How Does Enhabit Home Health & Hospice Company Work?

Enhabit Home Health & Hospice provides a range of in-home healthcare services. This includes skilled nursing, physical, occupational, and speech therapy, as well as medical social services and hospice care.

The company serves patients across 34 states, with a notable presence in Texas, Alabama, Florida, Georgia, Oklahoma, and Mississippi. Enhabit caters to individuals recovering from illness, managing chronic conditions, and requiring end-of-life support.

Enhabit focuses on personalized care plans and leverages technology to enhance its operations. A case management staffing model, implemented in 2022, has improved staff retention and clinical capacity.

Centralized admission departments improve response times to referral sources, with a 79% conversion rate in Q1 2025, marking a 310 basis point increase year over year. This efficiency is key to how Enhabit home health and hospice work.

The spin-off from Encompass Health in July 2022 marked a crucial step, establishing Enhabit as a distinct publicly traded company. More recently, Q1 2025 saw a consolidated Adjusted EBITDA growth of 5.1% to $26.6 million, alongside a $25.0 million reduction in bank debt, achieving a leverage ratio below 4.5 times ahead of schedule.

Facing operational headwinds in 2024, including a Q4 loss, Enhabit proactively renegotiated a new home health agreement with UnitedHealthcare in December 2024. Cost-saving measures, such as branch consolidations and the transition to outsourced coding resources, are projected to yield significant savings.

Enhabit's competitive edge is built on delivering high-quality patient outcomes. Its 30-day hospital readmission rate was 20.5% lower than the 2022 national average, and its Quality of Patient Care star rating in 2023 surpassed the national average by 16.7%.

The company leverages advanced technology, including AI for documentation efficiency, and a robust nationwide footprint across 34 states. As one of the largest Medicare-certified providers, Enhabit benefits from economies of scale and broad market access, supporting its Growth Strategy of Enhabit Home Health & Hospice.

Enhabit Home Health & Hospice operates as the fourth-largest home health provider and a leading hospice provider in the U.S. The company's extensive network includes 255 home health and 115 hospice locations across 34 states, showcasing its substantial national presence and commitment to delivering Enhabit home care services widely.

The company faces risks such as labor inflation, estimated at 2-3%, and challenges with Medicare Advantage recertifications. Enhabit is actively addressing these through operational enhancements and strategic contract renewals, like the one with UnitedHealthcare in December 2024, to ensure continued service delivery.

For 2025, Enhabit anticipates net service revenue between $1.05 billion and $1.08 billion, with adjusted EBITDA projected between $101 million and $107 million. Strategic priorities include expanding home health census, optimizing payer mix, growing hospice average daily census, and developing new locations, with a focus on hospice expansion.

Enhabit plans to leverage technology, including AI, to boost efficiency in administrative tasks like scheduling and communication. This allows clinical teams to dedicate more time to Enhabit patient care, enhancing the overall Enhabit home health patient experience and the quality of Enhabit services provided.