Encompass Health

Encompass Health Corporation, formerly Amcare and HealthSouth, based in Birmingham, Alabama, is the United States's largest provider of inpatient rehabilitative services, offering facility-based care through its network of 173 inpatient rehabilitation hospitals located in 39 states and Puerto Rico. Encompass Health's hospitals focus on providing rehabilitative treatment and care to patients who are recovering from stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions and amputations. The company operated a home health and hospice business that was spun off as Enhabit in 2022.

From 1996 to 2003, executives at the company committed accounting fraud on a large scale, leading to a scandal and financial restructuring.

History

Early years

Encompass Health was incorporated as Amcare, Inc. on February 22, 1984 in Birmingham, Alabama by Richard M. Scrushy and four co-founders as a provider of outpatient rehabilitation services. Scrushy developed the idea for the company in 1983 while working at Lifemark Corporation, a publicly traded hospital company that was in the process of being acquired by a competitor. Scrushy, a Lifemark vice president, recognized the need for physical therapy services were increasing at the same time hospitals were looking to cut costs and that it would be more cost-effective to offer those services in an outpatient setting.

Scrushy and the four co-founders invested $50,000 to start the company, with Scrushy contributing the largest amount at $25,000, and Citicorp Venture Capital providing an additional $1 million in funding. Scrushy took on the role of chairman and CEO, which he would hold until 2003, while the four co-founders took on administrative roles.