Healthcare
Encompass Health Corporation (EHC)
Data as of July 16, 2026
Environment story
Encompass Health discloses minimal environmental data. Scope 1, 2, and 3 emissions are undisclosed, with no stated net-zero target or renewable energy percentage. The company operates 173 inpatient rehabilitation hospitals with significant real estate and energy footprint but provides no public climate commitments, decarbonization initiatives, or sustainability reporting. No environmental controversies or resource-use violations are documented in the filing. The lack of disclosure triggers automatic penalties under the deterministic rules: -15 for undisclosed Scope 3, -15 for absent/post-2045 net-zero target, yielding a floor score of 70, then capped at 55 due to absence of supply-chain emissions disclosure relative to operational footprint (greenwashing detection).
Criticisms on file
No material criticisms on file for this pillar.
Disclosed initiatives
No disclosed initiatives on file for this pillar.
Social story
Encompass Health demonstrates moderate social performance. The company reports 28,948 full-time equivalent employees and 355 contract labor FTEs as of 2025, with an employee-per-occupied-bed (EPOB) ratio of 3.37, indicating stable staffing relative to capacity. The 10-K emphasizes recruiting and retaining qualified personnel as a strategic priority and acknowledges labor cost pressures including sign-on bonuses and shift incentives, suggesting competitive compensation efforts. However, no CEO-to-worker pay ratio is disclosed, and diversity metrics (executive/board women and underrepresented racial/ethnic percentages) are absent from the filing. No union-suppression activities, strikes, or major labor disputes are documented in 2023–2025. Supply chain audits and human rights policies are not described. The company is subject to extensive employment law compliance requirements (wage/hour, occupational safety, HIPAA, anti-discrimination) with documented regulatory proceedings but no material violations cited in the filing. Score reflects absence of pay-ratio disclosure (-0, as threshold not exceeded with null data), lack of diversity data (-15 for unknown leadership diversity), no union issues (+0), and no documented supply-chain hazards (+0).
Criticisms on file
No material criticisms on file for this pillar.
Disclosed initiatives
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Comprehensive Compensation and BenefitsCompany maintains competitive wage and benefits packages to address healthcare labor shortages; uses sign-on bonuses, shift incentives, and contract labor to attract staff.Supports recruitment and retention in tight labor market; salaries and benefits represent 52.5% of net operating revenues in 2025, down from 54.0% in 2024.
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Employment Law Compliance ProgramsExtensive training and internal controls for federal wage/hour, occupational safety, HIPAA, and equal employment opportunity laws.Documented compliance infrastructure; subject to regulatory proceedings but no material violations reported.
Governance story
Encompass Health exhibits solid governance practices with no major red flags. Board independence metrics are not explicitly disclosed in the filing, but no evidence of dual-class share structures or unequal voting rights is presented (standard single-class common stock structure assumed). The company has no documented active antitrust, consumer-safety, or financial-fraud regulatory proceedings; the 2019 settlement of DOJ investigation ($48 million, with express denial of wrongdoing and full release) is historical and resolved. Lobbying expenditures are not itemized in the filing, and no evidence of efforts to weaken climate or consumer-protection regulations is identified. The company faces extensive Medicare reimbursement audits and appeals (described in Risk Factors) but these are ordinary course regulatory compliance challenges, not governance failures. No shareholder litigation over climate proposals or anti-ESG activism is documented. Governance score reflects absence of clear board independence percentage (-0, as unknown), no dual-class penalty (+0), no active enforcement proceedings (+0), and no identified climate/consumer lobbying (-0).
Criticisms on file
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Aggressive Medicare claims audits and extrapolation methodology. HHS-OIG 2018 report sampled 220 IRF claims and identified ~80% error rate, then extrapolated to entire IRF universe, recommending payment system reevaluation. Company disputes methodology as statistically flawed and inconsistent with contemporaneous MAC review findings (~20% error rate).Source: EHC 10-K Item 1A Risk Factors, 'Other Regulatory Risks'; HHS-OIG Work Plan (September 2018); company response documented in filing.
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Review Choice Demonstration (RCD) payment delays. Beginning August 2023, Alabama IRFs subject to 100% pre-claim review; in cycles 2–3 (May 2024–June 2025), none of EHC's Alabama hospitals achieved 90% affirmation threshold to opt out. Company asserts MAC applied improper standards conflicting with Medicare coverage criteria.Source: EHC 10-K Item 1A Risk Factors, 'Other Regulatory Risks'; CMS RCD final rule (December 14, 2020) and expansion announcement (December 2025).
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UPIC audit extrapolation dispute. December 2017 UPIC audit at one EHC hospital sampled 100 claims, challenged $1.3M subset, extrapolated to $33.9M overpayment over ~4 years. MAC reduced to $30.5M (collected via recoupment in 2019). ALJ overturned $12.5M in October 2022; company appealed remaining $18M to DAB.Source: EHC 10-K Item 1A Risk Factors, 'Reimbursement Risks'; Note 1 Summary of Significant Accounting Policies.
Disclosed initiatives
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Regulatory Compliance InfrastructureExtensive internal training, documentation standards, and controls designed to ensure compliance with Medicare, Medicaid, anti-kickback, and anti-fraud regulations.2019 DOJ settlement resolved; ongoing claims appeals reflect aggressive MAC/CMS interpretation of coverage rules rather than systemic governance lapses.
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Data Privacy and Security CompliancePrograms to comply with HIPAA, HITECH Act, state privacy laws, and emerging AI/data-use regulations.No reported breaches or enforcement actions in filing; privacy policies and EHR systems are active compliance mechanisms.
These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Encompass Health Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Encompass Health Corporation in the app for interactive charts and portfolio building.
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