Encompass Health (EHC) 10-Q 3 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 21, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		99,802,649
Entity Central Index Key	0000785161
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Comprehensive Income And Income Statement [Abstract]
Net operating revenues	$ 1,333.6	$ 1,230.4
Operating expenses:
Salaries and benefits	776	687.2
Other operating expenses	182.1	162.3
Occupancy costs	20.9	20.2
Supplies	56.1	51.9
General and administrative expenses	48.4	38.6
Depreciation and amortization	66.2	62.5
Total operating expenses	1,149.7	1,022.7
Loss on early extinguishment of debt	0.3	0
Interest expense and amortization of debt discounts and fees	39.6	42.8
Other expense (income)	3.6	(1.4)
Equity in net income of nonconsolidated affiliates	(0.9)	(1)
Income from continuing operations before income tax expense	141.3	167.3
Provision for income tax expense	31.2	34.5
Income from continuing operations	110.1	132.8
Loss from discontinued operations, net of tax	0	0
Net and comprehensive income	110.1	132.8
Net and comprehensive income	110.1	132.8
Less: Net and comprehensive income attributable to noncontrolling interests	(22.6)	(25.5)
Less: Net and comprehensive income attributable to noncontrolling interests	(22.6)	(25.5)
Net income attributable to Encompass Health	87.5	107.3
Net and comprehensive income attributable to Encompass Health	$ 87.5	$ 107.3
Weighted average common shares outstanding:
Basic (in shares)	99.2	99
Diluted (in shares)	100.2	100.2
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.88	$ 1.08
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	0.88	1.08
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	0.87	1.07
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	$ 0.87	$ 1.07
Amounts attributable to Encompass Health common shareholders:
Income from continuing operations	$ 87.5	$ 107.3
Loss from discontinued operations, net of tax	0	0
Net income attributable to Encompass Health	$ 87.5	$ 107.3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions		Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents		$ 94.2	$ 54.8
Restricted cash		61	65.1
Accounts receivable		683.5	680.3
Other current assets		111	121.2
Total current assets		949.7	921.4
Property and equipment, net		2,667.1	2,601.6
Operating lease right-of-use assets		236.8	242
Goodwill		2,456.5	2,427.9
Intangible assets, net		410.6	417.5
Other long-term assets		223.3	254.5
Total assets	[1]	6,944	6,864.9
Current liabilities:
Current portion of long-term debt		42.8	42.8
Current operating lease liabilities		38.4	38.4
Accounts payable		147.3	137.6
Accrued expenses and other current liabilities		526	530
Total current liabilities		754.5	748.8
Long-term debt, net of current portion		3,221.3	3,243.9
Long-term operating lease liabilities		208.3	213.1
Deferred income tax liabilities		89.7	86.7
Other long-term liabilities		178.6	173.2
Total liabilities		4,452.4	4,465.7
Commitments and contingencies
Redeemable noncontrolling interests		43.2	42.2
Shareholders’ equity:
Encompass Health shareholders’ equity		1,973.5	1,911.3
Noncontrolling interests		474.9	445.7
Total shareholders’ equity		2,448.4	2,357
Total liabilities and shareholders' equity	[1]	$ 6,944	$ 6,864.9
[1]	Our consolidated assets as of March 31, 2022 and December 31, 2021 include total assets of variable interest entities of $228.0 million and $226.2 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2022 and December 31, 2021 include total liabilities of the variable interest entities of $40.8 million and $38.2 million, respectively. See Note 3, Variable Interest Entities.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2022	Dec. 31, 2021
Assets	[1]	$ 6,944	$ 6,864.9
Liabilities		4,452.4	4,465.7
VIE
Assets		228	226.2
Liabilities		$ 40.8	$ 38.2
[1]	Our consolidated assets as of March 31, 2022 and December 31, 2021 include total assets of variable interest entities of $228.0 million and $226.2 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2022 and December 31, 2021 include total liabilities of the variable interest entities of $40.8 million and $38.2 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 Income (Deficit)	Treasury Stock	Noncontrolling Interests
Balance at beginning of period (shares) at Dec. 31, 2020		99.4
Balance at beginning of period at Dec. 31, 2020	$ 1,970	$ 1.1	$ 2,326.6	$ (242.3)	$ (497.4)	$ 382
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	130.4			107.3		23.1
Receipt of treasury stock (shares)		(0.2)
Receipt of treasury stock	(15.6)				(15.6)
Dividends declared	(27.8)		(27.8)
Stock-based compensation	2.8		2.8
Distributions declared	(22.4)					(22.4)
Capital contributions from consolidated affiliates	5.8					5.8
Other (shares)		0.4
Other	(0.2)		1.1		(0.7)	(0.6)
Balance at end of period (shares) at Mar. 31, 2021		99.6
Balance at end of period at Mar. 31, 2021	2,043	$ 1.1	2,302.7	(135)	(513.7)	387.9
Balance at beginning of period (shares) at Dec. 31, 2021		99.5
Balance at beginning of period at Dec. 31, 2021	2,357	$ 1.1	2,289.6	141.8	(521.2)	445.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	108.2			87.5		20.7
Receipt of treasury stock (shares)		(0.1)
Receipt of treasury stock	(7.6)				(7.6)
Dividends declared	(28.1)			(28.1)
Stock-based compensation	7.5		7.5
Distributions declared	(24.9)					(24.9)
Capital contributions from consolidated affiliates	21.4					21.4
Other (shares)		0.4
Other	14.9		4		(1.1)	12
Balance at end of period (shares) at Mar. 31, 2022		99.8
Balance at end of period at Mar. 31, 2022	$ 2,448.4	$ 1.1	$ 2,301.1	$ 201.2	$ (529.9)	$ 474.9

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock (in dollars per share)	$ 0.28	$ 0.28

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 110.1	$ 132.8
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	66.2	62.5
Stock-based compensation	7.5	2.8
Deferred tax expense	2	8.7
Other, net	7.9	2
Change in assets and liabilities, net of acquisitions—
Accounts receivable	7.3	(55.1)
Other assets	12	1.3
Accrued payroll	5.6	5.7
Other liabilities	0.4	(2.2)
Net cash used in operating activities of discontinued operations	(0.1)	0
Total adjustments	108.8	25.7
Net cash provided by operating activities	218.9	158.5
Cash flows from investing activities:
Purchases of property and equipment	(115.2)	(98.8)
Other, net	(7.9)	3.2
Net cash used in investing activities	(123.1)	(95.6)
Cash flows from financing activities:
Principal payments on debt, including pre-payments	(103.9)	(3.6)
Borrowings on revolving credit facility	130	0
Payments on revolving credit facility	(25)	0
Debt amendment costs	(20)	0
Taxes paid on behalf of employees for shares withheld	(7.6)	(15.6)
Contributions from consolidated affiliates	21.4	4.5
Dividends paid on common stock	(28.5)	(29.1)
Distributions paid to noncontrolling interests of consolidated affiliates	(21.3)	(27.8)
Other, net	(6)	(5.9)
Net cash used in financing activities	(60.9)	(77.5)
Increase (decrease) in cash, cash equivalents, and restricted cash	34.9	(14.6)
Cash, cash equivalents, and restricted cash at beginning of period	120.3	310.9
Cash, cash equivalents, and restricted cash at end of period	155.2	296.3
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period	54.8	224
Restricted cash at beginning of period	65.1	65.4
Restricted cash included in other long-term assets at beginning of period	0.4	21.5
Cash, cash equivalents, and restricted cash at beginning of period	120.3	310.9
Cash and cash equivalents at end of period	94.2	223.9
Restricted cash at end of period	61	62.2
Restricted cash included in other long-term assets at end of period	0	10.2
Cash, cash equivalents, and restricted cash at end of period	155.2	296.3
Supplemental schedule of noncash operating, investing and financing activities:
Property and equipment additions through finance leases	0.2	19.7
Operating lease additions	$ 5.9	$ 17.4

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
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 a leading provider of post-acute healthcare services, offering both facility-based and home-based patient services in 42 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 . On December 9, 2020, we announced a formal process to explore strategic alternatives for our home health and hospice business. As a result of this process, we expect to spin off our home health and hospice business to form an independent, publicly traded company on July 1, 2022, subject to customary conditions, including the effectiveness of a Form 10 registration statement, regulatory approvals and receipt of a favorable IRS private letter ruling. On January 19, 2022, we announced the home health and hospice business would be rebranded and operate under the name Enhabit Home Health & Hospice. The rebranding of agency locations began in mid-April 2022 and is expected to be largely completed by the effective date of the spin off. 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 25, 2022 (the “2021 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, 2021 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. Certain prior-year amounts have been reclassified to conform to the current year presentation. 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 March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2022 2021 2022 2021 Medicare $ 689.9 $ 614.5 $ 217.4 $ 223.9 $ 907.3 $ 838.4 Medicare Advantage 156.0 158.4 34.5 28.0 190.5 186.4 Managed care 131.5 112.2 18.8 14.3 150.3 126.5 Medicaid 41.7 39.0 3.5 3.8 45.2 42.8 Other third-party payors 10.1 12.1 — — 10.1 12.1 Workers’ compensation 6.1 5.7 0.1 0.1 6.2 5.8 Patients 5.2 4.9 — 0.2 5.2 5.1 Other income 18.8 13.1 — 0.2 18.8 13.3 Total $ 1,059.3 $ 959.9 $ 274.3 $ 270.5 $ 1,333.6 $ 1,230.4 See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2021 Form 10-K for our policy related to Net operating revenues . Recently Adopted Accounting Pronouncements — We do not believe any 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	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations Home Health and Hospice On January 1, 2022, we acquired a 50% equity interest from Frontier Home Health and Hospice, LLC in a joint venture with Saint Alphonsus System (“Saint Alphonsus”) which operates home health and hospice locations in Boise, Idaho. The total purchase price was $15.9 million and was funded on December 31, 2021. This acquisition was made to enhance our existing joint venture relationship with Saint Alphonsus and expand our footprint in this geographic area. This transaction was not material to our financial position, results of operations, or cash flows. We accounted for this transaction under the acquisition method of accounting and reported the results of operations of the acquired locations from the date of acquisition. Assets acquired, liabilities assumed, and noncontrolling interests 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 and license 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. For all other assets and liabilities, the fair value was assumed to represent carrying value due to their short maturities. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill. All goodwill recorded reflects our expectations of favorable growth opportunities in the home health and hospice markets based on positive demographic trends. At least $14.4 million of the goodwill recorded as a result of this transaction is deductible for federal income tax purposes. The fair values recorded were based upon a preliminary valuation. Estimates and assumptions used in such valuation are subject to change, which could be significant, within the measurement period (up to one year from the acquisition date). We expect to continue to obtain information to assist us in determining the fair value of the net assets acquired at the acquisition date during the measurement period. The preliminary fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions): Cash and cash equivalents $ 0.7 Accounts receivable, net 1.6 Operating lease right-of-use-assets 0.3 Identifiable intangible assets: Noncompete agreement (useful life of 5 years) 0.2 Trade name (useful life of 6 months) 0.1 Licenses (useful lives of 10 years) 0.9 Internal-use software (useful life of 3 years) 0.1 Goodwill 28.7 Total assets acquired 32.6 Liabilities assumed: Current operating lease liabilities 0.1 Accounts payable 0.1 Accrued payroll 0.2 Other current liabilities 0.2 Long-term operating lease liabilities 0.2 Total liabilities assumed 0.8 Noncontrolling interests 15.9 Net assets acquired $ 15.9 Information regarding the cash paid for the acquisition during each period presented is as follows (in millions): Three Months Ended March 31, 2022 2021 Fair value of assets acquired $ 3.9 $ — Goodwill 28.7 — Fair value of liabilities assumed (0.8) — Fair value of noncontrolling interest owned by joint venture partner (15.9) — Cash paid for acquisition $ 15.9 $ — Pro Forma Results of Operations The following table summarizes the results of operations of the above mentioned acquisition from the date 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 acquisition been January 1, 2021 (in millions): Net Operating Revenues Net Income Attributable to Encompass Health Acquired entities only: Actual from acquisition date to March 31, 2022 Home Health and Hospice $ 1.8 $ 0.2 Combined entity: Supplemental pro forma from 01/01/2022-03/31/2022 1,333.6 87.5 Combined entity: Supplemental pro forma from 01/01/2021-03/31/2021 1,232.7 107.5 The information presented above is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisition had occurred as of the beginning of our 2021 reporting period. See Note 2, Business Combinations , to the consolidated financial statements accompanying the 2021 Form 10‑K for information regarding acquisitions completed in 2021.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities As of March 31, 2022 and December 31, 2021, we consolidated ten 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 90.0% as of March 31, 2022. 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 condensed consolidated balance sheet, are as follows (in millions): March 31, 2022 December 31, 2021 Assets Current assets: Cash and cash equivalents $ 0.6 $ — Accounts receivable 34.7 36.3 Other current assets 11.4 7.7 Total current assets 46.7 44.0 Property and equipment, net 115.6 116.3 Operating lease right-of-use assets 3.0 3.2 Goodwill 28.4 28.3 Intangible assets, net 3.1 3.3 Other long-term assets 31.2 31.1 Total assets $ 228.0 $ 226.2 Liabilities Current liabilities: Current portion of long-term debt $ 1.0 $ 1.0 Current operating lease liabilities 1.6 1.5 Accounts payable 5.7 5.9 Accrued expenses and other current liabilities 22.6 19.4 Total current liabilities 30.9 27.8 Long-term debt, net of current portion 8.4 8.6 Long-term operating lease liabilities 1.5 1.8 Total liabilities $ 40.8 $ 38.2

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt outstanding consists of the following (in millions): March 31, 2022 December 31, 2021 Credit Agreement— Advances under revolving credit facility $ 305.0 $ 200.0 Term loan facilities 235.3 238.5 Bonds payable— 5.125% Senior Notes due 2023 — 99.6 5.75% Senior Notes due 2025 347.2 347.0 4.50% Senior Notes due 2028 779.5 786.8 4.75% Senior Notes due 2030 777.2 784.7 4.625% Senior Notes due 2031 389.9 393.7 Other notes payable 49.0 49.6 Finance lease obligations 381.0 386.8 3,264.1 3,286.7 Less: Current portion (42.8) (42.8) Long-term debt, net of current portion $ 3,221.3 $ 3,243.9 On December 9, 2021, we announced the commencement of a consent solicitation of holders of our 5.75% Senior Notes due 2025, 4.50% Senior Notes due 2028, 4.75% Senior Notes due 2030, and 4.625% Senior Notes due 2031 (collectively the “Senior Notes”) for the adoption of certain amendments to an indenture (the “Base Indenture”) dated as of December 1, 2009, as supplemented by each Senior Notes’ respective supplemental indenture (together with the Base Indenture, the “Indenture”), which will provide us with greater flexibility in effecting the spin off discussed in Note 1, Basis of Presentation . Each Indenture contains restrictive covenants that, among other things, limit our ability and the ability of certain of our subsidiaries to make certain asset dispositions, investments, and distributions to holders of our capital stock. The amendments to the Indentures permit us, subject to the leverage ratio condition set forth below, to distribute to our equity holders in one or more transactions (a “Distribution”) some or all of the common stock of a subsidiary that holds substantially all of the assets of our home health and hospice business. We may make any such distribution so long as the Leverage Ratio (as defined in each Indenture) is no more than 3.5 to 1.0 on a pro forma basis after giving effect thereto. The amendments also reduce the capacity under our restricted payments builder basket under each existing Indenture by $200 million and amends the definition of “Consolidated Net Income” to allow us to exclude from Consolidated Net Income (a component of the Leverage Ratio) any fees, expenses or charges related to any Distribution and the solicitation of consents from the holders of the Senior Notes. In December 2021 and January 2022, we received the requisite consents for the adoption of these amendments. Under the terms of the amendments, we agreed to pay the holders of the Senior Notes a total of $40.5 million, excluding fees. We paid $20 million of this amount in January 2022. The remaining payment is contingent upon the execution of a Distribution and will be paid at such time. In March 2022, we redeemed the remaining $100 million in outstanding principal amount of the 5.125% Senior Notes due 2023 (the “2023 Notes”) using capacity under our revolving credit facility. Pursuant to the terms of the 2023 Notes, this optional redemption was made at a price of par. As a result of this redemption, we recorded an aggregate $0.3 million Loss on early extinguishment of debt during the three months ended March 31, 2022.

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interests	3 Months Ended
	Mar. 31, 2022
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests	Redeemable Noncontrolling Interests The following is a summary of the activity related to our Redeemable noncontrolling interests (in millions): Three Months Ended March 31, 2022 2021 Balance at beginning of period $ 42.2 $ 31.6 Net income attributable to noncontrolling interests 1.9 2.4 Distributions declared (0.9) (2.3) Balance at end of period $ 43.2 $ 31.7 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 (in millions): Three Months Ended March 31, 2022 2021 Net income attributable to nonredeemable noncontrolling interests $ 20.7 $ 23.1 Net income attributable to redeemable noncontrolling interests 1.9 2.4 Net income attributable to noncontrolling interests $ 22.6 $ 25.5 See also Note 6, Fair Value Measurements .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Valuation Technique (1) Equity securities (2) $ 80.4 $ 3.9 $ 76.5 $ — M Redeemable noncontrolling interests 43.2 — — 43.2 I As of December 31, 2021 Equity securities (2) $ 82.2 $ 4.1 $ 78.1 $ — M Redeemable noncontrolling interests 42.2 — — 42.2 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). (2) As of March 31, 2022, $4.8 million are included in Other current assets and $75.6 million are included in Other long-term assets in the condensed consolidated balance sheet. As of December 31, 2021, $82.2 million are included in Other long-term assets in the condensed consolidated balance sheet. 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 months ended March 31, 2022 and 2021, 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 2021 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 March 31, 2022 As of December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 305.0 $ 305.0 $ 200.0 $ 200.0 Term loan facilities 235.3 236.3 238.5 239.6 5.125% Senior Notes due 2023 — — 99.6 100.2 5.75% Senior Notes due 2025 347.2 356.1 347.0 357.9 4.50% Senior Notes due 2028 779.5 790.9 786.8 823.0 4.75% Senior Notes due 2030 777.2 768.0 784.7 824.0 4.625% Senior Notes due 2031 389.9 374.4 393.7 407.0 Other notes payable 49.0 49.0 49.6 49.6 Financial commitments: Letters of credit — 37.2 — 38.2 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 2021 Form 10‑K.

Share-Based Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Share-Based Payments	Share-Based Payments During the three months ended March 31, 2022, we issued a total of 0.6 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 2021 Form 10‑K.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our Provision for income tax expense of $31.2 million for the three months ended March 31, 2022 primarily resulted from the application of our estimated effective blended federal and state income tax rate. Our Provision for income tax expense of $34.5 million for the three months ended March 31, 2021 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.

Earnings per Common Share

Earnings per Common Share	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Basic: Numerator: Income from continuing operations $ 110.1 $ 132.8 Less: Net income attributable to noncontrolling interests included in continuing operations (22.6) (25.5) Less: Income allocated to participating securities (0.4) (0.5) Income from continuing operations attributable to Encompass Health common shareholders 87.1 106.8 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders — — Net income attributable to Encompass Health common shareholders $ 87.1 $ 106.8 Denominator: Basic weighted average common shares outstanding 99.2 99.0 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.88 $ 1.08 Discontinued operations — — Net income $ 0.88 $ 1.08 Diluted: Numerator: Income from continuing operations $ 110.1 $ 132.8 Less: Net income attributable to noncontrolling interests included in continuing operations (22.6) (25.5) Income from continuing operations attributable to Encompass Health common shareholders 87.5 107.3 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders — — Net income attributable to Encompass Health common shareholders $ 87.5 $ 107.3 Denominator: Diluted weighted average common shares outstanding 100.2 100.2 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.87 $ 1.07 Discontinued operations — — Net income $ 0.87 $ 1.07 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 March 31, 2022 2021 Basic weighted average common shares outstanding 99.2 99.0 Restricted stock awards, dilutive stock options, and restricted stock units 1.0 1.2 Diluted weighted average common shares outstanding 100.2 100.2 See Note 17, Earnings per Common Share

Contingencies and Other Commitm

Contingencies and Other Commitments	3 Months Ended
	Mar. 31, 2022
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. 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 the Centers for Medicare & Medicaid Services 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	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022, we operate 147 inpatient rehabilitation hospitals. We are the sole owner of 93 of these hospitals. We retain 50.0% to 97.5% ownership in the remaining 54 jointly owned hospitals. In addition, we manage two 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 March 31, 2022, we provide home health services in 252 locations and hospice services in 99 locations across 34 states with concentrations in the southern half of the United States. We are the sole owner of 335 of these locations. We retain 50.0% to 90.0% ownership in the remaining 16 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. Hospice care focuses on the quality of life for patients who are experiencing an advanced, life limiting illness while treating the person and symptoms of the disease, rather than the disease itself. 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 2021 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 March 31, Three Months Ended March 31, 2022 2021 2022 2021 Net operating revenues $ 1,059.3 $ 959.9 $ 274.3 $ 270.5 Operating expenses: Inpatient rehabilitation: Salaries and benefits 587.4 501.9 — — Other operating expenses 158.3 140.0 — — Supplies 49.8 45.2 — — Occupancy costs 15.4 15.1 — — Home health and hospice: Cost of service (excluding depreciation and amortization) — — 124.4 118.1 Support and overhead costs — — 99.2 101.4 810.9 702.2 223.6 219.5 Other expense (income) 1.1 (1.5) — — Equity in net income of nonconsolidated affiliates (0.9) (0.8) — (0.2) Noncontrolling interests 22.0 25.1 0.6 0.4 Segment Adjusted EBITDA $ 226.2 $ 234.9 $ 50.1 $ 50.8 Capital expenditures $ 117.8 $ 99.8 $ 2.3 $ 0.9 Inpatient Rehabilitation Home Health and Hospice Encompass Health Consolidated As of March 31, 2022 Total assets $ 5,199.0 $ 1,745.0 $ 6,944.0 Investments in and advances to nonconsolidated affiliates 2.2 1.6 3.8 As of December 31, 2021 Total assets $ 5,143.0 $ 1,721.9 $ 6,864.9 Investments in and advances to nonconsolidated affiliates 2.4 1.6 4.0 Segment reconciliations (in millions): Three Months Ended March 31, 2022 2021 Total Segment Adjusted EBITDA $ 276.3 $ 285.7 General and administrative expenses (48.4) (38.6) Depreciation and amortization (66.2) (62.5) (Loss) gain on disposal or impairment of assets (0.6) 0.1 Loss on early extinguishment of debt (0.3) — Interest expense and amortization of debt discounts and fees (39.6) (42.8) Net income attributable to noncontrolling interests 22.6 25.5 Change in fair market value of equity securities (2.5) (0.1) Income from continuing operations before income tax expense $ 141.3 $ 167.3 Additional detail regarding the revenues of our operating segments by service line follows (in millions): Three Months Ended March 31, 2022 2021 Inpatient rehabilitation: Inpatient $ 1,036.2 $ 942.3 Outpatient and other 23.1 17.6 Total inpatient rehabilitation 1,059.3 959.9 Home health and hospice: Home health 224.9 219.9 Hospice 49.4 50.6 Total home health and hospice 274.3 270.5 Total net operating revenues $ 1,333.6 $ 1,230.4

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements — We do not believe any 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)	3 Months Ended
	Mar. 31, 2022
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 March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2022 2021 2022 2021 Medicare $ 689.9 $ 614.5 $ 217.4 $ 223.9 $ 907.3 $ 838.4 Medicare Advantage 156.0 158.4 34.5 28.0 190.5 186.4 Managed care 131.5 112.2 18.8 14.3 150.3 126.5 Medicaid 41.7 39.0 3.5 3.8 45.2 42.8 Other third-party payors 10.1 12.1 — — 10.1 12.1 Workers’ compensation 6.1 5.7 0.1 0.1 6.2 5.8 Patients 5.2 4.9 — 0.2 5.2 5.1 Other income 18.8 13.1 — 0.2 18.8 13.3 Total $ 1,059.3 $ 959.9 $ 274.3 $ 270.5 $ 1,333.6 $ 1,230.4

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date	The preliminary fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions): Cash and cash equivalents $ 0.7 Accounts receivable, net 1.6 Operating lease right-of-use-assets 0.3 Identifiable intangible assets: Noncompete agreement (useful life of 5 years) 0.2 Trade name (useful life of 6 months) 0.1 Licenses (useful lives of 10 years) 0.9 Internal-use software (useful life of 3 years) 0.1 Goodwill 28.7 Total assets acquired 32.6 Liabilities assumed: Current operating lease liabilities 0.1 Accounts payable 0.1 Accrued payroll 0.2 Other current liabilities 0.2 Long-term operating lease liabilities 0.2 Total liabilities assumed 0.8 Noncontrolling interests 15.9 Net assets acquired $ 15.9
Schedule of Business Acquisitions, by Acquisition	Information regarding the cash paid for the acquisition during each period presented is as follows (in millions): Three Months Ended March 31, 2022 2021 Fair value of assets acquired $ 3.9 $ — Goodwill 28.7 — Fair value of liabilities assumed (0.8) — Fair value of noncontrolling interest owned by joint venture partner (15.9) — Cash paid for acquisition $ 15.9 $ —
Summary of Actual and Pro Forma Results of Operations for Acquisitions	The following table summarizes the results of operations of the above mentioned acquisition from the date 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 acquisition been January 1, 2021 (in millions): Net Operating Revenues Net Income Attributable to Encompass Health Acquired entities only: Actual from acquisition date to March 31, 2022 Home Health and Hospice $ 1.8 $ 0.2 Combined entity: Supplemental pro forma from 01/01/2022-03/31/2022 1,333.6 87.5 Combined entity: Supplemental pro forma from 01/01/2021-03/31/2021 1,232.7 107.5

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2022
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 condensed consolidated balance sheet, are as follows (in millions): March 31, 2022 December 31, 2021 Assets Current assets: Cash and cash equivalents $ 0.6 $ — Accounts receivable 34.7 36.3 Other current assets 11.4 7.7 Total current assets 46.7 44.0 Property and equipment, net 115.6 116.3 Operating lease right-of-use assets 3.0 3.2 Goodwill 28.4 28.3 Intangible assets, net 3.1 3.3 Other long-term assets 31.2 31.1 Total assets $ 228.0 $ 226.2 Liabilities Current liabilities: Current portion of long-term debt $ 1.0 $ 1.0 Current operating lease liabilities 1.6 1.5 Accounts payable 5.7 5.9 Accrued expenses and other current liabilities 22.6 19.4 Total current liabilities 30.9 27.8 Long-term debt, net of current portion 8.4 8.6 Long-term operating lease liabilities 1.5 1.8 Total liabilities $ 40.8 $ 38.2

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of Outstanding Long-term Debt	Our long-term debt outstanding consists of the following (in millions): March 31, 2022 December 31, 2021 Credit Agreement— Advances under revolving credit facility $ 305.0 $ 200.0 Term loan facilities 235.3 238.5 Bonds payable— 5.125% Senior Notes due 2023 — 99.6 5.75% Senior Notes due 2025 347.2 347.0 4.50% Senior Notes due 2028 779.5 786.8 4.75% Senior Notes due 2030 777.2 784.7 4.625% Senior Notes due 2031 389.9 393.7 Other notes payable 49.0 49.6 Finance lease obligations 381.0 386.8 3,264.1 3,286.7 Less: Current portion (42.8) (42.8) Long-term debt, net of current portion $ 3,221.3 $ 3,243.9

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2022
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests Activity	The following is a summary of the activity related to our Redeemable noncontrolling interests (in millions): Three Months Ended March 31, 2022 2021 Balance at beginning of period $ 42.2 $ 31.6 Net income attributable to noncontrolling interests 1.9 2.4 Distributions declared (0.9) (2.3) Balance at end of period $ 43.2 $ 31.7
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 (in millions): Three Months Ended March 31, 2022 2021 Net income attributable to nonredeemable noncontrolling interests $ 20.7 $ 23.1 Net income attributable to redeemable noncontrolling interests 1.9 2.4 Net income attributable to noncontrolling interests $ 22.6 $ 25.5

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Valuation Technique (1) Equity securities (2) $ 80.4 $ 3.9 $ 76.5 $ — M Redeemable noncontrolling interests 43.2 — — 43.2 I As of December 31, 2021 Equity securities (2) $ 82.2 $ 4.1 $ 78.1 $ — M Redeemable noncontrolling interests 42.2 — — 42.2 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). (2) As of March 31, 2022, $4.8 million are included in Other current assets and $75.6 million are included in Other long-term assets in the condensed consolidated balance sheet. As of December 31, 2021, $82.2 million are included in Other long-term assets in the condensed consolidated balance sheet.
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 March 31, 2022 As of December 31, 2021 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 305.0 $ 305.0 $ 200.0 $ 200.0 Term loan facilities 235.3 236.3 238.5 239.6 5.125% Senior Notes due 2023 — — 99.6 100.2 5.75% Senior Notes due 2025 347.2 356.1 347.0 357.9 4.50% Senior Notes due 2028 779.5 790.9 786.8 823.0 4.75% Senior Notes due 2030 777.2 768.0 784.7 824.0 4.625% Senior Notes due 2031 389.9 374.4 393.7 407.0 Other notes payable 49.0 49.0 49.6 49.6 Financial commitments: Letters of credit — 37.2 — 38.2

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Basic: Numerator: Income from continuing operations $ 110.1 $ 132.8 Less: Net income attributable to noncontrolling interests included in continuing operations (22.6) (25.5) Less: Income allocated to participating securities (0.4) (0.5) Income from continuing operations attributable to Encompass Health common shareholders 87.1 106.8 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders — — Net income attributable to Encompass Health common shareholders $ 87.1 $ 106.8 Denominator: Basic weighted average common shares outstanding 99.2 99.0 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.88 $ 1.08 Discontinued operations — — Net income $ 0.88 $ 1.08 Diluted: Numerator: Income from continuing operations $ 110.1 $ 132.8 Less: Net income attributable to noncontrolling interests included in continuing operations (22.6) (25.5) Income from continuing operations attributable to Encompass Health common shareholders 87.5 107.3 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders — — Net income attributable to Encompass Health common shareholders $ 87.5 $ 107.3 Denominator: Diluted weighted average common shares outstanding 100.2 100.2 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.87 $ 1.07 Discontinued operations — — Net income $ 0.87 $ 1.07
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 March 31, 2022 2021 Basic weighted average common shares outstanding 99.2 99.0 Restricted stock awards, dilutive stock options, and restricted stock units 1.0 1.2 Diluted weighted average common shares outstanding 100.2 100.2

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, Three Months Ended March 31, 2022 2021 2022 2021 Net operating revenues $ 1,059.3 $ 959.9 $ 274.3 $ 270.5 Operating expenses: Inpatient rehabilitation: Salaries and benefits 587.4 501.9 — — Other operating expenses 158.3 140.0 — — Supplies 49.8 45.2 — — Occupancy costs 15.4 15.1 — — Home health and hospice: Cost of service (excluding depreciation and amortization) — — 124.4 118.1 Support and overhead costs — — 99.2 101.4 810.9 702.2 223.6 219.5 Other expense (income) 1.1 (1.5) — — Equity in net income of nonconsolidated affiliates (0.9) (0.8) — (0.2) Noncontrolling interests 22.0 25.1 0.6 0.4 Segment Adjusted EBITDA $ 226.2 $ 234.9 $ 50.1 $ 50.8 Capital expenditures $ 117.8 $ 99.8 $ 2.3 $ 0.9
Reconciliation of Assets from Segment to Consolidated	Inpatient Rehabilitation Home Health and Hospice Encompass Health Consolidated As of March 31, 2022 Total assets $ 5,199.0 $ 1,745.0 $ 6,944.0 Investments in and advances to nonconsolidated affiliates 2.2 1.6 3.8 As of December 31, 2021 Total assets $ 5,143.0 $ 1,721.9 $ 6,864.9 Investments in and advances to nonconsolidated affiliates 2.4 1.6 4.0
Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense	Segment reconciliations (in millions): Three Months Ended March 31, 2022 2021 Total Segment Adjusted EBITDA $ 276.3 $ 285.7 General and administrative expenses (48.4) (38.6) Depreciation and amortization (66.2) (62.5) (Loss) gain on disposal or impairment of assets (0.6) 0.1 Loss on early extinguishment of debt (0.3) — Interest expense and amortization of debt discounts and fees (39.6) (42.8) Net income attributable to noncontrolling interests 22.6 25.5 Change in fair market value of equity securities (2.5) (0.1) Income from continuing operations before income tax expense $ 141.3 $ 167.3
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 March 31, 2022 2021 Inpatient rehabilitation: Inpatient $ 1,036.2 $ 942.3 Outpatient and other 23.1 17.6 Total inpatient rehabilitation 1,059.3 959.9 Home health and hospice: Home health 224.9 219.9 Hospice 49.4 50.6 Total home health and hospice 274.3 270.5 Total net operating revenues $ 1,333.6 $ 1,230.4

Basis of Presentation - Textual

Basis of Presentation - Textual (Details)	3 Months Ended
	Mar. 31, 2022segmentstate
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which entity operates | state	42
Number of operating segments | segment	2

Basis of Presentation - Net Ope

Basis of Presentation - Net Operating Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 1,333.6	$ 1,230.4
Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	1,059.3	959.9
Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	274.3	270.5
Medicare
Disaggregation of Revenue [Line Items]
Net operating revenues	907.3	838.4
Medicare | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	689.9	614.5
Medicare | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	217.4	223.9
Medicare Advantage
Disaggregation of Revenue [Line Items]
Net operating revenues	190.5	186.4
Medicare Advantage | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	156	158.4
Medicare Advantage | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	34.5	28
Managed care
Disaggregation of Revenue [Line Items]
Net operating revenues	150.3	126.5
Managed care | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	131.5	112.2
Managed care | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	18.8	14.3
Medicaid
Disaggregation of Revenue [Line Items]
Net operating revenues	45.2	42.8
Medicaid | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	41.7	39
Medicaid | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	3.5	3.8
Other third-party payors
Disaggregation of Revenue [Line Items]
Net operating revenues	10.1	12.1
Other third-party payors | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	10.1	12.1
Other third-party payors | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	0	0
Workers’ compensation
Disaggregation of Revenue [Line Items]
Net operating revenues	6.2	5.8
Workers’ compensation | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	6.1	5.7
Workers’ compensation | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	0.1	0.1
Patients
Disaggregation of Revenue [Line Items]
Net operating revenues	5.2	5.1
Patients | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	5.2	4.9
Patients | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	0	0.2
Other income
Disaggregation of Revenue [Line Items]
Net operating revenues	18.8	13.3
Other income | Inpatient Rehabilitation
Disaggregation of Revenue [Line Items]
Net operating revenues	18.8	13.1
Other income | Home Health and Hospice
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 0	$ 0.2

Business Combinations - Textual

Business Combinations - Textual (Details) - Home Health and Hospice - Saint Alphonsus - Corporate Joint Venture $ in Millions	Jan. 01, 2022USD ($)
Business Acquisition [Line Items]
Business acquisition percentage of voting interests acquired	50.00%
Escrow agent cost	$ 15.9
Goodwill expected to be tax-deductible amount	$ 14.4

Business Combinations - Fair Va

Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Millions	Jan. 01, 2022	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 2,456.5	$ 2,427.9
Home Health and Hospice | Saint Alphonsus
Business Acquisition [Line Items]
Cash and cash equivalents	$ 0.7
Accounts receivable, net	1.6
Operating lease right-of-use-assets	0.3
Goodwill	28.7
Total assets acquired	32.6
Liabilities assumed:
Current operating lease liabilities	0.1
Accounts payable	0.1
Accrued payroll	0.2
Other current liabilities	0.2
Long-term operating lease liabilities	0.2
Total liabilities assumed	0.8
Noncontrolling interests	15.9
Net assets acquired	15.9
Home Health and Hospice | Noncompete agreements | Saint Alphonsus
Business Acquisition [Line Items]
Identifiable intangible assets	$ 0.2
Liabilities assumed:
Finite-lived intangible asset useful life	5 years
Home Health and Hospice | Trade name | Saint Alphonsus
Business Acquisition [Line Items]
Identifiable intangible assets	$ 0.1
Liabilities assumed:
Finite-lived intangible asset useful life	6 months
Home Health and Hospice | Licenses | Saint Alphonsus
Business Acquisition [Line Items]
Identifiable intangible assets	$ 0.9
Liabilities assumed:
Finite-lived intangible asset useful life	10 years
Home Health and Hospice | Internal-use software | Saint Alphonsus
Business Acquisition [Line Items]
Identifiable intangible assets	$ 0.1
Liabilities assumed:
Finite-lived intangible asset useful life	3 years

Business Combinations - Net Cas

Business Combinations - Net Cash Paid for Acquisitions (Details) - Home Health and Hospice - Saint Alphonsus - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Fair value of assets acquired	$ 3.9	$ 0
Goodwill	28.7	0
Fair value of liabilities assumed	(0.8)	0
Fair value of noncontrolling interest owned by joint venture partner	(15.9)	0
Cash paid for acquisition	$ 15.9	$ 0

Business Combinations - Pro For

Business Combinations - Pro Forma Results of Operation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Business acquisition, pro forma revenue	$ 1,333.6	$ 1,232.7
Business acquisition, pro forma net income	87.5	$ 107.5
Home Health and Hospice
Business Acquisition [Line Items]
Business combination, pro forma information, revenue of acquiree since acquisition date, actual	1.8
Business combination, pro forma information, earnings of acquiree since acquisition date, actual	$ 0.2

Variable Interest Entities - Te

Variable Interest Entities - Textual (Details) - VIE - entity	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Number of consolidated limited partnership-like entities	10	10
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)	90.00%

Variable Interest Entities - Sc

Variable Interest Entities - Schedule of Carrying Amounts and Classifications of VIE's Assets and Liabilities (Details) - USD ($) $ in Millions		Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents		$ 94.2	$ 54.8	$ 223.9	$ 224
Accounts receivable		683.5	680.3
Other current assets		111	121.2
Total current assets		949.7	921.4
Property and equipment, net		2,667.1	2,601.6
Operating lease right-of-use assets		236.8	242
Goodwill		2,456.5	2,427.9
Intangible assets, net		410.6	417.5
Other long-term assets		223.3	254.5
Total assets	[1]	6,944	6,864.9
Current liabilities:
Current portion of long-term debt		42.8	42.8
Current operating lease liabilities		38.4	38.4
Accounts payable		147.3	137.6
Accrued expenses and other current liabilities		526	530
Total current liabilities		754.5	748.8
Long-term debt, net of current portion		3,221.3	3,243.9
Long-term operating lease liabilities		208.3	213.1
Total liabilities		4,452.4	4,465.7
VIE
Current assets:
Cash and cash equivalents		0.6	0
Accounts receivable		34.7	36.3
Other current assets		11.4	7.7
Total current assets		46.7	44
Property and equipment, net		115.6	116.3
Operating lease right-of-use assets		3	3.2
Goodwill		28.4	28.3
Intangible assets, net		3.1	3.3
Other long-term assets		31.2	31.1
Total assets		228	226.2
Current liabilities:
Current portion of long-term debt		1	1
Current operating lease liabilities		1.6	1.5
Accounts payable		5.7	5.9
Accrued expenses and other current liabilities		22.6	19.4
Total current liabilities		30.9	27.8
Long-term debt, net of current portion		8.4	8.6
Long-term operating lease liabilities		1.5	1.8
Total liabilities		$ 40.8	$ 38.2
[1]	Our consolidated assets as of March 31, 2022 and December 31, 2021 include total assets of variable interest entities of $228.0 million and $226.2 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2022 and December 31, 2021 include total liabilities of the variable interest entities of $40.8 million and $38.2 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	Mar. 31, 2022	Dec. 31, 2021	Dec. 09, 2021
Schedule of Outstanding Long-term Debt
Finance lease obligations	$ 381	$ 386.8
Total debt and finance lease obligations	3,264.1	3,286.7
Less: Current portion	(42.8)	(42.8)
Long-term debt, net of current portion	3,221.3	3,243.9
Term loan facilities | Term loan facilities
Schedule of Outstanding Long-term Debt
Total debt	$ 235.3	238.5
Senior Notes | 5.125% Senior Notes due 2023
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.125%
Total debt	$ 0	99.6
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	$ 347.2	347
Senior Notes | 4.50% Senior Notes due 2028
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.50%		4.50%
Total debt	$ 779.5	786.8
Senior Notes | 4.75% Senior Notes due 2030
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.75%		4.75%
Total debt	$ 777.2	784.7
Senior Notes | 4.625% Senior Notes due 2031
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.625%		4.625%
Total debt	$ 389.9	393.7
Other notes payable
Schedule of Outstanding Long-term Debt
Total debt	49	49.6
Advances under revolving credit facility
Schedule of Outstanding Long-term Debt
Total debt	$ 305	$ 200

Long-term Debt - Textual (Detai

Long-term Debt - Textual (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 09, 2021
Debt Instrument [Line Items]
Loss on early extinguishment of debt			$ 0.3	$ 0
Senior Notes
Debt Instrument [Line Items]
Leverage ratio					3.5
Debt instrument, reduction in capacity under restricted payments builder basket					$ 200
Amendment agreement, amount to be paid		$ 40.5
Repayments of debt	$ 20
Senior Notes | 5.75% Senior Notes due 2025
Debt Instrument [Line Items]
Debt instrument interest rate (percent)			5.75%		5.75%
Senior Notes | 4.50% Senior Notes due 2028
Debt Instrument [Line Items]
Debt instrument interest rate (percent)			4.50%		4.50%
Senior Notes | 4.75% Senior Notes due 2030
Debt Instrument [Line Items]
Debt instrument interest rate (percent)			4.75%		4.75%
Senior Notes | 4.625% Senior Notes due 2031
Debt Instrument [Line Items]
Debt instrument interest rate (percent)			4.625%		4.625%
Senior Notes | 5.125% Senior Notes due 2023
Debt Instrument [Line Items]
Debt instrument interest rate (percent)			5.125%
Redemption amount			$ 100
Loss on early extinguishment of debt			$ 0.3

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	$ 42.2
Net income attributable to noncontrolling interests	1.9	$ 2.4
Distributions declared	(24.9)	(22.4)
Balance at end of period	43.2
Redeemable Noncontrolling Interest
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	42.2	31.6
Net income attributable to noncontrolling interests	1.9	2.4
Distributions declared	(0.9)	(2.3)
Balance at end of period	$ 43.2	$ 31.7

Redeemable Noncontrolling Int_4

Redeemable Noncontrolling Interests - Reconciliation of Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Noncontrolling Interest [Abstract]
Net income attributable to nonredeemable noncontrolling interests	$ 20.7	$ 23.1
Net income attributable to redeemable noncontrolling interests	1.9	2.4
Net income attributable to noncontrolling interests	$ 22.6	$ 25.5

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Other current assets	$ 111	$ 121.2
Other long-term assets	223.3	254.5
Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	80.4	82.2
Redeemable noncontrolling interests	43.2	42.2
Recurring | Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	4.8
Recurring | Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	75.6	82.2
Recurring | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	3.9	4.1
Redeemable noncontrolling interests	0	0
Recurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	76.5	78.1
Redeemable noncontrolling interests	0	0
Recurring | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Redeemable noncontrolling interests	$ 43.2	$ 42.2

Fair Value Measurements - Textu

Fair Value Measurements - Textual (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains or losses related to non-financial assets and liabilities	$ 0	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Dec. 09, 2021
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	$ 235.3	$ 238.5
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	$ 236.3	239.6
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%
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	$ 0	99.6
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	$ 0	100.2
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	$ 347.2	347
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	$ 356.1	357.9
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%
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	$ 779.5	786.8
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	$ 790.9	823
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%
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	$ 777.2	784.7
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	$ 768	824
Senior Notes | 4.625% Senior Notes due 2031
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	4.625%		4.625%
Senior Notes | 4.625% Senior Notes due 2031 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 389.9	393.7
Senior Notes | 4.625% Senior Notes due 2031 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	374.4	407
Other notes payable | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	49	49.6
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	49	49.6
Advances under revolving credit facility | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	305	200
Advances under 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	305	200
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	$ 37.2	$ 38.2

Share-Based Payments (Details)

Share-Based Payments (Details) shares in Millions	3 Months Ended
	Mar. 31, 2022shares
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (shares)	0.6
Restricted Stock | Service Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (shares)	0.2
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)	0.1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Provision for income tax expense	$ 31.2	$ 34.5

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
	Mar. 31, 2022	Mar. 31, 2021
Basic Numerator:
Income from continuing operations	$ 110.1	$ 132.8
Less: Net income attributable to noncontrolling interests included in continuing operations	(22.6)	(25.5)
Less: Income allocated to participating securities	(0.4)	(0.5)
Income from continuing operations attributable to Encompass Health common shareholders	87.1	106.8
Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders	0	0
Net income attributable to Encompass Health common shareholders	$ 87.1	$ 106.8
Denominator:
Basic weighted average common shares outstanding (in shares)	99.2	99
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.88	$ 1.08
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	$ 0.88	$ 1.08
Diluted Numerator
Income from continuing operations	$ 110.1	$ 132.8
Less: Net income attributable to noncontrolling interests included in continuing operations	(22.6)	(25.5)
Income from continuing operations attributable to Encompass Health common shareholders	87.5	107.3
Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders	0	0
Net income attributable to Encompass Health common shareholders	$ 87.5	$ 107.3
Denominator:
Diluted weighted average common shares outstanding (in shares)	100.2	100.2
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.87	$ 1.07
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	$ 0.87	$ 1.07

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
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (in shares)	99.2	99
Restricted stock awards, dilutive stock options, and restricted stock units (in shares)	1	1.2
Diluted weighted average common shares outstanding (in shares)	100.2	100.2

Segment Reporting - Textual (De

Segment Reporting - Textual (Details)	3 Months Ended
	Mar. 31, 2022locationhospitalsegmentstate
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Number of states in which entity operates | state	42
Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Number of states in which entity operates | state	35
Number of inpatient rehabilitation hospitals operated | hospital	147
Number of solely owned inpatient rehabilitation hospitals | hospital	93
Number of jointly owned inpatient rehabilitation hospitals | hospital	54
Number of inpatient rehabilitation units under management contracts | hospital	2
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	34
Number of home health locations | location	252
Number of hospice locations | location	99
Number of solely owned hospital based home health and hospice locations | location	335
Number of jointly owned hospital based home health and hospice locations | location	16
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	90.00%

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
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net operating revenues	$ 1,333.6	$ 1,230.4
Operating expenses:
Salaries and benefits	776	687.2
Other operating expenses	182.1	162.3
Supplies	56.1	51.9
Occupancy costs	20.9	20.2
Total operating expenses	1,149.7	1,022.7
Other expense (income)	3.6	(1.4)
Equity in net income of nonconsolidated affiliates	(0.9)	(1)
Noncontrolling interests	22.6	25.5
Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Net operating revenues	1,059.3	959.9
Operating expenses:
Salaries and benefits	587.4	501.9
Other operating expenses	158.3	140
Supplies	49.8	45.2
Occupancy costs	15.4	15.1
Cost of service (excluding depreciation and amortization)	0	0
Support and overhead costs	0	0
Total operating expenses	810.9	702.2
Other expense (income)	1.1	(1.5)
Equity in net income of nonconsolidated affiliates	(0.9)	(0.8)
Noncontrolling interests	22	25.1
Segment Adjusted EBITDA	226.2	234.9
Capital expenditures	117.8	99.8
Home Health and Hospice
Segment Reporting Information [Line Items]
Net operating revenues	274.3	270.5
Operating expenses:
Salaries and benefits	0	0
Other operating expenses	0	0
Supplies	0	0
Occupancy costs	0	0
Cost of service (excluding depreciation and amortization)	124.4	118.1
Support and overhead costs	99.2	101.4
Total operating expenses	223.6	219.5
Other expense (income)	0	0
Equity in net income of nonconsolidated affiliates	0	(0.2)
Noncontrolling interests	0.6	0.4
Segment Adjusted EBITDA	50.1	50.8
Capital expenditures	$ 2.3	$ 0.9

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Segment Assets and Investments In and Advances to Affiliates (Details) - USD ($) $ in Millions		Mar. 31, 2022	Dec. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	[1]	$ 6,944	$ 6,864.9
Investments in and advances to nonconsolidated affiliates		3.8	4
Inpatient Rehabilitation
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		5,199	5,143
Investments in and advances to nonconsolidated affiliates		2.2	2.4
Home Health and Hospice
Segment Reporting, Asset Reconciling Item [Line Items]
Assets		1,745	1,721.9
Investments in and advances to nonconsolidated affiliates		$ 1.6	$ 1.6
[1]	Our consolidated assets as of March 31, 2022 and December 31, 2021 include total assets of variable interest entities of $228.0 million and $226.2 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2022 and December 31, 2021 include total liabilities of the variable interest entities of $40.8 million and $38.2 million, respectively. See Note 3, Variable Interest Entities.

Segment Reporting - Reconcili_2

Segment Reporting - Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative expenses	$ (48.4)	$ (38.6)
Depreciation and amortization	(66.2)	(62.5)
Loss on early extinguishment of debt	(0.3)	0
Net income attributable to noncontrolling interests	22.6	25.5
Income from continuing operations before income tax expense	141.3	167.3
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Segment Adjusted EBITDA	276.3	285.7
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative expenses	(48.4)	(38.6)
Depreciation and amortization	(66.2)	(62.5)
(Loss) gain on disposal or impairment of assets	(0.6)	0.1
Loss on early extinguishment of debt	(0.3)	0
Interest expense and amortization of debt discounts and fees	(39.6)	(42.8)
Net income attributable to noncontrolling interests	22.6	25.5
Change in fair market value of equity securities	$ (2.5)	$ (0.1)

Segment Reporting - Reconcili_3

Segment Reporting - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	$ 1,333.6	$ 1,230.4
Inpatient Rehabilitation
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	1,059.3	959.9
Inpatient Rehabilitation | Inpatient
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	1,036.2	942.3
Inpatient Rehabilitation | Outpatient and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	23.1	17.6
Home Health and Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	274.3	270.5
Home Health and Hospice | Home health
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	224.9	219.9
Home Health and Hospice | Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	$ 49.4	$ 50.6