Encompass Health closes Sea Pines hospital after flood damage, reaffirms 2026 guidance
Encompass Health said its Sea Pines Rehabilitation Hospital in Melbourne, Florida, remains closed indefinitely after torrential rains on Nov. 1-2, 2026 caused flooding and substantial damage. The company reaffirmed its full-year 2026 guidance, which it said excludes closure-related costs and insurance proceeds from non-GAAP measures, but the closure removes a 90-bed facility from its operations while the joint venture evaluates repair or replacement options.
Key points
- Sea Pines is a 90-bed hospital owned by a joint venture between Encompass Health and Holmes Regional Medical Center, a subsidiary of Health First.
- For the first nine months of 2026, Sea Pines had net operating revenue of approximately $44 million and contributed approximately $14 million to Adjusted EBITDA.
- Full-year 2026 guidance was reaffirmed: net operating revenue of $6,450 million to $6,500 million, Adjusted EBITDA of $1,395 million to $1,415 million, and adjusted EPS of $6.23 to $6.37.
- All patients were evacuated safely, and the joint venture is in discussions with its partner on the path forward for reopening.
The filing
Written by AI on Nov 7, 2026, 11:17 PM ET, from this filing only.
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