ENHABIT, INC., 10-K filed on 3/6/2025
Annual Report
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Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Mar. 03, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-41406    
Entity Registrant Name Enhabit, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 47-2409192    
Entity Address, Address Line One 6688 N. Central Expressway    
Entity Address, Address Line Two Suite 1300    
Entity Address, City or Town Dallas    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 75206    
City Area Code 214    
Local Phone Number 239-6500    
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol EHAB    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 440.4
Entity Common Stock, Shares Outstanding   50,479,951  
Documents Incorporated by Reference
Portions of the registrant’s proxy statement for its 2025 Annual Meeting of stockholders are incorporated by reference into Part III.
    
Entity Central Index Key 0001803737    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
 12 Months Ended
Dec. 31, 2024
Auditor Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Dallas, Texas
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CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net service revenue $ 1,034.8 $ 1,046.3 $ 1,071.1
Revenue, Product and Service [Extensible Enumeration] Service [Member] Service [Member] Service [Member]
Cost of service, excluding depreciation and amortization $ 530.8 $ 535.6 $ 525.6
Cost, Product and Service [Extensible Enumeration] Service [Member] Service [Member] Service [Member]
General and administrative expenses $ 425.9 $ 441.6 $ 414.9
Depreciation and amortization 31.5 30.9 33.0
Impairment of goodwill 161.7 85.8 109.0
Operating loss (115.1) (47.6) (11.4)
Interest expense and amortization of debt discounts and fees 42.9 43.0 15.0
Other income 0.0 (0.2) (0.9)
Loss before income taxes and noncontrolling interests (158.0) (90.4) (25.5)
(Benefit from) provision for income taxes (4.0) (11.4) 12.8
Net loss (154.0) (79.0) (38.3)
Less: Net income attributable to noncontrolling interests 2.2 1.5 2.1
Net loss attributable to Enhabit, Inc. $ (156.2) $ (80.5) $ (40.4)
Weighted average common shares outstanding:      
Basic (in shares) 50.2 49.9 49.7
Diluted (in shares) 50.2 49.9 49.7
Loss per common share:      
Basic loss per share attributable to Enhabit, Inc. common stockholders (in dollars per share) $ (3.11) $ (1.61) $ (0.81)
Diluted loss per share attributable to Enhabit, Inc. common stockholders (in dollars per share) $ (3.11) $ (1.61) $ (0.81)
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (154.0) $ (79.0) $ (38.3)
Other comprehensive income (loss)      
Unrealized gain (loss) on cash flow hedges, net of tax expense (benefit) of $0.1, $0.1, and $(0.2), respectively 0.3 0.2 (0.7)
Total other comprehensive income (loss) 0.3 0.2 (0.7)
Comprehensive loss including noncontrolling interests (153.7) (78.8) (39.0)
Less: Comprehensive income attributable to noncontrolling interests 2.2 1.5 2.1
Comprehensive loss attributable to Enhabit, Inc. $ (155.9) $ (80.3) $ (41.1)
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Unrealized gain (loss) of cash flow hedges, net of tax expense (benefit) $ 0.1 $ 0.1 $ (0.2)
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 28.4 $ 27.4
Restricted cash 1.9 2.4
Accounts receivable, net of allowances 149.2 164.7
Prepaid expenses and other current assets 13.2 15.6
Total current assets 192.7 210.1
Property and equipment, net 17.7 19.0
Operating lease right-of-use assets 52.8 57.5
Goodwill 900.0 1,061.7
Intangible assets, net 58.1 80.0
Other long-term assets 4.7 5.3
Total assets 1,226.0 1,433.6
Current liabilities:    
Current portion of long-term debt 22.8 22.5
Current portion of operating lease liabilities 12.3 11.8
Accounts payable 6.7 7.6
Accrued payroll 37.1 38.5
Refunds due patients and other third-party payers 5.4 8.2
Accrued medical insurance 5.5 8.4
Other current liabilities 36.4 40.7
Total current liabilities 126.2 137.7
Long-term debt, net of current portion 492.6 530.1
Long-term operating lease liabilities, net of current portion 41.8 45.7
Deferred income tax liabilities 11.5 17.1
Other long-term liabilities 0.0 1.3
Total liabilities 672.1 731.9
Commitments and contingencies (See Note 13)
Redeemable noncontrolling interests 5.0 5.0
Enhabit, Inc. stockholders’ equity:    
Preferred stock, $0.10 par value; 1,500,000 shares authorized; no shares issued 0.0 0.0
Enhabit, Inc. stockholders’ equity: Common stock, $0.01 par value; 200,000,000 shares authorized; 50,589,768 and 50,167,706 shares issued; and 50,369,917 and 50,053,375 shares outstanding as of December 31, 2024 and 2023, respectively 0.5 0.5
Capital in excess of par value 426.6 415.8
Accumulated other comprehensive loss (0.2) (0.5)
Retained earnings 98.3 254.5
Treasury stock, at cost, 219,851 and $114,331 shares as of December 31, 2024 and 2023, respectively (1.7) (0.6)
Total Enhabit, Inc. stockholders’ equity 523.5 669.7
Noncontrolling interests 25.4 27.0
Total stockholders’ equity 548.9 696.7
Total liabilities and stockholders’ equity $ 1,226.0 $ 1,433.6
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.10 $ 0.10
Preferred stock, shares authorized (in shares) 1,500,000 1,500,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 50,589,768 50,167,706
Common stock, shares outstanding (in shares) 50,369,917 50,053,375
Treasury stock (in shares) 219,851 114,331
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Millions
Total
Common Stock
Capital in Excess of Par Value
Accumulated Other Comprehensive Loss
Retained Earnings
Treasury Stock
Noncontrolling Interests
Number of Common Shares Outstanding, beginning balance (in shares) at Dec. 31, 2021   49,600,000          
Balance at beginning of period at Dec. 31, 2021 $ 1,478.3 $ 0.5 $ 1,094.1 $ 0.0 $ 375.4 $ 0.0 $ 8.3
Number of treasury shares outstanding, beginning balance (in shares) at Dec. 31, 2021           0  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net (loss) income (38.5)       (40.4)   1.9
Other comprehensive loss, net of tax (0.7)     (0.7)      
Capital contributions 62.3   62.3        
Capital distributions (759.1)   (759.1)        
Distributions declared (1.2)           (1.2)
Acquisitions 15.9           15.9
Issuance of restricted stock awards (in shares)   500,000          
Contributions from noncontrolling interests of consolidated affiliates 6.4   2.9       3.5
Other 6.7   6.7        
Number of Common Shares Outstanding, ending balance (in shares) at Dec. 31, 2022   50,100,000          
Balance at end of period at Dec. 31, 2022 770.1 $ 0.5 406.9 (0.7) 335.0 $ 0.0 28.4
Number of treasury shares outstanding, ending balance (in shares) at Dec. 31, 2022           0  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net (loss) income (79.0)       (80.5)   1.5
Other comprehensive loss, net of tax 0.2     0.2      
Distributions declared (2.9)           (2.9)
Stock-based compensation expense 8.9   8.9        
Restricted stock forfeited, including forfeitures due to net share settlement of income taxes (in shares)   (100,000)       100,000  
Restricted stock forfeited, including forfeitures due to net share settlement of income taxes $ (0.6)         $ (0.6)  
Issuance of common stock pursuant to omnibus incentive plan (in shares)   100,000          
Number of Common Shares Outstanding, ending balance (in shares) at Dec. 31, 2023 50,053,375 50,100,000          
Balance at end of period at Dec. 31, 2023 $ 696.7 $ 0.5 415.8 (0.5) 254.5 $ (0.6) 27.0
Number of treasury shares outstanding, ending balance (in shares) at Dec. 31, 2023 114,331         100,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net (loss) income $ (154.0)       (156.2)   2.2
Other comprehensive loss, net of tax 0.3     0.3      
Distributions declared (3.8)           (3.8)
Stock-based compensation expense 10.8   10.8        
Restricted stock forfeited, including forfeitures due to net share settlement of income taxes (in shares)   (100,000)       100,000  
Restricted stock forfeited, including forfeitures due to net share settlement of income taxes $ (1.1)         $ (1.1)  
Issuance of common stock pursuant to omnibus incentive plan (in shares)   400,000          
Number of Common Shares Outstanding, ending balance (in shares) at Dec. 31, 2024 50,369,917 50,400,000          
Balance at end of period at Dec. 31, 2024 $ 548.9 $ 0.5 $ 426.6 $ (0.2) $ 98.3 $ (1.7) $ 25.4
Number of treasury shares outstanding, ending balance (in shares) at Dec. 31, 2024 219,851         200,000  
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net loss $ (154.0) $ (79.0) $ (38.3)
Adjustments to reconcile net loss to net cash provided by operating activities—      
Depreciation and amortization 31.5 30.9 33.0
Amortization of debt related costs 1.5 2.1 0.6
Impairment of goodwill 161.7 85.8 109.0
Stock-based compensation 11.7 8.9 9.2
Deferred income taxes (5.7) (11.6) (4.3)
Other, net (0.6) (0.4) 0.1
Changes in assets and liabilities, net of acquisitions —      
Accounts receivable, net of allowances 15.5 (14.6) 21.6
Prepaid expenses and other assets 3.1 19.1 (27.5)
Accounts payable (1.0) 3.8 0.2
Accrued payroll (2.3) 3.0 (31.0)
Other liabilities (10.2) 0.4 7.5
Net cash provided by operating activities 51.2 48.4 80.1
Cash flows from investing activities:      
Acquisition of businesses, net of cash acquired 0.0 (2.8) (36.3)
Purchases of property and equipment, including capitalized software costs (3.8) (3.5) (7.1)
Other 1.4 1.0 1.1
Net cash used in investing activities (2.4) (5.3) (42.3)
Cash flows from financing activities:      
Principal borrowings on term loan 0.0 0.0 400.0
Principal payments on debt (20.0) (20.0) (10.0)
Borrowings on revolving credit facility 0.0 0.0 190.0
Payments on revolving credit facility (20.0) (10.0) 0.0
Principal payments under finance lease obligations (3.6) (3.4) (5.0)
Debt issuance costs 0.0 (3.2) (4.7)
Distributions paid to noncontrolling interests of consolidated affiliates (3.7) (3.2) 0.0
Contributions from Encompass 0.0 0.0 59.8
Distributions to Encompass 0.0 0.0 (654.9)
Contributions from noncontrolling interests of consolidated affiliates 0.0 0.0 7.4
Other (1.0) (0.7) (1.2)
Net cash used in financing activities (48.3) (40.5) (18.6)
Increase in cash, cash equivalents, and restricted cash 0.5 2.6 19.2
Cash, cash equivalents, and restricted cash at beginning of year 29.8 27.2 8.0
Cash, cash equivalents, and restricted cash at end of year $ 30.3 $ 29.8 $ 27.2
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Organization and Description of Business. Enhabit, Inc. (“Enhabit” or the “Company”), incorporated in Delaware in 2014, provides a comprehensive range of Medicare-certified skilled home health and hospice services in 34 states, with a concentration in the southern half of the United States. The Company manages its operations and discloses financial information using two reportable segments: (1) Home Health and (2) Hospice. See Note 14, Segment Reporting. References in this Annual Report on Form 10-K to “Enhabit” or “the Company” refer to Enhabit, Inc., and all wholly‑owned subsidiaries included in the consolidated financial statements. Prior to July 1, 2022, the Company operated as a reporting segment of Encompass Health Corporation (“Encompass”).
On December 9, 2020, Encompass announced a formal process to explore strategic alternatives for its home health and hospice business. On January 19, 2022, Encompass announced its home health and hospice business would be rebranded and operate under the name Enhabit Home Health & Hospice. In March 2022, the Company changed its name from Encompass Health Home Health Holdings, Inc. to Enhabit, Inc.
Separation from Encompass. On July 1, 2022, Encompass completed the previously announced separation of the Company through the distribution of all of the outstanding shares of common stock, par value $0.01 per share, of Enhabit to the stockholders of record of Encompass (the “Distribution”) as of the close of business on June 24, 2022 (the “Record Date”). The Distribution was effective at 12:01 a.m. Eastern Time on July 1, 2022. The Distribution was structured as a pro rata distribution of one share of Enhabit common stock for every two shares of Encompass common stock held of record as of the Record Date. No fractional shares were distributed. A cash payment was made in lieu of any fractional shares. As a result of the Distribution, Enhabit is now an independent public company, and its common stock is listed under the symbol “EHAB” on the New York Stock Exchange (the “Separation”).
The Separation was completed pursuant to a separation and distribution agreement (the “Separation and Distribution Agreement”) and other agreements with Encompass related to the Separation, including, but not limited to, a tax matters agreement (the “Tax Matters Agreement”), an employee matters agreement (the “Employee Matters Agreement”), and a transition services agreement (the “Transition Services Agreement” or “TSA”). Following the Separation, certain functions were provided by Encompass under the TSA. As of April 1, 2024, these functions are being performed using the Company’s own resources or third-party providers.
In early 2022, in anticipation of the Distribution, the Company transferred the “Encompass” trade name with a book value of $135.2 million and the related deferred tax liabilities with a book value of $31.0 million to Encompass, as they will continue to operate under the Encompass brand.
All share and earnings per share information has been retroactively adjusted for all periods presented to reflect the Distribution.
See also Note 8, Long-Term Debt.
Basis of Presentation and Consolidation. For periods prior to July 1, 2022, the accompanying consolidated financial statements of the Company and its subsidiaries have been derived from the consolidated financial statements and accounting records of Encompass as if the Company had operated on a stand-alone basis during the periods presented and were prepared utilizing the legal entity approach, in accordance with generally accepted accounting principles in the United States of America (“GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Prior to July 1, 2022, the Company was reported as a single reportable segment within Encompass’s reportable segments and did not operate as a stand-alone company. Accordingly, Encompass historically reported the financial position and the related results of operations, cash flows, and changes in equity of the Company as a component of Encompass’s consolidated financial statements.
The consolidated financial statements include an allocation of expenses related to certain Encompass corporate functions as discussed in Note 15, Related Party Transactions. The consolidated financial statements also include revenues and expenses directly attributable to the Company and assets and liabilities specifically attributable to the Company. Encompass’s third-party debt and related interest expense have not been attributed to the Company because the Company is not the primary legal obligor of the debt, and the borrowings are not specifically identifiable to the Company. However,
subsequent to April 23, 2020, the Company was a guarantor for Encompass’s credit agreement and senior debt. In connection with the Distribution, the Company was released from its guarantee of Encompass’s indebtedness. The Company maintains its own cash management system and does not participate in a centralized cash management arrangement with Encompass.
Prior to the Distribution and Separation, Enhabit joined with Encompass in various U.S. federal, state, and local consolidated income tax filings. See Note 11, Income Taxes, for information related to the Company’s Tax Sharing Agreement with Encompass. The income tax amounts in these consolidated financial statements have been calculated based on a separate return methodology and are presented as if Enhabit’s income gave rise to separate federal and state consolidated income tax return filing obligations in the respective jurisdictions in which the Company operates, with adjustments described in Note 11, Income Taxes.
The consolidated financial statements include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which the Company exercises control, and, when applicable, entities in which the Company has a controlling financial interest.
Enhabit eliminates all intercompany accounts and transactions within the Company from its financial results. Transactions between the Company and Encompass have been included in these consolidated financial statements. The transfers with Encompass that were not settled are reflected in stockholders’ equity within Capital in excess of par value on the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity. Within the Consolidated Statements of Cash Flows, these transfers are treated as an operating, financing or noncash activity determined by the nature of the transaction. Transactions between the Company and Encompass prior to July 1, 2022 were considered related party transactions. See Note 15, Related Party Transactions, for more information.
Variable Interest Entities. Any entity considered a variable interest entity (“VIE”) is evaluated to determine which party is the primary beneficiary and thus should consolidate the VIE. This analysis is complex, involves uncertainties, and requires significant judgment on various matters. To determine if Enhabit is the primary beneficiary of a VIE, the Company must determine what activities most significantly impact the economic performance of the entity, whether the Company has the power to direct those activities, and if the Company’s obligation to absorb losses or receive benefits from the VIE could potentially be significant to the VIE. See Note 3, Variable Interest Entities, for more information.
Use of Estimates and Assumptions. The preparation of Enhabit’s consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are used for, but not limited to: (1) estimates of net transaction prices to be collected for services and related revenue adjustments; (2) fair value of acquired assets and assumed liabilities in business combinations; (3) asset impairments, including goodwill; (4) depreciable lives of assets; (5) useful lives of intangible assets; (6) economic lives and fair value of leased assets; (7) fair value of stock-based compensation; (8) fair value of derivative instruments; (9) reserves for self-insured healthcare plans;(10) reserves for professional, workers’ compensation, and comprehensive general insurance liability risks; and (11) income taxes. Future events and their effects cannot be predicted with certainty; accordingly, Management’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of Enhabit’s consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company’s operating environment changes. Management evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates.
COVID-19 Pandemic. The rapid onset of the COVID-19 Pandemic (the “pandemic”) caused a disruption to the nation’s healthcare system. In response to the public health emergency associated with the pandemic, the United States Congress and Centers for Medicare and Medicaid Services (“CMS”) adopted several statutory and regulatory measures intended to provide relief to healthcare providers to ensure patients would continue to have adequate access to care. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”), which temporarily suspended sequestration from May 1 through December 31, 2021. After the sequestration suspension was extended several times, sequestration resumed as of April 1, 2022, but was only a 1% payment reduction through June 30, 2022. Thereafter, the full 2% Medicare payment reduction resumed. Federal
legislation, including the CARES Act and the 2021 Budget Act, and CMS regulatory actions include a number of other provisions, which are discussed below, affecting the Company’s reimbursement and operations in both segments. In the United States, the public health emergency measures expired on May 11, 2023.
Net Service Revenue. Net service revenue by payer source and segment is as follows (in millions):
Home Health Hospice Consolidated     
Year Ended December 31,
Year Ended December 31,
Year Ended December 31,
202420232022202420232022202420232022
Medicare$484.6 $557.4 $647.7 $206.5 $190.5 $191.7 $691.1 $747.9 $839.4 
Medicare Advantage237.9 199.2 152.1 — — — 237.9 199.2 152.1 
Managed care91.1 80.9 63.7 3.5 5.0 1.4 94.6 85.9 65.1 
Medicaid9.4 11.8 12.0 — 0.7 0.9 9.4 12.5 12.9 
Other1.8 0.8 1.6 — — — 1.8 0.8 1.6 
Total$824.8 $850.1 $877.1 $210.0 $196.2 $194.0 $1,034.8 $1,046.3 $1,071.1 
Enhabit records Net service revenue on an accrual basis using management’s best estimate of the transaction price for the type of service provided to the patient and expect to receive in exchange for providing services directly to patients. Management’s estimate of the transaction price includes adjustments for contractual rate and other revenue adjustments, including uncollectible amounts. Contractual rate revenue adjustments are recorded for the excess of the Company’s standard rates over the contracted rate applicable to the relevant payer, if any. Management calculates contractual rate adjustments on a patient-by-patient basis based on the rates in effect for each primary third-party payer. Other revenue adjustments include adjustments for self-pay, uninsured patients and other payers and include revenue adjustments arising from billing documentation, face-to-face documentation, authorizations, and adjustments that may arise from payment, and other reviews by third-party payers or their agents. Estimates for other revenue adjustments are determined based on the aging of the Company’s accounts receivable, its historical collection experience for each type of payer, its success rate in the claims adjudication process, and other relevant factors.
Management continually reviews the transaction price estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms that result from contract renegotiations and renewals. Due to complexities involved in determining amounts ultimately due under reimbursement arrangements with third-party payers, which are often subject to interpretation, Enhabit may receive reimbursement for healthcare services authorized and provided that is different from management’s estimates, and such differences could be material. In addition, laws and regulations governing the Medicare and Medicaid programs are complex, subject to interpretation, and are routinely modified for provider reimbursement. All healthcare providers participating in the Medicare and Medicaid programs are required to meet certain financial reporting requirements. Federal regulations require submission of annual cost reports covering medical costs and expenses associated with the services provided under each home health and hospice provider number to program beneficiaries. Annual cost reports required under the Medicare and Medicaid programs are subject to routine audits, which may result in adjustments to the amounts ultimately determined to be due to the Company under these reimbursement programs. If actual results are not consistent with management’s assumptions and judgments, the Company may be exposed to adjustments to Net service revenue that could be material.
CMS has been granted authority to suspend payments, in whole or in part, to Medicare providers if CMS possesses reliable information concerning an overpayment, fraud, or willful misrepresentation. If CMS suspects payments are being made as the result of fraud or willful misrepresentation, CMS may suspend payment at any time without providing prior notice to the Company. The initial suspension period is limited to 180 days; however, the payment suspension period can be extended almost indefinitely if the matter is under investigation by the United States Department of Health and Human Services Office of Inspector General or the United States Department of Justice. Therefore, management is unable to predict if or when the Company may be subject to a suspension of payments by the Medicare and/or Medicaid programs, the possible length of the suspension period, or the potential cash flow impact of a payment suspension. Any such suspension would adversely impact the Company’s financial position, results of operations, and cash flows.
Enhabit’s performance obligations relate to contracts with a duration of less than one year. Therefore, management elected to apply the optional exemption to not disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. These unsatisfied or partially unsatisfied performance obligations primarily relate to services provided at the end of the reporting period.
The Company is subject to changes in government legislation that could impact Medicare payment levels and changes in payer patterns that may impact the level and timing of payments for services rendered.
Home Health Revenues
Under the Medicare home health prospective payment system, the Company is paid by Medicare based on episodes of care. The performance obligation is the rendering of services to the patient during the term of the episode of care. An episode of care is defined as a length of stay up to 60 days, with multiple continuous episodes allowed. A base episode payment is established by the Medicare program through federal regulation. The base episode payment can be adjusted based on each patient’s health including clinical condition, functional abilities, and service needs, as well as for the applicable geographic wage index, low utilization, patient transfers, and other factors. The services covered by the episode payment include all disciplines of care in addition to medical supplies. Medicare reimburses home health providers under the Patient-Driven Groupings Model (“PDGM”). Under the PDGM, the initial certification remains valid for 60 days. If a patient remains eligible for care after the initial period as certified by a physician, a new treatment period may begin.
As the Company provides home health services to its patients on a scheduled basis over the episode of care in a manner that approximates a pro rata pattern, revenue for the episode of care is recorded over an average length of treatment period using a calendar day prorating method. The amount of revenue recognized for episodes of care which are incomplete at period end is based on the pro rata number of days in the episode that have been completed as of the period end date.
Enhabit is subject to certain Medicare regulations affecting outlier revenue if its patient’s care was unusually costly. Regulations require a cap on all outlier revenue at 10% of total Medicare revenues received by each provider during a cost reporting year. Management has reviewed the potential cap. Adjustments to the transaction price for the outlier cap were not material as of December 31, 2024, 2023, and 2022.
For episodic-based rates that are paid by other insurance carriers, including Medicare Advantage, the Company recognizes revenue in a similar manner as discussed above for Medicare revenues. However, these rates can vary based upon the negotiated terms. For non-episodic-based revenue, revenue is recorded on an accrual basis based upon the date of service at amounts equal to the Company’s estimated per-visit transaction price. Price concessions, including contractual rate and other revenue adjustments are recorded as decreases to the transaction price.
Hospice Revenues
Medicare revenues for Hospice are recognized and recorded on an accrual basis using the input method based on the number of days a patient has been on service at amounts equal to an estimated daily or hourly payment rate. The performance obligation is the rendering of services to the patient during each day that he or she is on hospice care. The payment rate is dependent on whether a patient is receiving routine home care, general inpatient care, continuous home care or respite care. Adjustments to Medicare revenues are recorded based on an inability to obtain appropriate billing documentation or authorizations acceptable to the payer or other reasons unrelated to credit risk. Hospice companies are subject to two specific payment limit caps under the Medicare program. One limit relates to inpatient care days that exceed 20% of the total days of hospice care provided for the year. The second limit relates to an aggregate Medicare reimbursement cap calculated by the Medicare Administrative Contractors. Adjustments to the transaction price for these caps were $1.4 million, zero and $0.2 million for December 31, 2024, 2023, and 2022.
For non-Medicare Hospice revenues, Enhabit records gross revenue on an accrual basis based upon the date of service at amounts equal to the Company’s estimated per day transaction price. Price concessions, including contractual and other revenue adjustments are recorded as decreases to the transaction price and thus reduce Net service revenue.
Cash and Cash Equivalents. Cash and cash equivalents include highly liquid investments with original maturities of three months or less when purchased. Carrying values of Cash and cash equivalents approximate fair value due to the short-term nature of these instruments.
The Company maintains amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the creditworthiness of those institutions, and the Company has not experienced any losses on such deposits.
Restricted Cash. Restricted cash represents cash accounts maintained by a joint venture in which the Company’s joint venture partner requested, and management agreed, that the joint venture’s cash not be commingled with other corporate cash accounts and be used only to fund the operations of the joint venture.
Accounts Receivable, Net of Allowances. Accounts receivable, net of allowances, from services rendered are reported at their estimated transaction price, which takes into account price concessions based on the amounts expected to be due from payers including federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies, workers’ compensation programs, employers, and patients. Management estimates the value of Accounts receivable, net of allowances, based upon historical experience and other factors, including an aging of accounts receivable, evaluation of expected adjustments, past adjustments, and collection experience in relation to amounts billed, current contract and reimbursement terms, shifts in payers and other relevant information. Collection of Net service revenue the Company expects to receive is normally a function of providing complete and correct billing information to the payers within the various filing deadlines. The evaluation of these factors involves complex, subjective judgments impacting the determination of the implicit price concession assumption. In addition, management compares the Company’s cash collections to recorded Net service revenue and evaluates historical allowances, including implicit price concessions, based upon the ultimate resolution of the accounts receivable balance.
Accounts receivable, net of allowances, are concentrated by type of payer. The concentration of patient service accounts receivable by payer class, as a percentage of total patient service Accounts receivable, net of allowances, is as follows:
 As of December 31,
20242023
Medicare63.9 %66.9 %
Managed care and other discount plans, including Medicare Advantage28.1 %27.1 %
Medicaid7.1 %5.2 %
Other0.9 %0.8 %
Total100.0 %100.0 %
While revenues and accounts receivable from the Medicare program are significant to Enhabit’s operations, management does not believe there are significant credit risks associated with this government agency. Management does not believe there are any other significant concentrations of revenues from any particular payer that would subject the Company to any significant credit risks in the collection of accounts receivable.
Accounts requiring collection efforts are reviewed via system-generated work queues that automatically stage (based on age and size of outstanding balance) accounts requiring collection efforts by patient account representatives. Collection efforts include contacting the applicable party (both in writing and by telephone), providing information (both financial and clinical) to allow for payment or to overturn payer decisions to deny payment, and arranging payment plans with self-pay patients, among other techniques. When management determines all in-house efforts have been exhausted or it is a more prudent use of resources, accounts may be turned over to a collection agency.
The collection of outstanding receivables from Medicare and managed care payers is Enhabit’s primary source of cash and is critical to the Company’s operating performance. While it is Company policy to verify insurance prior to a patient being admitted, there are various exceptions that can occur. Such exceptions include instances where the Company is unable to obtain verification because the patient’s insurance company was unresponsive to attempts to be contacted or a determination is made that a patient may be eligible for benefits under various government programs, such as Medicaid, but confirmation of qualification or denial for such benefits may take several days, weeks, or months to be communicated.
If actual results are not consistent with management’s assumptions and judgments, the Company may be exposed to adjustments to Net service revenue and cash collections that could be material. Changes in general economic conditions, business office operations, payer mix, or trends in federal or state governmental and private employer healthcare coverage could affect the Company’s collection of accounts receivable, financial position, results of operations, and cash flows.
Subsequent adjustments to accounts receivable determined to be the result of an adverse change in the payer’s ability to pay are recognized as provision for credit losses. The majority of what historically was classified as provision for credit losses under operating expenses is now treated as an implicit price concession factored into the determination of Net service revenue discussed above. As of December 31, 2024 and 2023, the allowance for credit losses was $0.9 million and $1.1 million, respectively. See Note 4, Accounts Receivable, Net of Allowances, for additional information.
Property and Equipment. Enhabit reports leasehold improvements, vehicles, and equipment at cost, net of accumulated depreciation and amortization, as well as any asset impairments. The Company depreciates assets using the straight-line method over the shorter of the estimated useful life of the assets or life of the underlying leases. Useful lives are generally as follows:
 Years
Leasehold improvements
2 to 5
Vehicles
3 to 4
Furniture, fixtures, and equipment
2 to 5
Maintenance and repairs of leasehold improvements and equipment are expensed as incurred. The Company capitalizes replacements and betterments that increase the estimated useful life of an asset.
The Company retains fully depreciated assets and the related accumulated depreciation accounts until the assets are removed from service. In the case of sale, retirement, or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, less any proceeds, is included as a component of income from continuing operations in the Consolidated Statements of Income.
Leases. Management determines if an arrangement is a lease, or contains a lease, at the inception of the contract and performs an analysis to determine whether the lease is an operating lease or a finance lease. The Company measures right‑of-use assets and lease liabilities at the lease commencement date based on the present value of the remaining lease payments. As most leases do not provide a readily determinable implicit rate, management estimates an incremental borrowing rate based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, adjusting this amount based on the impact of collateral over the term of each lease. Management uses this rate to discount the remaining lease payments in measuring the right-of-use asset and lease liability. The implicit rate is used when readily determinable. Lease expense is recognized for operating leases on a straight-line basis over the lease term. For finance leases, the Company recognizes amortization expense from the amortization of the right-of-use asset and interest expense on the related lease liability. Certain lease agreements contain annual escalation clauses based on changes in the Consumer Price Index. The changes to the Consumer Price Index, as compared to management’s initial estimate at the lease commencement date, are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Management does not account for lease and non‑lease components separately for purposes of establishing right-of-use assets and lease liabilities.
Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.
Goodwill and Other Intangible Assets, Net. Goodwill is required to be tested for impairment at least annually, as of October 1st, absent any triggering events that would accelerate an impairment assessment. The Company may perform interim impairment tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit or an indefinite lived intangible asset below its carrying amount. Potential impairment of a reporting unit is
identified by comparing the reporting unit’s estimated fair value to its carrying amount. The Company would recognize an impairment charge for any amount by which the carrying amount of the asset exceeds its fair value.
The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit-specific operating results, as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for its reporting units and perform a quantitative test as of the measurement date of the test. Management assesses qualitative factors in the Home Health and Hospice reporting units to determine whether it is necessary to perform the quantitative impairment test. If, based on this qualitative assessment, management believes the quantitative goodwill impairment test must be performed, management would estimate the fair value of the reporting units using generally accepted valuation techniques including the income approach and the market approach. Fair value under the income approach is determined by discounting to present value the estimated future cash flows of each reporting unit. Significant assumptions are incorporated into the discounted cash flow analysis, such as estimates of revenue growth rates, timing of de novo location openings, forecasted operating margins, the weighted average cost of capital, and terminal growth rates. Fair value under the market approach utilizes the guideline public company methodology, which uses valuation indicators, including market multiples of earnings before interest, taxes, depreciation and amortization, from other businesses that are similar to each reporting unit and implied control premiums. Changes in general economic and market conditions impacting these assumptions could result in goodwill impairment charges in future periods. When the Company disposes of a home health or hospice provider location, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology.
Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual value. As of December 31, 2024, no finite useful lived intangible assets has an estimated residual value. Management reviews these assets for impairment whenever events or changes in circumstances indicate the Company may not be able to recover the asset’s carrying amount.
The range of estimated useful lives and the amortization basis for intangible assets, excluding goodwill, are generally as follows:
Estimated Useful Life and Amortization Basis    
Certificates of need
10 years using straight-line basis
Licenses
10 to 20 years using straight-line basis
Noncompete agreements
5 years using straight-line basis
Internal-use software
3 years using straight-line basis
Enhabit capitalizes the costs of obtaining or developing internal-use software, including external direct costs of material and services and directly related payroll costs. Amortization begins when the internal-use software is ready for its intended use. Costs incurred during the preliminary project and post-implementation stages, as well as maintenance and training costs, are expensed as incurred.
Impairment of Long-Lived Assets and Other Intangible Assets. Management assesses the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives whenever events or changes in circumstances indicate the Company may not be able to recover the asset’s carrying amount. Management measures the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future cash flows to be generated by that asset, or, for identifiable intangibles with finite useful lives, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. The amount of impairment of other long-lived assets (excluding goodwill) is calculated as the amount by which the carrying value of the asset exceeds the fair market value of the asset, which is generally determined based on projected discounted future cash flows. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed. When long-lived assets are to be disposed of by sale,
they are classified as held for sale, recognized in the balance sheet at the lower of their carrying amount or fair value less cost to sell, and depreciation is ceased.
See Note 7, Goodwill and Other Intangible Assets, Net, for more information.
Investments in and Advances to Nonconsolidated Affiliates. Investments in entities that the Company does not control, but in which it has the ability to exercise significant influence over the operating and financial policies of the investees, are accounted for under the equity method. Equity method investments are recorded at original cost and adjusted periodically to recognize Enhabit’s proportionate share of the investees’ net income or loss after the date of investment, additional contributions made, dividends or distributions received, and impairment losses resulting from adjustments to net realizable value. Enhabit records equity method losses in excess of the carrying amount of an investment when the Company guarantees obligations or is otherwise committed to provide further financial support to the affiliate.
The Company uses the measurement alternative to account for equity investments and measures such investments at cost less impairment plus or minus observable price changes in orderly transactions for the identical investment or a similar investment of the same issuer at each reporting period.
Fair Value Measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability.
The basis for these assumptions establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
•Level 1 – Observable inputs such as quoted prices in active markets;
•Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
•Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value are based on one or more of three valuation techniques. The three valuation techniques are as follows:
•Market approach – Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities;
•Cost approach – Amount that would be required to replace the service capacity of an asset (i.e., replacement cost); and
•Income approach – Techniques to convert future cash flows to a single present amount based on market expectations (including present value techniques, option-pricing models, and lattice models).
Financial instruments consist mainly of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, an interest rate swap, and long-term debt. The carrying amounts of Cash and cash equivalents, Restricted cash, Accounts receivable, net of allowances, and Accounts payable approximate fair value because of the short-term maturity of these instruments.
There are assets and liabilities that are not required to be reported at fair value on a recurring basis. However, these assets may be recorded at fair value as a result of impairment charges or other adjustments made to the carrying value of the applicable assets. The fair value of equipment is determined using discounted cash flows and significant unobservable inputs, unless there is an offer to purchase such assets, which could be the basis for determining fair value. The fair value of Intangible assets, net, excluding goodwill, is determined using discounted cash flows and significant unobservable inputs. The fair value of investments in nonconsolidated affiliates is determined using quoted prices in private markets, discounted cash flows or earnings, or market multiples derived from a set of comparables. The fair value of Goodwill is determined using discounted projected operating results and cash flows, which involve significant unobservable inputs.
Noncontrolling Interests in Consolidated Affiliates. The consolidated financial statements include all assets, liabilities, revenues, and expenses of less-than-100%-owned affiliates Enhabit controls. Accordingly, the Company has recorded noncontrolling interests in the earnings and equity of such entities. Adjustments to noncontrolling interests are recorded for the allocable portion of income or loss to which the noncontrolling interest holders are entitled based upon
their portion of the subsidiaries they own. Distributions to holders of noncontrolling interests are adjusted to the respective noncontrolling interest holders’ balance.
Accrued Other Expenses. Accrued other expenses includes $13.5 million, $6.7 million, and $6.6 million of accrued expenses related to hospice-related costs, legal fees and workers’ compensation, respectively, for the year ended December 31, 2024.
Redeemable Noncontrolling Interests in Consolidated Affiliates. Certain joint venture agreements contain provisions that allow Enhabit’s partners to require the Company to purchase their interests in the joint venture at fair value at certain points in the future. Because these noncontrolling interests provide for redemption features that are not solely within the Company’s control, they are classified as Redeemable noncontrolling interests outside of permanent equity in the Company’s Consolidated Balance Sheets and present as redeemable noncontrolling interests at the greater of the carrying amount or redemption value at the end of each reporting period.
The following tables reconcile Net income attributable to nonredeemable noncontrolling interests, as recorded in the shareholders’ equity section of the Consolidated Balance Sheets, and the Net income attributable to redeemable noncontrolling interests, as recorded in the mezzanine section of the Consolidated Balance Sheets, to the Net income attributable to noncontrolling interests presented in the Consolidated Statements of Income, and to the Comprehensive income attributable to noncontrolling interests presented in the Consolidated Statements of Comprehensive Income (in millions):
Year Ended December 31,
202420232022
Balance at beginning of period$5.0 $5.2 $5.0 
Net income attributable to noncontrolling interests— — 0.2 
Distribution to noncontrolling interests — (0.2)— 
Balance at end of period$5.0 $5.0 $5.2 
Year Ended December 31,
202420232022
Net income attributable to nonredeemable noncontrolling interests$2.2 $1.5 $1.9 
Net income attributable to redeemable noncontrolling interests— — 0.2 
    Net income attributable to noncontrolling interests$2.2 $1.5 $2.1 
Stock-Based Payments. Prior to July 1, 2022, the Company’s employees participated in the Encompass equity-based incentive plans (the “Encompass Plans”). Beginning July 1, 2022, Enhabit employees participate in the Enhabit, Inc. 2022 Omnibus Performance Incentive Plan (the “Enhabit Plan”). Enhabit has stockholder-approved stock-based compensation plans that provide for the granting of stock-based compensation to certain Company employees. All stock-based payments to employees are recognized in the financial statements based on their estimated grant-date fair value and amortized on a straight-line basis over the applicable requisite service period. Stock-based compensation is included within General and administrative expenses on the Consolidated Statements of Income. See Note 9, Stock-Based Payments, for more information.
Advertising Costs. Costs of print, radio, television, and other advertisements are expensed as incurred. Advertising expenses, primarily included in General and administrative expenses within the accompanying Consolidated Statements of Income, were immaterial in each of the years ended December 31, 2024, 2023, and 2022.
Income Taxes. Enhabit provides for income taxes using the asset and liability method. This approach recognizes the amount of income taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for differences in the book and tax carrying amounts of the Company’s assets and liabilities.
Prior to the Distribution and Separation, the Company utilized the separate return approach for the purpose of the Company financial statements, including the income tax provisions and the related deferred tax assets and liabilities. The
historic operations of the business reflect a separate return approach for each jurisdiction in which the Company had a presence and Encompass filed a tax return, with adjustments as discussed in Note 11, Income Taxes.
Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates.
A valuation allowance is required when it is more likely than not some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient future taxable income in the applicable tax jurisdiction. On a quarterly basis, management assesses the likelihood of realization of the Company’s deferred tax assets considering all available evidence, both positive and negative.
Management evaluates the Company’s tax positions and establishes assets and liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes on a quarterly basis.
Derivative Instrument. Enhabit is exposed to certain risks arising from both the Company’s business operations and economic conditions. Management manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of debt funding and the use of an interest rate swap agreement. The interest rate swap agreement is a derivative financial instrument used to manage differences in the amount, timing, and duration of known or expected cash payments principally related to the Company’s borrowings.
Enhabit’s objectives in using an interest rate derivative are to add stability to interest expense and to manage the Company’s exposure to interest rate movements. To accomplish these objectives, the Company primarily uses an interest rate swap as part of its interest rate risk management strategy. An interest rate swap designated as a cash flow hedge involves the receipt of variable amounts from a counter party in exchange for the Company making fixed-rate payments over the life of the agreement without exchange of the underlying notional amount. In accordance with Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging,” the derivative is recorded in the Consolidated Balance Sheets as either an asset or a liability measured at fair value. The change in the fair value of the derivative designated and that qualify as a cash flow hedge is recorded on the Consolidated Balance Sheet in Accumulated other comprehensive loss, net of tax, and is subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. For the year ended December 31, 2024, such a derivative was used to hedge certain variable cash flows associated with existing variable-rate debt.
See Note 12, Derivative Instruments, for more information.
Reclassification. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
(Loss) Earnings per Common Share. The following table sets forth the computation of diluted weighted average common shares outstanding for the years ended December 31, 2024, 2023, and 2022 (in millions). A total of 0.3 million, 0.3 million and 0.2 million options to purchase Enhabit’s shares and 2.1 million, 1.7 million and 0.6 million restricted stock awards and restricted stock units were excluded from the diluted weighted average common shares outstanding for the years ended, December 31, 2024 and December 31, 2023, and December 31, 2022, respectively, because their effects were anti-dilutive.
Year Ended December 31,
202420232022
Weighted average common shares outstanding:
Basic50.249.949.7
Dilutive effect of options and restricted stock units—— —
Diluted common shares outstanding50.249.949.7
Recently Issued Accounting Standards Not Yet Adopted. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This standard requires disaggregated income tax disclosures on the effective tax rate reconciliation and income taxes paid. This standard is effective for annual periods beginning after December 15, 2024.
Early adoption is permitted, and the disclosures in this standard are required to be applied on a prospective basis with the option to apply the standard retrospectively. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements but will require certain additional disclosures.
In November 2024, the FASB issued ASU 2024-03, “Income Statement (Topic 220): Reporting Comprehensive Income—Expense Disaggregation Disclosures.” This standard requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures.
Recently Adopted Provisions of GAAP. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures.” This standard provides guidance to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. The Company adopted this standard as of December 31, 2024. See Note 14, Segment Reporting, for more information.
v3.25.0.1
Business Combinations
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Combinations Business Combinations
Enhabit did not complete any acquisitions during the year ended December 31, 2024. The Company completed one acquisition during the year ended December 31, 2023 and four acquisitions during the year ended December 31, 2022. The Company accounted for these transactions under the acquisition method of accounting and reported the results of operations of the acquired locations from the date of acquisition. Assets acquired, liabilities assumed, and noncontrolling interests were recorded at their estimated fair values as of the acquisition date. Estimated fair values were based on various valuation methodologies including: an income approach using primarily discounted cash flow techniques for the noncompete and license intangible assets and an income approach utilizing the relief-from-royalty method for the trade name intangible asset. The aforementioned income methods utilize management’s estimates of future operating results and cash flows discounted using a weighted average cost of capital that reflects market participant assumptions. For all other assets and liabilities, the fair value was assumed to represent carrying value due to their short maturities. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill. All goodwill recorded reflects management’s expectations of favorable growth opportunities in the home health and hospice markets based on positive demographic trends.
2024 Acquisitions
During the year ended December 31, 2024, the Company did not complete any acquisitions.
2023 Acquisitions
During the year ended December 31, 2023, the Company completed one acquisition for a total purchase price of $3.1 million using cash on hand. This acquisition was not material to Enhabit’s consolidated financial statements.
2022 Acquisitions
On January 1, 2022, Enhabit acquired a 50% equity interest from Frontier Home Health and Hospice, LLC in a joint venture with Saint Alphonsus Health System (“Saint Alphonsus”) which operates home health and hospice locations in Boise and Nampa, Idaho. This acquisition was made to enhance the Company’s position and ability to provide services to patients in this geographic area. The total purchase price was $15.9 million and was funded on December 31, 2021 using cash on hand.
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Cash and cash equivalents$0.7 
Accounts receivable, net of allowances
1.6 
Operating lease right-of-use-assets0.3 
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
0.2 
Trade name (useful life of 6 months)
0.1 
Licenses (useful lives of 10 years)
0.9 
Internal-use software (useful life of 3 years)
0.1 
Goodwill28.7 
Total assets acquired32.6 
Liabilities assumed:
Current operating lease liabilities0.1 
Accounts payable0.1 
Accrued payroll0.2 
Other current liabilities0.2 
Long-term operating lease liabilities0.2 
Total liabilities assumed0.8 
Noncontrolling interests15.9 
Net assets acquired$15.9 
Information regarding the cash paid for this acquisition is as follows (in millions):
Fair value of assets acquired$3.9 
Goodwill28.7 
Less:
Fair value of liabilities assumed0.8 
Fair value of noncontrolling interest owned by joint venture partner15.9 
Net cash paid for acquisition(1)
$15.9 
(1)     As discussed above, the $15.9 million was funded on December 31, 2021, and was therefore included in the Consolidated Statement of Cash Flows for the year ended December 31, 2021.
On October 1, 2022, Enhabit acquired the assets of four Caring Hearts Hospice locations in Texas. This acquisition was made to enhance the Company’s position and ability to provide services to patients in this geographic area. The total purchase price was $13.9 million and was funded using cash on hand. The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
$0.6 
Licenses (useful lives of 10 years)
0.6 
Goodwill14.3 
Total assets acquired15.5 
Liabilities assumed:
Other current liabilities1.6 
Total liabilities assumed1.6 
Net assets acquired$13.9 
Information regarding the cash paid for these acquisitions during 2022 is as follows (in millions):
Fair value of assets acquired$1.2 
Goodwill14.3 
Less:
Fair value of liabilities assumed1.6 
Net cash paid for acquisitions$13.9 
On November 1, 2022, the Company acquired the assets of Unity Hospice LLC, a hospice provider with one location in Arizona. This acquisition was made to enhance Enhabit’s position and ability to provide services to patients in this geographic area. The total purchase price was $2.1 million and was funded using cash on hand. The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
$0.1 
Licenses (useful lives of 10 years)
0.1 
Goodwill2.2 
Total assets acquired2.4 
Liabilities assumed:
Other current liabilities0.3 
Total liabilities assumed0.3 
Net assets acquired$2.1 
Information regarding the cash paid for this acquisition during 2022 is as follows (in millions):
Fair value of assets acquired$0.2 
Goodwill2.2 
Less:
Fair value of liabilities assumed0.3 
Net cash paid for acquisitions$2.1 
On December 1, 2022, Enhabit acquired the assets of Southwest Florida Home Care, Inc., a home health provider with a location in Fort Myers, Florida. This acquisition was made to enhance the Company’s position and ability to provide services to patients in this geographic area. The total purchase price was $21.0 million and was funded using cash on hand and borrowings under the Revolving Credit Facility (as defined in Note 8, Long-Term Debt). The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Prepaid expenses and other current assets$0.1 
Operating lease right-of-use-assets0.3 
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
0.8 
Licenses (useful lives of 10 years)
0.6 
Goodwill19.6 
Total assets acquired21.4 
Liabilities assumed:
Current operating lease liabilities0.1 
Accrued payroll0.1 
Long-term operating lease liabilities0.2 
Total liabilities assumed0.4 
Net assets acquired$21.0 
Information regarding the cash paid for this acquisition during 2022 is as follows (in millions):
Fair value of assets acquired$1.8 
Goodwill19.6 
Less:
Fair value of liabilities assumed0.4 
Net cash paid for acquisitions$21.0 
Pro Forma Results of Operations
The following table summarizes the results of operations of the above-mentioned acquisitions from their respective dates of acquisition included in Enhabit’s Consolidated Statements of Income and the unaudited pro forma results of operations of the combined entities had the date of the acquisitions been January 1, 2022 (in millions):
Net Service
Revenue
Net Income (Loss)
Attributable to
Enhabit
Acquired entities only: Actual from acquisition date to December 31, 2022$12.1 $1.1 
Combined entity: Supplemental pro forma from 01/01/2022-12/31/2022 (unaudited)$1,093.0 $(37.2)
The information presented above is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisitions had occurred as of the beginning of 2022.
Approximately $50.5 million of the goodwill recorded as a result of these 2022 transactions is deductible for federal income tax purposes.
v3.25.0.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities Variable Interest Entities
As of December 31, 2024, 2023, and 2022 Enhabit consolidated two joint venture entities that are VIEs and of which the Company is the primary beneficiary. The Company’s ownership percentages in these entities range from 60% to 90% as of December 31, 2024. Through partnership and management agreements with or governing these entities, Enhabit
manages these entities and handles all day-to-day operating decisions. Accordingly, management has the decision-making power over the activities that most significantly impact the economic performance of the VIEs and the Company has an obligation to absorb losses or receive benefits from the VIEs that could potentially be significant to the VIEs. These decisions and significant activities include, but are not limited to, marketing efforts, oversight of patient admissions, medical training, nurse and therapist scheduling, provision of healthcare services, billing, collections and creation and maintenance of medical records. The terms of the agreements governing the VIEs prohibit the Company from using the assets of the VIEs to satisfy the obligations of other entities.
The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in Enhabit’s Consolidated Balance Sheets, are as follows (in millions):
As of December 31,
20242023
Assets
Current Assets
Restricted cash$1.4 $1.8 
Accounts receivable, net of allowances2.1 2.3 
Other current assets— 0.5 
Total current assets3.5 4.6 
Operating lease right-of-use assets0.1 0.1 
Goodwill12.4 12.4 
Intangible assets, net0.7 0.9 
Total assets$16.7 $18.0 
As of December 31,
20242023
Liabilities
Current Liabilities:
Current operating lease liabilities$0.1 $0.1 
Accrued payroll0.2 0.2 
Other current liabilities0.9 0.2 
Total current liabilities1.2 0.5 
Other long-term liabilities0.1 0.1 
Total liabilities$1.3 $0.6 
v3.25.0.1
Accounts Receivable, Net of Allowances
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Accounts Receivable, Net of Allowances Accounts Receivable, Net of Allowances
Accounts receivable, net of allowances, consists of the following (in millions):
As of December 31,
20242023
Current patient accounts receivable$149.2 $164.7 
Noncurrent patient accounts receivable included within Other long-term assets0.5 0.5 
Current and noncurrent accounts receivable, net of allowances$149.7 $165.2 
v3.25.0.1
Property and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net, consists of the following (in millions):
As of December 31,
20242023
Leasehold improvements$3.2 $3.1 
Vehicles26.8 29.9 
Furniture, fixtures, and equipment42.7 41.4 
72.7 74.4 
Less: Accumulated depreciation and amortization(55.0)(55.4)
Property and equipment, net$17.7 $19.0 
The amount of depreciation expense is as follows (in millions):
Year Ended December 31,
202420232022
Depreciation expense$4.2 $4.3 $4.6 
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
The Company leases office space, vehicles, and equipment under operating and finance leases with non-cancelable terms generally expiring at various dates through 2035. These operating and finance leases generally have one- to eleven‑year terms. Certain leases also include options to purchase the leased property.
The components of lease costs are as follows (in millions):
Year Ended December 31,
202420232022
Operating lease cost:
General and administrative expenses$20.7 $20.5 $20.1 
Finance lease cost:
Amortization of right-of-use assets3.4 3.1 3.8 
Interest on lease liabilities0.4 0.2 0.2 
Total finance lease cost3.8 3.3 4.0 
Total lease cost$24.5 $23.8 $24.1 
Supplemental Consolidated Balance Sheet information related to leases is as follows (in millions):
As of December 31,
Classification20242023
Assets
Operating leaseOperating lease right-of-use assets$52.8 $57.5 
Finance lease(1)
Property and equipment, net11.0 9.9 
Total leased assets$63.8 $67.4 
Liabilities
Current Liabilities:
Operating leaseCurrent portion of operating lease liabilities$12.3 $11.8 
Finance leaseCurrent portion of long-term debt2.8 2.5 
Noncurrent liabilities
Operating leaseLong-term operating lease liabilities, net of current portion41.8 45.7 
Finance leaseLong-term debt, net of current portion4.6 3.1 
Total leased liabilities$61.5 $63.1 
(1)    Finance lease assets are recorded net of accumulated amortization of $21.3 million and $20.0 million as of December 31, 2024 and 2023, respectively.
As of December 31,
20242023
Weighted Average Remaining Lease Term
Operating lease5.5 years5.8 years
Finance lease2.9 years2.7 years
Weighted Average Discount Rate
Operating lease6.9 %6.7 %
Finance lease5.7 %4.7 %
Maturities of lease liabilities as of December 31, 2024 are as follows (in millions):
Year Ending December 31,    
Operating LeasesFinance Leases
Total
Leases
2025$15.4 $3.0 $18.4 
202614.0 2.6 16.6 
202710.2 2.2 12.4 
20286.9 0.3 7.2 
20294.6 — 4.6 
2029 and thereafter
15.0 — 15.0 
Total lease payments66.1 8.1 74.2 
Less: Interest portion(12.0)(0.7)(12.7)
Total lease liabilities$54.1 $7.4 $61.5 
Supplemental cash flow information related to leases is as follows (in millions):
Year Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$14.4 $16.0 $17.1 
Operating cash flows from finance leases$0.5 $0.2 $0.2 
Financing cash flows from finance leases$3.6 $3.4 $5.0 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$11.0 $31.6 $10.7 
Finance leases$5.5 $3.8 $3.5 
Leases Leases
The Company leases office space, vehicles, and equipment under operating and finance leases with non-cancelable terms generally expiring at various dates through 2035. These operating and finance leases generally have one- to eleven‑year terms. Certain leases also include options to purchase the leased property.
The components of lease costs are as follows (in millions):
Year Ended December 31,
202420232022
Operating lease cost:
General and administrative expenses$20.7 $20.5 $20.1 
Finance lease cost:
Amortization of right-of-use assets3.4 3.1 3.8 
Interest on lease liabilities0.4 0.2 0.2 
Total finance lease cost3.8 3.3 4.0 
Total lease cost$24.5 $23.8 $24.1 
Supplemental Consolidated Balance Sheet information related to leases is as follows (in millions):
As of December 31,
Classification20242023
Assets
Operating leaseOperating lease right-of-use assets$52.8 $57.5 
Finance lease(1)
Property and equipment, net11.0 9.9 
Total leased assets$63.8 $67.4 
Liabilities
Current Liabilities:
Operating leaseCurrent portion of operating lease liabilities$12.3 $11.8 
Finance leaseCurrent portion of long-term debt2.8 2.5 
Noncurrent liabilities
Operating leaseLong-term operating lease liabilities, net of current portion41.8 45.7 
Finance leaseLong-term debt, net of current portion4.6 3.1 
Total leased liabilities$61.5 $63.1 
(1)    Finance lease assets are recorded net of accumulated amortization of $21.3 million and $20.0 million as of December 31, 2024 and 2023, respectively.
As of December 31,
20242023
Weighted Average Remaining Lease Term
Operating lease5.5 years5.8 years
Finance lease2.9 years2.7 years
Weighted Average Discount Rate
Operating lease6.9 %6.7 %
Finance lease5.7 %4.7 %
Maturities of lease liabilities as of December 31, 2024 are as follows (in millions):
Year Ending December 31,    
Operating LeasesFinance Leases
Total
Leases
2025$15.4 $3.0 $18.4 
202614.0 2.6 16.6 
202710.2 2.2 12.4 
20286.9 0.3 7.2 
20294.6 — 4.6 
2029 and thereafter
15.0 — 15.0 
Total lease payments66.1 8.1 74.2 
Less: Interest portion(12.0)(0.7)(12.7)
Total lease liabilities$54.1 $7.4 $61.5 
Supplemental cash flow information related to leases is as follows (in millions):
Year Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$14.4 $16.0 $17.1 
Operating cash flows from finance leases$0.5 $0.2 $0.2 
Financing cash flows from finance leases$3.6 $3.4 $5.0 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$11.0 $31.6 $10.7 
Finance leases$5.5 $3.8 $3.5 
v3.25.0.1
Goodwill and Other Intangible Assets, Net
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net
The following table shows changes in the carrying amount of Goodwill for the years ended December 31, 2024 and 2023 (in millions):
Home HealthHospiceConsolidated
Goodwill as of December 31, 2022
$841.2 $303.6 $1,144.8 
Acquisitions2.7 — 2.7 
Impairment — (85.8)(85.8)
Goodwill as of December 31, 2023
$843.9 $217.8 $1,061.7 
Acquisitions— — — 
Impairment (161.7)— (161.7)
Goodwill as of December 31, 2024
$682.2 $217.8 $900.0 
Goodwill decreased as a result of the impairment charges recorded for the years ended December 31, 2024 and 2023.
The Company is required to test goodwill for impairment at least annually, as of October 1st, absent any triggering events that would accelerate an impairment assessment.
During the preparation of the consolidated financial statements for the year ended December 31, 2022, management identified potential impairment triggering events in the fourth quarter and determined a quantitative analysis of the two reporting units should be performed. These triggering events included lower than expected fourth quarter operating results, a change in the Company’s acquisition strategy, and declining collections, which management believes was in part a result of the growing shift in the Company’s third‑party payer mix, and specifically, an increase in Medicare Advantage payers. During the year ended December 31, 2022, Enhabit recorded an impairment charge of $109.0 million to reflect a decrease in the carrying value of the Home Health reporting unit.
During the year ended December 31, 2023, management identified potential impairment triggering events in the second and third quarters and determined a quantitative analysis of the two reporting units should be performed. These triggering events included Enhabit’s performance compared to the 2023 forecast and decreases in the Company’s share price and market capitalization in each quarter. Additionally, triggering events in the second quarter included the release of the 2024 proposed rule for home health, which included a net negative home health payment update. During the year ended December 31, 2023, the Company recorded an impairment charge of $85.8 million to reflect a decrease in the carrying value of the Hospice reporting unit.
During the third quarter of 2024, management identified potential impairment triggering events and determined a quantitative analysis of the two reporting units should be performed. These triggering events included a decrease in Enhabit’s share price and market capitalization. Based on the quantitative analysis performed in the third quarter of 2024, Enhabit recorded an impairment charge of $107.9 million to reflect a decrease in the carrying value of the Home Health
reporting unit. We conducted our annual impairment test at October 1, 2024, which resulted in the same values determined as of September 30, 2024.
During the fourth quarter of 2024, management identified potential impairment triggering events and determined a quantitative analysis of the two reporting units should be performed. These triggering events included a decrease in the Home Health reporting unit’s performance compared to the 2024 forecast. Based on the quantitative analysis performed in the fourth quarter of 2024, Enhabit recorded an impairment charge of $53.8 million to reflect a decrease in the carrying value of the Home Health reporting unit. Due to improved performance in the Hospice reporting unit in the fourth quarter of 2024, its fair value exceeded its carrying value with adequate headroom as of December 31, 2024.
Management estimated the fair value of the reporting units using both the income approach and market approach. The assumptions used in the income approach incorporate a number of significant estimates and judgments, including the revenue growth rates, timing of de novo location openings, forecasted operating margins, the weighted average cost of capital, and terminal growth rates. The market approach utilizes the guideline public company methodology, which uses valuation indicators, including market multiples of earnings before interest, taxes, depreciation, and amortization, from other businesses that are similar to each reporting unit and implied control premiums.
While management believes the assumptions used are reasonable and commensurate with the views of a market participant, there is also uncertainty in current general economic and market conditions. The result of the analysis is sensitive to changes in key assumptions, such as assumed future reimbursement rates, rising interest rates and labor costs and delays in the Company’s ability to complete de novo location openings, which could negatively impact forecasted cash flows and result in an impairment charge in future periods.
As of December 31, 2024 and 2023, Goodwill included consolidated accumulated impairment charges of $356.5 million and $194.8 million, respectively.
The following table provides information regarding other Intangible assets, net (in millions):
Gross Carrying Amount    Accumulated AmortizationNet
Certificates of need:
2024$89.2 $(58.6)$30.6 
2023$89.2 $(50.0)$39.2 
Licenses:
2024$131.2 $(107.1)$24.1 
2023$131.2 $(93.9)$37.3 
Noncompete agreements:
2024$15.1 $(13.5)$1.6 
2023$15.1 $(12.6)$2.5 
Internal-use software:
2024$32.1 $(30.3)$1.8 
2023$25.9 $(24.9)$1.0 
Total intangible assets:
2024$267.6 $(209.5)$58.1 
2023$261.4 $(181.4)$80.0 
Amortization expense for other intangible assets is as follows (in millions):
Year Ended December 31,
202420232022
Amortization expense$23.9 $23.5 $24.5 
v3.25.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt outstanding consists of the following (in millions):
As of December 31,
20242023
Credit Agreement—
Advances under revolving credit facility$160.0 $180.0 
Term loan facilities348.0 367.1 
Finance lease obligations7.4 5.5 
515.4 552.6 
Less: Current portion(22.8)(22.5)
Long-term debt, net of current portion$492.6 $530.1 
The following chart shows scheduled principal payments due on long-term debt for the next five years (in millions):
Year Ending December 31, Amount
2025$22.7 
202622.3 
2027472.1 
2028 and thereafter0.4 
Gross maturities517.5 
Less unamortized debt issuance costs(2.1)
Total$515.4 
In June 2022, the Company entered into a credit agreement (the “Credit Agreement”) that consists of a $400.0 million term loan A facility (the “Term Loan A Facility”) and a $350.0 million revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan A Facility, the “Credit Facilities”). The Credit Facilities mature in June 2027. Interest on the loans under the Credit Facilities is calculated by reference to the Secured Overnight Financing Rate (“SOFR”) or an alternative base rate, plus an applicable interest rate margin. Enhabit may voluntarily prepay outstanding loans under the Credit Facilities at any time without premium or penalty, other than customary breakage costs with respect to SOFR loans. The Term Loan A Facility contains customary mandatory prepayments, including with respect to proceeds from asset sales and from certain incurrences of indebtedness.
On June 30, 2022, the Company drew the full $400.0 million of the Term Loan A Facility and $170.0 million on the Revolving Credit Facility. The net proceeds of $566.6 million were distributed to Encompass prior to the completion of the Distribution. For additional information on the Separation, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements.
The Term Loan A Facility amortizes by an amount per annum equal to 5.0% of the outstanding principal amount thereon as of the closing date, payable in equal quarterly installments, with the balance being payable in June 2027. The Revolving Credit Facility provides the ability to borrow and obtain letters of credit, which is subject to a $75.0 million sublimit. Obligations under the Credit Facilities are guaranteed by Enhabit’s existing and future wholly-owned domestic material subsidiaries (the “Guarantors”), subject to certain exceptions. Borrowings under the Credit Facilities are secured by first priority liens on substantially all the assets of Enhabit and the Guarantors, subject to certain exceptions. The Credit Facilities contain representations and warranties, affirmative and negative covenants, and events of default customary for secured financings of this type, including limitations with respect to liens, fundamental changes, indebtedness, restricted payments, investments, and affiliate transactions, in each case, subject to a number of important exceptions and qualifications.
On June 27, 2023, Enhabit amended the Credit Facilities (the “First Amendment”) to provide for, among other things: (i) a new tier to the pricing grid for interest rate margins when the total net leverage ratio exceeds 4.50 to 1.00; (ii) changes to the conditions concerning the Company’s total net leverage ratio that must be met for the Company to borrow incremental ratio-based amounts; (iii) an increase in the maximum permitted total net leverage ratio to 5.25 to 1.00 for the quarters ended June 30, 2023, September 30, 2023, and December 31, 2023, stepping down to 5.00 to 1.00 for the quarter ended March 31, 2024, 4.75 to 1.00 for the quarter ended June 30, 2024, and 4.50 to 1.00 for the quarter ended September 30, 2024 and thereafter; and (iv) modifications to the Company’s ability to declare and make certain restricted payments.
On September 29, 2023, Enhabit entered into a Limited Waiver (the “Waiver”) with Wells Fargo Bank, National Association, as administrative agent to the other lenders (the “Administrative Agent”) under the Credit Agreement and the First Amendment. The Waiver released the Company from the requirement to comply with the total net leverage ratio and the interest coverage ratio covenants for the three months ended September 30, 2023. The Waiver also required that, until such time as the Company certified compliance with the waived financial covenants, the aggregate principal amount of the Company’s revolving loans allowed under the Credit Agreement were decreased from $350.0 million to $230.0 million. All other covenants and terms of the Credit Agreement remained unchanged and in effect. Although the Company was not required to be in compliance with the financial covenants as of September 30, 2023, it was in compliance with the financial covenants under the Credit Facilities.
As of September 30, 2023, Enhabit’s forecasted results suggested there was uncertainty of meeting the covenants through a period of one year from the issuance date of the September 30, 2023 financial statements. As a result, on November 3, 2023, the Company amended the Credit Facilities (the “Second Amendment”) to provide for, among other things: (i) an increase in the maximum permitted Total Net Leverage Ratio (as defined in the Credit Agreement) to 6.75 to 1.00 for the quarters ended December 31, 2023 and March 31, 2024, stepping down to 6.50 to 1.00 for the quarters ended June 30, September 30 and December 31, 2024, 5.75 to 1.00 for the quarter ending March 31, 2025, and 4.50 to 1.00 for the quarter ending June 30, 2025 and thereafter; (ii) the addition of a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) covenant of 1.15 to 1.00 until the end of the Covenant Adjustment Period (as defined below); (iii) no Interest Coverage Ratio (as defined in the Credit Agreement) covenant until the end of the Covenant Adjustment Period; (iv) a permanent reduction in the Revolving Credit Facility commitment from $350.0 million to $220.0 million; (v) an increase in the Applicable Commitment Fee (as defined in the Credit Agreement) during the Covenant Adjustment Period;
(vi) suspension of the ability of the Company to request incremental commitments under the Credit Agreement during the Covenant Adjustment Period; (vii) an increase of 0.25% in the applicable interest rate margins on amounts outstanding under the Credit Agreement during the Covenant Adjustment Period; (viii) limits on the amount of cash the Company can keep on hand and outside the lender group during the Covenant Adjustment Period; and (ix) additional limits on permitted indebtedness and acquisitions, permitted liens, restricted payments and permitted investments during the Covenant Adjustment Period. The “Covenant Adjustment Period” begins on the date of the Second Amendment and ends on the earlier of (a) the date the Company provides evidence of compliance with the financial covenants in the Credit Agreement, as amended, for the fiscal quarter ending June 30, 2025 and (b) the date that the Company provides evidence of compliance with the financial covenants in the Credit Agreement as in effect immediately prior to the First Amendment for the applicable quarter.
Under specified circumstances, including non-compliance with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, Enhabit may not be able to borrow under the Revolving Credit Facility. Additionally, violation of the covenants would result in an event of default under the Credit Facilities. A default that occurs, and is not cured within any applicable cure period or is not waived, would permit lenders to accelerate the maturity of the debt under the Credit Facilities and to foreclose upon any collateral securing the debt.
As a result of the amendment above, Enhabit’s forecasted results indicate the Company will continue to be in compliance with the financial covenants through a period of one year from the issuance date of the December 31, 2024 financial statements. Management cannot guarantee the Company will be in compliance with the financial covenants for each reporting period through a period of one year from the issuance date of the December 31, 2024 financial statements. As of December 31, 2024, Enhabit was in compliance with the financial covenants under the Credit Facilities. Management continually evaluates the Company’s expected compliance with the covenants described above and takes all appropriate steps to proactively renegotiate such covenants when appropriate.
As of December 31, 2024, amounts drawn under both the Term Loan A Facility and the Revolving Credit Facility had an interest rate of 7.3%. On October 20, 2022, Enhabit entered into an interest rate swap to manage the Company’s exposure to interest rate movements for a portion of the Term Loan A Facility. The interest rate swap has a $200.0 million notional value and a maturity date of October 20, 2025. Beginning in October 2022, the Company receives the one-month SOFR and pays a fixed rate of interest of 4.3%. See also Note 12, Derivative Instruments.
The carrying amounts and estimated fair values for long-term debt are presented in the following table (in millions):
As of December 31,
20242023
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Long-term debt:
Advances under revolving credit facility$160.0 $160.0 $180.0 $180.0 
Term loan A facility$348.0 $345.3 $367.1 $354.4 
Finance lease obligations$7.4 $7.4 $5.5 $5.5 
Fair values for long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies—Fair Value Measurements.
v3.25.0.1
Stock-Based Payments
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Payments Stock-Based Payments
Prior to July 1, 2022, the Company’s employees and board of directors participated in Encompass’s various stock‑based plans. All stock-based payments to employees are recognized in the financial statements based on their estimated grant-date fair value and amortized on a straight-line basis over the applicable requisite service period. On July 1, 2022, all unvested Encompass restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and stock options to purchase shares issued to Enhabit’s employees were canceled and replaced with restricted stock, restricted stock units, and options to purchase shares issued under the Enhabit 2022 Omnibus Performance Incentive Plan (the “2022 Plan”). This represented a modification (the “Modification”) of outstanding stock-based compensation awards.
Prior to the Separation, Encompass issued a total of 128,000 RSAs and RSUs to members of Enhabit’s management team. Approximately 47,000 of these awards contain only a service condition, while the remainder contain both a service and a performance condition. Additionally, Encompass granted approximately 22,000 stock options to a member of Enhabit’s management team. The fair value of these awards and options was determined using the policies described in Note 1, Summary of Significant Accounting Policies.
As a result of the Modification, all outstanding stock-based compensation of Encompass stock awarded to Enhabit employees were converted to Enhabit stock using a conversion rate that retained the fair value of the awards immediately prior to the Modification.
All performance-based RSUs were measured immediately prior to the Modification. The number of shares to be issued upon vesting was determined, and these awards were converted to restricted stock units of Enhabit that vest based upon a service condition. All service-based RSAs were converted to restricted stock awards of Enhabit that vest based upon a service condition. The outstanding options to purchase shares of Encompass stock were converted to options to purchase shares of Enhabit stock. There was no additional compensation cost as a result of the Modification.
In 2022 the Company adopted the Enhabit, Inc. 2022 Omnibus Performance Incentive Plan (the “2022 Plan”), under which employees and non-employee directors could be granted stock options, stock appreciation rights, stock awards, performance stock units (“PSUs”), restricted stock, dividend equivalents, RSUs, other stock-based awards and cash awards. This incentive plan provides for the issuance of up to an aggregate of 7 million shares of the Company's common stock in stock-based compensation awards. Awards granted under the plan vest over the awards’ requisite service periods, which are typically three years.
Stock Options
Under the 2022 Plan, one member of management was given the right to purchase shares of Enhabit common stock at a fixed grant price determined on the day the options were granted. The terms and conditions of the options, including exercise prices and the periods in which options are exercisable, are generally at the discretion of the Compensation & Human Capital Committee of Enhabit’s board of directors. However, no options are exercisable beyond ten years from the date of grant. Granted options vest over the awards’ requisite service periods, which are generally three years.
No stock options were granted during the year ended December 31, 2024. The grant date fair values of stock options granted during the years ended December 31, 2023 and 2022 were estimated at the grant date using the Black-Scholes option‑pricing model with the following weighted average assumptions:
Year Ended December 31,
20232022
Expected volatility53.0 %28.3 %
Risk-free interest rate4.1 %1.7 %
Expected life (years)6.07.8
Dividend yield— %1.9 %
The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, the Black-Scholes option-pricing model requires the input of highly subjective assumptions, including the expected stock price volatility. Prior to the Separation, volatility was calculated based on the historical volatility of Encompass’s common stock over the period commensurate with the expected term of the options. The risk-free interest rate was the implied daily yield currently available on U.S. Treasury issues with a remaining term closely approximating the expected term used as the input to the Black-Scholes option-pricing model. The expected term was estimated through an analysis of actual, historical post-vesting exercise, cancellation, and expiration behavior by Encompass employees and projected post-vesting activity of outstanding options. The dividend yield was estimated based on Encompass’s annual dividend rate and the Encompass stock price on the dividend payment dates. For options granted after the Separation, volatility was estimated using the historical value of Enhabit’s peer group for a period of time commensurate with the expected term of the options. The expected term was estimated using the simplified method outlined in the Securities and Exchange Commission’s Staff Accounting Bulletin 120. The dividend yield is zero. Enhabit recognizes forfeitures for all award types as they occur. Under the Black-Scholes option-pricing model, the weighted
average grant date fair value per share of employee stock options granted was $8.35 and $7.01 during the years ended December 31, 2023 and 2022, respectively.
A summary of stock option activity for the year ended December 31, 2024 is as follows:
(shares in thousands)
Shares
Weighted Average Exercise Price per ShareWeighted
Average Remaining Life (Years)    
Aggregate Intrinsic Value
(In Millions)
Outstanding, December 31, 2023286.3$24.44 
Granted ——
Expirations——
Outstanding, December 31, 2024286.324.44 5.8— 
Exercisable, December 31, 2024225.4$25.97 5.3$— 
The Company recognized approximately $0.3 million, $0.4 million, and $0.3 million of compensation expense related to stock options for the years ended December 31, 2024, 2023, and 2022, respectively. As of December 31, 2024, there was $0.2 million of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of 13 months. No options were exercised during the years ended December 31, 2024, 2023, and 2022. The total fair value of stock options vested during the years ended December 31, 2024, 2023, and 2022 was $0.4 million, $0.3 million, and $0.8 million, respectively.
Restricted Stock Awards
A summary of RSA activity for the year ended December 31, 2024 is as follows:
(shares in thousands)
Shares
Weighted
Average Grant Date Fair Value
Nonvested shares at December 31, 2023277.6 $24.12 
Granted— — 
Vested(71.8)26.40 
Forfeited(3.2)27.14 
Nonvested shares at December 31, 2024202.6 $23.26 
The Company recognized $2.1 million, $3.0 million, and $3.3 million of stock-based compensation related to RSAs for the years ended December 31, 2024, 2023, and 2022, respectively. As of December 31, 2024, there was $2.2 million of unrecognized compensation expense related to unvested RSAs. This cost is expected to be recognized over a weighted average period of 15 months. There were no RSAs granted in the year ended December 31, 2024. The weighted average grant-date fair value per share of RSAs granted was $22.74 during the year ended December 31, 2022. The total fair value of RSAs vested during the years ended December 31, 2024, 2023, and 2022 was $1.9 million, $4.2 million, and $1.3 million, respectively. All RSAs that vested prior to the Separation vested as shares of Encompass stock.
Restricted Stock Units
The RSUs granted in 2024 were service-based and performance-based awards. These awards generally vest over a three-year requisite service period. The fair value of the RSU was determined by the closing price of Enhabit’s common stock on the grant date for the free cash flow performance condition and the Monte Carlo simulation model for the total shareholder return performance condition. The performance-based RSUs will vest in an amount between zero and 200% of the target units granted based on two criteria, (i) total shareholder return over the three-year period ending December 31, 2026 as compared to a designated peer group, and (ii) free cash flow generated by the Company over a three-year period ending December 31, 2026. The total shareholder return performance condition represents 20% of the total 2024 performance-based RSU award, and the free cash flow performance condition represents 80% of the total 2024 performance-based RSU award.
A summary of RSU activity for the year ended December 31, 2024 is as follows:
Service BasedPerformance Based
(shares in thousands)
Shares
Weighted
Average Grant Date Fair Value
Shares
Weighted
Average Grant Date Fair Value
Nonvested shares at December 31, 2023750.7 $18.11 388.3 $17.24 
Granted748.1 8.94 674.9 9.43 
Vested(431.1)16.47 — — 
Forfeited(116.2)12.83 (89.7)14.09 
Nonvested shares at December 31, 2024951.5 $12.28 973.5 $12.12 
The Company recognized $8.3 million, $5.5 million, and $5.6 million of stock-based compensation related to RSUs for the years ended December 31, 2024, 2023, and 2022, respectively. As of December 31, 2024, there was $6.4 million of unrecognized compensation expense related to unvested service-based RSUs. This cost is expected to be recognized over a weighted average period of 23 months. As of December 31, 2024, there was $4.3 million of unrecognized compensation expense related to performance-based RSUs. This cost is expected to be recognized over a weighted average period of 20 months. The total compensation expense ultimately recognized for the performance-based RSUs will depend on the outcome of the free cash flow performance condition upon vesting of the award. The weighted average grant-date fair value per share of service-based RSUs granted was $12.84 and $22.12 during the years ended December 31, 2023, and 2022, respectively. The total fair value of service-based RSUs vested during the years ended December 31, 2024, 2023, and 2022 was $7.1 million, $4.1 million, and $3.8 million, respectively. All RSUs that vested prior to the Separation vested as shares of Encompass stock.
In addition to the stock-based compensation expenses disclosed above, there was also an allocation of expenses related to certain Encompass functions that resulted from stock-based compensation totaling $1.1 million for the year ended December 31, 2022.
Additionally, Enhabit has accrued $1.0 million of stock-based compensation for discretionary bonus awards with service inception dates in 2024 that will be granted in 2025. There is no unamortized expense associated with the awards.
The total tax benefit recognized for all stock-based compensation was $1.1 million, $0.9 million, and $1.8 million for the years ended December 31, 2024, 2023, and 2022, respectively.
v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Substantially all employees are eligible to enroll in Company-sponsored healthcare plans, including coverage for medical and dental benefits. Enhabit’s primary healthcare plans are national plans administered by third-party administrators. The Company is self-insured for these plans. During 2024, 2023, and 2022, costs associated with these plans, net of amounts paid by employees and stop-loss recoveries, approximated $46.9 million, $48.1 million, and $41.5 million, respectively. As of December 31, 2024 and 2023, medical insurance accruals of $5.5 million and $8.4 million, respectively, are included in Other current liabilities in the Consolidated Balance Sheets.
The Company offers one qualified 401(k) savings plan, the Home Health Savings Plan (the “HHSP”). The HHSP allows eligible employees to contribute up to 60% of their pay on a pre-tax basis into their individual retirement account in the plan subject to the normal maximum limits set annually by the Internal Revenue Service. All Home Health and Hospice full-time and part-time employees are eligible to participate in the HHSP, and all contributions to the plan are in the form of cash. The Company’s employer matching contribution under the HHSP is 25% of the first 3% of each participant’s elective deferrals, which vest gradually over a six-year service period. Participants are always fully vested in their own contributions.
Employer contributions to the HHSP approximated $2.3 million, $2.3 million, and $2.2 million in 2024, 2023, and 2022, respectively. In 2024, 2023, and 2022, approximately $0.2 million, $0.4 million, and $0.3 million, respectively, from forfeited accounts were used to fund the matching contributions in accordance with the terms of the HHSP.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The significant components of (Benefit from) provision for income taxes are as follows (in millions):
Year Ended December 31,
202420232022
Current:
Federal$1.4 $0.2 $14.3 
State and other0.3 — 2.8 
Total current expense1.7 0.2 17.1 
Deferred:
Federal(5.4)(9.3)(3.9)
State and other(0.3)(2.3)(0.4)
Total deferred benefit(5.7)(11.6)(4.3)
Total income tax (benefit) expense related to continuing operations$(4.0)$(11.4)$12.8 
A reconciliation of differences between the federal statutory tax rate and Enhabit’s effective tax rate is presented below:
Year Ended December 31,
202420232022
Federal statutory tax rate21.0%21.0%21.0%
Increase (decrease) in tax rate resulting from:
State and other income taxes, net of federal tax benefit3.1%3.1%1.8%
Valuation allowance(8.9)%—%—%
Impairment of goodwill(11.8)%(10.6)%(49.1)%
Distribution deferred tax adjustment—%—%(23.7)%
Other, net(0.9)%(0.9)%(0.2)%
Effective tax rate2.5%12.6%(50.2)%
Enhabit’s 2022 taxable income generated prior to the Distribution is included in the consolidated federal and state returns of Encompass (“the Pre-Spin Returns”). After the Distribution, Encompass reduced its estimate of the Company’s taxable income to be reported on the Pre-Spin Returns based primarily on a technical analysis of the timing of deductibility of transaction costs related to the Distribution. As a result, Enhabit recorded an increase to the Deferred income tax liabilities and (Benefit from) provision for income taxes of $6.0 million in 2022, which is presented in the rate reconciliation as the Distribution deferred tax adjustment.
In addition to the CARES Act provisions previously discussed in Note 1, Summary of Significant Accounting Policies—COVID-19 Pandemic, the CARES Act also includes provisions relating to net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, technical corrections to tax depreciation methods for qualified improvement property and deferral of employer payroll taxes. The CARES Act did not materially impact the Company’s effective tax rate, although it impacted the timing of cash payments for payroll taxes. A deferred payment of social security taxes of $14.9 million was paid for the year ended December 31, 2022. There were no deferred payments of social security taxes accrued as of December 31, 2024 and 2023.
Deferred income taxes recognize the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The significant components of deferred tax assets and liabilities are presented in the following table (in millions):
As of December 31,
20242023
Deferred income tax assets:
Operating lease liabilities$12.4 $13.2 
Accrued expenses and allowances2.9 3.0 
Stock-based compensation3.3 3.2 
Interest expense21.7 13.1 
Other deferred income tax assets— 0.3 
Total deferred income tax assets, gross40.3 32.8 
Valuation allowance(14.1)— 
Total deferred income tax assets, net26.2 32.8 
Deferred income tax liabilities:
Intangible assets(19.1)(32.0)
Operating lease right-of-use assets(12.1)(13.3)
Property, net(3.2)(3.7)
Other deferred income tax liabilities(3.3)(0.9)
Total deferred income tax liabilities(37.7)(49.9)
Net deferred income tax liabilities$(11.5)$(17.1)
Prior to July 1, 2022, the Company joined Encompass in the filing of various consolidated federal, state, and local income tax returns and was a party to an income tax allocation agreement (the “Tax Sharing Agreement”). Under the Tax Sharing Agreement, the Company paid to or received from Encompass the amount, if any, by which Encompass’s income tax liability was affected by virtue of inclusion of the Company in the consolidated income tax returns of Encompass. Effectively, that arrangement resulted in the Company’s annual income tax provision being computed, with adjustments, including the Distribution deferred tax adjustment in 2022 of $6.0 million discussed above, as if the Company filed its own separate consolidated income tax returns. The deferred tax asset for interest expense is attributable to a carryforward with an indefinite carryforward period. The Company recorded a valuation allowance against a portion of the deferred tax assets of $14.1 million for 2024, of which $5.4 million relates to deferred tax assets arising in a prior year.
At the Distribution, the Company entered into the Tax Matters Agreement with Encompass, which terminated the existing Tax Sharing Agreement prospectively. The Tax Matters Agreement governs the Company’s respective rights, responsibilities and obligations with respect to taxes (including responsibility for taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the Distribution to qualify as tax-free for U.S. federal income tax purposes), entitlement to refunds, allocation of tax attributes, preparation of tax returns, control of tax contests and other matters.
The Tax Matters Agreement provides special rules that allocate tax liabilities in the event the Distribution or certain related transactions are not tax-free. In general, under the Tax Matters Agreement, each party is responsible for any taxes imposed on Encompass or the Company that arise from the failure of the Distribution or certain related transactions to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes under Section 355 of the Code, to the extent that the failure to so qualify is attributable to actions, events or transactions relating to such party’s respective stock, assets or business, or a breach of the relevant covenants made by that party in the Tax Matters Agreement.
Interest and penalties related to income tax matters are recognized in (Benefit from) provision for income taxes in the Consolidated Statements of Income. Interest recorded as part of the income tax provisions for 2024, 2023, and 2022 was not material. Accrued interest related to income taxes as of December 31, 2024 and 2023 was not material.
As of December 31, 2024 and 2023, the Company has not recorded any unrecognized income tax benefits for uncertain tax positions. Enhabit’s federal income tax returns have been examined through the date of the Distribution as part of the examinations of the Encompass consolidated federal income tax returns. All subsequent tax years are open for examination.
v3.25.0.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In October 2022, Enhabit entered into an interest swap agreement with a notional value of $200.0 million and a maturity of October 20, 2025.
The activities of the cash flow hedge included in Accumulated other comprehensive loss for the year ended December 31, 2024 are presented in the following table (in millions):
Cash Flow Hedge
Balance as of December 31, 2023$(0.5)
Unrealized gain recognized in other comprehensive income, net of tax1.5 
Reclassified to interest expense, net of tax(1.2)
Balance as of December 31, 2024$(0.2)
The fair value of derivative assets and liabilities within the Consolidated Balance Sheets are presented in the following table (in millions):
As of December 31,
20242023
Prepaid and other current assets$— $0.7 
Other current liabilities (0.3)— 
Other long-term liabilities— (1.3)
Total$(0.3)$(0.6)
Fair values for derivative instruments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy.
v3.25.0.1
Contingencies and Other Commitments
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Contingencies and Other Commitments Contingencies and Other Commitments
Enhabit operates in a highly regulated industry in which healthcare providers are routinely subject to litigation. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against the Company. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect the Company’s financial position, results of operations, and cash flows in a given period.
There were no claims made against the Company that are probable of loss and reasonably estimable as liabilities within Other current liabilities in the Consolidated Balance Sheet as of December 31, 2024.
Other Commitments
Enhabit is a party to service and other contracts in connection with conducting business. Minimum amounts due under these agreements are $18.3 million in 2025, $4.5 million in 2026, and $— million in 2027 and thereafter. These contracts primarily relate to medical and durable medical equipment used in the two reporting segments, and business and software licensing and support. Certain of these agreements include variable arrangements, such as the cost to the supplier plus a designated mark-up percentage, or a fixed rate per average patient count per month in the two reportable segments
v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Enhabit’s two reportable segments, Home Health and Hospice, are based on the major types of services provided by the Company, as described below. The Chief Executive Officer, who is also the Chief Operating Decision Maker, uses these segment groupings and the results of each segment, measured by adjusted earnings before interest, taxes, depreciation, and amortization (“Segment Adjusted EBITDA”) to evaluate performance and allocate resources, primarily during the annual budget process and regular operational performance reviews. Segment assets are not reviewed by the Chief Operating Decision Maker and therefore are not disclosed below.

•Home Health - Enhabit operates home health agencies in 34 states, with a concentration in the southern half of the United States. As of December 31, 2024, the Company operates 255 home health agencies. Enhabit is the sole owner of 244 of these locations. The Company retains 50.0% to 81.0% ownership in the remaining 11 jointly owned locations. Home health services include a comprehensive range of Medicare-certified home nursing services to adult patients in need of care. These services include, among others, skilled nursing, physical, occupational, and speech therapy, medical social work, and home health aide services.
•Hospice - Enhabit’s hospice operations represent one of the nation’s largest providers of Medicare-certified hospice services. The Company operates hospice provider locations in 25 states, with a concentration in the southern half of the United States. As of December 31, 2024, the Company operates 115 hospice provider locations. Enhabit is the sole owner of 111 of these locations. The Company retains 50.0% to 90.0% ownership in the remaining four jointly owned locations. Hospice care focuses on the quality of life for patients who are experiencing an advanced, life limiting illness while treating the person and symptoms of the disease, rather than the disease itself.
The accounting policies of the reportable segments are the same as those described in Note 1, Summary of Significant Accounting Policies. All revenues for services are generated through external customers. See Note 1, Summary of Significant Accounting Policies—Net Service Revenue, for the disaggregation of revenues. No corporate overhead is allocated to either of the reportable segments. Other cost of service is comprised of third-party services and other individually insignificant costs in the Home Health segment. Other cost of service is comprised of medical director, skilled nursing facilities and other individually insignificant costs in the Hospice segment. Other general and administrative expenses is comprised of licensing fees and other individually insignificant fees for both the Home Health and Hospice segments.
Selected financial information for the reportable segments is as follows (in millions):
Home HealthHospice
Year Ended December 31,
Year Ended December 31,
202420232022202420232022
Net service revenue$824.8 $850.1 $877.1 $210.0 $196.2 $194.0 
Labor389.5 398.6 394.1 63.8 62.5 57.0 
Supplies and pharmacy9.9 10.8 12.8 19.4 17.1 17.4 
Travel21.8 22.8 24.4 4.7 4.8 5.0 
Other cost of service7.0 6.8 4.2 14.7 12.2 10.7 
Total cost of service, excluding depreciation and amortization428.2 439.0 435.5 102.6 96.6 90.1 
General and administrative salaries193.2 196.9 196.9 54.0 52.2 54.4 
Other general and administrative expenses42.2 43.7 41.6 11.5 11.2 10.8 
Total general and administrative expenses235.4 240.6 238.5 65.5 63.4 65.2 
Other income— (0.2)(0.9)— — — 
Noncontrolling interests1.8 1.4 1.8 0.4 0.1 0.3 
Segment Adjusted EBITDA$159.4 $169.3 $202.2 $41.5 $36.1 $38.4 
Total segment reconciliations (in millions):
Year Ended December 31,
202420232022
Total Segment Adjusted EBITDA$200.9 $205.4 $240.6 
Non-segment general and administrative expenses(113.3)(128.7)(102.0)
Interest expense(42.9)(43.0)(15.0)
Depreciation and amortization(31.5)(30.9)(33.0)
Impairment of goodwill(161.7)(85.8)(109.0)
Stock-based compensation expense(11.7)(8.9)(9.2)
Net income attributable to noncontrolling interests2.2 1.5 2.1 
Loss before income taxes and noncontrolling interests$(158.0)$(90.4)$(25.5)
Additional detail regarding the revenues of the operating segments by payer type follows (in millions):
Year Ended December 31,
202420232022
Home Health:
Medicare$484.6 $557.4 $647.7 
Non-Medicare331.2 283.0 218.3 
Private duty(1)
9.0 9.7 11.1 
Total Home Health824.8 850.1 877.1 
Hospice210.0 196.2 194.0 
Total net service revenue$1,034.8 $1,046.3 $1,071.1 
(1)    Private duty represents long-term comprehensive hourly nursing medical care.
v3.25.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Separation From Encompass
In connection with the Separation, Enhabit entered into several agreements with Encompass that govern the relationship of the parties following the Distribution, including a Separation and Distribution Agreement, a Transition Services Agreement, a Tax Matters Agreement, and an Employee Matters Agreement. The Separation and Distribution Agreement contains provisions that, among other things, relate to (i) assets, liabilities, and contracts to be transferred, assumed, and assigned to each of Enhabit and Encompass as part of the Separation, (ii) cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of the Enhabit business with Enhabit and financial responsibility for the obligations and liabilities of Encompass’s remaining business with Encompass, (iii) procedures with respect to claims subject to indemnification and related matters, (iv) the allocation between Enhabit and Encompass of rights and obligations under existing insurance policies with respect to occurrences prior to completion of the Distribution, as well as the right to proceeds and the obligation to incur certain deductibles under certain insurance policies, and (v) procedures governing Enhabit’s and Encompass’s obligations and allocations of liabilities with respect to ongoing litigation matters that may implicate each of Enhabit’s business and Encompass’s business.
Allocation of Corporate Expenses
Historically Encompass provided the Company with certain services, including, but not limited to, executive oversight, treasury, legal, accounting, human resources, tax, internal audit, financial reporting, information technology and investor relations. After the Separation, some of these services continued to be provided by Encompass to the Company on a temporary basis under the Transition Services Agreement. As of April 1, 2024, these functions are being performed using the Company’s own resources or third‑party providers. The consolidated financial statements through December 31, 2022 included an allocation of these costs for the period prior to July 1, 2022. When specific identification was not practicable, a proportional cost method was used, primarily based on revenue and headcount. These cost allocations reasonably reflected these services and the benefits derived for the periods presented. These allocations may not be indicative of the actual expenses that would have been incurred as an independent, publicly traded company. In addition, the Company’s employees have historically participated in Encompass’s various stock-based plans as discussed in Note 9, Stock-Based Payments.
There were no allocations of services from Encompass to the Company during the years ended December 31, 2024 and 2023. The allocations of services from Encompass to the Company and stock-based compensation during the year ended December 31, 2022 are reflected in General and administrative expenses in the Consolidated Statements of Operations as follows (in millions):
Year Ended December 31,
2022
Overhead allocation$7.7 
Stock-based compensation$2.5 
For information related to the Tax Sharing Agreement with Encompass, see Note 11, Income Taxes.
Data Analytics Investment
During 2019, Enhabit made a $2.0 million investment in Medalogix, LLC, a healthcare predictive data and analytics company; this investment is accounted for under the measurement alternative for investments. In April 2021, Medalogix entered in an agreement whereby TVG Logic Holdings, LLC (“TVG”) acquired a majority of the issued and outstanding membership interests of Medalogix for cash. The transaction closed in May 2021. As a result of the transaction, the Company received $2.0 million of cash and a minority equity investment in TVG and recorded a $1.6 million gain as part of Other income during 2021. During 2024, 2023, and 2022, the Company incurred costs of approximately $4.9 million, $4.5 million, and $4.6 million, respectively, in connection with the usage of Medalogix’s analytics platforms. These costs are included in Cost of service, excluding depreciation and amortization, and General and administrative expenses in the Consolidated Statements of Income.
v3.25.0.1
Supplemental Cash Flow Information
 12 Months Ended
Dec. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
The following table provides supplemental cash flow information and disclosures of non-cash investing and financing activities for the years ended December 31, 2024, 2023, and 2022 (in millions):
Year Ended December 31,
202420232022
Supplemental cash flow disclosures:
Cash received (paid) for income taxes$0.8 $8.2 $(11.9)
Cash paid for interest$(42.7)$(40.6)$(13.1)
Supplemental cash flow disclosures of non-cash investing and financing activities:
Property and equipment additions through finance leases$5.5 $3.8 $3.5 
Operating lease additions$11.0 $31.6 $10.1 
Trade name transfer to Encompass (including deferred tax liability)$— $— $104.2 
The following table details supplemental cash flow disclosures related to the reconciliation of cash and cash equivalents and restricted cash balances (in millions):
As of December 31,
20242023
Cash, cash equivalents, and restricted cash reconciliation:
Cash and cash equivalents$28.4 $27.4 
Restricted cash1.9 2.4
Cash, cash equivalents, and restricted cash at end of period$30.3 $29.8 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ (156.2) $ (80.5) $ (40.4)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have structured our cybersecurity program around the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity strategy focuses on implementing effective and efficient controls, technologies, and processes to assess, identify and manage cybersecurity risks. Key components of our strategy include annual and ongoing security awareness
training for employees, advanced detection and monitoring systems, and robust incident response and containment. We actively monitor and investigate both internally discovered and externally reported issues that may compromise our information systems, permitting quick and decisive action when necessary. We also have engaged third-party service providers and have implemented cybersecurity risk management protocols for such parties. For example, all vendors are required to complete our Ongoing Monitoring Assessment Questionnaire, which helps monitor each vendor’s continuing compliance, and we subject our technology vendors to a separate vetting and approval process formally assessing each vendor from a cybersecurity perspective.
The Chief Information Security Officer leads a dedicated team of internal IT employees, along with multiple long-term third-party security vendors. Our board of directors, and the Care, Compliance, & Cybersecurity Committee of the board, supports our Chief Information Officer and Chief Information Security Officer by leveraging members’ experience with information technology and management, including information technology strategy and risks associated with cybersecurity matters, as part of its oversight function.
Our policies and procedures concerning cybersecurity matters apply to all employees. These policies and procedures address encryption standards, antivirus protection, remote access, multi-factor authentication, confidential information, and the use of the internet, social media, email and wireless devices.
We have experienced threats to our data and systems, including malware and computer virus attacks from time to time. To our knowledge, these threats have not materially affected us, our business, financial position, results of operations or cash flows to date.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have structured our cybersecurity program around the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity strategy focuses on implementing effective and efficient controls, technologies, and processes to assess, identify and manage cybersecurity risks. Key components of our strategy include annual and ongoing security awareness
training for employees, advanced detection and monitoring systems, and robust incident response and containment. We actively monitor and investigate both internally discovered and externally reported issues that may compromise our information systems, permitting quick and decisive action when necessary.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] Our board of directors has ultimate oversight responsibility but has delegated to the board’s Care, Compliance, & Cybersecurity Committee focused and pertinent oversight duties, which have been integrated into our overall enterprise risk management program, as described below.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our board of directors has ultimate oversight responsibility but has delegated to the board’s Care, Compliance, & Cybersecurity Committee focused and pertinent oversight duties, which have been integrated into our overall enterprise risk management program, as described below.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Chief Information Officer provides quarterly reports on our cybersecurity program to the Care, Compliance, & Cybersecurity Committee. These reports include details and metrics on, among other things, our routine vulnerability assessments, internal and external threat intelligence, company-wide phishing exercises and training, device encryption, device patching, routine resilience efforts including quarterly disaster recovery exercises, tabletop incident response and business continuity exercises. The chairperson of the Care, Compliance, & Cybersecurity Committee briefs the full board of directors on such quarterly reports.
The Chief Information Officer and our Chief Information Security Officer also serve on management’s Enterprise Risk Committee, along with our executive management team, the Chief Compliance Officer, and internal audit personnel. The Enterprise Risk Committee meets regularly during the year to assess various significant risks—including cybersecurity risks—and receives cybersecurity updates in connection with those assessments and the development and implementation of any risk mitigation plans. Our President and Chief Executive Officer presents the report of the Enterprise Risk Committee quarterly to the full board of directors.
Cybersecurity Risk Role of Management [Text Block] Our Chief Information Officer provides quarterly reports on our cybersecurity program to the Care, Compliance, & Cybersecurity Committee. These reports include details and metrics on, among other things, our routine vulnerability assessments, internal and external threat intelligence, company-wide phishing exercises and training, device encryption, device patching, routine resilience efforts including quarterly disaster recovery exercises, tabletop incident response and business continuity exercises. The chairperson of the Care, Compliance, & Cybersecurity Committee briefs the full board of directors on such quarterly reports.
The Chief Information Officer and our Chief Information Security Officer also serve on management’s Enterprise Risk Committee, along with our executive management team, the Chief Compliance Officer, and internal audit personnel. The Enterprise Risk Committee meets regularly during the year to assess various significant risks—including cybersecurity risks—and receives cybersecurity updates in connection with those assessments and the development and implementation of any risk mitigation plans. Our President and Chief Executive Officer presents the report of the Enterprise Risk Committee quarterly to the full board of directors.
We also maintain an inter-departmental privacy and security committee which oversees programs and initiatives to protect and secure patient information as well as our data and information systems. This committee reports to our executive management team and has responsibility for our IT-security incident response plan and various training and awareness programs that promote patient privacy and system security practices by employees.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Chief Information Officer provides quarterly reports on our cybersecurity program to the Care, Compliance, & Cybersecurity Committee.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Chief Information Security Officer, who reports to our Chief Information Officer, brings to bear more than two decades of experience implementing NIST cybersecurity frameworks, including most recently five years as chief information security officer for a Fortune 200 company. He also holds multiple certifications including the globally recognized Certificate Information Systems Security Professional designation since 2006.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our Chief Information Officer provides quarterly reports on our cybersecurity program to the Care, Compliance, & Cybersecurity Committee. These reports include details and metrics on, among other things, our routine vulnerability assessments, internal and external threat intelligence, company-wide phishing exercises and training, device encryption, device patching, routine resilience efforts including quarterly disaster recovery exercises, tabletop incident response and business continuity exercises. The chairperson of the Care, Compliance, & Cybersecurity Committee briefs the full board of directors on such quarterly reports.
The Chief Information Officer and our Chief Information Security Officer also serve on management’s Enterprise Risk Committee, along with our executive management team, the Chief Compliance Officer, and internal audit personnel. The Enterprise Risk Committee meets regularly during the year to assess various significant risks—including cybersecurity risks—and receives cybersecurity updates in connection with those assessments and the development and implementation of any risk mitigation plans. Our President and Chief Executive Officer presents the report of the Enterprise Risk Committee quarterly to the full board of directors.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation For periods prior to July 1, 2022, the accompanying consolidated financial statements of the Company and its subsidiaries have been derived from the consolidated financial statements and accounting records of Encompass as if the Company had operated on a stand-alone basis during the periods presented and were prepared utilizing the legal entity approach, in accordance with generally accepted accounting principles in the United States of America (“GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Prior to July 1, 2022, the Company was reported as a single reportable segment within Encompass’s reportable segments and did not operate as a stand-alone company. Accordingly, Encompass historically reported the financial position and the related results of operations, cash flows, and changes in equity of the Company as a component of Encompass’s consolidated financial statements.
Consolidation
The consolidated financial statements include an allocation of expenses related to certain Encompass corporate functions as discussed in Note 15, Related Party Transactions. The consolidated financial statements also include revenues and expenses directly attributable to the Company and assets and liabilities specifically attributable to the Company. Encompass’s third-party debt and related interest expense have not been attributed to the Company because the Company is not the primary legal obligor of the debt, and the borrowings are not specifically identifiable to the Company. However,
subsequent to April 23, 2020, the Company was a guarantor for Encompass’s credit agreement and senior debt. In connection with the Distribution, the Company was released from its guarantee of Encompass’s indebtedness. The Company maintains its own cash management system and does not participate in a centralized cash management arrangement with Encompass.
Prior to the Distribution and Separation, Enhabit joined with Encompass in various U.S. federal, state, and local consolidated income tax filings. See Note 11, Income Taxes, for information related to the Company’s Tax Sharing Agreement with Encompass. The income tax amounts in these consolidated financial statements have been calculated based on a separate return methodology and are presented as if Enhabit’s income gave rise to separate federal and state consolidated income tax return filing obligations in the respective jurisdictions in which the Company operates, with adjustments described in Note 11, Income Taxes.
The consolidated financial statements include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which the Company exercises control, and, when applicable, entities in which the Company has a controlling financial interest.
Enhabit eliminates all intercompany accounts and transactions within the Company from its financial results. Transactions between the Company and Encompass have been included in these consolidated financial statements. The transfers with Encompass that were not settled are reflected in stockholders’ equity within Capital in excess of par value on the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity. Within the Consolidated Statements of Cash Flows, these transfers are treated as an operating, financing or noncash activity determined by the nature of the transaction. Transactions between the Company and Encompass prior to July 1, 2022 were considered related party transactions.
Variable Interest Entities Variable Interest Entities. Any entity considered a variable interest entity (“VIE”) is evaluated to determine which party is the primary beneficiary and thus should consolidate the VIE. This analysis is complex, involves uncertainties, and requires significant judgment on various matters. To determine if Enhabit is the primary beneficiary of a VIE, the Company must determine what activities most significantly impact the economic performance of the entity, whether the Company has the power to direct those activities, and if the Company’s obligation to absorb losses or receive benefits from the VIE could potentially be significant to the VIE.
Use of Estimates and Assumptions
Use of Estimates and Assumptions. The preparation of Enhabit’s consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are used for, but not limited to: (1) estimates of net transaction prices to be collected for services and related revenue adjustments; (2) fair value of acquired assets and assumed liabilities in business combinations; (3) asset impairments, including goodwill; (4) depreciable lives of assets; (5) useful lives of intangible assets; (6) economic lives and fair value of leased assets; (7) fair value of stock-based compensation; (8) fair value of derivative instruments; (9) reserves for self-insured healthcare plans;(10) reserves for professional, workers’ compensation, and comprehensive general insurance liability risks; and (11) income taxes. Future events and their effects cannot be predicted with certainty; accordingly, Management’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of Enhabit’s consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company’s operating environment changes. Management evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates.
Risks and Uncertainties
COVID-19 Pandemic. The rapid onset of the COVID-19 Pandemic (the “pandemic”) caused a disruption to the nation’s healthcare system. In response to the public health emergency associated with the pandemic, the United States Congress and Centers for Medicare and Medicaid Services (“CMS”) adopted several statutory and regulatory measures intended to provide relief to healthcare providers to ensure patients would continue to have adequate access to care. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”), which temporarily suspended sequestration from May 1 through December 31, 2021. After the sequestration suspension was extended several times, sequestration resumed as of April 1, 2022, but was only a 1% payment reduction through June 30, 2022. Thereafter, the full 2% Medicare payment reduction resumed. Federal
legislation, including the CARES Act and the 2021 Budget Act, and CMS regulatory actions include a number of other provisions, which are discussed below, affecting the Company’s reimbursement and operations in both segments. In the United States, the public health emergency measures expired on May 11, 2023.
Net Service Revenue Net Service Revenue.
Enhabit records Net service revenue on an accrual basis using management’s best estimate of the transaction price for the type of service provided to the patient and expect to receive in exchange for providing services directly to patients. Management’s estimate of the transaction price includes adjustments for contractual rate and other revenue adjustments, including uncollectible amounts. Contractual rate revenue adjustments are recorded for the excess of the Company’s standard rates over the contracted rate applicable to the relevant payer, if any. Management calculates contractual rate adjustments on a patient-by-patient basis based on the rates in effect for each primary third-party payer. Other revenue adjustments include adjustments for self-pay, uninsured patients and other payers and include revenue adjustments arising from billing documentation, face-to-face documentation, authorizations, and adjustments that may arise from payment, and other reviews by third-party payers or their agents. Estimates for other revenue adjustments are determined based on the aging of the Company’s accounts receivable, its historical collection experience for each type of payer, its success rate in the claims adjudication process, and other relevant factors.
Management continually reviews the transaction price estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms that result from contract renegotiations and renewals. Due to complexities involved in determining amounts ultimately due under reimbursement arrangements with third-party payers, which are often subject to interpretation, Enhabit may receive reimbursement for healthcare services authorized and provided that is different from management’s estimates, and such differences could be material. In addition, laws and regulations governing the Medicare and Medicaid programs are complex, subject to interpretation, and are routinely modified for provider reimbursement. All healthcare providers participating in the Medicare and Medicaid programs are required to meet certain financial reporting requirements. Federal regulations require submission of annual cost reports covering medical costs and expenses associated with the services provided under each home health and hospice provider number to program beneficiaries. Annual cost reports required under the Medicare and Medicaid programs are subject to routine audits, which may result in adjustments to the amounts ultimately determined to be due to the Company under these reimbursement programs. If actual results are not consistent with management’s assumptions and judgments, the Company may be exposed to adjustments to Net service revenue that could be material.
CMS has been granted authority to suspend payments, in whole or in part, to Medicare providers if CMS possesses reliable information concerning an overpayment, fraud, or willful misrepresentation. If CMS suspects payments are being made as the result of fraud or willful misrepresentation, CMS may suspend payment at any time without providing prior notice to the Company. The initial suspension period is limited to 180 days; however, the payment suspension period can be extended almost indefinitely if the matter is under investigation by the United States Department of Health and Human Services Office of Inspector General or the United States Department of Justice. Therefore, management is unable to predict if or when the Company may be subject to a suspension of payments by the Medicare and/or Medicaid programs, the possible length of the suspension period, or the potential cash flow impact of a payment suspension. Any such suspension would adversely impact the Company’s financial position, results of operations, and cash flows.
Enhabit’s performance obligations relate to contracts with a duration of less than one year. Therefore, management elected to apply the optional exemption to not disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. These unsatisfied or partially unsatisfied performance obligations primarily relate to services provided at the end of the reporting period.
The Company is subject to changes in government legislation that could impact Medicare payment levels and changes in payer patterns that may impact the level and timing of payments for services rendered.
Home Health Revenues
Under the Medicare home health prospective payment system, the Company is paid by Medicare based on episodes of care. The performance obligation is the rendering of services to the patient during the term of the episode of care. An episode of care is defined as a length of stay up to 60 days, with multiple continuous episodes allowed. A base episode payment is established by the Medicare program through federal regulation. The base episode payment can be adjusted based on each patient’s health including clinical condition, functional abilities, and service needs, as well as for the applicable geographic wage index, low utilization, patient transfers, and other factors. The services covered by the episode payment include all disciplines of care in addition to medical supplies. Medicare reimburses home health providers under the Patient-Driven Groupings Model (“PDGM”). Under the PDGM, the initial certification remains valid for 60 days. If a patient remains eligible for care after the initial period as certified by a physician, a new treatment period may begin.
As the Company provides home health services to its patients on a scheduled basis over the episode of care in a manner that approximates a pro rata pattern, revenue for the episode of care is recorded over an average length of treatment period using a calendar day prorating method. The amount of revenue recognized for episodes of care which are incomplete at period end is based on the pro rata number of days in the episode that have been completed as of the period end date.
Enhabit is subject to certain Medicare regulations affecting outlier revenue if its patient’s care was unusually costly. Regulations require a cap on all outlier revenue at 10% of total Medicare revenues received by each provider during a cost reporting year. Management has reviewed the potential cap. Adjustments to the transaction price for the outlier cap were not material as of December 31, 2024, 2023, and 2022.
For episodic-based rates that are paid by other insurance carriers, including Medicare Advantage, the Company recognizes revenue in a similar manner as discussed above for Medicare revenues. However, these rates can vary based upon the negotiated terms. For non-episodic-based revenue, revenue is recorded on an accrual basis based upon the date of service at amounts equal to the Company’s estimated per-visit transaction price. Price concessions, including contractual rate and other revenue adjustments are recorded as decreases to the transaction price.
Hospice Revenues
Medicare revenues for Hospice are recognized and recorded on an accrual basis using the input method based on the number of days a patient has been on service at amounts equal to an estimated daily or hourly payment rate. The performance obligation is the rendering of services to the patient during each day that he or she is on hospice care. The payment rate is dependent on whether a patient is receiving routine home care, general inpatient care, continuous home care or respite care. Adjustments to Medicare revenues are recorded based on an inability to obtain appropriate billing documentation or authorizations acceptable to the payer or other reasons unrelated to credit risk. Hospice companies are subject to two specific payment limit caps under the Medicare program. One limit relates to inpatient care days that exceed 20% of the total days of hospice care provided for the year. The second limit relates to an aggregate Medicare reimbursement cap calculated by the Medicare Administrative Contractors. Adjustments to the transaction price for these caps were $1.4 million, zero and $0.2 million for December 31, 2024, 2023, and 2022.
For non-Medicare Hospice revenues, Enhabit records gross revenue on an accrual basis based upon the date of service at amounts equal to the Company’s estimated per day transaction price. Price concessions, including contractual and other revenue adjustments are recorded as decreases to the transaction price and thus reduce Net service revenue.
Cash and Cash Equivalents
Cash and Cash Equivalents. Cash and cash equivalents include highly liquid investments with original maturities of three months or less when purchased. Carrying values of Cash and cash equivalents approximate fair value due to the short-term nature of these instruments.
The Company maintains amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the creditworthiness of those institutions, and the Company has not experienced any losses on such deposits.
Restricted Cash
Restricted Cash. Restricted cash represents cash accounts maintained by a joint venture in which the Company’s joint venture partner requested, and management agreed, that the joint venture’s cash not be commingled with other corporate cash accounts and be used only to fund the operations of the joint venture.
Accounts Receivable, Net of Allowances
Accounts Receivable, Net of Allowances. Accounts receivable, net of allowances, from services rendered are reported at their estimated transaction price, which takes into account price concessions based on the amounts expected to be due from payers including federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies, workers’ compensation programs, employers, and patients. Management estimates the value of Accounts receivable, net of allowances, based upon historical experience and other factors, including an aging of accounts receivable, evaluation of expected adjustments, past adjustments, and collection experience in relation to amounts billed, current contract and reimbursement terms, shifts in payers and other relevant information. Collection of Net service revenue the Company expects to receive is normally a function of providing complete and correct billing information to the payers within the various filing deadlines. The evaluation of these factors involves complex, subjective judgments impacting the determination of the implicit price concession assumption. In addition, management compares the Company’s cash collections to recorded Net service revenue and evaluates historical allowances, including implicit price concessions, based upon the ultimate resolution of the accounts receivable balance.
Accounts receivable, net of allowances, are concentrated by type of payer.
While revenues and accounts receivable from the Medicare program are significant to Enhabit’s operations, management does not believe there are significant credit risks associated with this government agency. Management does not believe there are any other significant concentrations of revenues from any particular payer that would subject the Company to any significant credit risks in the collection of accounts receivable.
Accounts requiring collection efforts are reviewed via system-generated work queues that automatically stage (based on age and size of outstanding balance) accounts requiring collection efforts by patient account representatives. Collection efforts include contacting the applicable party (both in writing and by telephone), providing information (both financial and clinical) to allow for payment or to overturn payer decisions to deny payment, and arranging payment plans with self-pay patients, among other techniques. When management determines all in-house efforts have been exhausted or it is a more prudent use of resources, accounts may be turned over to a collection agency.
The collection of outstanding receivables from Medicare and managed care payers is Enhabit’s primary source of cash and is critical to the Company’s operating performance. While it is Company policy to verify insurance prior to a patient being admitted, there are various exceptions that can occur. Such exceptions include instances where the Company is unable to obtain verification because the patient’s insurance company was unresponsive to attempts to be contacted or a determination is made that a patient may be eligible for benefits under various government programs, such as Medicaid, but confirmation of qualification or denial for such benefits may take several days, weeks, or months to be communicated.
If actual results are not consistent with management’s assumptions and judgments, the Company may be exposed to adjustments to Net service revenue and cash collections that could be material. Changes in general economic conditions, business office operations, payer mix, or trends in federal or state governmental and private employer healthcare coverage could affect the Company’s collection of accounts receivable, financial position, results of operations, and cash flows.
Subsequent adjustments to accounts receivable determined to be the result of an adverse change in the payer’s ability to pay are recognized as provision for credit losses. The majority of what historically was classified as provision for credit losses under operating expenses is now treated as an implicit price concession factored into the determination of Net service revenue discussed above.
Property and Equipment Property and Equipment. Enhabit reports leasehold improvements, vehicles, and equipment at cost, net of accumulated depreciation and amortization, as well as any asset impairments. The Company depreciates assets using the straight-line method over the shorter of the estimated useful life of the assets or life of the underlying leases.
Maintenance and repairs of leasehold improvements and equipment are expensed as incurred. The Company capitalizes replacements and betterments that increase the estimated useful life of an asset.
The Company retains fully depreciated assets and the related accumulated depreciation accounts until the assets are removed from service. In the case of sale, retirement, or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, less any proceeds, is included as a component of income from continuing operations in the Consolidated Statements of Income.
Leases
Leases. Management determines if an arrangement is a lease, or contains a lease, at the inception of the contract and performs an analysis to determine whether the lease is an operating lease or a finance lease. The Company measures right‑of-use assets and lease liabilities at the lease commencement date based on the present value of the remaining lease payments. As most leases do not provide a readily determinable implicit rate, management estimates an incremental borrowing rate based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, adjusting this amount based on the impact of collateral over the term of each lease. Management uses this rate to discount the remaining lease payments in measuring the right-of-use asset and lease liability. The implicit rate is used when readily determinable. Lease expense is recognized for operating leases on a straight-line basis over the lease term. For finance leases, the Company recognizes amortization expense from the amortization of the right-of-use asset and interest expense on the related lease liability. Certain lease agreements contain annual escalation clauses based on changes in the Consumer Price Index. The changes to the Consumer Price Index, as compared to management’s initial estimate at the lease commencement date, are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Management does not account for lease and non‑lease components separately for purposes of establishing right-of-use assets and lease liabilities.
Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net. Goodwill is required to be tested for impairment at least annually, as of October 1st, absent any triggering events that would accelerate an impairment assessment. The Company may perform interim impairment tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit or an indefinite lived intangible asset below its carrying amount. Potential impairment of a reporting unit is
identified by comparing the reporting unit’s estimated fair value to its carrying amount. The Company would recognize an impairment charge for any amount by which the carrying amount of the asset exceeds its fair value.
The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit-specific operating results, as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for its reporting units and perform a quantitative test as of the measurement date of the test. Management assesses qualitative factors in the Home Health and Hospice reporting units to determine whether it is necessary to perform the quantitative impairment test. If, based on this qualitative assessment, management believes the quantitative goodwill impairment test must be performed, management would estimate the fair value of the reporting units using generally accepted valuation techniques including the income approach and the market approach. Fair value under the income approach is determined by discounting to present value the estimated future cash flows of each reporting unit. Significant assumptions are incorporated into the discounted cash flow analysis, such as estimates of revenue growth rates, timing of de novo location openings, forecasted operating margins, the weighted average cost of capital, and terminal growth rates. Fair value under the market approach utilizes the guideline public company methodology, which uses valuation indicators, including market multiples of earnings before interest, taxes, depreciation and amortization, from other businesses that are similar to each reporting unit and implied control premiums. Changes in general economic and market conditions impacting these assumptions could result in goodwill impairment charges in future periods. When the Company disposes of a home health or hospice provider location, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology.
Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual value. As of December 31, 2024, no finite useful lived intangible assets has an estimated residual value. Management reviews these assets for impairment whenever events or changes in circumstances indicate the Company may not be able to recover the asset’s carrying amount.
Enhabit capitalizes the costs of obtaining or developing internal-use software, including external direct costs of material and services and directly related payroll costs. Amortization begins when the internal-use software is ready for its intended use. Costs incurred during the preliminary project and post-implementation stages, as well as maintenance and training costs, are expensed as incurred.
Impairment of Long-Lived Assets and Other Intangible Assets
Impairment of Long-Lived Assets and Other Intangible Assets. Management assesses the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives whenever events or changes in circumstances indicate the Company may not be able to recover the asset’s carrying amount. Management measures the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future cash flows to be generated by that asset, or, for identifiable intangibles with finite useful lives, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. The amount of impairment of other long-lived assets (excluding goodwill) is calculated as the amount by which the carrying value of the asset exceeds the fair market value of the asset, which is generally determined based on projected discounted future cash flows. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed. When long-lived assets are to be disposed of by sale,
they are classified as held for sale, recognized in the balance sheet at the lower of their carrying amount or fair value less cost to sell, and depreciation is ceased.
Investments in and Advances to Nonconsolidated Affiliates
Investments in and Advances to Nonconsolidated Affiliates. Investments in entities that the Company does not control, but in which it has the ability to exercise significant influence over the operating and financial policies of the investees, are accounted for under the equity method. Equity method investments are recorded at original cost and adjusted periodically to recognize Enhabit’s proportionate share of the investees’ net income or loss after the date of investment, additional contributions made, dividends or distributions received, and impairment losses resulting from adjustments to net realizable value. Enhabit records equity method losses in excess of the carrying amount of an investment when the Company guarantees obligations or is otherwise committed to provide further financial support to the affiliate.
The Company uses the measurement alternative to account for equity investments and measures such investments at cost less impairment plus or minus observable price changes in orderly transactions for the identical investment or a similar investment of the same issuer at each reporting period.
Fair Value Measurements
Fair Value Measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability.
The basis for these assumptions establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
•Level 1 – Observable inputs such as quoted prices in active markets;
•Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
•Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value are based on one or more of three valuation techniques. The three valuation techniques are as follows:
•Market approach – Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities;
•Cost approach – Amount that would be required to replace the service capacity of an asset (i.e., replacement cost); and
•Income approach – Techniques to convert future cash flows to a single present amount based on market expectations (including present value techniques, option-pricing models, and lattice models).
Financial instruments consist mainly of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, an interest rate swap, and long-term debt. The carrying amounts of Cash and cash equivalents, Restricted cash, Accounts receivable, net of allowances, and Accounts payable approximate fair value because of the short-term maturity of these instruments.
There are assets and liabilities that are not required to be reported at fair value on a recurring basis. However, these assets may be recorded at fair value as a result of impairment charges or other adjustments made to the carrying value of the applicable assets. The fair value of equipment is determined using discounted cash flows and significant unobservable inputs, unless there is an offer to purchase such assets, which could be the basis for determining fair value. The fair value of Intangible assets, net, excluding goodwill, is determined using discounted cash flows and significant unobservable inputs. The fair value of investments in nonconsolidated affiliates is determined using quoted prices in private markets, discounted cash flows or earnings, or market multiples derived from a set of comparables. The fair value of Goodwill is determined using discounted projected operating results and cash flows, which involve significant unobservable inputs.
Noncontrolling Interests in Consolidated Affiliates
Noncontrolling Interests in Consolidated Affiliates. The consolidated financial statements include all assets, liabilities, revenues, and expenses of less-than-100%-owned affiliates Enhabit controls. Accordingly, the Company has recorded noncontrolling interests in the earnings and equity of such entities. Adjustments to noncontrolling interests are recorded for the allocable portion of income or loss to which the noncontrolling interest holders are entitled based upon
their portion of the subsidiaries they own. Distributions to holders of noncontrolling interests are adjusted to the respective noncontrolling interest holders’ balance.
Redeemable Noncontrolling Interests in Consolidated Affiliates
Redeemable Noncontrolling Interests in Consolidated Affiliates. Certain joint venture agreements contain provisions that allow Enhabit’s partners to require the Company to purchase their interests in the joint venture at fair value at certain points in the future. Because these noncontrolling interests provide for redemption features that are not solely within the Company’s control, they are classified as Redeemable noncontrolling interests outside of permanent equity in the Company’s Consolidated Balance Sheets and present as redeemable noncontrolling interests at the greater of the carrying amount or redemption value at the end of each reporting period.
Stock-Based Payments Stock-Based Payments. Prior to July 1, 2022, the Company’s employees participated in the Encompass equity-based incentive plans (the “Encompass Plans”). Beginning July 1, 2022, Enhabit employees participate in the Enhabit, Inc. 2022 Omnibus Performance Incentive Plan (the “Enhabit Plan”). Enhabit has stockholder-approved stock-based compensation plans that provide for the granting of stock-based compensation to certain Company employees. All stock-based payments to employees are recognized in the financial statements based on their estimated grant-date fair value and amortized on a straight-line basis over the applicable requisite service period. Stock-based compensation is included within General and administrative expenses on the Consolidated Statements of Income.
Advertising Costs Advertising Costs. Costs of print, radio, television, and other advertisements are expensed as incurred.
Income Taxes
Income Taxes. Enhabit provides for income taxes using the asset and liability method. This approach recognizes the amount of income taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for differences in the book and tax carrying amounts of the Company’s assets and liabilities.
Prior to the Distribution and Separation, the Company utilized the separate return approach for the purpose of the Company financial statements, including the income tax provisions and the related deferred tax assets and liabilities. The
historic operations of the business reflect a separate return approach for each jurisdiction in which the Company had a presence and Encompass filed a tax return, with adjustments as discussed in Note 11, Income Taxes.
Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates.
A valuation allowance is required when it is more likely than not some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient future taxable income in the applicable tax jurisdiction. On a quarterly basis, management assesses the likelihood of realization of the Company’s deferred tax assets considering all available evidence, both positive and negative.
Management evaluates the Company’s tax positions and establishes assets and liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes on a quarterly basis.
Derivative Instrument
Derivative Instrument. Enhabit is exposed to certain risks arising from both the Company’s business operations and economic conditions. Management manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of debt funding and the use of an interest rate swap agreement. The interest rate swap agreement is a derivative financial instrument used to manage differences in the amount, timing, and duration of known or expected cash payments principally related to the Company’s borrowings.
Enhabit’s objectives in using an interest rate derivative are to add stability to interest expense and to manage the Company’s exposure to interest rate movements. To accomplish these objectives, the Company primarily uses an interest rate swap as part of its interest rate risk management strategy. An interest rate swap designated as a cash flow hedge involves the receipt of variable amounts from a counter party in exchange for the Company making fixed-rate payments over the life of the agreement without exchange of the underlying notional amount. In accordance with Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging,” the derivative is recorded in the Consolidated Balance Sheets as either an asset or a liability measured at fair value. The change in the fair value of the derivative designated and that qualify as a cash flow hedge is recorded on the Consolidated Balance Sheet in Accumulated other comprehensive loss, net of tax, and is subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. For the year ended December 31, 2024, such a derivative was used to hedge certain variable cash flows associated with existing variable-rate debt.
Reclassification
Reclassification. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
(Loss) Earnings per Common Share
(Loss) Earnings per Common Share. The following table sets forth the computation of diluted weighted average common shares outstanding for the years ended December 31, 2024, 2023, and 2022 (in millions). A total of 0.3 million, 0.3 million and 0.2 million options to purchase Enhabit’s shares and 2.1 million, 1.7 million and 0.6 million restricted stock awards and restricted stock units were excluded from the diluted weighted average common shares outstanding for the years ended, December 31, 2024 and December 31, 2023, and December 31, 2022, respectively, because their effects were anti-dilutive.
Recently Issued Accounting Standards Not Yet Adopted and Recently Adopted Provisions of GAAP
Recently Issued Accounting Standards Not Yet Adopted. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This standard requires disaggregated income tax disclosures on the effective tax rate reconciliation and income taxes paid. This standard is effective for annual periods beginning after December 15, 2024.
Early adoption is permitted, and the disclosures in this standard are required to be applied on a prospective basis with the option to apply the standard retrospectively. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements but will require certain additional disclosures.
In November 2024, the FASB issued ASU 2024-03, “Income Statement (Topic 220): Reporting Comprehensive Income—Expense Disaggregation Disclosures.” This standard requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the potential impact this standard will have on its consolidated financial statements and related disclosures.
Recently Adopted Provisions of GAAP. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures.” This standard provides guidance to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. The Company adopted this standard as of December 31, 2024. See Note 14, Segment Reporting, for more information.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Disaggregation of Net Service Revenue by Payor Source and Segment Net service revenue by payer source and segment is as follows (in millions):
Home Health Hospice Consolidated     
Year Ended December 31,
Year Ended December 31,
Year Ended December 31,
202420232022202420232022202420232022
Medicare$484.6 $557.4 $647.7 $206.5 $190.5 $191.7 $691.1 $747.9 $839.4 
Medicare Advantage237.9 199.2 152.1 — — — 237.9 199.2 152.1 
Managed care91.1 80.9 63.7 3.5 5.0 1.4 94.6 85.9 65.1 
Medicaid9.4 11.8 12.0 — 0.7 0.9 9.4 12.5 12.9 
Other1.8 0.8 1.6 — — — 1.8 0.8 1.6 
Total$824.8 $850.1 $877.1 $210.0 $196.2 $194.0 $1,034.8 $1,046.3 $1,071.1 
Schedule of Concentration of Risk, by Risk Factor The concentration of patient service accounts receivable by payer class, as a percentage of total patient service Accounts receivable, net of allowances, is as follows:
 As of December 31,
20242023
Medicare63.9 %66.9 %
Managed care and other discount plans, including Medicare Advantage28.1 %27.1 %
Medicaid7.1 %5.2 %
Other0.9 %0.8 %
Total100.0 %100.0 %
Schedule of Property and Equipment Useful lives are generally as follows:
 Years
Leasehold improvements
2 to 5
Vehicles
3 to 4
Furniture, fixtures, and equipment
2 to 5
Property and equipment, net, consists of the following (in millions):
As of December 31,
20242023
Leasehold improvements$3.2 $3.1 
Vehicles26.8 29.9 
Furniture, fixtures, and equipment42.7 41.4 
72.7 74.4 
Less: Accumulated depreciation and amortization(55.0)(55.4)
Property and equipment, net$17.7 $19.0 
The amount of depreciation expense is as follows (in millions):
Year Ended December 31,
202420232022
Depreciation expense$4.2 $4.3 $4.6 
Schedule of Finite-Lived Intangible Assets
The range of estimated useful lives and the amortization basis for intangible assets, excluding goodwill, are generally as follows:
Estimated Useful Life and Amortization Basis    
Certificates of need
10 years using straight-line basis
Licenses
10 to 20 years using straight-line basis
Noncompete agreements
5 years using straight-line basis
Internal-use software
3 years using straight-line basis
The following table provides information regarding other Intangible assets, net (in millions):
Gross Carrying Amount    Accumulated AmortizationNet
Certificates of need:
2024$89.2 $(58.6)$30.6 
2023$89.2 $(50.0)$39.2 
Licenses:
2024$131.2 $(107.1)$24.1 
2023$131.2 $(93.9)$37.3 
Noncompete agreements:
2024$15.1 $(13.5)$1.6 
2023$15.1 $(12.6)$2.5 
Internal-use software:
2024$32.1 $(30.3)$1.8 
2023$25.9 $(24.9)$1.0 
Total intangible assets:
2024$267.6 $(209.5)$58.1 
2023$261.4 $(181.4)$80.0 
Schedule Of Net Income Attributable To Redeemable Noncontrolling Interest And Nonredeemable Noncontrolling Interests
The following tables reconcile Net income attributable to nonredeemable noncontrolling interests, as recorded in the shareholders’ equity section of the Consolidated Balance Sheets, and the Net income attributable to redeemable noncontrolling interests, as recorded in the mezzanine section of the Consolidated Balance Sheets, to the Net income attributable to noncontrolling interests presented in the Consolidated Statements of Income, and to the Comprehensive income attributable to noncontrolling interests presented in the Consolidated Statements of Comprehensive Income (in millions):
Year Ended December 31,
202420232022
Balance at beginning of period$5.0 $5.2 $5.0 
Net income attributable to noncontrolling interests— — 0.2 
Distribution to noncontrolling interests — (0.2)— 
Balance at end of period$5.0 $5.0 $5.2 
Year Ended December 31,
202420232022
Net income attributable to nonredeemable noncontrolling interests$2.2 $1.5 $1.9 
Net income attributable to redeemable noncontrolling interests— — 0.2 
    Net income attributable to noncontrolling interests$2.2 $1.5 $2.1 
Schedule of Weighted Average Number of Shares The following table sets forth the computation of diluted weighted average common shares outstanding for the years ended December 31, 2024, 2023, and 2022 (in millions). A total of 0.3 million, 0.3 million and 0.2 million options to purchase Enhabit’s shares and 2.1 million, 1.7 million and 0.6 million restricted stock awards and restricted stock units were excluded from the diluted weighted average common shares outstanding for the years ended, December 31, 2024 and December 31, 2023, and December 31, 2022, respectively, because their effects were anti-dilutive.
Year Ended December 31,
202420232022
Weighted average common shares outstanding:
Basic50.249.949.7
Dilutive effect of options and restricted stock units—— —
Diluted common shares outstanding50.249.949.7
v3.25.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Fair Value of Assets Acquired and Liabilities Assumed
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Cash and cash equivalents$0.7 
Accounts receivable, net of allowances
1.6 
Operating lease right-of-use-assets0.3 
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
0.2 
Trade name (useful life of 6 months)
0.1 
Licenses (useful lives of 10 years)
0.9 
Internal-use software (useful life of 3 years)
0.1 
Goodwill28.7 
Total assets acquired32.6 
Liabilities assumed:
Current operating lease liabilities0.1 
Accounts payable0.1 
Accrued payroll0.2 
Other current liabilities0.2 
Long-term operating lease liabilities0.2 
Total liabilities assumed0.8 
Noncontrolling interests15.9 
Net assets acquired$15.9 
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
$0.6 
Licenses (useful lives of 10 years)
0.6 
Goodwill14.3 
Total assets acquired15.5 
Liabilities assumed:
Other current liabilities1.6 
Total liabilities assumed1.6 
Net assets acquired$13.9 
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
$0.1 
Licenses (useful lives of 10 years)
0.1 
Goodwill2.2 
Total assets acquired2.4 
Liabilities assumed:
Other current liabilities0.3 
Total liabilities assumed0.3 
Net assets acquired$2.1 
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Prepaid expenses and other current assets$0.1 
Operating lease right-of-use-assets0.3 
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)
0.8 
Licenses (useful lives of 10 years)
0.6 
Goodwill19.6 
Total assets acquired21.4 
Liabilities assumed:
Current operating lease liabilities0.1 
Accrued payroll0.1 
Long-term operating lease liabilities0.2 
Total liabilities assumed0.4 
Net assets acquired$21.0 
Schedule of Information Regarding Net Cash Paid for Acquisitions
Information regarding the cash paid for this acquisition is as follows (in millions):
Fair value of assets acquired$3.9 
Goodwill28.7 
Less:
Fair value of liabilities assumed0.8 
Fair value of noncontrolling interest owned by joint venture partner15.9 
Net cash paid for acquisition(1)
$15.9 
(1)     As discussed above, the $15.9 million was funded on December 31, 2021, and was therefore included in the Consolidated Statement of Cash Flows for the year ended December 31, 2021.
Information regarding the cash paid for these acquisitions during 2022 is as follows (in millions):
Fair value of assets acquired$1.2 
Goodwill14.3 
Less:
Fair value of liabilities assumed1.6 
Net cash paid for acquisitions$13.9 
Information regarding the cash paid for this acquisition during 2022 is as follows (in millions):
Fair value of assets acquired$0.2 
Goodwill2.2 
Less:
Fair value of liabilities assumed0.3 
Net cash paid for acquisitions$2.1 
Information regarding the cash paid for this acquisition during 2022 is as follows (in millions):
Fair value of assets acquired$1.8 
Goodwill19.6 
Less:
Fair value of liabilities assumed0.4 
Net cash paid for acquisitions$21.0 
Schedule of Pro Forma Information
The following table summarizes the results of operations of the above-mentioned acquisitions from their respective dates of acquisition included in Enhabit’s Consolidated Statements of Income and the unaudited pro forma results of operations of the combined entities had the date of the acquisitions been January 1, 2022 (in millions):
Net Service
Revenue
Net Income (Loss)
Attributable to
Enhabit
Acquired entities only: Actual from acquisition date to December 31, 2022$12.1 $1.1 
Combined entity: Supplemental pro forma from 01/01/2022-12/31/2022 (unaudited)$1,093.0 $(37.2)
v3.25.0.1
Variable Interest Entities (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities
The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in Enhabit’s Consolidated Balance Sheets, are as follows (in millions):
As of December 31,
20242023
Assets
Current Assets
Restricted cash$1.4 $1.8 
Accounts receivable, net of allowances2.1 2.3 
Other current assets— 0.5 
Total current assets3.5 4.6 
Operating lease right-of-use assets0.1 0.1 
Goodwill12.4 12.4 
Intangible assets, net0.7 0.9 
Total assets$16.7 $18.0 
As of December 31,
20242023
Liabilities
Current Liabilities:
Current operating lease liabilities$0.1 $0.1 
Accrued payroll0.2 0.2 
Other current liabilities0.9 0.2 
Total current liabilities1.2 0.5 
Other long-term liabilities0.1 0.1 
Total liabilities$1.3 $0.6 
v3.25.0.1
Accounts Receivable, Net of Allowances (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Accounts receivable, net of allowances, consists of the following (in millions):
As of December 31,
20242023
Current patient accounts receivable$149.2 $164.7 
Noncurrent patient accounts receivable included within Other long-term assets0.5 0.5 
Current and noncurrent accounts receivable, net of allowances$149.7 $165.2 
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment Useful lives are generally as follows:
 Years
Leasehold improvements
2 to 5
Vehicles
3 to 4
Furniture, fixtures, and equipment
2 to 5
Property and equipment, net, consists of the following (in millions):
As of December 31,
20242023
Leasehold improvements$3.2 $3.1 
Vehicles26.8 29.9 
Furniture, fixtures, and equipment42.7 41.4 
72.7 74.4 
Less: Accumulated depreciation and amortization(55.0)(55.4)
Property and equipment, net$17.7 $19.0 
The amount of depreciation expense is as follows (in millions):
Year Ended December 31,
202420232022
Depreciation expense$4.2 $4.3 $4.6 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Components of Lease Costs
The components of lease costs are as follows (in millions):
Year Ended December 31,
202420232022
Operating lease cost:
General and administrative expenses$20.7 $20.5 $20.1 
Finance lease cost:
Amortization of right-of-use assets3.4 3.1 3.8 
Interest on lease liabilities0.4 0.2 0.2 
Total finance lease cost3.8 3.3 4.0 
Total lease cost$24.5 $23.8 $24.1 
Supplemental cash flow information related to leases is as follows (in millions):
Year Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$14.4 $16.0 $17.1 
Operating cash flows from finance leases$0.5 $0.2 $0.2 
Financing cash flows from finance leases$3.6 $3.4 $5.0 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$11.0 $31.6 $10.7 
Finance leases$5.5 $3.8 $3.5 
Schedule of Supplemental Consolidated Balance Sheet Information
Supplemental Consolidated Balance Sheet information related to leases is as follows (in millions):
As of December 31,
Classification20242023
Assets
Operating leaseOperating lease right-of-use assets$52.8 $57.5 
Finance lease(1)
Property and equipment, net11.0 9.9 
Total leased assets$63.8 $67.4 
Liabilities
Current Liabilities:
Operating leaseCurrent portion of operating lease liabilities$12.3 $11.8 
Finance leaseCurrent portion of long-term debt2.8 2.5 
Noncurrent liabilities
Operating leaseLong-term operating lease liabilities, net of current portion41.8 45.7 
Finance leaseLong-term debt, net of current portion4.6 3.1 
Total leased liabilities$61.5 $63.1 
(1)    Finance lease assets are recorded net of accumulated amortization of $21.3 million and $20.0 million as of December 31, 2024 and 2023, respectively.
As of December 31,
20242023
Weighted Average Remaining Lease Term
Operating lease5.5 years5.8 years
Finance lease2.9 years2.7 years
Weighted Average Discount Rate
Operating lease6.9 %6.7 %
Finance lease5.7 %4.7 %
Schedule of Maturities of Operating Lease Liabilities
Maturities of lease liabilities as of December 31, 2024 are as follows (in millions):
Year Ending December 31,    
Operating LeasesFinance Leases
Total
Leases
2025$15.4 $3.0 $18.4 
202614.0 2.6 16.6 
202710.2 2.2 12.4 
20286.9 0.3 7.2 
20294.6 — 4.6 
2029 and thereafter
15.0 — 15.0 
Total lease payments66.1 8.1 74.2 
Less: Interest portion(12.0)(0.7)(12.7)
Total lease liabilities$54.1 $7.4 $61.5 
Schedule of Maturities of Finance Lease Liabilities
Maturities of lease liabilities as of December 31, 2024 are as follows (in millions):
Year Ending December 31,    
Operating LeasesFinance Leases
Total
Leases
2025$15.4 $3.0 $18.4 
202614.0 2.6 16.6 
202710.2 2.2 12.4 
20286.9 0.3 7.2 
20294.6 — 4.6 
2029 and thereafter
15.0 — 15.0 
Total lease payments66.1 8.1 74.2 
Less: Interest portion(12.0)(0.7)(12.7)
Total lease liabilities$54.1 $7.4 $61.5 
v3.25.0.1
Goodwill and Other Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in the Carrying Amount of Goodwill
The following table shows changes in the carrying amount of Goodwill for the years ended December 31, 2024 and 2023 (in millions):
Home HealthHospiceConsolidated
Goodwill as of December 31, 2022
$841.2 $303.6 $1,144.8 
Acquisitions2.7 — 2.7 
Impairment — (85.8)(85.8)
Goodwill as of December 31, 2023
$843.9 $217.8 $1,061.7 
Acquisitions— — — 
Impairment (161.7)— (161.7)
Goodwill as of December 31, 2024
$682.2 $217.8 $900.0 
Schedule of Information Regarding Other Intangible Assets
The range of estimated useful lives and the amortization basis for intangible assets, excluding goodwill, are generally as follows:
Estimated Useful Life and Amortization Basis    
Certificates of need
10 years using straight-line basis
Licenses
10 to 20 years using straight-line basis
Noncompete agreements
5 years using straight-line basis
Internal-use software
3 years using straight-line basis
The following table provides information regarding other Intangible assets, net (in millions):
Gross Carrying Amount    Accumulated AmortizationNet
Certificates of need:
2024$89.2 $(58.6)$30.6 
2023$89.2 $(50.0)$39.2 
Licenses:
2024$131.2 $(107.1)$24.1 
2023$131.2 $(93.9)$37.3 
Noncompete agreements:
2024$15.1 $(13.5)$1.6 
2023$15.1 $(12.6)$2.5 
Internal-use software:
2024$32.1 $(30.3)$1.8 
2023$25.9 $(24.9)$1.0 
Total intangible assets:
2024$267.6 $(209.5)$58.1 
2023$261.4 $(181.4)$80.0 
Schedule of Amortization Expense
Amortization expense for other intangible assets is as follows (in millions):
Year Ended December 31,
202420232022
Amortization expense$23.9 $23.5 $24.5 
v3.25.0.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Outstanding
Long-term debt outstanding consists of the following (in millions):
As of December 31,
20242023
Credit Agreement—
Advances under revolving credit facility$160.0 $180.0 
Term loan facilities348.0 367.1 
Finance lease obligations7.4 5.5 
515.4 552.6 
Less: Current portion(22.8)(22.5)
Long-term debt, net of current portion$492.6 $530.1 
Schedule of Principal Payments Due on Long-term Debt
The following chart shows scheduled principal payments due on long-term debt for the next five years (in millions):
Year Ending December 31, Amount
2025$22.7 
202622.3 
2027472.1 
2028 and thereafter0.4 
Gross maturities517.5 
Less unamortized debt issuance costs(2.1)
Total$515.4 
Schedule of Carrying Values and Estimated Fair Values of Long-term Debt
The carrying amounts and estimated fair values for long-term debt are presented in the following table (in millions):
As of December 31,
20242023
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Long-term debt:
Advances under revolving credit facility$160.0 $160.0 $180.0 $180.0 
Term loan A facility$348.0 $345.3 $367.1 $354.4 
Finance lease obligations$7.4 $7.4 $5.5 $5.5 
v3.25.0.1
Stock-Based Payments (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions The grant date fair values of stock options granted during the years ended December 31, 2023 and 2022 were estimated at the grant date using the Black-Scholes option‑pricing model with the following weighted average assumptions:
Year Ended December 31,
20232022
Expected volatility53.0 %28.3 %
Risk-free interest rate4.1 %1.7 %
Expected life (years)6.07.8
Dividend yield— %1.9 %
Schedule of Stock Option Activity
A summary of stock option activity for the year ended December 31, 2024 is as follows:
(shares in thousands)
Shares
Weighted Average Exercise Price per ShareWeighted
Average Remaining Life (Years)    
Aggregate Intrinsic Value
(In Millions)
Outstanding, December 31, 2023286.3$24.44 
Granted ——
Expirations——
Outstanding, December 31, 2024286.324.44 5.8— 
Exercisable, December 31, 2024225.4$25.97 5.3$— 
Schedule of Nonvested Restricted Stock Shares Activity
A summary of RSA activity for the year ended December 31, 2024 is as follows:
(shares in thousands)
Shares
Weighted
Average Grant Date Fair Value
Nonvested shares at December 31, 2023277.6 $24.12 
Granted— — 
Vested(71.8)26.40 
Forfeited(3.2)27.14 
Nonvested shares at December 31, 2024202.6 $23.26 
Schedule of Nonvested Restricted Stock Units Activity
A summary of RSU activity for the year ended December 31, 2024 is as follows:
Service BasedPerformance Based
(shares in thousands)
Shares
Weighted
Average Grant Date Fair Value
Shares
Weighted
Average Grant Date Fair Value
Nonvested shares at December 31, 2023750.7 $18.11 388.3 $17.24 
Granted748.1 8.94 674.9 9.43 
Vested(431.1)16.47 — — 
Forfeited(116.2)12.83 (89.7)14.09 
Nonvested shares at December 31, 2024951.5 $12.28 973.5 $12.12 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of (Benefit from) Provision for Income Taxes
The significant components of (Benefit from) provision for income taxes are as follows (in millions):
Year Ended December 31,
202420232022
Current:
Federal$1.4 $0.2 $14.3 
State and other0.3 — 2.8 
Total current expense1.7 0.2 17.1 
Deferred:
Federal(5.4)(9.3)(3.9)
State and other(0.3)(2.3)(0.4)
Total deferred benefit(5.7)(11.6)(4.3)
Total income tax (benefit) expense related to continuing operations$(4.0)$(11.4)$12.8 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of differences between the federal statutory tax rate and Enhabit’s effective tax rate is presented below:
Year Ended December 31,
202420232022
Federal statutory tax rate21.0%21.0%21.0%
Increase (decrease) in tax rate resulting from:
State and other income taxes, net of federal tax benefit3.1%3.1%1.8%
Valuation allowance(8.9)%—%—%
Impairment of goodwill(11.8)%(10.6)%(49.1)%
Distribution deferred tax adjustment—%—%(23.7)%
Other, net(0.9)%(0.9)%(0.2)%
Effective tax rate2.5%12.6%(50.2)%
Schedule of Deferred Tax Assets and Liabilities The significant components of deferred tax assets and liabilities are presented in the following table (in millions):
As of December 31,
20242023
Deferred income tax assets:
Operating lease liabilities$12.4 $13.2 
Accrued expenses and allowances2.9 3.0 
Stock-based compensation3.3 3.2 
Interest expense21.7 13.1 
Other deferred income tax assets— 0.3 
Total deferred income tax assets, gross40.3 32.8 
Valuation allowance(14.1)— 
Total deferred income tax assets, net26.2 32.8 
Deferred income tax liabilities:
Intangible assets(19.1)(32.0)
Operating lease right-of-use assets(12.1)(13.3)
Property, net(3.2)(3.7)
Other deferred income tax liabilities(3.3)(0.9)
Total deferred income tax liabilities(37.7)(49.9)
Net deferred income tax liabilities$(11.5)$(17.1)
v3.25.0.1
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The activities of the cash flow hedge included in Accumulated other comprehensive loss for the year ended December 31, 2024 are presented in the following table (in millions):
Cash Flow Hedge
Balance as of December 31, 2023$(0.5)
Unrealized gain recognized in other comprehensive income, net of tax1.5 
Reclassified to interest expense, net of tax(1.2)
Balance as of December 31, 2024$(0.2)
Schedule of Derivative Assets at Fair Value
The fair value of derivative assets and liabilities within the Consolidated Balance Sheets are presented in the following table (in millions):
As of December 31,
20242023
Prepaid and other current assets$— $0.7 
Other current liabilities (0.3)— 
Other long-term liabilities— (1.3)
Total$(0.3)$(0.6)
Schedule of Derivative Liabilities at Fair Value
The fair value of derivative assets and liabilities within the Consolidated Balance Sheets are presented in the following table (in millions):
As of December 31,
20242023
Prepaid and other current assets$— $0.7 
Other current liabilities (0.3)— 
Other long-term liabilities— (1.3)
Total$(0.3)$(0.6)
v3.25.0.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Selected Financial Information
Selected financial information for the reportable segments is as follows (in millions):
Home HealthHospice
Year Ended December 31,
Year Ended December 31,
202420232022202420232022
Net service revenue$824.8 $850.1 $877.1 $210.0 $196.2 $194.0 
Labor389.5 398.6 394.1 63.8 62.5 57.0 
Supplies and pharmacy9.9 10.8 12.8 19.4 17.1 17.4 
Travel21.8 22.8 24.4 4.7 4.8 5.0 
Other cost of service7.0 6.8 4.2 14.7 12.2 10.7 
Total cost of service, excluding depreciation and amortization428.2 439.0 435.5 102.6 96.6 90.1 
General and administrative salaries193.2 196.9 196.9 54.0 52.2 54.4 
Other general and administrative expenses42.2 43.7 41.6 11.5 11.2 10.8 
Total general and administrative expenses235.4 240.6 238.5 65.5 63.4 65.2 
Other income— (0.2)(0.9)— — — 
Noncontrolling interests1.8 1.4 1.8 0.4 0.1 0.3 
Segment Adjusted EBITDA$159.4 $169.3 $202.2 $41.5 $36.1 $38.4 
Schedule of Segment Reconciliation
Total segment reconciliations (in millions):
Year Ended December 31,
202420232022
Total Segment Adjusted EBITDA$200.9 $205.4 $240.6 
Non-segment general and administrative expenses(113.3)(128.7)(102.0)
Interest expense(42.9)(43.0)(15.0)
Depreciation and amortization(31.5)(30.9)(33.0)
Impairment of goodwill(161.7)(85.8)(109.0)
Stock-based compensation expense(11.7)(8.9)(9.2)
Net income attributable to noncontrolling interests2.2 1.5 2.1 
Loss before income taxes and noncontrolling interests$(158.0)$(90.4)$(25.5)
Schedule of Additional Detail Regarding Revenues by Service Line
Additional detail regarding the revenues of the operating segments by payer type follows (in millions):
Year Ended December 31,
202420232022
Home Health:
Medicare$484.6 $557.4 $647.7 
Non-Medicare331.2 283.0 218.3 
Private duty(1)
9.0 9.7 11.1 
Total Home Health824.8 850.1 877.1 
Hospice210.0 196.2 194.0 
Total net service revenue$1,034.8 $1,046.3 $1,071.1 
(1)    Private duty represents long-term comprehensive hourly nursing medical care.
v3.25.0.1
Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Schedule of Allocation of Services from Encompass to the Company The allocations of services from Encompass to the Company and stock-based compensation during the year ended December 31, 2022 are reflected in General and administrative expenses in the Consolidated Statements of Operations as follows (in millions):
Year Ended December 31,
2022
Overhead allocation$7.7 
Stock-based compensation$2.5 
v3.25.0.1
Supplemental Cash Flow Information (Tables)
 12 Months Ended
Dec. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures related to the Reconciliation of Cash and Cash Equivalents and Restricted Cash Balances
The following table provides supplemental cash flow information and disclosures of non-cash investing and financing activities for the years ended December 31, 2024, 2023, and 2022 (in millions):
Year Ended December 31,
202420232022
Supplemental cash flow disclosures:
Cash received (paid) for income taxes$0.8 $8.2 $(11.9)
Cash paid for interest$(42.7)$(40.6)$(13.1)
Supplemental cash flow disclosures of non-cash investing and financing activities:
Property and equipment additions through finance leases$5.5 $3.8 $3.5 
Operating lease additions$11.0 $31.6 $10.1 
Trade name transfer to Encompass (including deferred tax liability)$— $— $104.2 
The following table details supplemental cash flow disclosures related to the reconciliation of cash and cash equivalents and restricted cash balances (in millions):
As of December 31,
20242023
Cash, cash equivalents, and restricted cash reconciliation:
Cash and cash equivalents$28.4 $27.4 
Restricted cash1.9 2.4
Cash, cash equivalents, and restricted cash at end of period$30.3 $29.8 
v3.25.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Jul. 01, 2022
$ / shares
Dec. 31, 2024
USD ($)
segment
state
$ / shares
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
Class of Stock [Line Items]        
Number of states in which entity operates | state   34    
Number of reportable segments | segment   2    
Common stock, par value (in dollars per share) | $ / shares $ 0.01 $ 0.01 $ 0.01  
Stock conversion ratio 0.5      
Finite lived intangible asset   $ 58,100,000 $ 80,000,000.0  
Deferred tax liabilities   19,100,000 32,000,000.0  
Adjustment to transaction price   1,400,000 0 $ 200,000
Allowance for credit losses balance   900,000 1,100,000  
Accrued hospice-related costs, legal fees and workers' compensation liability   13,500,000 6,700,000 6,600,000
Advertising costs   $ 0 $ 0 0
Encompass        
Class of Stock [Line Items]        
Deferred tax liabilities       31,000,000
Trade names | Encompass        
Class of Stock [Line Items]        
Finite lived intangible asset       $ 135,200,000
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Net Service Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Net service revenue $ 1,034.8 $ 1,046.3 $ 1,071.1
Medicare      
Disaggregation of Revenue [Line Items]      
Net service revenue 691.1 747.9 839.4
Medicare Advantage      
Disaggregation of Revenue [Line Items]      
Net service revenue 237.9 199.2 152.1
Managed care      
Disaggregation of Revenue [Line Items]      
Net service revenue 94.6 85.9 65.1
Medicaid      
Disaggregation of Revenue [Line Items]      
Net service revenue 9.4 12.5 12.9
Other      
Disaggregation of Revenue [Line Items]      
Net service revenue 1.8 0.8 1.6
Home Health      
Disaggregation of Revenue [Line Items]      
Net service revenue 824.8 850.1 877.1
Home Health | Medicare      
Disaggregation of Revenue [Line Items]      
Net service revenue 484.6 557.4 647.7
Home Health | Medicare Advantage      
Disaggregation of Revenue [Line Items]      
Net service revenue 237.9 199.2 152.1
Home Health | Managed care      
Disaggregation of Revenue [Line Items]      
Net service revenue 91.1 80.9 63.7
Home Health | Medicaid      
Disaggregation of Revenue [Line Items]      
Net service revenue 9.4 11.8 12.0
Home Health | Other      
Disaggregation of Revenue [Line Items]      
Net service revenue 1.8 0.8 1.6
Hospice      
Disaggregation of Revenue [Line Items]      
Net service revenue 210.0 196.2 194.0
Hospice | Medicare      
Disaggregation of Revenue [Line Items]      
Net service revenue 206.5 190.5 191.7
Hospice | Medicare Advantage      
Disaggregation of Revenue [Line Items]      
Net service revenue 0.0 0.0 0.0
Hospice | Managed care      
Disaggregation of Revenue [Line Items]      
Net service revenue 3.5 5.0 1.4
Hospice | Medicaid      
Disaggregation of Revenue [Line Items]      
Net service revenue 0.0 0.7 0.9
Hospice | Other      
Disaggregation of Revenue [Line Items]      
Net service revenue $ 0.0 $ 0.0 $ 0.0
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Concentration of Risk, by Risk Factor (Details) - Accounts Receivable - Credit Concentration Risk
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Concentration Risk [Line Items]    
Concentration of patient service, accounts receivable 100.00% 100.00%
Medicare    
Concentration Risk [Line Items]    
Concentration of patient service, accounts receivable 63.90% 66.90%
Managed care and other discount plans, including Medicare Advantage    
Concentration Risk [Line Items]    
Concentration of patient service, accounts receivable 28.10% 27.10%
Medicaid    
Concentration Risk [Line Items]    
Concentration of patient service, accounts receivable 7.10% 5.20%
Other    
Concentration Risk [Line Items]    
Concentration of patient service, accounts receivable 0.90% 0.80%
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)
Dec. 31, 2024
Leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 2 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 5 years
Vehicles | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Vehicles | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 4 years
Furniture, fixtures, and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 2 years
Furniture, fixtures, and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 5 years
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Finite-Lived Intangible Assets (Details)
Dec. 31, 2024
Certificates of need  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life 10 years
Noncompete agreements  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life 5 years
Internal-use software  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life 3 years
Minimum | Licenses  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life 10 years
Maximum | Licenses  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life 20 years
v3.25.0.1
Summary of Significant Accounting Policies - Schedule Of Net Income Attributable To Redeemable Noncontrolling Interest And Nonredeemable Noncontrolling Interests (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]      
Balance at beginning of period $ 5.0 $ 5.2 $ 5.0
Net income attributable to noncontrolling interests 0.0 0.0 0.2
Distribution to noncontrolling interests 0.0 (0.2) 0.0
Balance at end of period 5.0 5.0 5.2
Net income attributable to nonredeemable noncontrolling interests 2.2 1.5 1.9
Net income attributable to redeemable noncontrolling interests 0.0 0.0 0.2
Net income attributable to noncontrolling interests $ 2.2 $ 1.5 $ 2.1
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Basic (in shares) 50.2 49.9 49.7
Dilutive effect of options and restricted stock units (in shares) 0.0 0.0 0.0
Diluted common shares outstanding (in shares) 50.2 49.9 49.7
Options To Purchase Enhabit Shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Diluted or anti-dilutive shares (in shares) 0.3 0.3 0.2
Restricted Stock Units (RSUs)      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Diluted or anti-dilutive shares (in shares) 2.1 1.7 0.6
v3.25.0.1
Business Combinations - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 01, 2022
USD ($)
Nov. 01, 2022
USD ($)
entity
Oct. 01, 2022
USD ($)
entity
Dec. 31, 2021
USD ($)
Dec. 31, 2024
acquisition
Dec. 31, 2023
USD ($)
acquisition
Dec. 31, 2022
USD ($)
acquisition
Jan. 01, 2022
Business Acquisition [Line Items]                
Number of acquisitions | acquisition         0 1 4  
Goodwill expected to be tax deductible             $ 50.5  
Non material acquisitions                
Business Acquisition [Line Items]                
Number of acquisitions | acquisition         0 1    
Payment to acquire business           $ 3.1    
Joint Venture with Saint Alphonsus System                
Business Acquisition [Line Items]                
Payment to acquire business       $ 15.9        
Equity interest acquired               50.00%
Caring Hearts                
Business Acquisition [Line Items]                
Total purchase price     $ 13.9          
Caring Hearts | TEXAS                
Business Acquisition [Line Items]                
Number of acquisitions | entity     4          
Hospice                
Business Acquisition [Line Items]                
Total purchase price   $ 2.1            
Hospice | ARIZONA                
Business Acquisition [Line Items]                
Number of acquisitions | entity   1            
Southwest Florida Home Care, Inc                
Business Acquisition [Line Items]                
Total purchase price $ 21.0              
v3.25.0.1
Business Combinations - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 01, 2022
Nov. 01, 2022
Oct. 01, 2022
Jan. 01, 2022
Business Acquisition [Line Items]              
Goodwill $ 900.0 $ 1,061.7 $ 1,144.8        
Noncompete agreements              
Liabilities assumed:              
Intangible asset, useful life 5 years            
Internal-use software              
Liabilities assumed:              
Intangible asset, useful life 3 years            
Joint Venture with Saint Alphonsus System              
Business Acquisition [Line Items]              
Cash and cash equivalents             $ 0.7
Accounts receivable, net of allowances             1.6
Operating lease right-of-use-assets             0.3
Goodwill             28.7
Total assets acquired             32.6
Liabilities assumed:              
Current operating lease liabilities             0.1
Accounts payable             0.1
Accrued payroll             0.2
Other current liabilities             0.2
Long-term operating lease liabilities             0.2
Total liabilities assumed             0.8
Noncontrolling interests             15.9
Net assets acquired             15.9
Joint Venture with Saint Alphonsus System | Noncompete agreements              
Business Acquisition [Line Items]              
Identifiable intangible assets             $ 0.2
Liabilities assumed:              
Intangible asset, useful life             5 years
Joint Venture with Saint Alphonsus System | Trade names              
Business Acquisition [Line Items]              
Identifiable intangible assets             $ 0.1
Liabilities assumed:              
Intangible asset, useful life             6 months
Joint Venture with Saint Alphonsus System | Licenses              
Business Acquisition [Line Items]              
Identifiable intangible assets             $ 0.9
Liabilities assumed:              
Intangible asset, useful life             10 years
Joint Venture with Saint Alphonsus System | Internal-use software              
Business Acquisition [Line Items]              
Identifiable intangible assets             $ 0.1
Liabilities assumed:              
Intangible asset, useful life             3 years
Caring Hearts              
Business Acquisition [Line Items]              
Goodwill           $ 14.3  
Total assets acquired           15.5  
Liabilities assumed:              
Other current liabilities           1.6  
Total liabilities assumed           1.6  
Net assets acquired           13.9  
Caring Hearts | Noncompete agreements              
Business Acquisition [Line Items]              
Identifiable intangible assets           $ 0.6  
Liabilities assumed:              
Intangible asset, useful life           5 years  
Caring Hearts | Licenses              
Business Acquisition [Line Items]              
Identifiable intangible assets           $ 0.6  
Liabilities assumed:              
Intangible asset, useful life           10 years  
Hospice              
Business Acquisition [Line Items]              
Goodwill         $ 2.2    
Total assets acquired         2.4    
Liabilities assumed:              
Other current liabilities         0.3    
Total liabilities assumed         0.3    
Net assets acquired         2.1    
Hospice | Noncompete agreements              
Business Acquisition [Line Items]              
Identifiable intangible assets         $ 0.1    
Liabilities assumed:              
Intangible asset, useful life         5 years    
Hospice | Licenses              
Business Acquisition [Line Items]              
Identifiable intangible assets         $ 0.1    
Liabilities assumed:              
Intangible asset, useful life         10 years    
Southwest Florida Home Care, Inc              
Business Acquisition [Line Items]              
Prepaid expenses and other current assets       $ 0.1      
Operating lease right-of-use-assets       0.3      
Goodwill       19.6      
Total assets acquired       21.4      
Liabilities assumed:              
Current operating lease liabilities       0.1      
Accrued payroll       0.1      
Long-term operating lease liabilities       0.2      
Total liabilities assumed       0.4      
Net assets acquired       21.0      
Southwest Florida Home Care, Inc | Noncompete agreements              
Business Acquisition [Line Items]              
Identifiable intangible assets       $ 0.8      
Liabilities assumed:              
Intangible asset, useful life       5 years      
Southwest Florida Home Care, Inc | Licenses              
Business Acquisition [Line Items]              
Identifiable intangible assets       $ 0.6      
Liabilities assumed:              
Intangible asset, useful life       10 years      
v3.25.0.1
Business Combinations - Schedule of Net Cash Paid for Acquisitions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Business Acquisition [Line Items]        
Goodwill   $ 0.0 $ 2.7  
Net cash paid for acquisition   $ 0.0 $ 2.8 $ 36.3
Joint Venture with Saint Alphonsus System        
Business Acquisition [Line Items]        
Fair value of assets acquired $ 3.9      
Goodwill 28.7      
Fair value of liabilities assumed 0.8      
Fair value of redeemable noncontrolling interest owned by joint venture partner 15.9      
Net cash paid for acquisition 15.9      
Payment to acquire business $ 15.9      
Caring Hearts        
Business Acquisition [Line Items]        
Fair value of assets acquired       1.2
Goodwill       14.3
Fair value of liabilities assumed       1.6
Net cash paid for acquisition       13.9
Hospice        
Business Acquisition [Line Items]        
Fair value of assets acquired       0.2
Goodwill       2.2
Fair value of liabilities assumed       0.3
Net cash paid for acquisition       2.1
Southwest Florida Home Care, Inc        
Business Acquisition [Line Items]        
Fair value of assets acquired       1.8
Goodwill       19.6
Fair value of liabilities assumed       0.4
Net cash paid for acquisition       $ 21.0
v3.25.0.1
Business Combinations - Schedule of Pro Forma (Details) - Southwest Florida Home Care, Inc
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]  
Net Service Revenue $ 12.1
Net Income (Loss) Attributable to Enhabit 1.1
Net service revenue, combined entity 1,093.0
Net (loss) income attributable to the Company, combined entity $ (37.2)
v3.25.0.1
Variable Interest Entities - Additional Information (Details) - VIE, Primary Beneficiary - entity
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Variable Interest Entity [Line Items]      
Number of entities consolidated 2 2 2
Minimum      
Variable Interest Entity [Line Items]      
Ownership percentage 60.00%    
Maximum      
Variable Interest Entity [Line Items]      
Ownership percentage 90.00%    
v3.25.0.1
Variable Interest Entities (VIEs) (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current assets:      
Restricted cash $ 1.9 $ 2.4  
Accounts receivable, net of allowances 149.2 164.7  
Total current assets 192.7 210.1  
Operating lease right-of-use assets 52.8 57.5  
Goodwill 900.0 1,061.7 $ 1,144.8
Intangible assets, net 58.1 80.0  
Total assets 1,226.0 1,433.6  
Current liabilities:      
Current portion of operating lease liabilities 12.3 11.8  
Accrued payroll 37.1 38.5  
Other current liabilities 36.4 40.7  
Total current liabilities 126.2 137.7  
Other long-term liabilities 0.0 1.3  
Total liabilities 672.1 731.9  
VIE, Primary Beneficiary      
Current assets:      
Restricted cash 1.4 1.8  
Accounts receivable, net of allowances 2.1 2.3  
Other current assets 0.0 0.5  
Total current assets 3.5 4.6  
Operating lease right-of-use assets 0.1 0.1  
Goodwill 12.4 12.4  
Intangible assets, net 0.7 0.9  
Total assets 16.7 18.0  
Current liabilities:      
Current portion of operating lease liabilities 0.1 0.1  
Accrued payroll 0.2 0.2  
Other current liabilities 0.9 0.2  
Total current liabilities 1.2 0.5  
Other long-term liabilities 0.1 0.1  
Total liabilities $ 1.3 $ 0.6  
v3.25.0.1
Accounts Receivable, Net of Allowances (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Current patient accounts receivable $ 149.2 $ 164.7
Noncurrent patient accounts receivable included within Other long-term assets 0.5 0.5
Current and noncurrent accounts receivable, net of allowances $ 149.7 $ 165.2
v3.25.0.1
Property and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 72.7 $ 74.4  
Less: Accumulated depreciation and amortization (55.0) (55.4)  
Property and equipment, net 17.7 19.0  
Depreciation expense 4.2 4.3 $ 4.6
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 3.2 3.1  
Vehicles      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 26.8 29.9  
Furniture, fixtures, and equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 42.7 $ 41.4  
v3.25.0.1
Leases - Additional Information (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Lessee, Lease, Description [Line Items]  
Minimum lease payment obligations $ 66.1
Minimum  
Lessee, Lease, Description [Line Items]  
Finance lease, term of contract 1 year
Operating lease, term of contract 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Finance lease, term of contract 11 years
Operating lease, term of contract 11 years
v3.25.0.1
Leases - Schedule of Components of Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
General and administrative expenses $ 20.7 $ 20.5 $ 20.1
Finance lease cost:      
Amortization of right-of-use assets 3.4 3.1 3.8
Interest on lease liabilities 0.4 0.2 0.2
Total finance lease cost 3.8 3.3 4.0
Total lease cost $ 24.5 $ 23.8 $ 24.1
v3.25.0.1
Leases - Schedule of Balance Sheet Information (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Assets    
Operating lease $ 52.8 $ 57.5
Finance lease $ 11.0 $ 9.9
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net Property and equipment, net
Total leased assets $ 63.8 $ 67.4
Liabilities    
Operating lease 12.3 11.8
Finance lease $ 2.8 $ 2.5
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of long-term debt Current portion of long-term debt
Operating lease $ 41.8 $ 45.7
Finance lease $ 4.6 $ 3.1
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term debt, net of current portion Long-term debt, net of current portion
Total leased liabilities $ 61.5 $ 63.1
Finance lease, accumulated amortization $ 21.3 $ 20.0
Weighted Average Remaining Lease Term    
Operating lease 5 years 6 months 5 years 9 months 18 days
Finance lease 2 years 10 months 24 days 2 years 8 months 12 days
Weighted Average Discount Rate    
Operating lease 6.90% 6.70%
Finance lease 5.70% 4.70%
v3.25.0.1
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Operating Leases    
2025 $ 15.4  
2026 14.0  
2027 10.2  
2028 6.9  
2029 4.6  
2029 and thereafter 15.0  
Total lease payments 66.1  
Less: Interest portion (12.0)  
Total lease liabilities 54.1  
Finance Leases    
2025 3.0  
2026 2.6  
2027 2.2  
2028 0.3  
2029 0.0  
2029 and thereafter 0.0  
Total lease payments 8.1  
Less: Interest portion (0.7)  
Total lease liabilities 7.4 $ 5.5
Total Leases    
2025 18.4  
2026 16.6  
2027 12.4  
2028 7.2  
2029 4.6  
2029 and thereafter 15.0  
Total lease payments 74.2  
Less: Interest portion (12.7)  
Total lease liabilities $ 61.5  
v3.25.0.1
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 14.4 $ 16.0 $ 17.1
Operating cash flows from finance leases 0.5 0.2 0.2
Financing cash flows from finance leases 3.6 3.4 5.0
Right-of-use assets obtained in exchange for lease obligations:      
Operating leases 11.0 31.6 10.7
Finance leases $ 5.5 $ 3.8 $ 3.5
v3.25.0.1
Goodwill and Other Intangible Assets, Net - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]      
Goodwill, beginning balance $ 1,061.7 $ 1,144.8  
Acquisitions 0.0 2.7  
Impairment (161.7) (85.8) $ (109.0)
Goodwill, ending balance 900.0 1,061.7 1,144.8
Home Health      
Goodwill [Roll Forward]      
Goodwill, beginning balance 843.9 841.2  
Acquisitions 0.0 2.7  
Impairment (161.7) 0.0  
Goodwill, ending balance 682.2 843.9 841.2
Hospice      
Goodwill [Roll Forward]      
Goodwill, beginning balance 217.8 303.6  
Acquisitions 0.0 0.0  
Impairment 0.0 (85.8)  
Goodwill, ending balance $ 217.8 $ 217.8 $ 303.6
v3.25.0.1
Goodwill and Other Intangible Assets, Net - Additional Information (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
unit
Sep. 30, 2024
USD ($)
unit
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
unit
Dec. 31, 2022
USD ($)
unit
Goodwill [Line Items]          
Number of reporting units | unit 2 2   2 2
Impairment of goodwill     $ 161.7 $ 85.8 $ 109.0
Accumulated impairment losses related to goodwill $ 356.5   $ 356.5 194.8  
Home Health Reporting Unit          
Goodwill [Line Items]          
Impairment of goodwill $ 53.8 $ 107.9     $ 109.0
Hospice Reporting Unit          
Goodwill [Line Items]          
Impairment of goodwill       $ 85.8  
v3.25.0.1
Goodwill and Other Intangible Assets, Net - Schedule of Information Regarding Other Intangible Assets, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 267.6 $ 261.4
Accumulated Amortization (209.5) (181.4)
Net 58.1 80.0
Certificates of need:    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 89.2 89.2
Accumulated Amortization (58.6) (50.0)
Net 30.6 39.2
Licenses:    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 131.2 131.2
Accumulated Amortization (107.1) (93.9)
Net 24.1 37.3
Noncompete agreements:    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 15.1 15.1
Accumulated Amortization (13.5) (12.6)
Net 1.6 2.5
Internal-use software:    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 32.1 25.9
Accumulated Amortization (30.3) (24.9)
Net $ 1.8 $ 1.0
v3.25.0.1
Goodwill and Other Intangible Assets, Net - Schedule of Amortization Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 23.9 $ 23.5 $ 24.5
v3.25.0.1
Long-Term Debt - Schedule of Long-Term Debt Outstanding (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Finance lease obligations $ 7.4 $ 5.5
Long term debt including current maturities 515.4 552.6
Less: Current portion (22.8) (22.5)
Long-term debt, net of current portion 492.6 530.1
Line of credit | Enhabit Credit Agreement | Advances under revolving credit facility    
Debt Instrument [Line Items]    
Long-term debt 160.0 180.0
Line of credit | Enhabit Credit Agreement | Term loan facilities    
Debt Instrument [Line Items]    
Long-term debt $ 348.0 $ 367.1
v3.25.0.1
Long-Term Debt - Schedule of Principal Payments Due on Long-term Debt (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Amount  
2025 $ 22.7
2026 22.3
2027 472.1
2028 and thereafter 0.4
Gross maturities 517.5
Less unamortized debt issuance costs (2.1)
Total $ 515.4
v3.25.0.1
Long-Term Debt - Additional Information (Details)
 1 Months Ended 12 Months Ended
Nov. 03, 2023
USD ($)
Nov. 02, 2023
USD ($)
Jun. 27, 2023
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Sep. 29, 2023
USD ($)
Oct. 31, 2022
USD ($)
Oct. 20, 2022
USD ($)
Debt Instrument [Line Items]                      
Principal borrowings on term loan           $ 0 $ 0 $ 400,000,000.0      
Borrowings on revolving credit facility           0 0 190,000,000.0      
Distributions to Encompass           $ 0 $ 0 $ 654,900,000      
Interest Rate Swap                      
Debt Instrument [Line Items]                      
Notional amount                   $ 200,000,000 $ 200,000,000
Derivative, fixed interest rate                     4.30%
Enhabit Credit Agreement | Line of credit                      
Debt Instrument [Line Items]                      
Distributions to Encompass       $ 566,600,000              
Interest rate           7.30%          
Term loan A facility | Enhabit Credit Agreement | Line of credit                      
Debt Instrument [Line Items]                      
Debt instrument, face amount       400,000,000 $ 400,000,000            
Principal borrowings on term loan       400,000,000              
Percentage of outstanding principal payable in equal quarterly installments         5.00%            
Coverage leverage ratio, maximum     4.50                
Term loan A facility | Enhabit Credit Agreement | Credit Agreement | Covenant Period, One                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio     5.25                
Term loan A facility | Enhabit Credit Agreement | Credit Agreement | Covenant Period, Two                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio     5.00                
Term loan A facility | Enhabit Credit Agreement | Credit Agreement | Covenant Period, Three                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio     4.75                
Term loan A facility | Enhabit Credit Agreement | Credit Agreement | Thereafter                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio     4.50                
Term loan A facility | The Second Amendment | Credit Agreement                      
Debt Instrument [Line Items]                      
Coverage leverage ratio, maximum 6.75                    
Debt instrument, maximum permitted total net leverage ratio 1.15                    
Term loan A facility | The Second Amendment | Credit Agreement | Covenant Period, One                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio 6.50                    
Term loan A facility | The Second Amendment | Credit Agreement | Covenant Period, Two                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio 5.75                    
Term loan A facility | The Second Amendment | Credit Agreement | Thereafter                      
Debt Instrument [Line Items]                      
Debt instrument, maximum permitted total net leverage ratio 4.50                    
Revolving Credit Facility | Enhabit Credit Agreement | Line of credit                      
Debt Instrument [Line Items]                      
Line of credit facility, maximum borrowing capacity       350,000,000 $ 350,000,000            
Borrowings on revolving credit facility       170,000,000              
Revolving Credit Facility | The Waiver | Maximum | Administrative Agent                      
Debt Instrument [Line Items]                      
Debt instrument, face amount                 $ 350,000,000    
Revolving Credit Facility | The Waiver | Minimum | Administrative Agent                      
Debt Instrument [Line Items]                      
Debt instrument, face amount                 $ 230,000,000    
Revolving Credit Facility | The Second Amendment | Credit Agreement                      
Debt Instrument [Line Items]                      
Commitment fee amount $ 220,000,000 $ 350,000,000                  
Debt instrument, basis spread on variable rate 0.25%                    
Letter of credit | Enhabit Credit Agreement | Line of credit                      
Debt Instrument [Line Items]                      
Line of credit facility, maximum borrowing capacity       $ 75,000,000 $ 75,000,000            
v3.25.0.1
Long-Term Debt - Schedule of Carrying Amounts and Fair Value of Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Line of credit | Enhabit Credit Agreement | Carrying Amount | Advances under revolving credit facility    
Debt Instrument [Line Items]    
Long-term debt, fair value $ 160.0 $ 180.0
Line of credit | Enhabit Credit Agreement | Carrying Amount | Term loan A facility    
Debt Instrument [Line Items]    
Long-term debt, fair value 348.0 367.1
Line of credit | Enhabit Credit Agreement | Estimated Fair Value | Advances under revolving credit facility    
Debt Instrument [Line Items]    
Long-term debt, fair value 160.0 180.0
Line of credit | Enhabit Credit Agreement | Estimated Fair Value | Term loan A facility    
Debt Instrument [Line Items]    
Long-term debt, fair value 345.3 354.4
Finance lease obligations | Carrying Amount    
Debt Instrument [Line Items]    
Long-term debt, fair value 7.4 5.5
Finance lease obligations | Estimated Fair Value    
Debt Instrument [Line Items]    
Long-term debt, fair value $ 7.4 $ 5.5
v3.25.0.1
Stock-Based Payments - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Options granted (in shares)   0    
Share-based compensation arrangement by share-based payment award, award requisite service period   6 years    
Granted (in dollars per share)   $ 0    
Exercised (in shares)   0 0 0
Fair value of stock options vested   $ 0.4 $ 0.3 $ 0.8
Accrued stock-based compensation for discretionary performance bonuses   1.0    
Stock based compensation tax benefit   $ 1.1 $ 0.9 $ 1.8
Omnibus Performance Incentive Plan        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Number of shares authorized (in shares)       7,000,000
Stock Options        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-based compensation arrangement by share-based payment award, award requisite service period       3 years
Expiration period       10 years
Dividend yield   0.00% 0.00% 1.90%
Granted (in dollars per share)     $ 8.35 $ 7.01
Stock compensation expense   $ 0.3 $ 0.4 $ 0.3
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount   $ 0.2    
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition   13 months    
Restricted Stock Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock compensation expense   $ 2.1 3.0 $ 3.3
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition   15 months    
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount   $ 2.2    
Granted (in shares)   0    
Granted (in dollars per share)   $ 0   $ 22.74
Vested in period, fair value   $ 1.9 4.2 $ 1.3
Restricted Stock Units (RSUs)        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock compensation expense   8.3 5.5 5.6
Vested in period, fair value   $ 7.1 $ 4.1 $ 3.8
Share-based compensation arrangement by share-based payment award, award vesting period   3 years    
Performance Based        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition   20 months    
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount   $ 4.3    
Granted (in shares)   674,900    
Granted (in dollars per share)   $ 9.43    
Total shareholder return period   3 years    
Generated free cash flow period   3 years    
Total shareholder return performance condition percentage   20.00%    
Free cash flow performance condition percentage   80.00%    
Performance Based | Minimum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting percentage   0.00%    
Performance Based | Maximum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting percentage   200.00%    
Service Based        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition   23 months    
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount   $ 6.4    
Granted (in shares)   748,100    
Granted (in dollars per share)   $ 8.94 $ 12.84 $ 22.12
RSAs and Stock Options | Encompass        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock compensation expense       $ 1.1
Management | Encompass        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares issued in period (in shares) 47,000      
Options granted (in shares) 22,000      
Management | RSAs and RSUs | Encompass        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares issued in period (in shares) 128,000      
v3.25.0.1
Stock-Based Payments - Schedule of Share-Based Payment Award, Valuation Assumptions (Details) - Stock Options
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Expected volatility   53.00% 28.30%
Risk-free interest rate   4.10% 1.70%
Expected life (years)   6 years 7 years 9 months 18 days
Dividend yield 0.00% 0.00% 1.90%
v3.25.0.1
Stock-Based Payments - Schedule of Share-Based Payment Arrangement, Option, Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Shares  
Beginning outstanding (in shares) | shares 286,300
Granted (in shares) | shares 0
Expirations (in shares) | shares 0
Ending Outstanding (in shares) | shares 286,300
Exercisable (in shares) | shares 225,400
Weighted Average Exercise Price per Share  
Beginning balance (in dollars per share) | $ / shares $ 24.44
Granted (in dollars per share) | $ / shares 0
Expirations (in dollars per share) | $ / shares 0
Ending balance (in dollars per share) | $ / shares 24.44
Exercisable (in dollars per share) | $ / shares $ 25.97
Outstanding, Weighted Average Remaining Life (Year) 5 years 9 months 18 days
Exercisable, Weighted Average Remaining Life (Year) 5 years 3 months 18 days
Outstanding, Aggregate Intrinsic Value | $ $ 0.0
Exercisable, Aggregate Intrinsic Value | $ $ 0.0
v3.25.0.1
Stock-Based Payments - Schedule of Nonvested Restricted Stock Units Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock Awards      
Shares      
Beginning balance (in shares) 277,600    
Granted (in shares) 0    
Vested (in shares) (71,800)    
Forfeited (in shares) (3,200)    
Ending balance (in shares) 202,600 277,600  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 24.12    
Granted (in dollars per share) 0   $ 22.74
Vested (in dollars per share) 26.40    
Forfeited (in dollars per share) 27.14    
Ending balance (in dollars per share) $ 23.26 $ 24.12  
Service Based      
Shares      
Beginning balance (in shares) 750,700    
Granted (in shares) 748,100    
Vested (in shares) (431,100)    
Forfeited (in shares) (116,200)    
Ending balance (in shares) 951,500 750,700  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 18.11    
Granted (in dollars per share) 8.94 $ 12.84 $ 22.12
Vested (in dollars per share) 16.47    
Forfeited (in dollars per share) 12.83    
Ending balance (in dollars per share) $ 12.28 $ 18.11  
Performance Based      
Shares      
Beginning balance (in shares) 388,300    
Granted (in shares) 674,900    
Vested (in shares) 0    
Forfeited (in shares) (89,700)    
Ending balance (in shares) 973,500 388,300  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 17.24    
Granted (in dollars per share) 9.43    
Vested (in dollars per share) 0    
Forfeited (in dollars per share) 14.09    
Ending balance (in dollars per share) $ 12.12 $ 17.24  
v3.25.0.1
Employee Benefit Plans (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
plan
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Retirement Benefits [Abstract]      
Self insurance, net of employee payments and stop-loss recoveries $ 46.9 $ 48.1 $ 41.5
Current self insurance reserve $ 5.5 8.4  
Number of plans | plan 1    
Defined contribution plan, maximum annual contributions per employee, percent 60.00%    
Defined contribution plan, employer matching contribution, percent of match 25.00%    
Defined contribution plan, employer matching contribution, percent of employees' gross pay 3.00%    
Share-based compensation arrangement by share-based payment award, award requisite service period 6 years    
Defined contribution plan, cost $ 2.3 2.3 2.2
Defined contribution plan, amount forfeited to fund matching contributions $ 0.2 $ 0.4 $ 0.3
v3.25.0.1
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Federal $ 1.4 $ 0.2 $ 14.3
State and other 0.3 0.0 2.8
Total current expense 1.7 0.2 17.1
Deferred:      
Federal (5.4) (9.3) (3.9)
State and other (0.3) (2.3) (0.4)
Total deferred benefit (5.7) (11.6) (4.3)
Total income tax (benefit) expense related to continuing operations $ (4.0) $ (11.4) $ 12.8
v3.25.0.1
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal statutory tax rate 21.00% 21.00% 21.00%
Increase (decrease) in tax rate resulting from:      
State and other income taxes, net of federal tax benefit 3.10% 3.10% 1.80%
Valuation allowance (8.90%) 0.00% 0.00%
Impairment of goodwill (11.80%) (10.60%) (49.10%)
Distribution deferred tax adjustment 0.00% 0.00% (23.70%)
Other, net (0.90%) (0.90%) (0.20%)
Effective tax rate 2.50% 12.60% (50.20%)
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Increase to deferred tax income tax liabilities $ 6,000,000    
Payments of social security taxes $ 14,900,000    
Deferred payments of social security taxes   $ 0 $ 0
Valuation allowance   14,100,000 $ 0
Valuation allowance arising in prior years   $ 5,400,000  
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Deferred income tax assets:    
Operating lease liabilities $ 12.4 $ 13.2
Accrued expenses and allowances 2.9 3.0
Stock-based compensation 3.3 3.2
Interest expense 21.7 13.1
Other deferred income tax assets 0.0 0.3
Total deferred income tax assets, gross 40.3 32.8
Valuation allowance (14.1) 0.0
Total deferred income tax assets, net 26.2 32.8
Deferred income tax liabilities:    
Intangible assets (19.1) (32.0)
Operating lease right-of-use assets (12.1) (13.3)
Property, net (3.2) (3.7)
Other deferred income tax liabilities (3.3) (0.9)
Total deferred income tax liabilities (37.7) (49.9)
Net deferred income tax liabilities $ (11.5) $ (17.1)
v3.25.0.1
Derivative Instruments - Additional Information (Details) - USD ($)
Oct. 31, 2022
Oct. 20, 2022
Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 200,000,000 $ 200,000,000
v3.25.0.1
Derivative Instruments - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Cash Flow Hedge  
Balance at beginning of period $ 696.7
Balance at end of period 548.9
Interest Rate Swap | Cash Flow Hedging | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent  
Cash Flow Hedge  
Balance at beginning of period (0.5)
Unrealized gain recognized in other comprehensive income, net of tax 1.5
Reclassified to interest expense, net of tax (1.2)
Balance at end of period $ (0.2)
v3.25.0.1
Derivative Instruments - Schedule of Derivative Assets and Liabilities at Fair Value (Details) - Interest Rate Swap - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]    
Prepaid and other current assets $ 0.0 $ 0.7
Total (0.3) (0.6)
Other current liabilities    
Derivative [Line Items]    
Other liabilities (0.3) 0.0
Other long-term liabilities    
Derivative [Line Items]    
Other liabilities $ 0.0 $ (1.3)
v3.25.0.1
Contingencies and Other Commitments (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Commitments and Contingencies Disclosure [Abstract]  
Loss contingency, estimate of possible loss $ 0.0
Other commitment, to be paid, year one 18.3
Other commitment, to be paid, year two 4.5
Other commitment, to be paid, year three and thereafter $ 0.0
Number of reportable segments | segment 2
v3.25.0.1
Segment Reporting - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
location
state
segment
Segment Reporting Information [Line Items]  
Number of reportable segments | segment 2
Number of states in which entity operates | state 34
Home Health  
Segment Reporting Information [Line Items]  
Number of states in which entity operates | state 34
Number of agencies 255
Number of agencies with sole ownership 244
Number of jointly owned home health locations 11
Home Health | Minimum  
Segment Reporting Information [Line Items]  
Joint venture, ownership percentage 50.00%
Home Health | Maximum  
Segment Reporting Information [Line Items]  
Joint venture, ownership percentage 81.00%
Hospice  
Segment Reporting Information [Line Items]  
Number of states in which entity operates | state 25
Number of agencies 115
Number of agencies with sole ownership 111
Number of jointly owned home health locations 4
Hospice | Minimum  
Segment Reporting Information [Line Items]  
Joint venture, ownership percentage 50.00%
Hospice | Maximum  
Segment Reporting Information [Line Items]  
Joint venture, ownership percentage 90.00%
v3.25.0.1
Segment Reporting - Schedule of Selected Financial Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Net service revenue $ 1,034.8 $ 1,046.3 $ 1,071.1
Total cost of service, excluding depreciation and amortization 530.8 535.6 525.6
Total general and administrative expenses 425.9 441.6 414.9
Other income 0.0 (0.2) (0.9)
Noncontrolling interests 2.2 1.5 2.1
Home Health      
Segment Reporting Information [Line Items]      
Net service revenue 824.8 850.1 877.1
Labor 389.5 398.6 394.1
Supplies and pharmacy 9.9 10.8 12.8
Travel 21.8 22.8 24.4
Other cost of service 7.0 6.8 4.2
Total cost of service, excluding depreciation and amortization 428.2 439.0 435.5
General and administrative salaries 193.2 196.9 196.9
Other general and administrative expenses 42.2 43.7 41.6
Total general and administrative expenses 235.4 240.6 238.5
Other income 0.0 (0.2) (0.9)
Noncontrolling interests 1.8 1.4 1.8
Segment Adjusted EBITDA 159.4 169.3 202.2
Hospice      
Segment Reporting Information [Line Items]      
Net service revenue 210.0 196.2 194.0
Labor 63.8 62.5 57.0
Supplies and pharmacy 19.4 17.1 17.4
Travel 4.7 4.8 5.0
Other cost of service 14.7 12.2 10.7
Total cost of service, excluding depreciation and amortization 102.6 96.6 90.1
General and administrative salaries 54.0 52.2 54.4
Other general and administrative expenses 11.5 11.2 10.8
Total general and administrative expenses 65.5 63.4 65.2
Other income 0.0 0.0 0.0
Noncontrolling interests 0.4 0.1 0.3
Segment Adjusted EBITDA $ 41.5 $ 36.1 $ 38.4
v3.25.0.1
Segment Reporting - Schedule of Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Non-segment general and administrative expenses $ (425.9) $ (441.6) $ (414.9)
Depreciation and amortization (31.5) (30.9) (33.0)
Impairment of goodwill (161.7) (85.8) (109.0)
Net income attributable to noncontrolling interests 2.2 1.5 2.1
Loss before income taxes and noncontrolling interests (158.0) (90.4) (25.5)
Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total Segment Adjusted EBITDA 200.9 205.4 240.6
Non-segment general and administrative expenses      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Non-segment general and administrative expenses (113.3) (128.7) (102.0)
Segment Reconciling ltems      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Interest expense (42.9) (43.0) (15.0)
Depreciation and amortization (31.5) (30.9) (33.0)
Impairment of goodwill (161.7) (85.8) (109.0)
Stock-based compensation expense (11.7) (8.9) (9.2)
Net income attributable to noncontrolling interests $ 2.2 $ 1.5 $ 2.1
v3.25.0.1
Segment Reporting - Schedule of Additional Detail Regarding Revenues by Service Line (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from External Customer [Line Items]      
Total net service revenue $ 1,034.8 $ 1,046.3 $ 1,071.1
Home Health      
Revenue from External Customer [Line Items]      
Total net service revenue 824.8 850.1 877.1
Hospice      
Revenue from External Customer [Line Items]      
Total net service revenue 210.0 196.2 194.0
Medicare | Home Health      
Revenue from External Customer [Line Items]      
Total net service revenue 484.6 557.4 647.7
Non-Medicare | Home Health      
Revenue from External Customer [Line Items]      
Total net service revenue 331.2 283.0 218.3
Private duty | Home Health      
Revenue from External Customer [Line Items]      
Total net service revenue $ 9.0 $ 9.7 $ 11.1
v3.25.0.1
Related Party Transactions - Schedule of Allocation of Services from Encompass to the Company (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
General and administrative expenses $ 425.9 $ 441.6 $ 414.9
Overhead allocation | Related Party      
Related Party Transaction [Line Items]      
General and administrative expenses     7.7
Stock-based compensation | Related Party      
Related Party Transaction [Line Items]      
General and administrative expenses     $ 2.5
v3.25.0.1
Related Party Transactions - Additional Information (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
May 31, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2019
Related Party Transaction [Line Items]            
General and administrative expenses   $ 425.9 $ 441.6 $ 414.9    
Medalogix, LLC            
Related Party Transaction [Line Items]            
Payments to acquire investment           $ 2.0
Related Party | Medalogix Analytics Platforms            
Related Party Transaction [Line Items]            
Cash received $ 2.0          
Gain as a result of transaction         $ 1.6  
Cost of service, excluding depreciation and amortization and General and administrative expenses   $ 4.9 $ 4.5 $ 4.6    
v3.25.0.1
Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Supplemental cash flow disclosures:        
Cash received (paid) for income taxes $ 0.8 $ 8.2 $ (11.9)  
Cash paid for interest (42.7) (40.6) (13.1)  
Supplemental cash flow disclosures of non-cash investing and financing activities:        
Property and equipment additions through finance leases 5.5 3.8 3.5  
Operating lease additions 11.0 31.6 10.1  
Trade name transfer to Encompass (including deferred tax liability) 0.0 0.0 104.2  
Cash, cash equivalents, and restricted cash reconciliation:        
Cash and cash equivalents 28.4 27.4    
Restricted cash 1.9 2.4    
Cash, cash equivalents, and restricted cash at end of period $ 30.3 $ 29.8 $ 27.2 $ 8.0