Encompass Health facts for kids
 |
|
|
Formerly
|
HealthSouth Corporation |
|---|---|
| Public company | |
| Traded as |
|
| Industry | Healthcare |
| Founded | 1984 |
| Founder | Richard M. Scrushy |
| Headquarters | Birmingham, Alabama, U.S. |
|
Key people
|
|
| Products | Rehabilitation Home Health Hospice |
| Revenue |  US$4.605 billion (2019) |
|
Number of employees
|
43,400 (2019) |
Encompass Health Corporation is a big healthcare company in the United States. It helps people get better after an illness or injury. The company offers special care in hospitals and at home. They have locations in 36 states and Puerto Rico.
Encompass Health provides three main types of care:
- Rehabilitation: Helping people regain strength and skills after an injury or surgery.
- Home Health: Nurses and therapists visit people at home to provide care.
- Hospice: Offering comfort and support for people with serious illnesses.
The company used to be called HealthSouth Corporation. It changed its name to Encompass Health Corporation on January 2, 2018. Its stock symbol on the New York Stock Exchange also changed from HLS to EHC.
In 2003, there were problems with how the company reported its money. The company's leader at the time, Richard M. Scrushy, was accused of telling employees to report false earnings. After this, the company worked hard to fix its financial issues and become strong again.
Contents
How the Company Started
The company began in Birmingham, Alabama, on February 22, 1984. It was first named Amcare, Inc. and was started by Richard M. Scrushy. The first care centers opened in Little Rock, Arkansas, and Birmingham that same year.
In 1985, the company changed its name to HealthSouth Rehabilitation Corporation. A year later, in 1986, it became a public company. This meant people could buy shares of the company on the NASDAQ Stock Exchange. By 1990, HealthSouth had grown to 50 care centers across the U.S.
The company kept growing by buying other healthcare businesses. In 1993, it bought 28 hospitals and 45 outpatient centers from National Medical Enterprise. In 1994, HealthSouth bought ReLife, another company from Birmingham.
Growing Bigger and Better
Throughout the mid-1990s, HealthSouth grew very quickly. In 1995, the company changed its name again to HealthSouth Corporation. This new name showed that it offered many different kinds of healthcare services.
In 1995, HealthSouth's CEO, Richard Scrushy, announced plans for a new main office building in Birmingham. The new campus was built on a large piece of land. The company moved into its new headquarters in December 1996.
HealthSouth continued to expand by buying more companies. In 1995, it entered the surgery center business. It also bought NovaCare's rehabilitation hospital business. In 1996, the company started offering diagnostic services. HealthSouth even adopted a slogan: "The Healthcare Company of the 21st Century". Later, it started using its famous "H" logo.
In 1997, HealthSouth made its biggest purchase yet, buying Horizon/CMS. This was called the "deal of the century" by many in healthcare. The company also bought most of Columbia/HCA's surgery division by 1999.
In 2001, HealthSouth announced a plan to build the world's first all-digital hospital. This new hospital was meant to replace an older one in downtown Birmingham.
Recovery and a New Beginning
After the problems with how the company reported its money, the leaders of HealthSouth made big changes. They removed Richard Scrushy as CEO and worked to fix the company's finances. They hired experts to help get their money in order. By the end of 2003, the company had mostly reorganized its finances. This helped them avoid going out of business.
The company worked hard to remove all reminders of the past problems. They sold most of the company's private planes to save money. They also stopped building the new Digital Hospital to cut costs.
In May 2004, Jay Grinney became the new CEO. Under his leadership, HealthSouth worked to become a trusted company again. They reviewed their financial reports from 2000 to 2003. The company also sold or closed many centers that were not doing well. This helped them become profitable again.
By May 2006, HealthSouth had successfully fixed its financial reporting. This was a big step in its recovery. In August 2006, the company announced a plan to sell off its surgery, outpatient, and diagnostic divisions. It also returned to being listed on the New York Stock Exchange in October 2006.
HealthSouth sold its outpatient centers to Select Medical Corporation in 2007. It also sold its surgery center division to TPG Capital, which created a new company called Surgical Care Affiliates. The diagnostic division was sold to the Gores Group, forming Diagnostic Health Corporation. These sales helped HealthSouth focus on its main services.
In 2014, HealthSouth bought Encompass Home Health and Hospice. This led to the company changing its name to Encompass Health Corporation in 2018, showing its new focus.
Companies Connected to Encompass Health
Encompass Health has been involved with many other companies over the years. Some of these companies were started by HealthSouth itself, while others were partners.
Companies Started by HealthSouth
- MedPartners, Inc. — This company, started by HealthSouth, is now known as CVS Caremark.
- Capstone Capital Corporation — A company that invests in real estate.
- Diagnostic Health Corporation — This used to be HealthSouth's division for medical imaging.
- SourceMedical Solutions — A company that creates healthcare technology systems.
- Surgical Care Affiliates — This was HealthSouth's surgery center division.
Past Partner Companies
- 21st Century Health Ventures — A company founded by former HealthSouth leaders.
- GG Enterprises — A business founded by Richard Scrushy's family.
- Go for It! Roadshow — A health education tour for kids that HealthSouth supported.
- MedCenterDirect.com — A company that supplied hospitals.
- HealthTronics Surgical Services Inc.
- Total Nonstop Action Wrestling LLC. — HealthSouth was a major financial supporter for a time.
- Integrated Health Services Inc. — A company with nursing homes and rehabilitation centers.
