Enhabit (EHAB) investor relations material

Business performance and strategic initiatives

• Achieved growth in home health and hospice, driven by payer strategy, operational pilots, and improved contracting, including a double-digit rate increase with a large national payer.

• Focused on expanding home health census, payer mix optimization, and opening de novo locations in strategic markets.

• Hospice growth attributed to restructuring care teams, eliminating capacity constraints, and diversifying referral sources.

• Emphasized value-based performance, patient experience, and reducing readmission rates.

• Achieved sequential growth in net service revenue and Adjusted EBITDA for home health, and consistent ADC growth in hospice.

Regulatory and industry environment

• Facing a proposed 6.4% Medicare rate cut, with ongoing advocacy for a two-year pause and market basket updates.

• Legislative and CMS engagement underway to address flawed payment methodology and data issues, with grassroots campaigns and industry advocacy.

• Industry disruption and possible consolidation anticipated if rate cuts proceed.

• Benefiting from demographic tailwinds, with a growing aging population and strong preference for home-based care.

• Loss of home health access leads to higher mortality, increased readmissions, more ER visits, and higher Medicare costs.

Operational efficiency and cost management

• Piloting technology-driven adherence to visit recommendations to optimize clinical quality and efficiency.

• Each half-visit reduction per episode could yield $5–8 million in annual benefit, with further guidance expected in Q3.

• G&A cost reviews underway, with actions already taken and further opportunities being assessed.

• No major labor force challenges currently, with selective market pressures and opportunities to attract talent from competitors.

• Prioritized financial health by reducing leverage, managing G&A expenses, and improving revenue per patient day.