Benzinga | Dec 9, 2020 08:28AM EST

Encompass Health Exploring Strategic Alternatives For Home Health And Hospice Business

BIRMINGHAM, Ala., Dec. 9, 2020 /PRNewswire/ -- Encompass Health Corp. (NYSE:EHC) today announced that it is exploring strategic alternatives for its home health and hospice business. A range of options are under consideration, including the full or partial separation of the home health and hospice business from Encompass Health through an initial public offering, spin-off, merger, sale or other transaction.

"Since joining together with Encompass Home Health and Hospice in 2015, we have generated substantial growth in both our business segments, and we continue to deliver high-quality, cost-effective, integrated care to a growing number of our patients," said President and Chief Executive Officer of Encompass Health Mark Tarr.

The Encompass Health board of directors has been evaluating an array of alternative strategies and structures and has elected to make this announcement as it proceeds with a more formalized process. No timetable has been established for the completion of the strategic review, and the Company does not intend to disclose further developments with respect to its strategic review process, unless and until its Board approves a specific transaction or action, or otherwise concludes the strategic review.

"Our primary focus this year has been to ensure Encompass Health's best possible response to this unprecedented global pandemic," said Chairman of the Encompass Health Board of Directors Lee Higdon. "This notwithstanding, the US healthcare delivery system continues to change, and we believe the time is appropriate for us to further reassess the corporate structure that may optimize the strategic positioning and growth of our businesses."

Citi and Wachtell, Lipton, Rosen and Katz are advising the Company in connection with the strategic review.