Encompass Health (EHC) 10-Q 1 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 22, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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		100,685,317
Entity Central Index Key	0000785161
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
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, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net operating revenues	$ 1,316	$ 1,160.4
Operating expenses:
Salaries and benefits	711.6	629
Other operating expenses	203.9	177.9
Occupancy costs	14	13.8
Supplies	58.5	53.8
General and administrative expenses	50.2	43.4
Depreciation and amortization	70.3	63.9
Total operating expenses	1,108.5	981.8
Interest expense and amortization of debt discounts and fees	35.2	36.4
Other income	(5.4)	(3.6)
Equity in net income of nonconsolidated affiliates	(0.7)	(0.4)
Income from continuing operations before income tax expense	178.4	146.2
Provision for income tax expense	38.3	31.9
Income from continuing operations	140.1	114.3
Loss from discontinued operations, net of tax	(1.3)	(1)
Net and comprehensive income	138.8	113.3
Net and comprehensive income	138.8	113.3
Less: Net and comprehensive income attributable to noncontrolling interests	(26.3)	(25.6)
Less: Net and comprehensive income attributable to noncontrolling interests	(26.3)	(25.6)
Net and comprehensive income attributable to Encompass Health	112.5	87.7
Net and comprehensive income attributable to Encompass Health	$ 112.5	$ 87.7
Weighted average common shares outstanding:
Basic (in shares)	99.8	99.4
Diluted (in shares)	102.2	100.9
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 1.13	$ 0.89
Discontinued operations (in dollars per share)	(0.01)	(0.01)
Net income (in dollars per share)	1.12	0.88
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	1.11	0.88
Discontinued operations (in dollars per share)	(0.01)	(0.01)
Net income (in dollars per share)	$ 1.10	$ 0.87
Amounts attributable to Encompass Health common shareholders:
Income from continuing operations	$ 113.8	$ 88.7
Loss from discontinued operations, net of tax	(1.3)	(1)
Net and comprehensive income attributable to Encompass Health	$ 112.5	$ 87.7

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents		$ 134.4	$ 69.1
Restricted cash		38.3	35.1
Accounts receivable		619.3	611.6
Other current assets		137.8	126
Total current assets		929.8	841.8
Property and equipment, net		3,370.3	3,301
Operating lease right-of-use assets		199.1	208.5
Goodwill		1,281.3	1,281.3
Intangible assets, net		272.2	278.2
Other long-term assets		178.7	191.6
Total assets	[1]	6,231.4	6,102.4
Current liabilities:
Current portion of long-term debt		25.6	24.8
Current operating lease liabilities		25.4	24.1
Accounts payable		166.1	170
Accrued expenses and other current liabilities		463.2	437.5
Total current liabilities		680.3	656.4
Long-term debt, net of current portion		2,682.6	2,687.8
Long-term operating lease liabilities		185.8	196.1
Deferred income tax liabilities		93.5	87
Other long-term liabilities		185.8	177.9
Total liabilities		3,828	3,805.2
Commitments and contingencies
Redeemable noncontrolling interests		41.1	42
Shareholders’ equity:
Encompass Health shareholders’ equity		1,741.9	1,647.5
Noncontrolling interests		620.4	607.7
Total shareholders’ equity		2,362.3	2,255.2
Total liabilities and shareholders' equity	[1]	$ 6,231.4	$ 6,102.4
[1] Our consolidated assets as of March 31, 2024 and December 31, 2023 include total assets of variable interest entities of $212.7 million and $207.7 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2024 and December 31, 2023 include total liabilities of the variable interest entities of $42.7 million and $42.2 million, respectively. See Note 2, Variable Interest Entities.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Assets	[1]	$ 6,231.4	$ 6,102.4
Liabilities		3,828	3,805.2
VIE
Assets		212.7	207.7
Liabilities		$ 42.7	$ 42.2
[1] Our consolidated assets as of March 31, 2024 and December 31, 2023 include total assets of variable interest entities of $212.7 million and $207.7 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2024 and December 31, 2023 include total liabilities of the variable interest entities of $42.7 million and $42.2 million, respectively. See Note 2, 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, 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
Balance at beginning of period (shares) at Dec. 31, 2023		100.3
Balance at beginning of period at Dec. 31, 2023	2,255.2	$ 1.2	1,787	406.5	(547.2)	607.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	137.3			112.5		24.8
Receipt of treasury stock (shares)		(0.2)
Receipt of treasury stock	(12.1)				(12.1)
Dividends declared	(15.3)		0.1	(15.4)
Stock-based compensation	9.3		9.3
Distributions declared	(30.5)					(30.5)
Capital contributions from consolidated affiliates	18.4					18.4
Other (shares)		0.6
Other	0		0.8	0.1	(0.9)
Balance at end of period (shares) at Mar. 31, 2024		100.7
Balance at end of period at Mar. 31, 2024	$ 2,362.3	$ 1.2	$ 1,797.2	$ 503.7	$ (560.2)	$ 620.4

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock (in dollars per share)	$ 0.15	$ 0.15

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 138.8	$ 113.3
Loss from discontinued operations, net of tax	1.3	1
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	70.3	63.9
Stock-based compensation	9.3	7.9
Deferred tax expense	6.5	4
Other, net	14.9	1.2
Change in assets and liabilities, net of acquisitions—
Accounts receivable	(7.7)	23.7
Other assets	(16)	(3.7)
Accounts payable	(3.8)	1.2
Other liabilities	25.9	16.7
Net cash used in operating activities of discontinued operations	(0.7)	(1.3)
Total adjustments	98.7	113.6
Net cash provided by operating activities	238.8	227.9
Cash flows from investing activities:
Purchases of property, equipment, and intangible assets	(139.4)	(99.8)
Proceeds from sale of restricted investments	16	0.2
Other, net	(6.3)	(4.4)
Net cash used in investing activities	(129.7)	(104)
Cash flows from financing activities:
Principal payments on debt, including pre-payments	(1)	(0.6)
Borrowings on revolving credit facility	50	30
Payments on revolving credit facility	(50)	(45)
Taxes paid on behalf of employees for shares withheld	(12.1)	(7.7)
Contributions from noncontrolling interests of consolidated affiliates	18.4	17
Dividends paid on common stock	(15.9)	(15.6)
Distributions paid to noncontrolling interests of consolidated affiliates	(24.7)	(31.8)
Other, net	(5.3)	(4.3)
Net cash used in financing activities	(40.6)	(58)
Increase in cash, cash equivalents, and restricted cash	68.5	65.9
Cash, cash equivalents, and restricted cash at beginning of period	104.2	53.4
Cash, cash equivalents, and restricted cash at end of period	172.7	119.3
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period	69.1	21.8
Restricted cash at beginning of period	35.1	31.6
Cash, cash equivalents, and restricted cash at beginning of period	104.2	53.4
Cash and cash equivalents at end of period	134.4	85
Restricted cash at end of period	38.3	34.3
Cash, cash equivalents, and restricted cash at end of period	172.7	119.3
Supplemental schedule of noncash operating, investing, and financing activities:
Joint venture contributions	$ 0	$ 16.9

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2024
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 Florida and Texas. As of March 31, 2024, we operate 160 inpatient rehabilitation hospitals. We are the sole owner of 98 of these hospitals. We retain 50.0% to 97.5% ownership in the remaining 62 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 28, 2024 (the “2023 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, 2023 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. Certain prior year amounts may have been reclassified for comparative purposes to conform to the current-year financial statement presentation. 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, 2024 2023 Medicare $ 854.1 $ 757.7 Medicare Advantage 223.8 186.2 Managed care 142.8 127.1 Medicaid 44.8 47.4 Other third-party payors 9.5 10.9 Workers’ compensation 7.0 5.7 Patients 3.9 2.7 Other income 30.1 22.7 Total $ 1,316.0 $ 1,160.4 See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2023 Form 10-K for our policy related to Net operating revenues . Recently Adopted Accounting Pronouncements — In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires all public entities, including entities with a single reportable segment, to provide disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, (2) the amount and description of the composition of other segment items which reconcile to segment profit or loss, and (3) the title and position of the entity’s CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and allocating resources. ASU 2023-07 is effective for our annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025. Early adoption is permitted with retrospective application required for all prior periods presented in the financial statements. We are currently evaluating the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which intends to improve the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are required to apply the guidance prospectively but have the option to apply it retrospectively. We are currently evaluating the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. We do not believe any other recently issued, but not yet effective, accounting standards will have a material effect on our condensed consolidated financial position, results of operations, or cash flows.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities As of March 31, 2024 and December 31, 2023, 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, 2024. 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, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 0.7 $ 0.2 Accounts receivable 35.4 36.7 Other current assets 7.0 5.0 Total current assets 43.1 41.9 Property and equipment, net 132.6 128.8 Operating lease right-of-use assets 1.4 1.4 Goodwill 15.9 15.9 Intangible assets, net 1.1 1.2 Other long-term assets 18.6 18.5 Total assets $ 212.7 $ 207.7 Liabilities Current liabilities: Current portion of long-term debt $ 0.9 $ 0.9 Accounts payable 9.3 7.6 Accrued expenses and other current liabilities 17.7 18.7 Total current liabilities 27.9 27.2 Long-term debt, net of current portion 13.4 13.6 Long-term operating lease liabilities 1.4 1.4 Total liabilities $ 42.7 $ 42.2

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt outstanding consists of the following (in millions): March 31, 2024 December 31, 2023 Credit Agreement— Advances under revolving credit facility $ — $ — Bonds payable— 5.75% Senior Notes due 2025 348.7 348.5 4.50% Senior Notes due 2028 785.9 785.0 4.75% Senior Notes due 2030 782.2 781.5 4.625% Senior Notes due 2031 391.8 391.5 Other notes payable 64.8 66.0 Finance lease obligations 334.8 340.1 2,708.2 2,712.6 Less: Current portion (25.6) (24.8) Long-term debt, net of current portion $ 2,682.6 $ 2,687.8 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, 2024 $ 19.0 $ 19.0 2025 381.4 380.2 2026 29.2 29.2 2027 43.2 43.2 2028 831.7 817.6 2029 40.5 40.5 Thereafter 1,404.8 1,378.5 Total $ 2,749.8 $ 2,708.2

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interests	3 Months Ended
	Mar. 31, 2024
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, 2024 2023 Balance at beginning of period $ 42.0 $ 35.6 Net income attributable to noncontrolling interests 1.5 2.1 Distributions declared (2.4) (0.2) Balance at end of period $ 41.1 $ 37.5 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, 2024 2023 Net income attributable to nonredeemable noncontrolling interests $ 24.8 $ 23.5 Net income attributable to redeemable noncontrolling interests 1.5 2.1 Net income attributable to noncontrolling interests $ 26.3 $ 25.6 See also Note 5, Fair Value Measurements .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
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, 2024 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Valuation Technique (1) Equity securities (2) $ 113.0 $ 4.1 $ 108.9 $ — M Redeemable noncontrolling interests 41.1 — — 41.1 I As of December 31, 2023 Equity securities (2) $ 126.2 $ 4.0 $ 122.2 $ — M Redeemable noncontrolling interests 42.0 — — 42.0 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). (2) As of March 31, 2024, $35.8 million are included in Other current assets and $77.2 million are included in Other long-term assets in the condensed consolidated balance sheet. As of December 31, 2023, $37.6 million are included in Other current assets and $88.6 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, 2024 and 2023, 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 2023 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, 2024 As of December 31, 2023 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: 5.75% Senior Notes due 2025 $ 348.7 $ 349.8 $ 348.5 $ 349.3 4.50% Senior Notes due 2028 785.9 760.0 785.0 763.6 4.75% Senior Notes due 2030 782.2 750.7 781.5 755.0 4.625% Senior Notes due 2031 391.8 364.9 391.5 369.4 Other notes payable 64.8 64.8 66.0 66.0 Financial commitments: Letters of credit — 36.3 — 31.9 Fair values for our long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2023 Form 10‑K.

Share-Based Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Payments	Share-Based Payments During the three months ended March 31, 2024, we issued a total of 0.5 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, 0.2 million contain only a service condition, while the remainder contain a service and/or performance condition as well as a market condition for certain members of management. 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 three-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 2023 Form 10‑K.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our Provision for income tax expense of $38.3 million and $31.9 million for the three months ended March 31, 2024 and March 31, 2023, 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, 2024
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, 2024 2023 Basic: Numerator: Income from continuing operations $ 140.1 $ 114.3 Less: Net income attributable to noncontrolling interests included in continuing operations (26.3) (25.6) Less: Income allocated to participating securities (0.8) (0.6) Income from continuing operations attributable to Encompass Health common shareholders 113.0 88.1 Loss from discontinued operations attributable to Encompass Health common shareholders (1.3) (1.0) Net income attributable to Encompass Health common shareholders $ 111.7 $ 87.1 Denominator: Basic weighted average common shares outstanding 99.8 99.4 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 1.13 $ 0.89 Discontinued operations (0.01) (0.01) Net income $ 1.12 $ 0.88 Diluted: Numerator: Income from continuing operations $ 140.1 $ 114.3 Less: Net income attributable to noncontrolling interests included in continuing operations (26.3) (25.6) Income from continuing operations attributable to Encompass Health common shareholders 113.8 88.7 Loss from discontinued operations attributable to Encompass Health common shareholders (1.3) (1.0) Net income attributable to Encompass Health common shareholders $ 112.5 $ 87.7 Denominator: Diluted weighted average common shares outstanding 102.2 100.9 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 1.11 $ 0.88 Discontinued operations (0.01) (0.01) Net income $ 1.10 $ 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, 2024 2023 Basic weighted average common shares outstanding 99.8 99.4 Restricted stock awards, dilutive stock options, and restricted stock units 2.4 1.5 Diluted weighted average common shares outstanding 102.2 100.9 See Note 17, Earnings per Common Share , to the consolidated financial statements accompanying the 2023 Form 10‑K for additional information related to our common stock.

Contingencies and Other Commitm

Contingencies and Other Commitments	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Other Commitments	Contingencies and Other Commitments We provide services in the highly regulated healthcare industry. Furthermore, operating inpatient rehabilitation hospitals requires significant staffing and involves intensive therapy for individuals suffering from significant physical or cognitive disabilities or injuries. 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 or its specific claims 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, and may in the future result in, Encompass Health refunding amounts to Medicare or other federal healthcare programs. Other Commitments— We are a party to service and other contracts in connection with conducting our business. Minimum amounts due under these agreements are $43.1 million for the remainder of 2024, $33.2 million in 2025, $24.7 million in 2026, $23.3 million in 2027, $21.9 million in 2028, and $62.3 million thereafter. These contracts primarily relate to software licensing and support and contract services.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 112.5	$ 87.7

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements — In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires all public entities, including entities with a single reportable segment, to provide disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, (2) the amount and description of the composition of other segment items which reconcile to segment profit or loss, and (3) the title and position of the entity’s CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and allocating resources. ASU 2023-07 is effective for our annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025. Early adoption is permitted with retrospective application required for all prior periods presented in the financial statements. We are currently evaluating the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which intends to improve the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are required to apply the guidance prospectively but have the option to apply it retrospectively. We are currently evaluating the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. We do not believe any other recently issued, but not yet effective, accounting standards will have a material effect on our condensed consolidated financial position, results of operations, or cash flows.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 2023 Medicare $ 854.1 $ 757.7 Medicare Advantage 223.8 186.2 Managed care 142.8 127.1 Medicaid 44.8 47.4 Other third-party payors 9.5 10.9 Workers’ compensation 7.0 5.7 Patients 3.9 2.7 Other income 30.1 22.7 Total $ 1,316.0 $ 1,160.4

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 0.7 $ 0.2 Accounts receivable 35.4 36.7 Other current assets 7.0 5.0 Total current assets 43.1 41.9 Property and equipment, net 132.6 128.8 Operating lease right-of-use assets 1.4 1.4 Goodwill 15.9 15.9 Intangible assets, net 1.1 1.2 Other long-term assets 18.6 18.5 Total assets $ 212.7 $ 207.7 Liabilities Current liabilities: Current portion of long-term debt $ 0.9 $ 0.9 Accounts payable 9.3 7.6 Accrued expenses and other current liabilities 17.7 18.7 Total current liabilities 27.9 27.2 Long-term debt, net of current portion 13.4 13.6 Long-term operating lease liabilities 1.4 1.4 Total liabilities $ 42.7 $ 42.2

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Outstanding Long-term Debt	Our long-term debt outstanding consists of the following (in millions): March 31, 2024 December 31, 2023 Credit Agreement— Advances under revolving credit facility $ — $ — Bonds payable— 5.75% Senior Notes due 2025 348.7 348.5 4.50% Senior Notes due 2028 785.9 785.0 4.75% Senior Notes due 2030 782.2 781.5 4.625% Senior Notes due 2031 391.8 391.5 Other notes payable 64.8 66.0 Finance lease obligations 334.8 340.1 2,708.2 2,712.6 Less: Current portion (25.6) (24.8) Long-term debt, net of current portion $ 2,682.6 $ 2,687.8
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, 2024 $ 19.0 $ 19.0 2025 381.4 380.2 2026 29.2 29.2 2027 43.2 43.2 2028 831.7 817.6 2029 40.5 40.5 Thereafter 1,404.8 1,378.5 Total $ 2,749.8 $ 2,708.2

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 2023 Balance at beginning of period $ 42.0 $ 35.6 Net income attributable to noncontrolling interests 1.5 2.1 Distributions declared (2.4) (0.2) Balance at end of period $ 41.1 $ 37.5
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, 2024 2023 Net income attributable to nonredeemable noncontrolling interests $ 24.8 $ 23.5 Net income attributable to redeemable noncontrolling interests 1.5 2.1 Net income attributable to noncontrolling interests $ 26.3 $ 25.6

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Valuation Technique (1) Equity securities (2) $ 113.0 $ 4.1 $ 108.9 $ — M Redeemable noncontrolling interests 41.1 — — 41.1 I As of December 31, 2023 Equity securities (2) $ 126.2 $ 4.0 $ 122.2 $ — M Redeemable noncontrolling interests 42.0 — — 42.0 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). (2) As of March 31, 2024, $35.8 million are included in Other current assets and $77.2 million are included in Other long-term assets in the condensed consolidated balance sheet. As of December 31, 2023, $37.6 million are included in Other current assets and $88.6 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, 2024 As of December 31, 2023 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: 5.75% Senior Notes due 2025 $ 348.7 $ 349.8 $ 348.5 $ 349.3 4.50% Senior Notes due 2028 785.9 760.0 785.0 763.6 4.75% Senior Notes due 2030 782.2 750.7 781.5 755.0 4.625% Senior Notes due 2031 391.8 364.9 391.5 369.4 Other notes payable 64.8 64.8 66.0 66.0 Financial commitments: Letters of credit — 36.3 — 31.9

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 2023 Basic: Numerator: Income from continuing operations $ 140.1 $ 114.3 Less: Net income attributable to noncontrolling interests included in continuing operations (26.3) (25.6) Less: Income allocated to participating securities (0.8) (0.6) Income from continuing operations attributable to Encompass Health common shareholders 113.0 88.1 Loss from discontinued operations attributable to Encompass Health common shareholders (1.3) (1.0) Net income attributable to Encompass Health common shareholders $ 111.7 $ 87.1 Denominator: Basic weighted average common shares outstanding 99.8 99.4 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 1.13 $ 0.89 Discontinued operations (0.01) (0.01) Net income $ 1.12 $ 0.88 Diluted: Numerator: Income from continuing operations $ 140.1 $ 114.3 Less: Net income attributable to noncontrolling interests included in continuing operations (26.3) (25.6) Income from continuing operations attributable to Encompass Health common shareholders 113.8 88.7 Loss from discontinued operations attributable to Encompass Health common shareholders (1.3) (1.0) Net income attributable to Encompass Health common shareholders $ 112.5 $ 87.7 Denominator: Diluted weighted average common shares outstanding 102.2 100.9 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 1.11 $ 0.88 Discontinued operations (0.01) (0.01) Net income $ 1.10 $ 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, 2024 2023 Basic weighted average common shares outstanding 99.8 99.4 Restricted stock awards, dilutive stock options, and restricted stock units 2.4 1.5 Diluted weighted average common shares outstanding 102.2 100.9

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details)	Mar. 31, 2024 hospital state
Class of Stock [Line Items]
Number of states in which entity operates | state	37
Number of inpatient rehabilitation hospitals operated	160
Number of solely owned inpatient rehabilitation hospitals	98
Number of jointly owned inpatient rehabilitation hospitals	62
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, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 1,316	$ 1,160.4
Medicare
Disaggregation of Revenue [Line Items]
Net operating revenues	854.1	757.7
Medicare Advantage
Disaggregation of Revenue [Line Items]
Net operating revenues	223.8	186.2
Managed care
Disaggregation of Revenue [Line Items]
Net operating revenues	142.8	127.1
Medicaid
Disaggregation of Revenue [Line Items]
Net operating revenues	44.8	47.4
Other third-party payors
Disaggregation of Revenue [Line Items]
Net operating revenues	9.5	10.9
Workers’ compensation
Disaggregation of Revenue [Line Items]
Net operating revenues	7	5.7
Patients
Disaggregation of Revenue [Line Items]
Net operating revenues	3.9	2.7
Other income
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 30.1	$ 22.7

Variable Interest Entities - Ad

Variable Interest Entities - Additional Information (Details) - VIE - entity	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
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, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents		$ 134.4	$ 69.1	$ 85	$ 21.8
Accounts receivable		619.3	611.6
Other current assets		137.8	126
Total current assets		929.8	841.8
Property and equipment, net		3,370.3	3,301
Operating lease right-of-use assets		199.1	208.5
Goodwill		1,281.3	1,281.3
Intangible assets, net		272.2	278.2
Other long-term assets		178.7	191.6
Total assets	[1]	6,231.4	6,102.4
Current liabilities:
Current portion of long-term debt		25.6	24.8
Accounts payable		166.1	170
Accrued expenses and other current liabilities		463.2	437.5
Total current liabilities		680.3	656.4
Long-term debt, net of current portion		2,682.6	2,687.8
Long-term operating lease liabilities		185.8	196.1
Total liabilities		3,828	3,805.2
VIE
Current assets:
Cash and cash equivalents		0.7	0.2
Accounts receivable		35.4	36.7
Other current assets		7	5
Total current assets		43.1	41.9
Property and equipment, net		132.6	128.8
Operating lease right-of-use assets		1.4	1.4
Goodwill		15.9	15.9
Intangible assets, net		1.1	1.2
Other long-term assets		18.6	18.5
Total assets		212.7	207.7
Current liabilities:
Current portion of long-term debt		0.9	0.9
Accounts payable		9.3	7.6
Accrued expenses and other current liabilities		17.7	18.7
Total current liabilities		27.9	27.2
Long-term debt, net of current portion		13.4	13.6
Long-term operating lease liabilities		1.4	1.4
Total liabilities		$ 42.7	$ 42.2
[1] Our consolidated assets as of March 31, 2024 and December 31, 2023 include total assets of variable interest entities of $212.7 million and $207.7 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2024 and December 31, 2023 include total liabilities of the variable interest entities of $42.7 million and $42.2 million, respectively. See Note 2, Variable Interest Entities.

Long-term Debt - Long-term Debt

Long-term Debt - Long-term Debt Outstanding (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Schedule of Outstanding Long-term Debt
Finance lease obligations	$ 334.8	$ 340.1
Total debt and finance lease obligations	2,708.2	2,712.6
Less: Current portion	(25.6)	(24.8)
Long-term debt, net of current portion	$ 2,682.6	$ 2,687.8
Senior Notes | 5.75% Senior Notes due 2025
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	5.75%	5.75%
Long-term debt	$ 348.7	$ 348.5
Senior Notes | 4.50% Senior Notes due 2028
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	4.50%	4.50%
Long-term debt	$ 785.9	$ 785
Senior Notes | 4.75% Senior Notes due 2030
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	4.75%	4.75%
Long-term debt	$ 782.2	$ 781.5
Senior Notes | 4.625% Senior Notes due 2031
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (as percent)	4.625%	4.625%
Long-term debt	$ 391.8	$ 391.5
Other notes payable
Schedule of Outstanding Long-term Debt
Long-term debt	64.8	66
Advances under revolving credit facility | Line of credit | Credit Agreement
Schedule of Outstanding Long-term Debt
Long-term debt	$ 0	$ 0

Long-term Debt - Principal Paym

Long-term Debt - Principal Payments Due on Long-term Debt (Details) $ in Millions	Mar. 31, 2024 USD ($)
Face Amount
Long-term Debt by Maturity
April 1 through December 31, 2024	$ 19
2025	381.4
2026	29.2
2027	43.2
2028	831.7
2029	40.5
Thereafter	1,404.8
Total	2,749.8
Net Amount
Long-term Debt by Maturity
April 1 through December 31, 2024	19
2025	380.2
2026	29.2
2027	43.2
2028	817.6
2029	40.5
Thereafter	1,378.5
Total	$ 2,708.2

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	$ 42
Net income attributable to noncontrolling interests	1.5	$ 2.1
Distributions declared	(30.5)	(31.2)
Balance at end of period	41.1
Redeemable Noncontrolling Interest
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	42	35.6
Net income attributable to noncontrolling interests	1.5	2.1
Distributions declared	(2.4)	(0.2)
Balance at end of period	$ 41.1	$ 37.5

Redeemable Noncontrolling Int_4

Redeemable Noncontrolling Interests - Reconciliation of Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Net income attributable to nonredeemable noncontrolling interests	$ 24.8	$ 23.5
Net income attributable to redeemable noncontrolling interests	1.5	2.1
Net income attributable to noncontrolling interests	$ 26.3	$ 25.6

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	$ 113	$ 126.2
Redeemable noncontrolling interests	41.1	42
Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	35.8	37.6
Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	77.2	88.6
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	4.1	4
Redeemable noncontrolling interests	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	108.9	122.2
Redeemable noncontrolling interests	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Redeemable noncontrolling interests	$ 41.1	$ 42

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
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

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Amounts and Estimated Fair Values, Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
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%
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	$ 348.7	$ 348.5
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	$ 349.8	$ 349.3
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%
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	$ 785.9	$ 785
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	$ 760	$ 763.6
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%
Senior Notes | 4.75% Senior Notes due 2030 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 782.2	$ 781.5
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	$ 750.7	$ 755
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%
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	$ 391.8	$ 391.5
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	364.9	369.4
Other notes payable | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	64.8	66
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	64.8	66
Letters of credit | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	0	0
Letters of credit | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 36.3	$ 31.9

Share-Based Payments (Details)

Share-Based Payments (Details) shares in Millions	3 Months Ended
	Mar. 31, 2024 shares
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (in shares)	0.5
Restricted Stock | Service Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (in shares)	0.2
Restricted Stock | Service and Performance Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period (in years)	3 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, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 38.3	$ 31.9

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, 2024	Mar. 31, 2023
Numerator:
Income from continuing operations	$ 140.1	$ 114.3
Less: Net income attributable to noncontrolling interests included in continuing operations	(26.3)	(25.6)
Less: Income allocated to participating securities	(0.8)	(0.6)
Income from continuing operations attributable to Encompass Health common shareholders	113	88.1
Loss from discontinued operations attributable to Encompass Health common shareholders	(1.3)	(1)
Net income attributable to Encompass Health common shareholders	$ 111.7	$ 87.1
Denominator:
Basic weighted average common shares outstanding (in shares)	99.8	99.4
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 1.13	$ 0.89
Discontinued operations (in dollars per share)	(0.01)	(0.01)
Net income (in dollars per share)	$ 1.12	$ 0.88
Numerator:
Income from continuing operations	$ 140.1	$ 114.3
Less: Net income attributable to noncontrolling interests included in continuing operations	(26.3)	(25.6)
Income from continuing operations attributable to Encompass Health common shareholders	113.8	88.7
Loss from discontinued operations attributable to Encompass Health common shareholders	(1.3)	(1)
Net income attributable to Encompass Health common shareholders	$ 112.5	$ 87.7
Denominator:
Diluted weighted average common shares outstanding (in shares)	102.2	100.9
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 1.11	$ 0.88
Discontinued operations (in dollars per share)	(0.01)	(0.01)
Net income (in dollars per share)	$ 1.10	$ 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, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (in shares)	99.8	99.4
Restricted stock awards, dilutive stock options, and restricted stock units (in shares)	2.4	1.5
Diluted weighted average common shares outstanding (in shares)	102.2	100.9

Contingencies and Other Commi_2

Contingencies and Other Commitments (Details) $ in Millions	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2024	$ 43.1
2025	33.2
2026	24.7
2027	23.3
2028	21.9
Thereafter	$ 62.3