Encompass Health (EHC) 10-Q 3 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 20, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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		100,235,748
Entity Central Index Key	0000785161
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement Of Comprehensive Income And Income Statement [Abstract]
Net operating revenues	$ 1,160.4	$ 1,059.3
Operating expenses:
Salaries and benefits	629	587.4
Other operating expenses	177.9	159
Occupancy costs	13.8	15.4
Supplies	53.8	49.8
General and administrative expenses	43.4	37.4
Depreciation and amortization	63.9	57.7
Total operating expenses	981.8	906.7
Loss on early extinguishment of debt	0	0.3
Interest expense and amortization of debt discounts and fees	36.4	39.6
Other (income) expense	(3.6)	3.6
Equity in net income of nonconsolidated affiliates	(0.4)	(0.9)
Income from continuing operations before income tax expense	146.2	110
Provision for income tax expense	31.9	23.6
Income from continuing operations	114.3	86.4
(Loss) income from discontinued operations, net of tax	(1)	23.7
Net and comprehensive income	113.3	110.1
Net and comprehensive income	113.3	110.1
Less: Net income attributable to noncontrolling interests included in continuing operations	(25.6)	(22)
Less: Net income attributable to noncontrolling interests included in discontinued operations	0	(0.6)
Less: Net and comprehensive income attributable to noncontrolling interests	(25.6)	(22.6)
Less: Net and comprehensive income attributable to noncontrolling interests	(25.6)	(22.6)
Net and comprehensive income attributable to Encompass Health	87.7	87.5
Net and comprehensive income attributable to Encompass Health	$ 87.7	$ 87.5
Weighted average common shares outstanding:
Basic (in shares)	99.4	99.2
Diluted (in shares)	100.9	100.2
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.89	$ 0.65
Discontinued operations (in dollars per share)	(0.01)	0.23
Net income (in dollars per share)	0.88	0.88
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	0.88	0.64
Discontinued operations (in dollars per share)	(0.01)	0.23
Net income (in dollars per share)	$ 0.87	$ 0.87
Amounts attributable to Encompass Health common shareholders:
Income from continuing operations	$ 88.7	$ 64.4
(Loss) income from discontinued operations, net of tax	(1)	23.1
Net and comprehensive income attributable to Encompass Health	$ 87.7	$ 87.5

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents		$ 85	$ 21.8
Restricted cash		34.3	31.6
Accounts receivable		514.5	536.8
Other current assets		127.9	127
Total current assets		761.7	717.2
Property and equipment, net		2,988.3	2,939.2
Operating lease right-of-use assets		212.7	212.5
Goodwill		1,270.7	1,263.2
Intangible assets, net		287.2	282.3
Other long-term assets		226.7	222.1
Total assets	[1]	5,747.3	5,636.5
Current liabilities:
Current portion of long-term debt		26	25.2
Current operating lease liabilities		26.3	25.6
Accounts payable		141.1	132.9
Accrued medical insurance		31.8	25
Accrued expenses and other current liabilities		366.9	367.2
Total current liabilities		592.1	575.9
Long-term debt, net of current portion		2,722.5	2,741.8
Long-term operating lease liabilities		199.2	199.7
Deferred income tax liabilities		87	83
Other long-term liabilities		183.3	174.2
Total liabilities		3,784.1	3,774.6
Commitments and contingencies
Redeemable noncontrolling interests		37.5	35.6
Shareholders’ equity:
Encompass Health shareholders’ equity		1,383.5	1,310.3
Noncontrolling interests		542.2	516
Total shareholders’ equity		1,925.7	1,826.3
Total liabilities and shareholders' equity	[1]	$ 5,747.3	$ 5,636.5
[1] Our consolidated assets as of March 31, 2023 and December 31, 2022 include total assets of variable interest entities of $203.2 million and $207.8 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2023 and December 31, 2022 include total liabilities of the variable interest entities of $44.1 million and $47.9 million, respectively. See Note 4, Variable Interest Entities.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Assets	[1]	$ 5,747.3	$ 5,636.5
Liabilities		3,784.1	3,774.6
VIE
Assets		203.2	207.8
Liabilities		$ 44.1	$ 47.9
[1] Our consolidated assets as of March 31, 2023 and December 31, 2022 include total assets of variable interest entities of $203.2 million and $207.8 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2023 and December 31, 2022 include total liabilities of the variable interest entities of $44.1 million and $47.9 million, respectively. See Note 4, Variable Interest Entities.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Capital in Excess of Par Value	Accumulated Income	Treasury Stock	Noncontrolling Interests
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	$ 0	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
Balance at beginning of period (shares) at Dec. 31, 2022		99.8
Balance at beginning of period at Dec. 31, 2022	1,826.3	$ 1.1	1,730.2	115.7	(536.7)	516
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	111.2			87.7		23.5
Receipt of treasury stock (shares)		(0.1)
Receipt of treasury stock	(7.7)				(7.7)
Dividends declared	(15.1)			(15.1)
Stock-based compensation	7.9		7.9
Distributions declared	(31.2)					(31.2)
Capital contributions from consolidated affiliates	33.9					33.9
Other (shares)		0.5
Other	0.4	$ 0.1	1		(0.7)
Balance at end of period (shares) at Mar. 31, 2023		100.2
Balance at end of period at Mar. 31, 2023	$ 1,925.7	$ 1.2	$ 1,739.1	$ 188.3	$ (545.1)	$ 542.2

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock (in dollars per share)	$ 0.15	$ 0.28

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 113.3	$ 110.1
Loss (income) from discontinued operations, net of tax	1	(23.7)
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	63.9	57.7
Stock-based compensation	7.9	6.1
Deferred tax expense	4	2.3
Other, net	1.2	8
Change in assets and liabilities, net of acquisitions—
Accounts receivable	23.7	7.5
Other assets	(3.7)	13.6
Accounts payable	1.2	9.4
Other liabilities	16.7	(8.5)
Net cash (used in) provided by operating activities of discontinued operations	(1.3)	36.4
Total adjustments	113.6	132.5
Net cash provided by operating activities	227.9	218.9
Cash flows from investing activities:
Purchases of property and equipment	(96.6)	(112.9)
Other, net	(7.4)	(8.8)
Net cash used in investing activities of discontinued operations	0	(1.4)
Net cash used in investing activities	(104)	(123.1)
Cash flows from financing activities:
Principal payments on debt, including pre-payments	(0.6)	(103.9)
Borrowings on revolving credit facility	30	130
Payments on revolving credit facility	(45)	(25)
Debt amendment costs	0	(20)
Taxes paid on behalf of employees for shares withheld	(7.7)	(7.2)
Contributions from noncontrolling interests of consolidated affiliates	17	14
Dividends paid on common stock	(15.6)	(28.5)
Distributions paid to noncontrolling interests of consolidated affiliates	(31.8)	(20.8)
Other, net	(4.3)	(4.6)
Net cash provided by financing activities of discontinued operations	0	5.1
Net cash used in financing activities	(58)	(60.9)
Increase in cash, cash equivalents, and restricted cash	65.9	34.9
Cash, cash equivalents, and restricted cash at beginning of period	53.4	120.3
Cash, cash equivalents, and restricted cash at end of period	119.3	155.2
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period	21.8	49.4
Restricted cash at beginning of period	31.6	62.5
Restricted cash included in other long-term assets at beginning of period	0	0.4
Cash, cash equivalents, and restricted cash in discontinued operations at beginning of period	0	8
Cash, cash equivalents, and restricted cash at beginning of period	53.4	120.3
Cash and cash equivalents at end of period	85	76.6
Restricted cash at end of period	34.3	57.3
Cash, cash equivalents, and restricted cash in discontinued operations at end of period	0	21.3
Cash, cash equivalents, and restricted cash at end of period	119.3	155.2
Supplemental schedule of noncash financing activity:
Joint venture contributions	$ 16.9	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Encompass Health Corporation (the “Company” or “Encompass Health”), incorporated in Delaware in 1984, including its subsidiaries, is a provider of inpatient rehabilitation services. Our national network of inpatient rehabilitation hospitals stretches across 37 states and Puerto Rico, with concentrations of hospitals in the eastern half of the United States and Texas. As of March 31, 2023, we operate 156 inpatient rehabilitation hospitals. We are the sole owner of 95 of these hospitals. We retain 50.0% to 97.5% ownership in the remaining 61 jointly owned hospitals. 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, 2023 (the “2022 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, 2022 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 are as follows (in millions): Three Months Ended March 31, 2023 2022 Medicare $ 757.7 $ 689.9 Medicare Advantage 186.2 156.0 Managed care 127.1 131.5 Medicaid 47.4 41.7 Other third-party payors 10.9 10.1 Workers’ compensation 5.7 6.1 Patients 2.7 5.2 Other income 22.7 18.8 Total $ 1,160.4 $ 1,059.3 See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2022 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.

Spin Off of Home Health and Hos

Spin Off of Home Health and Hospice Business	3 Months Ended
	Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Spin Off of Home Health and Hospice Business	Spin Off of Home Health and Hospice BusinessOn July 1, 2022, we completed the previously announced separation of our home health and hospice business through the distribution (the “Spin Off”) of all of the outstanding shares of common stock, par value $0.01 per share, of Enhabit, Inc. (“Enhabit”) to the stockholders of record of Encompass Health as of the close of business on June 24, 2022 (the “Record Date”). The Spin Off was effective at 12:01 a.m., Eastern Time, on July 1, 2022. The Spin Off was structured as a pro rata distribution of one share of Enhabit common stock for every two shares of Encompass Health common stock held of record as of the Record Date. No fractional shares were distributed. A cash payment was made in lieu of any fractional shares. As a result of the Spin Off, Enhabit is now an independent public company and its common stock is listed under the symbol “EHAB” on the New York Stock Exchange. In accordance with applicable accounting guidance, the historical results of Enhabit have been presented as discontinued operations and, as such, have been excluded from continuing operations for the three months ended March 31, 2022. Our presentation of discontinued operations excludes any allocation of general corporate and overhead costs as well as interest expense. Prior to July 1, 2022, we operated under two reporting segments. We now operate under a single reporting segment. In connection with the Spin Off, on June 30, 2022, we entered into several agreements with Enhabit that govern the relationship of the parties following the Spin Off, including a Separation and Distribution Agreement, a Transition Services Agreement, a Tax Matters Agreement and an Employee Matters Agreement. We will provide transition services to Enhabit predominately consisting of certain finance, information technology, human resources, employee benefits and other administrative services for a period of up to two years after the Spin Off. For the three months ended March 31, 2023, income related to these transition services of $1.0 million were reflected as reductions to General and administrative expenses in our condensed consolidated statements of comprehensive income. The following table presents the results of operations of Enhabit as discontinued operations (in millions): Three Months Ended March 31, 2022 Net operating revenue $ 274.3 Operating expenses: Salaries and benefits 188.6 Other operating expenses 23.1 Occupancy costs 5.5 Supplies 6.3 General and administrative expenses 11.0 Depreciation and amortization 8.5 Total operating expenses 243.0 Interest expense and amortization of debt discounts and fees 0.1 Income from discontinued operations before income taxes 31.2 Provision for income tax expense 7.5 Income from discontinued operations, net of tax 23.7 Less: Net income attributable to noncontrolling interests included in discontinued operations (0.6) Net income attributable to Encompass Health included in discontinued operations $ 23.1 Transaction costs of $9.6 million incurred during the three months ended March 31, 2022, are included in general and administrative expenses in the table above and in (Loss) income from discontinued operations, net of tax , in the condensed consolidated statements of comprehensive income. These charges primarily relate to third-party advisory, consulting, legal and professional services, that are associated with the Spin Off. See Note 2, Spin Off of Home Health and Hospice Business , to the consolidated financial statements accompanying the 2022 Form 10‑K for additional information.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations During the three months ended March 31, 2023, we completed the following 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 March 2023, we acquired 50% of the operations of a 24-bed inpatient rehabilitation unit in Eau Claire, Wisconsin when Hospital Sisters Health System contributed those operations to our existing joint venture. • In March 2023, we acquired 50% of the operations of a 48-bed inpatient rehabilitation unit in Knoxville, Tennessee when Covenant Health contributed those operations to our existing joint venture. We accounted for these transactions under the acquisition method of accounting and reported the results of operations of the acquired hospitals from the respective dates 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 discounted cash flow techniques for the noncompete intangible assets; an income approach utilizing the relief from royalty method for the trade name intangible assets; and an income approach utilizing the excess earnings method for the certificate of need 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. 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 hospitals’ historical patient base and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in these markets. The goodwill recorded as a result of these transactions that is deductible for federal income tax purposes is $2.1 million. The fair value of the assets acquired at the acquisition dates were as follows (in millions): Property and equipment, net $ 0.1 Identifiable intangible assets: Noncompete agreements (useful lives of 3 years) 0.5 Trade names (useful lives of 20 years) 1.8 Certificate of need (useful life of 20 years) 7.0 Goodwill 7.5 Total assets acquired $ 16.9 Information regarding the net cash paid for the acquisitions during each period presented is as follows (in millions): Three Months Ended March 31, 2023 2022 Fair value of assets acquired $ 9.4 $ — Goodwill 7.5 — Fair value of noncontrolling interest owned by joint venture partner (16.9) — Net cash paid for acquisitions $ — $ — Pro Forma Results of Operations The following table summarizes the results of operations of the above mentioned acquisitions from the dates of acquisitions included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the dates of the acquisitions been January 1, 2022 (in millions): Net Operating Revenues Net Income Attributable to Encompass Health Acquired entities only: Actual from acquisition date to March 31, 2023 $ — $ — Combined entity: Supplemental pro forma from 01/01/23-3/31/23 1,163.7 87.8 Combined entity: Supplemental pro forma from 01/01/22-3/31/22 1,063.9 87.8 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 2022 reporting period. See Note 3, Business Combinations , to the consolidated financial statements accompanying the 2022 Form 10‑K for information regarding acquisitions completed in 2022.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities As of March 31, 2023 and December 31, 2022, we consolidated eight 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 March 31, 2023. 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 sheets, are as follows (in millions): March 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 0.4 $ 0.2 Accounts receivable 30.7 34.0 Other current assets 8.7 6.7 Total current assets 39.8 40.9 Property and equipment, net 126.0 129.0 Operating lease right-of-use assets 1.4 1.7 Goodwill 15.9 15.9 Intangible assets, net 1.4 1.5 Other long-term assets 18.7 18.8 Total assets $ 203.2 $ 207.8 Liabilities Current liabilities: Current portion of long-term debt $ 0.8 $ 0.8 Current operating lease liabilities — 0.4 Accounts payable 5.7 7.0 Accrued expenses and other current liabilities 22.0 23.9 Total current liabilities 28.5 32.1 Long-term debt, net of current portion 14.3 14.5 Long-term operating lease liabilities 1.3 1.3 Total liabilities $ 44.1 $ 47.9

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt outstanding consists of the following (in millions): March 31, 2023 December 31, 2022 Credit Agreement— Advances under revolving credit facility $ 40.0 $ 55.0 Bonds payable— 5.75% Senior Notes due 2025 347.9 347.7 4.50% Senior Notes due 2028 782.6 781.8 4.75% Senior Notes due 2030 779.6 779.0 4.625% Senior Notes due 2031 390.8 390.6 Other notes payable 52.5 53.1 Finance lease obligations 355.1 359.8 2,748.5 2,767.0 Less: Current portion (26.0) (25.2) Long-term debt, net of current portion $ 2,722.5 $ 2,741.8 The following chart shows scheduled principal payments due on long-term debt for the next five years and thereafter (in millions): Face Amount Net Amount April 1 through December 31, 2023 $ 20.2 $ 20.2 2024 39.2 39.2 2025 381.5 379.4 2026 27.6 27.6 2027 81.6 81.6 2028 830.1 812.7 Thereafter 1,417.4 1,387.8 Total $ 2,797.6 $ 2,748.5 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 (the “2028 Notes”), 4.75% Senior Notes due 2030 (the “2030 Notes”), and 4.625% Senior Notes due 2031 (the “2031 Notes” and 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 provided us with greater flexibility in effecting the Spin Off discussed in Note 2, Spin Off of Home Health and Hospice Business . Each Indenture contained restrictive covenants that, among other things, limited 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 permitted 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 reduced the capacity under our restricted payments builder basket under each existing Indenture for the 2028 Notes, 2030 Notes, and 2031 Notes by $200 million and amended 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 $20.0 million and $20.5 million in January and June 2022, respectively. 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 a $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, 2023
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, 2023 2022 Balance at beginning of period $ 35.6 $ 42.2 Net income attributable to noncontrolling interests 2.1 1.9 Distributions declared (0.2) (0.9) Balance at end of period $ 37.5 $ 43.2 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, 2023 2022 Net income attributable to nonredeemable noncontrolling interests $ 23.5 $ 20.7 Net income attributable to redeemable noncontrolling interests 2.1 1.9 Net income attributable to noncontrolling interests $ 25.6 $ 22.6 See also Note 7, Fair Value Measurements .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
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, 2023 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Valuation Technique (1) Equity securities (2) $ 111.6 $ 3.8 $ 107.8 $ — M Redeemable noncontrolling interests 37.5 — — 37.5 I As of December 31, 2022 Equity securities (2) $ 110.0 $ 3.7 $ 106.3 $ — M Redeemable noncontrolling interests 35.6 — — 35.6 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). (2) As of March 31, 2023, $29.5 million are included in Other current assets and $82.1 million are included in Other long-term assets in the condensed consolidated balance sheet. As of December 31, 2022, $30.9 million are included in Other current assets and $79.1 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, 2023 and 2022, 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 2022 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, 2023 As of December 31, 2022 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 40.0 $ 40.0 $ 55.0 $ 55.0 5.75% Senior Notes due 2025 347.9 348.6 347.7 347.7 4.50% Senior Notes due 2028 782.6 746.9 781.8 726.7 4.75% Senior Notes due 2030 779.6 728.3 779.0 703.7 4.625% Senior Notes due 2031 390.8 352.2 390.6 342.2 Other notes payable 52.5 52.5 53.1 53.1 Financial commitments: Letters of credit — 33.6 — 32.7 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 2022 Form 10‑K.

Share-Based Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payments	Share-Based Payments During the three months ended March 31, 2023, we issued a total of 0.6 million restricted stock awards to members of our management team and our board of directors. Of the restricted stock awards issued to members of our management team, 0.3 million contain only a service condition, while the remainder contain a service performance and market condition. For the awards that include a performance and market 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 and the applicable three year market condition 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 2022 Form 10‑K.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our Provision for income tax expense of $31.9 million and $23.6 million for the three months ended March 31, 2023 and March 31, 2022, respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate.

Earnings per Common Share

Earnings per Common Share	3 Months Ended
	Mar. 31, 2023
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, 2023 2022 Basic: Numerator: Income from continuing operations $ 114.3 $ 86.4 Less: Net income attributable to noncontrolling interests included in continuing operations (25.6) (22.0) Less: Income from continuing operations allocated to participating securities (0.6) (0.2) Income from continuing operations attributable to Encompass Health common shareholders 88.1 64.2 (Loss) income from discontinued operations, net of tax (1.0) 23.7 Less: Net income attributable to noncontrolling interests included in discontinued operations — (0.6) Less: Income from discontinued operations allocated to participating securities — (0.1) (Loss) income from discontinued operations attributable to Encompass Health common shareholders (1.0) 23.0 Net income attributable to Encompass Health common shareholders $ 87.1 $ 87.2 Denominator: Basic weighted average common shares outstanding 99.4 99.2 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.89 $ 0.65 Discontinued operations (0.01) 0.23 Net income $ 0.88 $ 0.88 Diluted: Numerator: Income from continuing operations $ 114.3 $ 86.4 Less: Net income attributable to noncontrolling interests included in continuing operations (25.6) (22.0) Income from continuing operations attributable to Encompass Health common shareholders 88.7 64.4 (Loss) income from discontinued operations, net of tax (1.0) 23.7 Less: Net income attributable to noncontrolling interests included in discontinued operations — (0.6) (Loss) income from discontinued operations attributable to Encompass Health common shareholders (1.0) 23.1 Net income attributable to Encompass Health common shareholders $ 87.7 $ 87.5 Denominator: Diluted weighted average common shares outstanding 100.9 100.2 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.88 $ 0.64 Discontinued operations (0.01) 0.23 Net income $ 0.87 $ 0.87 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, 2023 2022 Basic weighted average common shares outstanding 99.4 99.2 Restricted stock awards, dilutive stock options, and restricted stock units 1.5 1.0 Diluted weighted average common shares outstanding 100.9 100.2 See Note 17, Earnings per Common Share

Contingencies and Other Commitm

Contingencies and Other Commitments	3 Months Ended
	Mar. 31, 2023
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.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
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, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Concentration of Net Operating Revenues by Payor	Our Net operating revenues disaggregated by payor source are as follows (in millions): Three Months Ended March 31, 2023 2022 Medicare $ 757.7 $ 689.9 Medicare Advantage 186.2 156.0 Managed care 127.1 131.5 Medicaid 47.4 41.7 Other third-party payors 10.9 10.1 Workers’ compensation 5.7 6.1 Patients 2.7 5.2 Other income 22.7 18.8 Total $ 1,160.4 $ 1,059.3

Spin Off of Home Health and H_2

Spin Off of Home Health and Hospice Business (Tables)	3 Months Ended
	Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Financial Information Related to Discontinued Operations	The following table presents the results of operations of Enhabit as discontinued operations (in millions): Three Months Ended March 31, 2022 Net operating revenue $ 274.3 Operating expenses: Salaries and benefits 188.6 Other operating expenses 23.1 Occupancy costs 5.5 Supplies 6.3 General and administrative expenses 11.0 Depreciation and amortization 8.5 Total operating expenses 243.0 Interest expense and amortization of debt discounts and fees 0.1 Income from discontinued operations before income taxes 31.2 Provision for income tax expense 7.5 Income from discontinued operations, net of tax 23.7 Less: Net income attributable to noncontrolling interests included in discontinued operations (0.6) Net income attributable to Encompass Health included in discontinued operations $ 23.1

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date	The fair value of the assets acquired at the acquisition dates were as follows (in millions): Property and equipment, net $ 0.1 Identifiable intangible assets: Noncompete agreements (useful lives of 3 years) 0.5 Trade names (useful lives of 20 years) 1.8 Certificate of need (useful life of 20 years) 7.0 Goodwill 7.5 Total assets acquired $ 16.9
Schedule of Business Acquisitions, by Acquisition	Information regarding the net cash paid for the acquisitions during each period presented is as follows (in millions): Three Months Ended March 31, 2023 2022 Fair value of assets acquired $ 9.4 $ — Goodwill 7.5 — Fair value of noncontrolling interest owned by joint venture partner (16.9) — Net cash paid for acquisitions $ — $ —
Schedule of Actual and Pro Forma Results of Operations for Acquisitions	The following table summarizes the results of operations of the above mentioned acquisitions from the dates of acquisitions included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the dates of the acquisitions been January 1, 2022 (in millions): Net Operating Revenues Net Income Attributable to Encompass Health Acquired entities only: Actual from acquisition date to March 31, 2023 $ — $ — Combined entity: Supplemental pro forma from 01/01/23-3/31/23 1,163.7 87.8 Combined entity: Supplemental pro forma from 01/01/22-3/31/22 1,063.9 87.8

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2023
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 sheets, are as follows (in millions): March 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 0.4 $ 0.2 Accounts receivable 30.7 34.0 Other current assets 8.7 6.7 Total current assets 39.8 40.9 Property and equipment, net 126.0 129.0 Operating lease right-of-use assets 1.4 1.7 Goodwill 15.9 15.9 Intangible assets, net 1.4 1.5 Other long-term assets 18.7 18.8 Total assets $ 203.2 $ 207.8 Liabilities Current liabilities: Current portion of long-term debt $ 0.8 $ 0.8 Current operating lease liabilities — 0.4 Accounts payable 5.7 7.0 Accrued expenses and other current liabilities 22.0 23.9 Total current liabilities 28.5 32.1 Long-term debt, net of current portion 14.3 14.5 Long-term operating lease liabilities 1.3 1.3 Total liabilities $ 44.1 $ 47.9

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Outstanding Long-term Debt	Our long-term debt outstanding consists of the following (in millions): March 31, 2023 December 31, 2022 Credit Agreement— Advances under revolving credit facility $ 40.0 $ 55.0 Bonds payable— 5.75% Senior Notes due 2025 347.9 347.7 4.50% Senior Notes due 2028 782.6 781.8 4.75% Senior Notes due 2030 779.6 779.0 4.625% Senior Notes due 2031 390.8 390.6 Other notes payable 52.5 53.1 Finance lease obligations 355.1 359.8 2,748.5 2,767.0 Less: Current portion (26.0) (25.2) Long-term debt, net of current portion $ 2,722.5 $ 2,741.8
Schedule of Debt Maturities	The following chart shows scheduled principal payments due on long-term debt for the next five years and thereafter (in millions): Face Amount Net Amount April 1 through December 31, 2023 $ 20.2 $ 20.2 2024 39.2 39.2 2025 381.5 379.4 2026 27.6 27.6 2027 81.6 81.6 2028 830.1 812.7 Thereafter 1,417.4 1,387.8 Total $ 2,797.6 $ 2,748.5

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Schedule of 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, 2023 2022 Balance at beginning of period $ 35.6 $ 42.2 Net income attributable to noncontrolling interests 2.1 1.9 Distributions declared (0.2) (0.9) Balance at end of period $ 37.5 $ 43.2
Schedule of 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, 2023 2022 Net income attributable to nonredeemable noncontrolling interests $ 23.5 $ 20.7 Net income attributable to redeemable noncontrolling interests 2.1 1.9 Net income attributable to noncontrolling interests $ 25.6 $ 22.6

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Valuation Technique (1) Equity securities (2) $ 111.6 $ 3.8 $ 107.8 $ — M Redeemable noncontrolling interests 37.5 — — 37.5 I As of December 31, 2022 Equity securities (2) $ 110.0 $ 3.7 $ 106.3 $ — M Redeemable noncontrolling interests 35.6 — — 35.6 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). (2) As of March 31, 2023, $29.5 million are included in Other current assets and $82.1 million are included in Other long-term assets in the condensed consolidated balance sheet. As of December 31, 2022, $30.9 million are included in Other current assets and $79.1 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, 2023 As of December 31, 2022 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 40.0 $ 40.0 $ 55.0 $ 55.0 5.75% Senior Notes due 2025 347.9 348.6 347.7 347.7 4.50% Senior Notes due 2028 782.6 746.9 781.8 726.7 4.75% Senior Notes due 2030 779.6 728.3 779.0 703.7 4.625% Senior Notes due 2031 390.8 352.2 390.6 342.2 Other notes payable 52.5 52.5 53.1 53.1 Financial commitments: Letters of credit — 33.6 — 32.7

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of 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, 2023 2022 Basic: Numerator: Income from continuing operations $ 114.3 $ 86.4 Less: Net income attributable to noncontrolling interests included in continuing operations (25.6) (22.0) Less: Income from continuing operations allocated to participating securities (0.6) (0.2) Income from continuing operations attributable to Encompass Health common shareholders 88.1 64.2 (Loss) income from discontinued operations, net of tax (1.0) 23.7 Less: Net income attributable to noncontrolling interests included in discontinued operations — (0.6) Less: Income from discontinued operations allocated to participating securities — (0.1) (Loss) income from discontinued operations attributable to Encompass Health common shareholders (1.0) 23.0 Net income attributable to Encompass Health common shareholders $ 87.1 $ 87.2 Denominator: Basic weighted average common shares outstanding 99.4 99.2 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.89 $ 0.65 Discontinued operations (0.01) 0.23 Net income $ 0.88 $ 0.88 Diluted: Numerator: Income from continuing operations $ 114.3 $ 86.4 Less: Net income attributable to noncontrolling interests included in continuing operations (25.6) (22.0) Income from continuing operations attributable to Encompass Health common shareholders 88.7 64.4 (Loss) income from discontinued operations, net of tax (1.0) 23.7 Less: Net income attributable to noncontrolling interests included in discontinued operations — (0.6) (Loss) income from discontinued operations attributable to Encompass Health common shareholders (1.0) 23.1 Net income attributable to Encompass Health common shareholders $ 87.7 $ 87.5 Denominator: Diluted weighted average common shares outstanding 100.9 100.2 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.88 $ 0.64 Discontinued operations (0.01) 0.23 Net income $ 0.87 $ 0.87
Schedule of 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, 2023 2022 Basic weighted average common shares outstanding 99.4 99.2 Restricted stock awards, dilutive stock options, and restricted stock units 1.5 1.0 Diluted weighted average common shares outstanding 100.9 100.2

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details)	Mar. 31, 2023 hospital state
Class of Stock [Line Items]
Number of states in which entity operates | state	37
Number of inpatient rehabilitation hospitals operated	156
Number of solely owned inpatient rehabilitation hospitals	95
Number of jointly owned inpatient rehabilitation hospitals	61
Minimum
Class of Stock [Line Items]
Joint venture ownership percentage	50%
Maximum
Class of Stock [Line Items]
Joint venture ownership percentage	97.50%

Basis of Presentation - Net Ope

Basis of Presentation - Net Operating Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 1,160.4	$ 1,059.3
Medicare
Disaggregation of Revenue [Line Items]
Net operating revenues	757.7	689.9
Medicare Advantage
Disaggregation of Revenue [Line Items]
Net operating revenues	186.2	156
Managed care
Disaggregation of Revenue [Line Items]
Net operating revenues	127.1	131.5
Medicaid
Disaggregation of Revenue [Line Items]
Net operating revenues	47.4	41.7
Other third-party payors
Disaggregation of Revenue [Line Items]
Net operating revenues	10.9	10.1
Workers’ compensation
Disaggregation of Revenue [Line Items]
Net operating revenues	5.7	6.1
Patients
Disaggregation of Revenue [Line Items]
Net operating revenues	2.7	5.2
Other income
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 22.7	$ 18.8

Spin Off of Home Health and H_3

Spin Off of Home Health and Hospice Business - Additional Information (Details) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended	9 Months Ended
	Jul. 01, 2022 $ / shares	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2022 segment	Mar. 31, 2023 segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of operating segments | segment				2	1
Transition services, term		2 years
Common Stock | Enhabit
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pro rata distribution of common stock	0.5
Enhabit
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Enhabit | Discontinued operations, disposed of by means other than sale, spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transition services		$ 1
Transaction costs			$ 9.6

Spin Off of Home Health and H_4

Spin Off of Home Health and Hospice Business - Schedule of Financial Information Related to Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating expenses:
Income from discontinued operations, net of tax	$ (1)	$ 23.7
Less: Net income attributable to noncontrolling interests included in discontinued operations	0	(0.6)
Net income attributable to Encompass Health included in discontinued operations	$ (1)	23.1
Enhabit | Discontinued operations, disposed of by means other than sale, spinoff
Income from discontinued operations
Net operating revenue		274.3
Operating expenses:
Salaries and benefits		188.6
Other operating expenses		23.1
Occupancy costs		5.5
Supplies		6.3
General and administrative expenses		11
Depreciation and amortization		8.5
Total operating expenses		243
Interest expense and amortization of debt discounts and fees		0.1
Income from discontinued operations before income taxes		31.2
Provision for income tax expense		7.5
Income from discontinued operations, net of tax		23.7
Less: Net income attributable to noncontrolling interests included in discontinued operations		(0.6)
Net income attributable to Encompass Health included in discontinued operations		$ 23.1

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Millions	Mar. 31, 2023 USD ($) bed
Hospital Sisters Health System And Covenant Health
Business Acquisition [Line Items]
Goodwill expected to be tax-deductible amount | $	$ 2.1
Hospital Sisters Health System | Corporate Joint Venture
Business Acquisition [Line Items]
Business acquisition percentage of voting interests acquired	50%
Number of beds acquired	24
Covenant Health | Corporate Joint Venture
Business Acquisition [Line Items]
Business acquisition percentage of voting interests acquired	50%
Number of beds acquired	48

Business Combinations - Fair Va

Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Millions	1 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,270.7	$ 1,263.2
Hospital Sisters Health System And Covenant Health
Business Acquisition [Line Items]
Property and equipment, net	0.1
Goodwill	7.5
Total assets acquired	16.9
Hospital Sisters Health System And Covenant Health | Noncompete agreements
Business Acquisition [Line Items]
Identifiable intangible assets	$ 0.5
Finite-lived intangible asset useful life (in years)	3 years
Hospital Sisters Health System And Covenant Health | Trade name
Business Acquisition [Line Items]
Identifiable intangible assets	$ 1.8
Finite-lived intangible asset useful life (in years)	20 years
Hospital Sisters Health System And Covenant Health | Certificate of need
Business Acquisition [Line Items]
Identifiable intangible assets	$ 7
Finite-lived intangible asset useful life (in years)	20 years

Business Combinations - Net Cas

Business Combinations - Net Cash Paid for Acquisitions (Details) - Hospital Sisters Health System And Covenant Health - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Fair value of assets acquired	$ 9.4	$ 0
Goodwill	7.5	0
Fair value of noncontrolling interest owned by joint venture partner	(16.9)	0
Net cash paid for acquisitions	$ 0	$ 0

Business Combinations - Pro For

Business Combinations - Pro Forma Results of Operation (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Business acquisition, pro forma revenue		$ 1,163.7	$ 1,063.9
Business acquisition, pro forma net income		$ 87.8	$ 87.8
Hospital Sisters Health System And Covenant Health
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

Variable Interest Entities - Ad

Variable Interest Entities - Additional Information (Details) - VIE - entity	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Number of consolidated limited partnership-like entities	8	8
Minimum
Variable Interest Entity [Line Items]
Ownership interest in consolidated entities (as percent)	50%
Maximum
Variable Interest Entity [Line Items]
Ownership interest in consolidated entities (as percent)	75%

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, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents		$ 85	$ 21.8	$ 76.6	$ 49.4
Accounts receivable		514.5	536.8
Other current assets		127.9	127
Total current assets		761.7	717.2
Property and equipment, net		2,988.3	2,939.2
Operating lease right-of-use assets		212.7	212.5
Goodwill		1,270.7	1,263.2
Intangible assets, net		287.2	282.3
Other long-term assets		226.7	222.1
Total assets	[1]	5,747.3	5,636.5
Current liabilities:
Current portion of long-term debt		26	25.2
Current operating lease liabilities		26.3	25.6
Accounts payable		141.1	132.9
Accrued expenses and other current liabilities		366.9	367.2
Total current liabilities		592.1	575.9
Long-term debt, net of current portion		2,722.5	2,741.8
Long-term operating lease liabilities		199.2	199.7
Total liabilities		3,784.1	3,774.6
VIE
Current assets:
Cash and cash equivalents		0.4	0.2
Accounts receivable		30.7	34
Other current assets		8.7	6.7
Total current assets		39.8	40.9
Property and equipment, net		126	129
Operating lease right-of-use assets		1.4	1.7
Goodwill		15.9	15.9
Intangible assets, net		1.4	1.5
Other long-term assets		18.7	18.8
Total assets		203.2	207.8
Current liabilities:
Current portion of long-term debt		0.8	0.8
Current operating lease liabilities		0	0.4
Accounts payable		5.7	7
Accrued expenses and other current liabilities		22	23.9
Total current liabilities		28.5	32.1
Long-term debt, net of current portion		14.3	14.5
Long-term operating lease liabilities		1.3	1.3
Total liabilities		$ 44.1	$ 47.9
[1] Our consolidated assets as of March 31, 2023 and December 31, 2022 include total assets of variable interest entities of $203.2 million and $207.8 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2023 and December 31, 2022 include total liabilities of the variable interest entities of $44.1 million and $47.9 million, respectively. See Note 4, Variable Interest Entities.

Long-term Debt - Long-term Debt

Long-term Debt - Long-term Debt Outstanding (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Dec. 09, 2021
Schedule of Outstanding Long-term Debt
Finance lease obligations	$ 355.1	$ 359.8
Total debt and finance lease obligations	2,748.5	2,767
Less: Current portion	(26)	(25.2)
Long-term debt, net of current portion	$ 2,722.5	$ 2,741.8
Senior Notes | 5.75% Senior Notes due 2025
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	5.75%	5.75%	5.75%
Long-term debt	$ 347.9	$ 347.7
Senior Notes | 4.50% Senior Notes due 2028
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	4.50%	4.50%	4.50%
Long-term debt	$ 782.6	$ 781.8
Senior Notes | 4.75% Senior Notes due 2030
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	4.75%	4.75%	4.75%
Long-term debt	$ 779.6	$ 779
Senior Notes | 4.625% Senior Notes due 2031
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	4.625%	4.625%	4.625%
Long-term debt	$ 390.8	$ 390.6
Other notes payable
Schedule of Outstanding Long-term Debt
Long-term debt	52.5	53.1
Advances under revolving credit facility | Line of credit | Credit Agreement
Schedule of Outstanding Long-term Debt
Long-term debt	$ 40	$ 55

Long-term Debt - Principal Paym

Long-term Debt - Principal Payments Due on Long-term Debt (Details) $ in Millions	Mar. 31, 2023 USD ($)
Face Amount
Long-term Debt by Maturity
April 1 through December 31, 2023	$ 20.2
2024	39.2
2025	381.5
2026	27.6
2027	81.6
2028	830.1
Thereafter	1,417.4
Total	2,797.6
Net Amount
Long-term Debt by Maturity
April 1 through December 31, 2023	20.2
2024	39.2
2025	379.4
2026	27.6
2027	81.6
2028	812.7
Thereafter	1,387.8
Total	$ 2,748.5

Long-term Debt - Additional Inf

Long-term Debt - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended		2 Months Ended	3 Months Ended
	Jun. 30, 2022	Jan. 31, 2022	Jan. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 09, 2021
Debt Instrument [Line Items]
Loss on early extinguishment of debt				$ 0	$ 0.3
Repayments of long-term lines of credit				$ 45	$ 25
Senior Notes
Debt Instrument [Line Items]
Debt instrument, covenant, leverage ratio							3.5
Debt instrument, reduction in capacity under restricted payments builder basket							$ 200
Amendment agreement, amount to be paid			$ 40.5
Senior notes, total	$ 20.5	$ 20
5.75% Senior Notes due 2025 | Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate (as percent)				5.75%		5.75%	5.75%
4.50% Senior Notes due 2028 | Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate (as percent)				4.50%		4.50%	4.50%
4.75% Senior Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate (as percent)				4.75%		4.75%	4.75%
4.625% Senior Notes due 2031 | Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate (as percent)				4.625%		4.625%	4.625%
5.125% Senior Notes due 2023 | Senior Notes
Debt Instrument [Line Items]
Debt instrument interest rate (as 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, 2023	Mar. 31, 2022
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	$ 35.6
Net income attributable to noncontrolling interests	2.1	$ 1.9
Distributions declared	(31.2)	(24.9)
Balance at end of period	37.5
Redeemable Noncontrolling Interest
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	35.6	42.2
Net income attributable to noncontrolling interests	2.1	1.9
Distributions declared	(0.2)	(0.9)
Balance at end of period	$ 37.5	$ 43.2

Redeemable Noncontrolling Int_4

Redeemable Noncontrolling Interests - Reconciliation of Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Noncontrolling Interest [Abstract]
Net income attributable to nonredeemable noncontrolling interests	$ 23.5	$ 20.7
Net income attributable to redeemable noncontrolling interests	2.1	1.9
Net income attributable to noncontrolling interests	$ 25.6	$ 22.6

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	$ 111.6	$ 110
Redeemable noncontrolling interests	37.5	35.6
Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	29.5	30.9
Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	82.1	79.1
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	3.8	3.7
Redeemable noncontrolling interests	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	107.8	106.3
Redeemable noncontrolling interests	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Redeemable noncontrolling interests	$ 37.5	$ 35.6

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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 - Carry

Fair Value Measurements - Carrying Amounts and Estimated Fair Values, Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Dec. 09, 2021
Senior Notes | 5.75% Senior Notes due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (as percent)	5.75%	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	$ 347.9	$ 347.7
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	$ 348.6	$ 347.7
Senior Notes | 4.50% Senior Notes due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (as 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	$ 782.6	$ 781.8
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	$ 746.9	$ 726.7
Senior Notes | 4.75% Senior Notes due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (as 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	$ 779.6	$ 779
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	$ 728.3	$ 703.7
Senior Notes | 4.625% Senior Notes due 2031
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (as percent)	4.625%	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	$ 390.8	$ 390.6
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	352.2	342.2
Other notes payable | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	52.5	53.1
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	52.5	53.1
Advances under revolving credit facility | Line of credit | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	40	55
Advances under revolving credit facility | Line of credit | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	40	55
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	$ 33.6	$ 32.7

Share-Based Payments (Details)

Share-Based Payments (Details) shares in Millions	3 Months Ended
	Mar. 31, 2023 shares
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (in shares)	0.6
Restricted Stock | Service Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (in shares)	0.3
Restricted Stock | Service and Performance Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period (in years)	2 years
Restricted Stock | Service and Market Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period (in years)	3 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	0.1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income tax expense	$ 31.9	$ 23.6

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, 2023	Mar. 31, 2022
Numerator:
Income from continuing operations	$ 114.3	$ 86.4
Less: Net income attributable to noncontrolling interests included in continuing operations	(25.6)	(22)
Less: Income from continuing operations allocated to participating securities	(0.6)	(0.2)
Income from continuing operations attributable to Encompass Health common shareholders	88.1	64.2
(Loss) income from discontinued operations, net of tax	(1)	23.7
Less: Net income attributable to noncontrolling interests included in discontinued operations	0	(0.6)
Less: Income from discontinued operations allocated to participating securities	0	(0.1)
(Loss) income from discontinued operations attributable to Encompass Health common shareholders	(1)	23
Net income attributable to Encompass Health common shareholders	$ 87.1	$ 87.2
Denominator:
Basic weighted average common shares outstanding (in shares)	99.4	99.2
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.89	$ 0.65
Discontinued operations (in dollars per share)	(0.01)	0.23
Net income (in dollars per share)	$ 0.88	$ 0.88
Numerator:
Income from continuing operations	$ 114.3	$ 86.4
Less: Net income attributable to noncontrolling interests included in continuing operations	(25.6)	(22)
Income from continuing operations attributable to Encompass Health common shareholders	88.7	64.4
(Loss) income from discontinued operations, net of tax	(1)	23.7
Less: Net income attributable to noncontrolling interests included in discontinued operations	0	0.6
(Loss) income from discontinued operations attributable to Encompass Health common shareholders	(1)	23.1
Net income attributable to Encompass Health common shareholders	$ 87.7	$ 87.5
Denominator:
Diluted weighted average common shares outstanding (in shares)	100.9	100.2
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.88	$ 0.64
Discontinued operations (in dollars per share)	(0.01)	0.23
Net income (in dollars per share)	$ 0.87	$ 0.87

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, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (in shares)	99.4	99.2
Restricted stock awards, dilutive stock options, and restricted stock units (in shares)	1.5	1
Diluted weighted average common shares outstanding (in shares)	100.9	100.2