.75% Senior Notes due 2025 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 359.7		$ 369.7
Senior Notes | 4.50% Senior Notes due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	4.50%	4.50%	4.50%
Senior Notes | 4.50% Senior Notes due 2028 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 784.1		$ 491.7
Senior Notes | 4.50% Senior Notes due 2028 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 770		$ 519.4
Senior Notes | 4.75% Senior Notes due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	4.75%	4.75%	4.75%
Senior Notes | 4.75% Senior Notes due 2030 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 782.5		$ 491.7
Senior Notes | 4.75% Senior Notes due 2030 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	771.2		520
Other notes payable | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	40.4		44.7
Other notes payable | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	40.4		44.7
Revolving Credit Facility | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	0		45
Revolving Credit Facility | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	0		45
Letters of Credit | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	0		0
Letters of Credit | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 36.3		$ 38.9

Share-Based Payments (Details)

Share-Based Payments (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Feb. 29, 2020	Jun. 30, 2020	Dec. 31, 2019
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (shares)		400,000
Restricted Stock | Service Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (shares)		200,000
Restricted Stock | Service and Performance Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period		2 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (shares)		100,000
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
SARs outstanding (shares)			115,545
Fair value of SARs			$ 101
Cash used to settle award	$ 101

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Provision for income tax expense	$ 11.8	$ 23.5	$ 38.9	$ 54.3

Earnings per Common Share - Com

Earnings per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic Numerator:
Income from continuing operations	$ 48.2	$ 111	$ 157	$ 236.7
Less: Net income attributable to noncontrolling interests included in continuing operations	(14.8)	(19.7)	(36.5)	(42.6)
Less: Income allocated to participating securities	0	(0.3)	(0.4)	(0.7)
Income from continuing operations attributable to Encompass Health common shareholders	33.4	91	120.1	193.4
Income (loss) from discontinued operations, net of tax, attributable to Encompass Health common shareholders	0.1	(0.1)	0	(0.6)
Net income attributable to Encompass Health common shareholders	$ 33.5	$ 90.9	$ 120.1	$ 192.8
Basic Denominator:
Basic weighted average common shares outstanding (shares)	98.7	98	98.5	98.2
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.34	$ 0.93	$ 1.22	$ 1.97
Discontinued operations (in dollars per share)	0	0	0	(0.01)
Net income (in dollars per share)	$ 0.34	$ 0.93	$ 1.22	$ 1.96
Diluted Numerator
Income from continuing operations	$ 48.2	$ 111	$ 157	$ 236.7
Less: Net income attributable to noncontrolling interests included in continuing operations	(14.8)	(19.7)	(36.5)	(42.6)
Income from continuing operations attributable to Encompass Health common shareholders	33.4	91.3	120.5	194.1
Income (loss) from discontinued operations, net of tax, attributable to Encompass Health common shareholders	0.1	(0.1)	0	(0.6)
Net income attributable to Encompass Health common shareholders	$ 33.5	$ 91.2	$ 120.5	$ 193.5
Diluted Denominator
Diluted weighted average common shares outstanding (shares)	99.9	99.3	99.6	99.5
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.34	$ 0.92	$ 1.21	$ 1.95
Discontinued operations (in dollars per share)	0	0	0	(0.01)
Net income (in dollars per share)	$ 0.34	$ 0.92	$ 1.21	$ 1.94

Earnings per Common Share - Rec

Earnings per Common Share - Reconciliation of Weighted Average Number of Shares Outstanding (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (shares)	98.7	98	98.5	98.2
Restricted stock awards, dilutive stock options, and restricted stock units (shares)	1.2	1.3	1.1	1.3
Diluted weighted average common shares outstanding (shares)	99.9	99.3	99.6	99.5

Contingencies and Other Commi_2

Contingencies and Other Commitments (Details) $ in Millions	1 Months Ended
	Jul. 31, 2019USD ($)
Maximum | Settled Litigation | Nichols Litigation
Loss Contingencies [Line Items]
Cash payment for litigation settlement	$ 0.1

Segment Reporting - Textuals (D

Segment Reporting - Textuals (Details)	6 Months Ended
	Jun. 30, 2020segmentstatehospitallocation
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Number of states in which entity operates | state	39
Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Number of states in which entity operates | state	35
Number of inpatient rehabilitation hospitals operated	136
Number of solely owned inpatient rehabilitation hospitals	87
Number of jointly owned inpatient rehabilitation hospitals	49
Number of inpatient rehabilitation units under management contracts	3
Inpatient Rehabilitation | Minimum
Segment Reporting Information [Line Items]
Joint venture ownership percentage	50.00%
Inpatient Rehabilitation | Maximum
Segment Reporting Information [Line Items]
Joint venture ownership percentage	97.50%
Home Health and Hospice
Segment Reporting Information [Line Items]
Number of states in which entity operates | state	31
Number of home health locations | location	245
Number of hospice locations | location	83
Number of hospitals or agencies operated as a joint venture	1
Number of solely owned hospital based home health and hospice locations | location	320
Number of jointly owned hospital based home health and hospice locations | location	8
Home Health and Hospice | Minimum
Segment Reporting Information [Line Items]
Joint venture ownership percentage	50.00%
Home Health and Hospice | Maximum
Segment Reporting Information [Line Items]
Joint venture ownership percentage	81.00%

Segment Reporting - Segment Rep

Segment Reporting - Segment Reporting Information, Reconciliation of Net Operating Revenues to Segment Adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Net operating revenues	$ 1,074.1	$ 1,135	$ 2,256.1	$ 2,259
Operating expenses:
Salaries and benefits	651.9	622.9	1,331	1,243.7
Other operating expenses	148.3	149.8	307.9	299.9
Supplies	50.6	41.7	96.3	81.8
Occupancy costs	20.3	20.3	40.5	39.9
Total operating expenses	974.8	964.5	1,976.6	1,901
Other income	(5.8)	(2.2)	(3.9)	(5.9)
Equity in net income of nonconsolidated affiliates	(0.7)	(1.8)	(1.5)	(4.3)
Noncontrolling interests	14.8	19.7	36.5	42.6
Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Net operating revenues	824.5	873.9	1,733.7	1,744
Home Health and Hospice
Segment Reporting Information [Line Items]
Net operating revenues	249.6	261.1	522.4	515
Operating Segments
Operating expenses:
Segment Adjusted EBITDA	195.3	283	451.8	559.3
Operating Segments | Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Net operating revenues	824.5	873.9	1,733.7	1,744
Operating expenses:
Salaries and benefits	451.4	443.6	933.7	888.6
Other operating expenses	124.3	127.2	259	254.8
Supplies	42	36.7	81.6	72.3
Occupancy costs	15.4	16.3	30.7	32.1
Total operating expenses	633.1	623.8	1,305	1,247.8
Other income	(3.4)	(1.9)	(1.8)	(4.7)
Equity in net income of nonconsolidated affiliates	(0.6)	(1.4)	(1.2)	(3.5)
Noncontrolling interests	15.1	19.5	35.9	40.5
Segment Adjusted EBITDA	180.3	233.9	395.8	463.9
Capital expenditures	88.9	92	172.2	162.4
Operating Segments | Home Health and Hospice
Segment Reporting Information [Line Items]
Net operating revenues	249.6	261.1	522.4	515
Operating expenses:
Cost of services sold (excluding depreciation and amortization)	136.7	119.9	267.6	236.4
Support and overhead costs	98.3	89.7	198.5	178.5
Total operating expenses	235	209.6	466.1	414.9
Other income	0	0	0	0
Equity in net income of nonconsolidated affiliates	(0.1)	(0.4)	(0.3)	(0.8)
Noncontrolling interests	(0.3)	2.8	0.6	5.5
Segment Adjusted EBITDA	15	49.1	56	95.4
Capital expenditures	$ 0.6	$ 3.5	$ 2.1	$ 8

Segment Reporting - Segment R_2

Segment Reporting - Segment Reporting Information, Total Assets and Investments In and Advances to Nonconsolidated Affiliates (Details) - USD ($) $ in Millions		Jun. 30, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	[1]	$ 6,502.5	$ 6,080.7
Investments in and advances to nonconsolidated affiliates		5.4	7.4
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		6,562.8	6,114.2
Operating Segments | Inpatient Rehabilitation
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		4,921.4	4,501.4
Investments in and advances to nonconsolidated affiliates		1.5	2
Operating Segments | Home Health and Hospice
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		1,641.4	1,612.8
Investments in and advances to nonconsolidated affiliates		$ 3.9	$ 5.4
[1]	Our consolidated assets as of June 30, 2020 and December 31, 2019 include total assets of variable interest entities of $221.1 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of June 30, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $42.1 million and $41.1 million , respectively. See Note 3 , Variable Interest Entities .

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative expenses	$ (43)	$ (77.1)	$ (78.6)	$ (130.5)
Depreciation and amortization	(60.7)	(52.7)	(119.5)	(105.2)
Government, class action, and related settlements	0	0	(2.8)	0
Loss on early extinguishment of debt	0	(2.3)	0	(2.3)
Net income attributable to noncontrolling interests	14.8	19.7	36.5	42.6
Income from continuing operations before income tax expense	60	134.5	195.9	291
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Segment Adjusted EBITDA	195.3	283	451.8	559.3
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative expenses	(43)	(77.1)	(78.6)	(130.5)
Depreciation and amortization	(60.7)	(52.7)	(119.5)	(105.2)
Loss on disposal or impairment of assets	(3)	(1.3)	(3.1)	(2.4)
Government, class action, and related settlements	0	0	(2.8)	0
Loss on early extinguishment of debt	0	(2.3)	0	(2.3)
Interest expense and amortization of debt discounts and fees	(45.8)	(37.7)	(89)	(74.9)
Net income attributable to noncontrolling interests	14.8	19.7	36.5	42.6
SARs mark-to-market impact on noncontrolling interests	0	2.6	0	3.4
Change in fair market value of equity securities	2.4	0.3	(0.1)	1.2
Gain on consolidation of Treasure Coast	0	0	2.2	0
Payroll taxes on SARs exercise	$ 0	$ 0	$ (1.5)	$ (0.2)

Segment Reporting - Reconcili_2

Segment Reporting - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jun. 30, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	[1]	$ 6,502.5	$ 6,080.7
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		6,562.8	6,114.2
Segment Reconciling Items
Segment Reporting, Asset Reconciling Item [Line Items]
Reclassification of deferred income tax liabilities to net deferred income tax assets		$ (60.3)	$ (33.5)
[1]	Our consolidated assets as of June 30, 2020 and December 31, 2019 include total assets of variable interest entities of $221.1 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of June 30, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $42.1 million and $41.1 million , respectively. See Note 3 , Variable Interest Entities .

Segment Reporting - Reconcili_3

Segment Reporting - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	$ 1,074.1	$ 1,135	$ 2,256.1	$ 2,259
Inpatient Rehabilitation
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	824.5	873.9	1,733.7	1,744
Home Health and Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	249.6	261.1	522.4	515
Operating Segments | Inpatient Rehabilitation
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	824.5	873.9	1,733.7	1,744
Operating Segments | Inpatient Rehabilitation | Inpatient
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	808	851.8	1,698	1,699.4
Operating Segments | Inpatient Rehabilitation | Outpatient and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	16.5	22.1	35.7	44.6
Operating Segments | Home Health and Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	249.6	261.1	522.4	515
Operating Segments | Home Health and Hospice | Home health
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	201.8	222.7	426.6	442.2
Operating Segments | Home Health and Hospice | Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	$ 47.8	$ 38.4	$ 95.8	$ 72.8