Shares of Encompass Health Corporation (NYSE:EHC) declined 3.6% following a New York Times investigation that raised concerns about patient safety at rehabilitation hospitals, including several serious incidents at Encompass facilities.
The report revealed that Encompass Health, a leading provider in the rehab hospital sector, along with other for-profit operators, has faced rare but severe patient harm cases and underperformed on two critical safety metrics monitored by Medicare.
Among the incidents cited were a 73-year-old patient who died from carbon monoxide poisoning during construction at Encompass’s Huntington, West Virginia hospital, a 68-year-old found dead in a “pool of blood” after a bed alarm was disabled at their Jackson, Tennessee location, and a fatal medication error at the Sioux Falls, South Dakota hospital.
The Times noted that federal health agencies do not notify the public about these incidents or penalize rehab hospitals as they do nursing homes. Additionally, Medicare lacks the easy-to-understand five-star rating system for rehab centers that it provides for general hospitals.
With rehab hospitals becoming an increasingly profitable area in healthcare, Encompass Health continues to operate a large network of inpatient rehab facilities across the U.S.
Encompass Health Corporation stock price
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