US-based rehabilitation hospital network Encompass Health has reported net income of $463m for the 12 months to 31 December 2023 (FY 2023), up by around 26% from $365.9m a year earlier.

The group’s adjusted earnings per share (EPS) grew by 27.7% to $3.64 in FY23 from $2.85 in the prior year.

Its net operating revenue increased by 10.4% from $4.3bn to $4.8bn year-on-year.

Encompass Health’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were $971.1m in the 12 months to 31 December, which was 18.5% higher than $819.3m in the previous year.

Cash flows provided by the group’s operating activities rose by 20.5% from $705.8m to $850.8m, while its net patient revenue for each discharge was up by 1.6% year-on-year to $20,454.

In the fourth quarter (Q4) of FY 2023, Encompass Health’s net income stood at $119.1m, up 1.3% from $117.5m in the same quarter of 2022. 

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The company’s adjusted EPS increased 8% to $0.95 from $0.88 over this period while its net operating revenue rose 9.6% from $1.1bn to $1.2bn.

Encompass Health said the growth in net operating revenue was mainly due to the discharge growth of 8.3%, which includes same-store growth of 5.3%.

The company’s adjusted EBITDA for Q4 was $255m, up by 9.6% from $232.7m in Q4 2022.

Encompass Health’s net patient revenue for discharge in Q4 2023 was $20,538, representing a 0.9% increase from $20,347 in the previous year.

Encompass Health CEO and president Mark Tarr said: “The Q4 was a very strong finish to 2023.

“For the full year, net operating revenue increased 10.4% and adjusted EBITDA grew 18.5%.

“Our value proposition and operating strategy continue to be validated and we remain highly optimistic about the long-term prospects of our business.”

Based in Alabama, Encompass Health owns and operates 161 inpatient rehabilitation hospitals across the US and Puerto Rico.