2021 Q4 Form 10-Q Financial Statement

#000078516121000050 Filed on November 02, 2021

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2020 Q4
Revenue $1.319B $1.285B $1.214B
YoY Change 8.59% 9.45% 2.53%
Cost Of Revenue $54.20M $53.20M $51.70M
YoY Change 4.84% 1.33% 19.68%
Gross Profit $1.265B $1.232B $1.163B
YoY Change 8.76% 9.83% 1.88%
Gross Profit Margin 95.89% 95.86% 95.74%
Selling, General & Admin $841.6M $793.8M $744.3M
YoY Change 13.07% 9.6% -1.17%
% of Gross Profit 66.56% 64.45% 64.01%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $65.80M $64.90M $62.30M
YoY Change 5.62% 6.05% 6.68%
% of Gross Profit 5.2% 5.27% 5.36%
Operating Expenses $1.084B $1.032B $969.7M
YoY Change 11.81% 8.77% -0.91%
Operating Profit $180.3M $199.5M $168.3M
YoY Change 7.13% 32.03% 19.19%
Interest Expense -$39.00M $39.90M -$45.20M
YoY Change -13.72% -18.57% 4.39%
% of Operating Profit -21.63% 20.0% -26.86%
Other Income/Expense, Net $5.900M $400.0K $4.200M
YoY Change 40.48% -84.0% 16.67%
Pretax Income $147.2M $160.9M $149.7M
YoY Change -1.67% 26.69% 27.4%
Income Tax $31.50M $34.10M $38.00M
% Of Pretax Income 21.4% 21.19% 25.38%
Net Earnings $91.60M $100.0M $86.00M
YoY Change 6.51% 28.7% 27.22%
Net Earnings / Revenue 6.95% 7.78% 7.08%
Basic Earnings Per Share $0.92 $1.01 $0.87
Diluted Earnings Per Share $911.4K $1.00 $0.86
COMMON SHARES
Basic Shares Outstanding 99.49M shares 99.00M shares 99.43M shares
Diluted Shares Outstanding 100.2M shares

Balance Sheet

Concept 2021 Q4 2021 Q3 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $54.80M $94.80M $224.0M
YoY Change -75.54% -78.93% 136.29%
Cash & Equivalents $54.80M $94.80M $224.0M
Short-Term Investments
Other Short-Term Assets $121.2M $101.3M $86.40M
YoY Change 40.28% 37.08% -11.38%
Inventory
Prepaid Expenses
Receivables $680.3M $637.8M $563.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $921.4M $909.8M $948.6M
YoY Change -2.87% -22.53% 25.51%
LONG-TERM ASSETS
Property, Plant & Equipment $2.844B $2.707B $2.452B
YoY Change 15.96% 29.21% 25.16%
Goodwill $2.428B $2.418B $2.319B
YoY Change 4.71% 4.27% 0.59%
Intangibles $417.5M $424.3M $431.3M
YoY Change -3.2% -3.98% -9.45%
Long-Term Investments $2.400M $3.500M
YoY Change -31.43% -35.19%
Other Assets $254.5M $263.1M $295.0M
YoY Change -13.73% -13.99% -3.18%
Total Long-Term Assets $5.944B $5.812B $5.497B
YoY Change 8.12% 6.91% 3.24%
TOTAL ASSETS
Total Short-Term Assets $921.4M $909.8M $948.6M
Total Long-Term Assets $5.944B $5.812B $5.497B
Total Assets $6.865B $6.722B $6.446B
YoY Change 6.5% 1.68% 6.01%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $137.6M $149.4M $115.0M
YoY Change 19.65% 24.92% 21.56%
Accrued Expenses $348.7M $578.6M $345.7M
YoY Change 0.87% 10.02% 22.03%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $42.80M $65.90M $38.30M
YoY Change 11.75% 78.11% -2.54%
Total Short-Term Liabilities $748.8M $793.9M $717.3M
YoY Change 4.39% 16.32% -0.51%
LONG-TERM LIABILITIES
Long-Term Debt $3.244B $3.142B $3.251B
YoY Change -0.21% -11.23% 7.52%
Other Long-Term Liabilities $173.2M $223.5M $93.80M
YoY Change 84.65% -2.83% 119.67%
Total Long-Term Liabilities $173.2M $223.5M $93.80M
YoY Change 84.65% -2.83% 119.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $748.8M $793.9M $717.3M
Total Long-Term Liabilities $173.2M $223.5M $93.80M
Total Liabilities $4.466B $4.428B $4.444B
YoY Change 0.48% -5.4% 7.14%
SHAREHOLDERS EQUITY
Retained Earnings $141.8M -$242.3M
YoY Change -158.52% -53.98%
Common Stock $1.100M $1.100M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $521.2M $497.4M
YoY Change 4.78% 1.04%
Treasury Stock Shares 14.72M shares 14.43M shares
Shareholders Equity $1.911B $1.843B $1.588B
YoY Change
Total Liabilities & Shareholders Equity $6.865B $6.722B $6.446B
YoY Change 6.5% 1.68% 6.01%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2020 Q4
OPERATING ACTIVITIES
Net Income $91.60M $100.0M $86.00M
YoY Change 6.51% 28.7% 27.22%
Depreciation, Depletion And Amortization $65.80M $64.90M $62.30M
YoY Change 5.62% 6.05% 6.68%
Cash From Operating Activities $123.8M $177.6M $279.7M
YoY Change -55.74% 2.42% 29.73%
INVESTING ACTIVITIES
Capital Expenditures -$201.9M -$126.6M -$146.3M
YoY Change 38.0% 39.27% 8.37%
Acquisitions
YoY Change
Other Investing Activities -$18.80M $2.600M $3.600M
YoY Change -622.22% 116.67% -133.64%
Cash From Investing Activities -$220.7M -$124.0M -$142.7M
YoY Change 54.66% 38.24% -2.06%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 42.30M -18.50M -354.2M
YoY Change -111.94% -59.43% -16.48%
NET CHANGE
Cash From Operating Activities 123.8M 177.6M 279.7M
Cash From Investing Activities -220.7M -124.0M -142.7M
Cash From Financing Activities 42.30M -18.50M -354.2M
Net Change In Cash -54.60M 35.10M -217.2M
YoY Change -74.86% -7.87% -38.68%
FREE CASH FLOW
Cash From Operating Activities $123.8M $177.6M $279.7M
Capital Expenditures -$201.9M -$126.6M -$146.3M
Free Cash Flow $325.7M $304.2M $426.0M
YoY Change -23.54% 15.1% 21.51%

Facts In Submission

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1400000 USD
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700000 USD
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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ehc Income Loss From Continuing Operations Attributable To Common Shareholders Basic
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CY2020Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
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99600000 USD
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NetIncomeLossAvailabletoCommonStockholders
77400000 USD
ehc Net Income Loss Availableto Common Stockholders
NetIncomeLossAvailabletoCommonStockholders
319200000 USD
ehc Net Income Loss Availableto Common Stockholders
NetIncomeLossAvailabletoCommonStockholders
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WeightedAverageNumberOfSharesOutstandingBasic
99000000.0 shares
CY2020Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2020Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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0
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0
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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EarningsPerShareBasic
1.01
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EarningsPerShareBasic
0.78
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
3.22
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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CY2021Q3 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
126800000 USD
CY2020Q3 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
100100000 USD
us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
401900000 USD
us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
257100000 USD
CY2021Q3 us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
IncomeLossFromContinuingOperationsAttributableToNoncontrollingEntity
26700000 USD
CY2020Q3 us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
IncomeLossFromContinuingOperationsAttributableToNoncontrollingEntity
22400000 USD
us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
IncomeLossFromContinuingOperationsAttributableToNoncontrollingEntity
80900000 USD
us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
IncomeLossFromContinuingOperationsAttributableToNoncontrollingEntity
58900000 USD
CY2021Q3 ehc Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
100100000 USD
CY2020Q3 ehc Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
77700000 USD
ehc Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
321000000.0 USD
ehc Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
198200000 USD
CY2021Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-100000 USD
CY2020Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
0 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
0 USD
CY2021Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
100000000.0 USD
CY2020Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
77700000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
320600000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
198200000 USD
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WeightedAverageNumberOfDilutedSharesOutstanding
100200000 shares
CY2020Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
99900000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100100000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
99700000 shares
CY2021Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
1.00
CY2020Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.78
us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
3.20
us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
1.99
CY2021Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
0
CY2020Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
0
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
0
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
0
CY2021Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.00
CY2020Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.78
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
3.20
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.99
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
99000000.0 shares
CY2020Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
98700000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
98500000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
99000000.0 shares
CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100200000 shares
CY2021Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1200000 shares
CY2020Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1200000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1100000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1200000 shares
CY2020Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
99900000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100100000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
99700000 shares
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
Contingencies and Other Commitments<div style="margin-bottom:10pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We operate in a highly regulated industry in which healthcare providers are routinely subject to litigation. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against us. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect our financial position, results of operations, and cash flows in a given period. </span></div><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Nichols Litigation—</span></div><div style="margin-bottom:10pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">We were named as a defendant in a lawsuit filed March 28, 2003 by several individual stockholders in the Circuit Court of Jefferson County, Alabama, captioned </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:112%">Nichols v. HealthSouth Corp</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">. In July 2019, we entered into settlement agreements with all but one plaintiff and paid those settling plaintiffs an aggregate amount of cash less than $0.1 million. The remaining plaintiff alleged that we, some of our former officers, and our former investment bank engaged in a scheme to overstate and misrepresent our earnings and financial position. The plaintiff sought compensatory and punitive damages. On June 9, 2021, the trial court granted our renewed motion for summary judgment on all of the plaintiff’s claims. The plaintiff did not appeal, so the matter has concluded. The conclusion of this matter did not have any impact on our condensed consolidated financial statements.</span></div><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Other Matters—</span></div><div style="margin-bottom:10pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The False Claims Act allows private citizens, called “relators,” to institute civil proceedings on behalf of the United States alleging violations of the False Claims Act. These lawsuits, also known as “whistleblower” or “</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">” actions, can involve significant monetary damages, fines, attorneys’ fees and the award of bounties to the relators who successfully prosecute or bring these suits to the government. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> cases are sealed at the time of filing, which means knowledge of the information contained in the complaint typically is limited to the relator, the federal government, and the presiding court. The defendant in a </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> action may remain unaware of the existence of a sealed complaint for years. While the complaint is under seal, the government reviews the merits of the case and may conduct a broad investigation and seek discovery from the defendant and other parties before deciding whether to intervene in the case and take the lead on litigating the claims. The court lifts the seal when the government makes its decision on whether to intervene. If the government decides not to intervene, the relator may elect to continue to pursue the lawsuit individually on behalf of the government. It is possible that </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> lawsuits have been filed against us, which suits remain under seal, or that we are unaware of such filings or precluded by existing law or court order from discussing or disclosing the filing of such suits. We may be subject to liability under one or more undisclosed </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> cases brought pursuant to the False Claims Act.</span></div><div style="margin-bottom:10pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">It is our obligation as a participant in Medicare and other federal healthcare programs to routinely conduct audits and reviews of the accuracy of our billing systems and other regulatory compliance matters. As a result of these reviews, we have made, and will continue to make, disclosures to the United States Department of Health and Human Services Office of Inspector General and the Centers for Medicare &amp; Medicaid Services relating to amounts we suspect represent over-payments from these programs, whether due to inaccurate billing or otherwise. Some of these disclosures have resulted in, or may result in, Encompass Health refunding amounts to Medicare or other federal healthcare programs.</span></div>
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 segment
CY2021Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
160900000 USD
CY2020Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
127000000.0 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
510000000.0 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
322900000 USD
CY2021Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1284800000 USD
CY2020Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1173900000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
3802900000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
3430000000 USD

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