Encompass Health Corp
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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Item 2. Properties
We currently maintain our principal executive office at 9001 Liberty Parkway, Birmingham, Alabama, the lease for which expires in 2033 and has multiple renewal options for additional five-year terms. In addition to our principal executive office, we lease or own hospital locations as noted in the table below. All of our hospital leases, which represent the substantial majority of our rent expense, have at least five years remaining on their terms after taking into consideration renewal options, except for a lease that terminates in late 2029. Our consolidated entities associated with our leased hospitals are generally responsible for property taxes, property and casualty insurance, and routine maintenance expenses. We do not believe any one of our individual properties is material to our consolidated operations.
The following table sets forth information regarding our hospital locations as of December 31, 2024:
| Number of Hospitals | ||||||
|---|---|---|---|---|---|---|
| State · Licensed Beds · Building and Land Owned · Building Owned and Land Leased · Building and Land Leased · Total | ||||||
| Alabama* | 457 | 3 | 3 | 1 | 7 | |
| Arizona | 406 | 1 | 2 | 3 | 6 | |
| Arkansas | 381 | 3 | 1 | 1 | 5 | |
| California | 251 | 4 | — | — | 4 | |
| Colorado | 124 | 1 | — | 1 | 2 | |
| Delaware* | 50 | — | 1 | — | 1 | |
| Florida | 1,438 | 20 | 1 | — | 21 | |
| Georgia* | 370 | 5 | (1) | 1 | 1 | 7 |
| Idaho | 40 | — | 1 | — | 1 | |
| Illinois* | 205 | 2 | 2 | — | 4 | |
| Indiana | 98 | 1 | — | — | 1 | |
| Iowa* | 40 | 1 | — | — | 1 | |
| Kansas | 177 | 1 | — | 1 | 2 | |
| Kentucky* | 383 | 3 | 1 | — | 4 | |
| Louisiana | 87 | 2 | — | — | 2 | |
| Maine* | 100 | — | — | 1 | 1 | |
| Maryland* | 144 | 2 | — | — | 2 | |
| Massachusetts* | 529 | 2 | — | 2 | 4 | |
| Mississippi* | 55 | — | — | 1 | 1 | |
| Missouri* | 236 | — | 2 | — | 2 | |
| Nevada | 219 | 2 | — | 1 | 3 | |
| New Hampshire | 50 | — | 1 | — | 1 | |
| New Jersey* | 199 | 1 | 1 | 1 | 3 | |
| New Mexico | 87 | 1 | — | — | 1 | |
| North Carolina* | 68 | 1 | — | — | 1 | |
| North Dakota | 40 | — | — | 1 | 1 | |
| Ohio | 260 | 2 | 1 | 1 | 4 | |
| Oklahoma | 100 | 1 | 1 | — | 2 | |
| Pennsylvania | 673 | 5 | — | 4 | 9 | |
| Puerto Rico* | 75 | — | — | 2 | 2 | |
| Rhode Island* | 50 | 1 | — | — | 1 | |
| South Carolina | 505 | 4 | 4 | 1 | 9 | |
| South Dakota | 40 | 1 | — | — | 1 | |
| Tennessee* | 566 | 7 | 3 | — | 10 | |
| Texas | 1,882 | 15 | 3 | 10 | 28 | |
| Utah | 84 | 1 | — | — | 1 | |
| Virginia* | 297 | 2 | 1 | 3 | 6 | |
| West Virginia* | 272 | 2 | 2 | — | 4 | |
| Wisconsin | 56 | 1 | — | — | 1 | |
| 11,094 | 98 | 32 | 36 | 166 | ||
- Hospital certificate of need state or U.S. territory.
(1)The inpatient rehabilitation hospital in Augusta, Georgia is party to an industrial development bond financing that reduces thead valorem taxes payable by the hospital. In connection with this bond structure, title to the related property is held by the local development authority. We lease the related hospital property and hold the bonds issued by that authority, the payment on which equals the amount payable under the lease. We may terminate the bond financing and the associated lease at any time at our option without penalty, and fee title to the hospital property will return to us.
Our principal executive office, hospitals, and other properties are suitable for their respective uses and are, in all material respects, adequate for our present needs. Information regarding the utilization of our licensed beds and other operating statistics can be found in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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