BIRMINGHAM, Ala., July 10, 2017 /PRNewswire/ -- HealthSouth
Corporation (NYSE: HLS), the nation's leading owner and operator of
inpatient rehabilitation hospitals and a leader in home-based care,
today announced it will change its name to Encompass Health
Corporation, effective January 2,
2018. The corporate name change will be accompanied by a
NYSE ticker symbol change, from "HLS" to "EHC." Beginning in the
first quarter of 2018, both business segments will begin
transitioning to the Encompass Health name.
"This name change and rebranding initiative reflect our
expanding national footprint and the strategy we are pursuing to
deliver high-quality, cost-effective care across the post-acute
continuum," said HealthSouth President and Chief Executive Officer
Mark Tarr. "The name Encompass
Health signals our commitment to creating a seamless system where
high-quality care is coordinated by clinical teams across the
inpatient and home settings. As Encompass Health, we will honor the
legacy of our foundational businesses, HealthSouth Corporation and
Encompass Home Health & Hospice, while continuing to advance
our position as the leading provider of integrated post-acute care
solutions in a rapidly changing healthcare environment."
As Encompass Health, the Company will continue its commitment to
delivering healthcare that creates superior patient outcomes and
best-in-class solutions for healthcare systems and payors. The
Company is uniquely positioned to coordinate patients' care across
the healthcare continuum by leveraging its clinical and operational
expertise and its advanced information technology to serve as a
value-added partner to acute care hospitals, physicians and
payors.
The rollout of the Encompass Health brand will include changing
the name and logo across signage and other branded assets for the
Company's hospitals and agencies, as well as corporate resources
such as its website. The rollout is expected to be
completed by the end of 2019. During this time,
the Company will work collaboratively with its joint venture
partners to determine the timing and nature of name and logo
updates for jointly-owned assets. The Company is committed to
remaining headquartered in Birmingham,
Alabama, where it is scheduled to open its new home office
in early 2018.
The total rebranding investment is estimated to be approximately
$25 million to $30 million, to be
incurred between 2017 and 2019. Approximately $7 million to $10 million is expected to be
incurred in 2017, of which $6 million to $8
million will be operating expenses and $1 million to $2 million will be capital
expenditures. Only $1 million of this
investment is included in previously provided full-year 2017
guidance which will be updated in conjunction with the Company's
second quarter earnings release scheduled for July 31, 2017.
Mark Tarr commented further: "The
decision to rebrand as Encompass Health is the result of a
yearlong, research-intensive process and is intended to raise
awareness of our Company's strategy and value proposition with all
key constituencies. Throughout this process, we have worked closely
with Prophet, a leading brand-driven growth consulting firm."
The Company will host an investor conference call at 9:00
a.m. Eastern Time on Tuesday, July 11,
2017 to discuss this announcement. For reference during the
call, the Company will post certain supplemental information at
http://investor.healthsouth.com.
The conference call may be accessed by dialing 877 587-6761 and
giving the pass code 47033694. International callers should dial
706 679-1635 and give the same pass code. Please call approximately
ten minutes before the start of the call to ensure you are
connected. The conference call will also be webcast live and
will be available at http://investor.healthsouth.com by
clicking on an available link.
An online replay of the conference call will be available after
the live broadcast at http://investor.healthsouth.com.
About HealthSouth
HealthSouth is one of the nation's
largest providers of post-acute healthcare services, offering both
facility-based and home-based post-acute services in 36 states and
Puerto Rico through its network of
inpatient rehabilitation hospitals, home health agencies and
hospice agencies. HealthSouth can be found on the Web at
www.healthsouth.com.
Forward-Looking Statements
Statements contained in
this press release which are not historical facts, such as the
timing, costs, and impacts of the rebranding initiative, are
forward-looking statements. In addition, HealthSouth, through its
senior management, may from time to time make forward-looking
public statements concerning the matters described herein. All such
estimates, projections, and forward-looking information speak only
as of the date hereof, and HealthSouth undertakes no duty to
publicly update or revise such forward-looking information, whether
as a result of new information, future events, or otherwise. Such
forward-looking statements are necessarily estimates based upon
current information, involve a number of risks and uncertainties,
and relate to, among other things, future events, HealthSouth's
business strategy, its future financial performance, its projected
business results or model, and the expected investment in the
rebranding initiative. Actual events or results may differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors. While it is
impossible to identify all such factors, factors which could cause
actual events or results to differ materially from those estimated
by HealthSouth include, but are not limited to, legal challenges or
obstacles to the registration or use of the new name; any adverse
outcome of various lawsuits, claims, and legal or regulatory
proceedings that may be brought by or against HealthSouth; the
impact of the rebranding initiative on patient admissions, referral
source relationships and HealthSouth's stock price; the ability to
successfully integrate acquisitions; changes in the regulation of
the healthcare industry broadly or the inpatient rehabilitation,
home health and hospice areas specifically at either or both of the
federal and state levels; competitive pressures in the healthcare
industry broadly or the inpatient rehabilitation, home health and
hospice areas specifically and HealthSouth's response thereto; the
ability to maintain proper local, state and federal licensing where
the company does business; potential disruptions, breaches, or
other incidents affecting the proper operation, availability, or
security of HealthSouth's information systems, including the
unauthorized access to or theft of patient or other sensitive
information; changes, delays in (including in connection with
resolution of Medicare payment reviews or appeals), or suspension
of reimbursement for HealthSouth's services by governmental or
private payors; general conditions in the economy and capital
markets; and other factors which may be identified from time to
time in HealthSouth's SEC filings and other public announcements,
including HealthSouth's Form 10‑K for the year ended
December 31, 2016 and Form 10-Q for the quarter ended
March 31, 2017.
Media Contact:
Casey Lassiter, 205 447-6410
casey.lassiter@healthsouth.com
Investor Relations Contact:
Crissy Carlisle, 205 970-5860
crissy.carlisle@healthsouth.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/healthsouth-corporation-announces-planned-name-change-to-encompass-health-corporation-300485310.html
SOURCE HealthSouth Corporation