A Dallas-based healthcare company—one of the largest in its space—has made its public debut.
Enhabit Home Health and Hospice, a service provider with operations across the U.S., has successfully spun out of its parent company, Encompass Health Corp. Enhabit began trading Friday on the New York Stock Exchange.
“Today marks a new and exciting chapter for our company, and we look forward to embarking on this next phase of growth with our team,” said Barb Jacobsmeyer, Enhabit president and CEO, in a statement. “We remain rooted in our philosophy of providing a better way to care for patients and their loved ones.”
Enhabit hit more than $1 billion in net revenue last year
Listed under the ticker EHAB, Enhabit says it’s one of the country’s biggest providers of home health and hospice service, with more than 350 locations across 34 states. The more than 10,000-person company reported generating $1.1 billion in net revenue last year across both segments of its business.
Enhabit’s Alabama-based parent company initially announced plans to spin off the business as an independent unit earlier this year, targeting $400 million for its initial public offering. At the time, Encompass said the move would help investors better “understand the separate business models” of the two companies, given their different financial and managerial needs. It also noted that its use of technology gives it more efficiency and profitability than its competitors in the space.
Encompass, which went by HealthSouth at the time, first acquired the business in 2014 in a $750 million cash and equity deal. At the time the more than 20-year-old Enhabit went by the name Encompass Health.
“As an independent company, we will have enhanced strategic and operational flexibility to put the interests of our patients, people, and investors first as we strive to bring high-quality, compassionate care to every patient where they are most comfortable: in their homes,” Jacobsmeyer said.
Enhabit expands its board
As part of the move, Enhabit announced an expansion of its nine-member board of directors, which is chaired by former Connecticut College president emeritus Leo I. Higdon, Jr. New members include Tina Brown-Stevenson, a former senior VP of health analytics and decision support at UnitedHealthcare, and Susan LaMonica, the chief human resources officer and head of corporate social responsibility at Citizens Financial Group. Additional board members include leaders from Aetna and the Mayo Clinic, among other organizations.
Enhabit hit the public markets on July 1, with shares initially trading at around $22.85 each. Its share briefly hit a high of $23.24 before dropping to $21.38 as of around noon CST.
“As an independent company, we’ll continue our strategy of growth and focus on strategic priorities,” Jacobsmeyer wrote in an SEC filing.
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