Encompass Health Corp. announced the construction of a freestanding, 50‑bed inpatient rehabilitation hospital in Flowood, Mississippi, slated to open in 2027. The new facility will treat patients recovering from strokes, neurological disorders, brain and spinal cord injuries, amputations, and complex orthopedic conditions, and will feature private patient rooms, a therapy gym, an activities‑of‑daily‑living suite, an in‑house dialysis suite, a dining room, pharmacy, and a therapy courtyard.
The project is part of Encompass Health’s strategy to expand its national network and increase capacity in underserved markets. Flowood will be the company’s second Mississippi location, following its Gulfport hospital. The 50‑bed addition is one of 6‑10 new hospitals the company plans to open annually through 2027, and it will add 517 new beds to the company’s portfolio in 2025 alone.
Encompass Health’s recent financial performance underscores the strategic timing of the expansion. In Q4 2025, the company reported net operating revenue of $1.54 billion, up 9.9% year‑over‑year, and adjusted EBITDA of $335.6 million, a 15.9% increase. Full‑year 2025 results showed revenue of $5.94 billion and adjusted EBITDA of $1.27 billion. Management guided for 2026 revenue of $6.37‑$6.47 billion and adjusted EBITDA of $1.34‑$1.38 billion, reflecting confidence in continued demand and operational leverage.
"We are proud to expand Encompass Health's presence in Mississippi. This new hospital will bring high‑quality, specialized rehabilitation services closer to home for residents in the Jackson area and across central Mississippi. We look forward to breaking ground and beginning the work that will ultimately help patients regain independence and return to the lives they love," said Brad Kennedy, Encompass Health group president. Mark Tarr, president and CEO, added, "Our Q4 performance was very strong, capping a stellar 2025. Our 2025 revenue increased 10.5% and Adjusted EBITDA grew 14.9%. During 2025, Encompass Health added 517 inpatient rehabilitation beds through the opening of eight new hospitals and the expansion of existing facilities. The need for the services we provide continues to grow as the U.S. population ages. We are uniquely positioned to meet this rising demand."
Encompass Health remains the largest inpatient rehabilitation operator in the United States, with 173 hospitals across 39 states and Puerto Rico as of February 2026. The company’s consistent recognition—named “America's Most Awarded Leader in Inpatient Rehabilitation” by Newsweek and Statista for six consecutive years—highlights its commitment to quality and operational excellence.
The Flowood facility strengthens Encompass Health’s footprint in the central Mississippi market, expands its bed capacity, and supports the company’s broader growth trajectory. By adding 50 new beds and reinforcing its presence in an underserved region, Encompass Health positions itself to capture increasing demand for post‑acute rehabilitation services driven by an aging population and a growing need for specialized care.
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