EHC Expands in Tennessee Via New JV Facility With Vanderbilt Health

Encompass Health Corporation EHC recently expanded ties with one of the Southeast’s foremost academic health systems, Vanderbilt Health, and unveiled plans to construct a new freestanding, 40-bed inpatient rehabilitation hospital. The facility will be located in Barton Village, a mixed-use master-planned community in Lebanon, TN, and is likely to commence operations in 2028. 

The hospital will offer private patient rooms, a large therapy gym equipped with state-of-the-art rehabilitation technologies, daily living suite activities, an in-house dialysis unit, a pharmacy and a therapy courtyard to support holistic healing.

The facility will provide specialized care for individuals recovering from serious illnesses and injuries such as strokes, neurological disorders, traumatic brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. Patients will benefit from around-the-clock nursing care, as well as physical, occupational and speech therapy. A multidisciplinary team of expert physicians, nurses and therapists will lead patient care.

With top-tier inpatient rehabilitation services provided through the Lebanon facility, there will be speedy recovery of patients, ensuring their quicker return to normal daily activities as well as bringing about improved health outcomes to patients across Wilson, Smith, Trousdale and Macon counties.

Encompass Health’s Motive Behind the Recent Move

The recent move reinforces Encompass Health's sincere efforts to strengthen its presence across Tennessee. The new facility will also mark the second joint venture between EHC and Vanderbilt Health, complementing their existing partnership at the Vanderbilt Stallworth Rehabilitation Hospital in Nashville.

By continually expanding its nationwide footprint of inpatient rehabilitation hospitals, Encompass Health strengthens its ability to accommodate a growing patient base and drive sustained revenue growth. As with any healthcare provider, increased patient volume directly contributes to higher revenues, and Encompass Health is no exception. In the first nine months of 2025, the company reported $4.4 billion in revenues, up 10.6% from the prior-year comparable period. 

Such an active expansion endeavor also seems to be time opportune, as patients suffering from serious health conditions seem to be on the rise, necessitating the urgency of additional inpatient rehabilitation capacity. At present, Encompass Health operates 172 rehabilitation hospitals across 39 states and Puerto Rico.

EHC’s Share Price Performance & Zacks Rank

Shares of Encompass Health have gained 13% in the past year compared with the industry’s 1.9% growth. EHC currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks in the Medical space are Intuitive Surgical, Inc. ISRG, Boston Scientific Corporation BSX and The Ensign Group, Inc. ENSG. While Intuitive Surgical currently sports a Zacks Rank #1 (Strong Buy), Boston Scientific and Ensign Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s earnings surpassed estimates in each of the last four quarters, the average surprise being 16.34%. The Zacks Consensus Estimate for ISRG’s 2025 earnings indicates a rise of 17.3%, while the consensus mark for revenues implies an improvement of 18.7% from the respective prior-year tallies. The consensus mark for ISRG’s 2025 earnings has moved 5.5% north in the past 60 days.

The bottom line of Boston Scientific outpaced estimates in each of the trailing four quarters, the average beat being 7.36%. The Zacks Consensus Estimate for BSX’s 2025 earnings indicates a rise of 21.1%, while the consensus mark for revenues implies an improvement of 19.8% from the respective prior-year tallies. The consensus mark for BSX’s 2025 earnings has moved 2.4% north in the past 60 days.

Ensign Group’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.27%. The Zacks Consensus Estimate for ENSG’s 2025 earnings indicates a rise of 18.2%, while the consensus mark for revenues implies an improvement of 18.9% from the respective prior-year tallies. The consensus mark for ENSG’s 2025 earnings has moved 1.7% north in the past 30 days.

Shares of Intuitive Surgical, Boston Scientific and Ensign Group have gained 7%, 11.6% and 28.3%, respectively, in the past year. 

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This article originally published on Zacks Investment Research (zacks.com).

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