Encompass Health Corporation (NYSE:EHC) Q3 2023 Earnings Call Transcript

Doug Coltharp: Yes. So we’ll be honest with you. The single biggest factor was favorable weather patterns. But it was also then we are getting more efficient with regard to the utilization of prefabrication. So that contributed. We’ve been stating all along that our objective with regard to the moving to full prefabrication was to realize a 15% cost reduction versus conventional and an improvement of 25% in terms of speed to market. So we’re not quite there yet on all of the projects in the pipeline, but we’re making good headway.

Mark Tarr: We’ve had staffing in that marketplace — so it was all around the construction side and not about staffing or just being prepared to take that first patient.

Operator: Our next question will come from Ann Hynes with Mizuho Securities.

Ann Hynes : So the ramp-up cost of $10 million to $12 million this year, is that a good number to use for 2024, would be my first question? And then secondly, is there anything on the regulatory or legislative side that is on your radar for 2024?

Doug Coltharp: So Ann, on the first one, I haven’t quite put a pencil to it yet for 2024, but I think it’s probably a pretty good proxy since we opened 8 this year, and we’re looking to open up another 8 next year.

Mark Tarr: Ann, we continue to stay focused on the regulatory side. Everything from discussions around MedPAC with site neutral to — we commented here on RCD and there are other things out there. But I would say those 2 things are closest to mine right now.

Operator: At this time, we have no further questions in queue. I will turn the call back to Mark Miller for any additional or closing remarks.

Mark Miller : Thank you. If anyone else has additional questions, please call me at (205) 970-5860. Thank you again for joining today’s call.

Operator: This does conclude today’s call. We thank you for your participation. You may disconnect at any time.