Enhabit Inc. (NYSE: EHAB) continues to improve its financial standing and position with Medicare Advantage (MA) partners as it battles with the activist investor AREX Capital Management.
The company released an early snapshot of its second-quarter earnings on Monday, ahead of the full, audited release of earnings on Aug. 6.
Of Enhabit’s non-Medicare visits, 43% are now under payer innovation contracts at “improved rates,” according to the company. That’s a 5% increase from the first quarter, when just 38% of visits took place under revised, improved contracts with MA plans.
Additionally, Enhabit reported that EBITDA will fall in the range of $24.5 million to $25 million, and bank debt has been reduced by $15 million.
“The strong start to 2024 extended in Q2 as our teams successfully executed on our operational strategies,” Enhabit CEO Barb Jacobsmeyer said in a statement. “In our home health segment, our 6.4% year-over-year increase in admissions continues to be driven by non-Medicare admissions, and our teams are doing a good job managing our visits per episode and creating additional capacity for growth.”
Based in Dallas, Enhabit is one of the largest home health providers in the country. In total, it has 255 home health locations and 112 hospice locations across 34 states.
In 2024, Enhabit has been going back and forth with the activist investor AREX Capital Management, which is hoping to replace Enhabit’s current board.
Enhabit also said that it has achieved sequential growth in its hospice segment for five straight months.
“Overall, the second quarter of 2024 is on track to mark Enhabit’s third consecutive quarter of business stabilization and successfully positioning the Company for profitable growth,” Jacobsmeyer said. “This momentum underscores the strength of our strategy, disciplined approach to debt reduction and commitment to stockholder value creation.”
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