Birmingham, Ala.-based Encompass Health will make its home health and hospice business into an independent, publicly traded company, named Enhabit Home Health & Hospice.
Three things to know, according to a Jan. 19 news release:
1. The board of directors said separating the home health and hospice business from the inpatient rehabilitation business will improve strategic and operational flexibility and allow each business to adopt policies that are suited to its individual needs.
2. Enhabit will be tax free to Encompass Health's shareholders, who will own stock in both companies.
3. Encompass Health will finalize the new company in the first half of 2022 but still needs regulatory approvals and other conditions.