Enhabit Releases Certain Preliminary Second Quarter 2024 Results

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB) (“Enhabit” or the “Company”), a leading home health and hospice provider, today announced certain unaudited preliminary results for the second quarter ended June 30, 2024. The Company plans to report actual second quarter 2024 financial results on Aug. 6, 2024, and host a webcast and conference call on Aug. 7, 2024.

Unaudited Preliminary Results for the Second Quarter Ended June 30, 2024

  • Adjusted EBITDA* in the range of $24.5 million to $25.0 million
  • Reduced bank debt by $15 million, including a $10 million payment on Enhabit’s revolving credit facility
  • 43% of Enhabit’s non-Medicare visits shifting to payor innovation contracts at improved rates, an increase from 38% in the first quarter of 2024

Enhabit’s President and Chief Executive Officer, Barb Jacobsmeyer said, “The strong start to 2024 extended in Q2 as our teams successfully executed on our operational strategies. In our home health segment, our 6.4% year-over-year increase in admissions continues to be driven by non-Medicare admissions, and our teams are doing a good job managing our visits per episode and creating additional capacity for growth.

“In our hospice segment, we achieved monthly sequential growth in average daily census in June for the fifth consecutive month. We also continue to closely monitor and manage our costs with our home health cost per visit coming in better than expected and hospice cost per day decreasing sequentially as census continued to grow.

“Overall, the second quarter of 2024 is on track to mark Enhabit’s third consecutive quarter of business stabilization and successfully positioning the Company for profitable growth. This momentum underscores the strength of our strategy, disciplined approach to debt reduction and commitment to stockholder value creation.”

Enhabit’s preliminary results are based on the most recent information available to the Company’s management. Such preliminary results are forward-looking statements. Actual results may differ from these preliminary results due to the completion of the Company’s financial close procedures, final accounting adjustments and other developments that may arise between the date of this press release and the time that results for the second quarter of 2024 are finalized, and such differences may be material. The preliminary results for the second quarter of 2024 are not necessarily indicative of the results to be achieved in any future period.

* Please see “Information regarding non-GAAP Financial Measures” below.

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Information Regarding non-GAAP Financial Measures

Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles in the United States of America (“GAAP”), and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Therefore, Adjusted EBITDA should not be considered a substitute for or superior to other measures of financial performance prepared in accordance with GAAP, including Net (loss) income. Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

Management believes Adjusted EBITDA assists investors in comparing our operating performance across operating periods on a consistent basis by excluding items we do not believe are indicative of our operating performance. We calculate Adjusted EBITDA as Net (loss) income adjusted to exclude (1) income tax (benefit) expense, (2) interest expense and amortization of debt discounts and fees, (3) depreciation and amortization, (4) gains or losses on disposal or impairment of assets or goodwill, (5) stock‑based compensation, (6) net income attributable to noncontrolling interests, (7) unusual or nonrecurring items not typical of ongoing operations, and (8) gain on consolidation of joint venture formerly accounted for under the equity method of accounting. Unusual and nonrecurring items for the three months ended June 30, 2024, include: (i) third-party legal and advisory fees related to the strategic review process; (ii) certain third-party, nonrecurring litigation fees related to a lawsuit in which the Company is a plaintiff, styled Enhabit, Inc. et al. v. Nautic Partners IX, L.P., et al. and pending in the Chancery Court of Delaware, and in which the Company has asserted claims for breach of fiduciary duty, aiding and abetting, and usurpation of corporate opportunity arising from actions involving its former officers; (iii) third-party legal and advisory fees related to shareholder activism; and (iv) transition costs related to the separation from Encompass Health Corporation.

Enhabit is unable to reconcile the guidance presented for unaudited preliminary Adjusted EBITDA to its corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of factors that are outside the control of Enhabit or otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such factors include, but are not limited to, the Company’s financial close procedures, final accounting adjustments and other developments that may arise between the date of this press release and the time that financial results for the second quarter of 2024 are finalized, and such differences may be material.

Investor relations contact


Crissy Carlisle
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141

ISS Recommends Stockholders Vote “FOR” a Majority of Enhabit Home Health & Hospice Director Nominees

ISS Recognizes that Enhabit’s Performance Over the Last Two Quarters is Promising and Several Underlying Metrics Point to Building Momentum
Recommendation Does Not Account for the Significant Expertise and Valuable Oversight Gregory Rush, Erin Hoeflinger and Susan La Monica Bring to the Board
Enhabit Urges Stockholders to Vote “FOR” Only its Nine Nominees on the YELLOW Proxy Card Today

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB) (“Enhabit” or the “Company”), a leading home health and hospice provider, today announced that Institutional Shareholder Services (ISS) has recommended stockholders vote “FOR” a majority of Enhabit’s director nominees in connection with the Company’s Annual Meeting of Stockholders scheduled for July 25, 2024.

Enhabit’s definitive proxy materials and other materials regarding the Board of Directors’ recommendations for the 2024 Annual Meeting can be found at investors.ehab.com/2024-annual-meeting/.

In reaching its conclusion, ISS noted in its report1:

The company’s two most recent quarters have been promising and there are a number of underlying metrics which point to building momentum in the company’s home health and hospice business. Further, the board has been receptive to investor input, reaching a settlement with two shareholders and adding two directors in 2023, and running a public sales process as requested by the dissident. The board has also demonstrated some openness to a settlement with the dissident. These factors, along with the dissident’s prior intense focus on a sale of the company, suggest that majority change at the board level may not be necessary at this point, even if the addition of industry-relevant expertise may be beneficial.

Among the targeted management nominees, we note that [Tina] Brown-Stevenson has relevant experience with large national payors, and [Jeffrey] Bolton has relevant experience with hospitals and health networks which are referral sources. … Although [Charles] Elson served as a long-tenured member of [Encompass] prior to the EHAB spin-off, we note that he has extensive public company board and corporate governance expertise; moreover, Elson’s prior experience as a dissident candidate will likely be beneficial in bringing both sides together after the conclusion of this contest. Lastly, [Stuart] McGuigan brings valuable IT and c-suite experience at large public companies and additional public company board experience. ISS is additionally supportive of the election of EHAB CEO [Barbara] Jacobsmeyer and incumbent director [Barry] Schochet, both of whom are not being targeted by the dissident.

Further, the board has exhibited a willingness to engage with its shareholders, as evidenced by the March 2023 settlement with Cruiser Capital and Harbour Point which expanded the board by two members, and the fact that it ran a publicly announced sales process in response to demands from the dissident in August 2023. … Though the dissident expressed disappointment in the outcome of the sales process and stated that it was “profoundly skeptical of the integrity and effectiveness of the Company’s strategic review process,” there has been no evidence presented that the process was improperly run or that specific bidders may have been discouraged from making a formal offer. Ultimately, given the disclosures to date, the sales process appears to have been sufficiently broad and thorough and provides evidence of the board’s openness to a potential sale.

Enhabit issued the following statement:

Enhabit has just passed its two-year anniversary as a public company following its separation from Encompass Health Corporation. During that period, in the face of substantial industry and company-specific headwinds, our Board and management team stabilized Enhabit’s business and built the necessary infrastructure to enable stockholder value creation as a separate public company.

We are pleased that ISS recognizes our performance over the last two quarters and agrees with the Company that shifting course now and handing control of the Board to AREX is not in the best interests of the Company’s stockholders.

Enhabit’s Board was intentionally designed to have the right mix of expertise to understand the key drivers of the business, as well as the functions that are necessary to oversee the management of a stand-alone, public company. We believe Enhabit’s nine nominees are best positioned to oversee our value creation initiatives and deliver enhanced stockholder value.

We disagree with ISS’s recommendation as it relates to Enhabit’s highly experienced nominees Gregory Rush, Erin Hoeflinger and Susan La Monica. We believe that critical experience would be lost by replacing these directors with AREX’s nominees, including (1) public company accounting, internal control and compensation expertise needed to form well-functioning Audit and Human Capital Committees, (2) deep experience with key payors most relevant to Enhabit, and (3) C-suite level public company human resources perspective.

Gregory Rush: Sitting CFO with deep and current experience overseeing public company financial controls and managing financial organizations and interfacing with auditors

  • As an executive leader in corporate finance, Mr. Rush developed innovative compensation programs and retention strategies, increasing retention rates of clinical research staff and nurses, contributing to operational performance and significant shareholder value creation.
  • Led the transformation of Parexel, a global clinical research organization with nearly 4,000 medical doctors, physicians and nurses and its capital structure as part of a shareholder value creation strategy, delivering over 2.5x return to shareholders in under four years.
  • Well-qualified to chair Audit and Finance Committee, with ISS recognizing Rush’s “more than 30 years of experience in finance and audit,” given his current role as CFO at Parexel, and the time he has put in with management and the Company’s external auditors to understand and address accounting and internal control risks specific to Enhabit.

Erin Hoeflinger: Proven track record navigating industry cycles as a senior executive at two of the nation’s largest health insurance and managed care organizations, with payor industry experience essential as Enhabit implements its payor innovation strategy to grow its payor network

  • Developed a deep understanding of the healthcare payor industry through her service at Anthem, a health insurance provider, with oversight responsibilities, including contracting results, for more than 17 million members and $35 billion in revenue across the company’s 14 commercial states.
  • Contributes firsthand experience overseeing operations, sales and consumer experience, managing business lines for both healthcare and prescription coverage, as well as insights into the full spectrum of reimbursement models including fee-for-service, value-based care and alternative payment systems.
  • Experienced director with service on multiple public company boards, as well as Amedisys’ advisory board.
  • Brings expertise in major operational turnarounds – BCBS of Maine and the strategic integration of CVS and Aetna – the largest healthcare merger in U.S. history.

Susan La Monica: Invaluable C-suite experience as Enhabit strives to bolster its talent pool and improve retention

  • Established CHRO with over 25 years of experience in senior executive leadership positions in human capital management.
  • Her understanding of the complexities of managing a workforce in a widely dispersed branch banking system is directly relevant to the challenges presented in managing Enhabit’s workforce.
  • Ms. La Monica also supports Enhabit’s current CHRO in designing compensation and incentive plans that align with the Company’s strategic priorities, and in overseeing executive compensation matters.
  • Well-qualified to chair Compensation and Human Capital Committee given the time she has put in with management and the Company’s independent compensation consultant to understand and address compensation risks unique to Enhabit and design compensation programs that balance retention and pay for performance.

We urge our stockholders to protect the value of their investment and vote the YELLOW proxy card today “FOR” ONLY Enhabit’s nine highly qualified nominees – Jeffrey W. Bolton, Tina L. Brown-Stevenson, Charles M. Elson, Erin P. Hoeflinger, Barbara A. Jacobsmeyer, Susan A. La Monica, Stuart M. McGuigan, Gregory S. Rush and Barry P. Schochet.

If stockholders have questions or need assistance voting their shares, please contact:

MacKenzie Partners, Inc.

Toll-Free: 1-800-322-2885

Or

Email: [email protected]

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s 2024 annual meeting of stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOW PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOW proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Investors” section of the Company’s website, http://investors.ehab.com, or by contacting [email protected] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

1 Permission to use quotations was neither sought nor obtained.

Investor relations contact


Crissy Carlisle
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141

Enhabit Home Health & Hospice Announces Date of 2024 Second Quarter Earnings Call

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced it will report its results for the second quarter ended June 30, 2024, on Aug. 6, 2024, and host a webcast and conference call on Aug. 7, 2024. Individuals who would like to participate in the conference call webcast should join 15 minutes before the scheduled start time.

A link to the webcast of the conference call and online replay can be found on Enhabit’s investor website.

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Investor relations contact


Crissy Carlisle
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141

Enhabit Reiterates That its Current Board is Best Positioned to Deliver Enhanced Value in Letter to Stockholders

AREX’s Slate of Less Experienced and Unqualified Director Candidates – and its Planned Formation of a “Transformation Committee” – Threatens to Destabilize Enhabit
Urges Stockholders to Vote FOR Enhabit’s Director Nominees on the YELLOW Proxy Card

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB) (“Enhabit” or the “Company”), a leading home health and hospice provider, today sent a letter to stockholders in connection with its upcoming 2024 Annual Meeting of Stockholders scheduled for July 25, 2024. Stockholders of record, as of the close of business on June 5, 2024, are entitled to vote at the 2024 Annual Meeting.

The full text of the letter follows and can be found at investors.ehab.com/2024-annual-meeting/, along with Enhabit’s definitive proxy materials and other materials regarding the Board of Directors’ recommendations for the 2024 Annual Meeting.

Protect the Value of Your Investment

Vote the Enclosed YELLOW Proxy Card “FOR” Enhabit’s Highly Qualified Director Nominees

Dear Fellow Stockholders,

At Enhabit’s 2024 Annual Meeting, AREX Capital Management, LP is attempting to take control of Enhabit’s Board of Directors (the “Board”) by replacing nearly all Enhabit’s independent directors with their own nominees.

Enhabit’s Board was intentionally designed to have the right mix of expertise to understand the key drivers of the business, as well as the functions that are necessary to oversee the management of a stand-alone, public company.

  • Enhabit’s director nominees possess deep experience with the three key drivers of our business: payors, hospital networks and labor management. No candidate on AREX’s slate has the same level of insight into any of these drivers.
  • AREX’s slate has negligible public company experience in either director or non-interim senior management roles, whereas Enhabit’s nominees have public company board experience as well as current and extensive experience in public company C-suites. Our candidates also include directors with current experience in public company financial controls and auditing procedures, executive compensation, IT and cybersecurity. AREX’s candidates have negligible or stale experience in these areas.
  • AREX’s insistence that effective board oversight requires multiple directors with direct home health and hospice experience is contradicted by industry practices. Boards of the companies that AREX has asserted as our “peers” are comprised of directors who have a diverse range of senior-level skills and experiences adjacent to home health and hospice, in line with the approach of the Enhabit Board.1 At each of these companies, it appears that only one independent director has direct operating experience within the home health and hospice industry. Even putting aside the quality of the experience of AREX’s nominees, AREX’s assertion that it is necessary to install six directors with home health and hospice experience for the Board to properly exercise its oversight function is simply incorrect.
  • In the attempt to portray their candidates as having direct home health and hospice experience, AREX improperly equates experience in companies that provide any kind of care in the home — for example, community care and senior living facilities — with experience in home health. In fact, home health and hospice operates in a different environment from the regulatory, reimbursement and referral process perspectives than these other businesses.
  • In constructing such a narrowly focused slate, AREX has selected candidates who are demonstrably inferior to the Company’s nominees in terms of relevant industry experience, public company board experience, complementary skill sets and career accomplishments.

Enhabit’s Board is almost wholly refreshed since its separation from Encompass Health Corporation (“Encompass”) two years ago. Each of the Company’s directors is engaged and focused on enhancing value for all stockholders. Our performance over the last two quarters indicates that the business has stabilized and is positioned for profitable growth. There is more work to do – and Enhabit’s nominees are the right nominees to oversee the continued execution of the Company’s strategy.

In addition, AREX intends to form a “Transformation Committee”. AREX claims that this committee would not be a “shadow management team” and would instead operate like committees with a similar name that have been used at other public companies. However, unlike at other companies, AREX plans for this committee to be comprised of four directors who have no public company oversight experience and lack material senior operating experience. In fact, their career experience is commensurate with positions that would report to members of Enhabit’s C-suite. Certain of the initiatives contained in AREX’s “plan”, such as restructuring of the sales organization, are initiatives that are typically carried out at the executive level. Given the nature of the experience of the individuals and the initiatives in AREX’s “plan”, we don’t believe this committee would operate as anything short of a shadow management team, likely with some degree of executive authority. Our CEO has serious concerns about continuing to serve under this “Transformation Committee” as proposed by AREX.

AREX CONTINUES TO DEMONSTRATE ITS LACK OF UNDERSTANDING OF THE BUSINESS AND INDUSTRY

While AREX claims its candidates have more than 40 years of home health experience, AREX’s public statements, as well as the lack of substance in their proposed “plan”, demonstrate that AREX does not understand Enhabit’s business dynamics. For example:

AREX claims that Enhabit’s inability to manage the ongoing payor mix shift is directly responsible for the Medicare fee-for-service market share loss.

  • The implication that growth in Medicare Advantage and improvement in the payment rate for Medicare Advantage admissions results in a reduction in Medicare fee-for-service market share is simply wrong. To the contrary, the payor innovation program establishes Enhabit as a high-quality provider that can accept a wide range of referrals for diverse payors, which is necessary in this changing environment. Over the past two years, referral sources have increasingly demanded that providers, including Enhabit, serve both the Medicare Advantage and Medicare fee-for-service business. Refusing to provide care to Medicare Advantage patients would result in a decline in Medicare fee-for-service referrals.
  • Navigating this dynamic is fundamental in the current referral environment. Shortly after the separation from Encompass, Enhabit’s management team implemented a system that enables frontline sales and branch-level personnel to discern whether individual referral sources provide a favorable mix of Medicare and Medicare Advantage patients.

AREX argues that Enhabit’s overhead is too high and is questioning why Enhabit has not announced a significant cost reduction initiative.

  • Enhabit has been independent from its original parent company for only two years and during this time has needed to make expenditures to stand itself up as an independent public company. At the time of the spin-off, Enhabit did not have built-out finance, HR and IT infrastructures, and developing these infrastructures required significant investment. As of today, Enhabit’s investment in its HR structure has successfully eliminated high-cost contract labor in both its Home Health and Hospice segments. Enhabit has also focused on the buildout of the IT organization to enhance its analytics capabilities and automate processes. Additionally, administering Medicare Advantage admissions and payment requires more time and personnel than is required to manage Medicare fee-for-service. Enhabit continues to seek out and evaluate opportunities to reduce overhead costs while maintaining the appropriate infrastructure to support operations.
  • AREX’s criticism is based on a crude comparison of Enhabit’s financial statements against two other public companies. When comparing Enhabit to other companies, AREX does not account for the differences in the size, business models and cost allocation methodologies. AREX’s assertion that another $10 million of cost cuts could be implemented with no impact on the operations or revenue shows a deep misunderstanding of our operations and business and provides a case as to why stockholders should fear AREX having an outsized voice on the Board.

AREX’S PROPOSED “TRANSFORMATION COMMITTEE” WOULD COMPRISE NOMINEES WHO ARE ILL-SUITED FOR THAT ROLE

AREX portrays their candidates as having “home health and hospice” experience. However, upon closer look beyond AREX’s high-level messaging, the AREX nominees have largely outdated experience and negligible leadership experience, and they lack achievements in home health and hospice. AREX consistently makes bold statements about their candidates’ strong histories and individual track records that are incompatible with the roles held by the candidates.

We urge stockholders to review the actual professional biographies of the four AREX director candidates that AREX would have on its proposed “Transformation Committee”: Megan Ambers, Maxine Hochhauser, Anna-Gene O’Neal and Dr. Gregory Sheff:

  • All lack material senior operating experience.
  • All lack public company board experience.
  • All lack public company C-suite experience, except for interim roles that did not lead to permanent positions.
  • All have career experience commensurate with positions that would report to members of Enhabit’s C-suite. These track records are not reflective of a director at a public company.
  • None has significant tenure in a relevant role that experienced current industry trends.
  • None appears to have served for a material time in executive positions where they had regular interaction with a public company board of directors.

The following is a closer look at the professional biographies of these candidates and AREX’s overstatements about them. These are not “ad hominem” criticisms, but observations about the professional experience of AREX’s nominees relative to AREX’s statements about them.

Megan Ambers

AREX claims that Megan Ambers, 42, “brings a deep understanding of home health and hospice labor strategies, operations, payor models, utilization, and organizational optimization from her tenure at Enhabit’s closest public peer, Amedisys.” AREX touts that Ms. Ambers “possesses an acute understanding of how to accelerate home health and hospice admission growth, particularly fee-for-service admissions in home health, through incentive plan design, regulatory compliance, onboarding, and career development.”2

We believe AREX has significantly overstated the seniority and depth of Ms. Ambers’ relevant experience.

  • Ms. Ambers has no apparent home health and hospice operating experience. Instead, her experience has been limited to interim and non-C-suite roles in human resources. She held the Interim Chief Human Resources Officer (CHRO) role at Amedisys for eight months in 2022 and then she did not continue in the role.
  • Prior to that brief role, from 2018 to 2022, Ms. Ambers was an SVP in human resources, and her current role is outside of home health and hospice.

It is unclear how Ms. Ambers obtained her purported expertise in home health and hospice “operations and payor models”. Ms. Ambers’ experience is commensurate with that of a vice president reporting to Enhabit’s current CHRO, who has approximately 30 years of healthcare and human capital experience. AREX touts that Ms. Ambers has experience developing incentive plans in the home health and hospice area, which at most would make her a candidate for a consultancy role. In contrast to Ms. Ambers’ eight months in an interim role which she did not retain, Enhabit’s current CHRO had five years of experience as CHRO at Mercy Health, which has a workforce of approximately 42,000 employees, before taking her current role at Enhabit.

The most comparable candidate on Enhabit’s slate is Susan A. La Monica, an established CHRO with over 25 years of experience in senior executive leadership positions in human capital management. As the CHRO of Citizens Financial, Ms. La Monica has helped to transform Citizens into one of the nation’s largest commercial banks since its IPO in 2014. Her understanding of the complexities of managing a workforce in a widely dispersed branch banking system is directly relevant to the challenges presented in managing Enhabit’s workforce. Ms. La Monica also supports Enhabit’s current CHRO in designing compensation and incentive plans that align with the Company’s strategic priorities, and in overseeing executive compensation matters. Her executive leadership and experience with the transformation of Citizens facilitates her contribution well beyond Ms. Ambers narrow experience base. The Enhabit Board believes it would be value-destructive to replace Ms. La Monica with Ms. Ambers.

Maxine Hochhauser

AREX claims that Maxine Hochhauser, 63, “brings more than 30 years of experience as a healthcare industry executive focused on home health and home care operations, and a history of successfully navigating challenging financial, regulatory, and payor transitions.” AREX touts that Ms. Hochhauser is “Former President of the Home and Community Based Services Division of LHC Group, Inc., a provider of in-home healthcare services.”

We have had professional interactions with Ms. Hochhauser and believe that AREX has overstated her experience and fitness for the Enhabit Board.

  • Ms. Hochhauser headed up the Home and Community Based Services Division of LHC Group, Inc., a division distinct from their home health and hospice divisions. While AREX implies that Ms. Hochhauser’s experience running the community care division is directly relevant to home health and hospice, community care is a completely different industry. In community care, a company’s workforce provides assistance with grooming and feeding, medication reminders, meal preparation, housekeeping, respite care, transportation and errand services. Home health and hospice operates in a different environment from the regulatory, reimbursement and referral process perspectives than community care. As a result, Ms. Hochhauser’s experience at LHC Group, Inc. has minimal relevance to the home health and hospice business, despite AREX’s attempt to portray it differently.
  • Ms. Hochhauser’s most recent experience at Addus was over seven years ago for a period of approximately two years. Her tenure includes working in Addus’ home health and hospice division, which is a small part of its overall business, and completely predates the payor mix shift and current labor dynamics that have been central focuses of Enhabit’s business.

Against this backdrop, AREX cannot credibly claim that Ms. Hochhauser has sufficient experience in “payor transitions” to understand the dynamics of the current payor environment, especially relative to Enhabit’s nominees who have worked directly for multiple third-party payors.

Finally, as the current CEO of HealthPRO Heritage (since 2023), Ms. Hochhauser leads a company that competes with Enhabit in a discrete part of HealthPRO Heritage’s business. HealthPRO Heritage partners with home health agencies by providing agency and rehab services with operational management, reimbursement expertise, market analytics and professional staffing. Information, insights and experience that Ms. Hochhauser would be exposed to if she were serving on the Board of Enhabit’s substantially larger operation could be used to HealthPRO Heritage’s advantage in competing against Enhabit, for example, in the market for engaging skilled clinicians in areas where Enhabit operates.

Anna-Gene O’Neal

AREX claims that Anna-Gene O’Neal, 57, “brings 35 years of healthcare experience, including leadership positions in home health and hospice operations, and a strong track record of driving business growth, turning around operations, and improving the quality of patient care.” AREX touts that she is “Former Division President, Health Care Services of Brookdale Senior Living, Inc, where she ran the home health, hospice, and outpatient therapy division.”

Ms. O’Neal has substantially less experience, by decades, in overseeing home health and hospice as compared to Enhabit’s current executive officers.

  • The bulk of her home health and hospice experience was from 2012 to 2019 at a small hospice care company.
  • Over the past approximately five years, Ms. O’Neal’s experience in home health and hospice was spread over four different companies and with short tenures ranging from approximately six months to two years. It is not clear how she can have a “strong track record of driving business growth, turning around operations and improving the quality of patient care” with such short tenures in all of her recent positions, and it is not clear how such short tenures can meaningfully contribute to her knowledge base in the home health and hospice industry.
  • While AREX touts Ms. O’Neal’s experience at Brookdale’s Senior Living, Inc division, Brookdale’s home health and hospice business is a small part of its overall business that did not face the same referral management hurdles during the Medicare Advantage mix shift.

Ms. O’Neal’s level of experience is commensurate with that of a Senior Vice President reporting to one of Enhabit’s Executive Vice Presidents of operations, who each have three decades or more of experience.

Dr. Gregory Sheff

AREX claims that Dr. Sheff, 55, “brings a comprehensive understanding of home health and hospice operations and insight into large payors along with more than 20 years of healthcare experience, both as a practicing physician and executive.” AREX touts that Sheff is “Former Interim President, Home Solutions, and Chief Medical Officer, Home Solutions, where he led the strategy, operations, partnerships, and integration of multiple home-based care assets at Humana, Inc.”

Dr. Sheff is known to members of Enhabit’s senior management and the Board believes AREX’s claims about Dr. Sheff’s insights into payors and his management capabilities are overstated.

  • Dr. Sheff’s roles at Humana, Inc. were in a small subsidiary in the home health and hospice business where he primarily served as Chief Medical Officer, a position that generally involves overseeing clinical operations and quality of care, not driving strategy, partnerships and integration.
  • Dr. Sheff has no apparent home health and hospice operating experience beyond having served as the Interim President, Home Solutions at Humana, Inc. for approximately eight months – in a role he did not continue.
  • As a result, it is difficult to understand how Dr. Sheff had such broad responsibilities as leading “strategy, operations, partners and integration of multiple home-based care assets.” Additionally, he does not appear to have payor experience relevant to Enhabit, such as negotiating contracts, pricing or value-based initiatives, from working at Humana, Inc.

By contrast, our director nominees, Tina L. Brown-Stevenson and Erin P. Hoeflinger each possess several decades of knowledge and experience in the payor industry. If he were to pursue an operating role at Enhabit, Dr. Sheff’s experience would be commensurate with that of a non-executive officer reporting to Enhabit’s current Executive Vice President of Strategy and Clinical Excellence.

Finally, Dr. Sheff is currently providing services to a portfolio company of Vistria Group, a private equity firm which funded the formation of an Enhabit competitor (VitalCaring) by our founder and former CEO. Vistria is a defendant in litigation brought by Enhabit and Encompass in the Delaware Court of Chancery. The Board is concerned about the potential conflict posed by Dr. Sheff having a role on the Board while the Company is actively suing Vistria for substantial damages and Vistria is heavily invested in the success of a competing entity.

GIVING AREX CONTROL OF THE ENHABIT BOARD NOW IS VALUE-DESTRUCTIVE AND RECKLESS

Enhabit has just passed its two-year anniversary as a public company following its separation from Encompass. During that period, in the face of substantial industry and company-specific headwinds, our Board and management team stabilized Enhabit’s business and built the necessary infrastructure to enable stockholder value creation as a separate public company. Shifting course now and handing control of the Board to AREX and its less experienced nominees so they can learn our business on the job would be value-destructive and reckless.

AREX has announced an operating plan for Enhabit3 that is superficial and reflects AREX’s and its nominees’ lack of understanding of the issues and the key drivers of Enhabit’s business. For over a year, AREX only ever advocated for a sale of Enhabit. Now, AREX speaks only in general terms and its “plan” proposes three months of evaluation, so its nominees can get up to speed, which itself may be destabilizing and stop momentum.

YOUR VOTE MATTERS – PROTECT THE VALUE OF YOUR INVESTMENT BY VOTING THE YELLOW PROXY CARD TODAY

The Enhabit Board of Directors is committed to acting in the best interests of stockholders. We urge you vote the YELLOW proxy card today “FOR” ONLY Enhabit’s nine highly qualified nominees – Jeffrey W. Bolton, Tina L. Brown-Stevenson, Charles M. Elson, Erin P. Hoeflinger, Barbara A. Jacobsmeyer, Susan A. La Monica, Stuart M. McGuigan, Gregory S. Rush and Barry P. Schochet.

Thank you for your continued support of and investment in Enhabit.

Sincerely,

The Enhabit Board of Directors

If stockholders have questions or need assistance voting their shares, please contact:

MacKenzie Partners, Inc.

Toll-Free: 1-800-322-2885

Or

Email: [email protected]

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s 2024 annual meeting of stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOW PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOW proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Investors” section of the Company’s website, http://investors.ehab.com, or by contacting [email protected] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

1 Enhabit’s “peer” group as identified by AREX: Amedisys, Inc. and The Pennant Group, Inc.

2 These and other references to AREX candidates are to the AREX Investor Presentation dated June 27, 2024.

3 AREX Investor Presentation, June 27, 2024.

Media contact


Erin Volbeda
[email protected]
972-338-5141

Investor relations contact


Crissy Carlisle
[email protected]
469-860-6061

Enhabit Releases Investor Presentation Demonstrating Execution of Clear Growth Strategy and Path to Unlock Shareholder Value

Recent Results Demonstrate Improving Performance Despite Headwinds

Board Has Taken Decisive Actions in Light of the Challenges Faced by Enhabit Since the Spin

Enhabit’s Proposed Board is Specifically Designed to Possess Relevant Industry and Public Company Oversight Expertise

AREX’s Proposal to Take Control of the Board is Not in the Best Interests of Stockholders

Stockholders Urged to Vote FOR Enhabit’s Director Nominees on the YELLOW Proxy Card

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice provider, today announced that it has posted an investor presentation today in connection with its Annual Meeting of Stockholders (the “2024 Annual Meeting”) scheduled for July 25, 2024. Stockholders of record as of the close of business on June 5, 2024, are entitled to vote at the 2024 Annual Meeting. The presentation can be found at investors.ehab.com/2024-annual-meeting/.

The Enhabit Board of Directors issued the following statement:

“The Enhabit Board and management team have successfully stabilized the business in the face of substantial industry and company-specific headwinds and positioned the Company to unlock shareholder value. As we look to the future, Enhabit has the right strategy and has nominated the right director candidates to oversee our growth and value creation initiatives, with a thoughtful combination of experience, industry knowledge and diversity of skills. The Board has been almost wholly refreshed since Enhabit’s separation from Encompass Health Corporation, with nearly all independent director nominees having a tenure of less than two years.

AREX Capital Management, LP, which just five weeks ago was focused entirely on a sale of the Company as the only viable path, is running a proxy contest to replace seven of the eight independent directors and take control of the Board. AREX is pursuing its contest at exactly the wrong time and with candidates who are demonstrably inferior to the Company’s nominees in terms of relevant industry experience, public company board experience, complementary skill sets and career accomplishments. AREX has now pivoted its arguments, publicly revealing on June 27, for the first time, a superficial purported “operating plan” which reflects that AREX and its nominees do not understand Enhabit’s issues and key business drivers with sufficient depth.

As a result, AREX’s campaign threatens the recent stabilization of the business. Enhabit’s nominees, by contrast, are fit for purpose, highly engaged and focused on driving our strategy and enhancing value for all stockholders.”

Highlights of Enhabit’s presentation include:

  • Enhabit’s recent performance demonstrates significant improvement in performance through key initiatives.
    • The Company reported its second consecutive quarter of beating adjusted EBITDA consensus estimates and reaffirmed its full-year 2024 guidance.
    • In the most recent quarter, Enhabit reported strong growth in Home Health admissions, with non-Medicare admissions up 25%, driving total admissions growth of 5.3% year over year.
    • In addition, 38% of non-Medicare visits are now in payor innovation contracts at improved rates.
    • In Hospice, Enhabit reported 5.6% sequential growth in Hospice admissions in Q1 2024 earnings and disclosed sequential census growth in hospice each month of 2024 from January to May.
    • In Q1 2024, Enhabit’s full-time nursing candidate pool increased over 30% year-over-year and resulted in the addition of 151 net new full-time nurses.
  • Enhabit’s Board has taken decisive actions in light of challenges faced since the spin-off from Encompass Health Corporation.
    • Enhabit’s Board has provided oversight and guidance for the advancement of the Company’s payor innovation strategy to improve Medicare Advantage rates and increase admissions to create a strong platform for the future.
    • The Board also formed a limited-time special technology committee to redefine the Company’s go-forward IT infrastructure and data / analytics strategy.
    • The Board’s audit and finance committee have closely overseen the development and enhancement of Enhabit’s finance organization through a challenging operating environment
    • The Board ran a comprehensive strategic review process that lasted nine months and engaged 38 potential counterparties. Having received no formal proposals, the Board unanimously determined to conclude the strategic review, but remains open to considering all potential paths to enhance stockholder value.
  • Enhabit’s proposed Board is specifically designed to possess relevant industry and public company oversight expertise.
    • The experience of all of Enhabit’s director nominees is directly relevant to the Company’s growth strategy and has been indispensable in overseeing management’s execution of strategic initiatives.
    • Deliberate succession planning has resulted in a recently refreshed board, with only one of the nine nominees having tenure greater than two years.
    • Nominees incorporate recent stockholder input, with two directors appointed in connection with a March 2023 cooperation agreement.
  • AREX’s proposal to take control of the Board threatens to destroy stockholder value.
    • AREX’s demand for control of the Board jeopardizes the stability that has been achieved by the Company and the continued progress going forward.
    • AREX’s slate recruitment appears to prioritize putting forth nominees who can claim nexus to the Home Health and Hospice industry, including for short periods of time and with low levels of management authority.
    • AREX’s selection of its slate, intention to institute a “Transformation Committee” that presumably would function as a shadow management team, and cursory operating plan reflect its lack of understanding of the issues and the key drivers of Enhabit’s business.

The Enhabit Board of Directors is committed to acting in the best interests of stockholders and unanimously recommends that stockholders vote the YELLOW proxy card “FOR” ONLY Enhabit’s nine highly qualified nominees – Jeffrey W. Bolton, Tina L. Brown-Stevenson, Charles M. Elson, Erin P. Hoeflinger, Barbara A. Jacobsmeyer, Susan A. La Monica, Stuart M. McGuigan, Gregory S. Rush and Barry P. Schochet.

If stockholders have questions or need assistance voting their shares, please contact:

MacKenzie Partners, Inc.

Toll-Free: 1-800-322-2885

Or

Email: [email protected]

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s 2024 annual meeting of stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOW PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOW proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Investors” section of the Company’s website, http://investors.ehab.com, or by contacting [email protected] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

Investor relations contact


Crissy Carlisle
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141

Enhabit Demonstrates Progress to Stabilize Business and Position Company for Profitable Growth

Addresses Misleading Claims Made by AREX

AREX’s Attempt to Take Control of Enhabit’s Board Threatens Stabilization of Business

Recommends Stockholders Vote FOR Enhabit’s Director Nominees on the YELLOW Proxy Card

DALLAS, June 24, 2024 – Enhabit, Inc. (NYSE: EHAB), (“Enhabit” or the “Company”), a leading home health and hospice provider, today sent a letter to stockholders in connection with its upcoming 2024 Annual Meeting of Stockholders (the “2024 Annual Meeting”) scheduled for July 25, 2024. Stockholders of record as of the close of business on June 5, 2024 are entitled to vote at the 2024 Annual Meeting.

The Company issued the following letter to Enhabit Stockholders to address misstatements made by AREX Capital Management, LP (together with its affiliates, “AREX”). The full text of the letter follows and can be found at investors.ehab.com/2024-annual-meeting/, along with Enhabit’s definitive proxy materials and other materials regarding the Board of Directors’ recommendations for the 2024 Annual Meeting.

Dear Fellow Stockholders,

Enhabit is approaching its two-year anniversary as a public company following its separation from Encompass Health Corporation (“Encompass”). During that period, in the face of substantial industry and company-specific headwinds, our Board of Directors (the “Board”) and management team worked hard to stabilize Enhabit’s business and build the necessary infrastructure to enable stockholder value creation as a separate public company. However, rather than focus on the business as it currently stands, AREX continues to criticize past actions, including in many cases those that were made prior to Enhabit’s separation. To be clear, seven of the proposed eight Enhabit independent directors were not even on the Board at that time, having joined the Company on the date of the spin-off or thereafter.

We understand that neither our financial results nor our stock performance has satisfied your expectations – results over the first five quarters certainly did not meet the standard the Board has set for Enhabit. We recognized the issues that we faced and have made demonstrable progress in addressing these issues. Our performance over the last two quarters indicates that the business has stabilized and is positioned for profitable growth moving forward.

While we believe Enhabit has turned a corner, there is still more work to do. We must continue to execute on our initiatives and improve performance. Enhabit has the right Board in place to oversee our value creation initiatives, with a thoughtful balance of experience, diversity and industry knowledge. The Board has been almost wholly refreshed since the separation, with nearly all independent director nominees having a tenure of less than two years. The refreshed Board is engaged and focused on driving our strategy and enhancing value for all stockholders.

AREX, which just five weeks ago was focused entirely on a sale of the Company as the only viable path, is now running a proxy contest to replace seven of the eight independent directors and take control of the Board. AREX is pursuing its contest at exactly the wrong time and with the wrong candidates, and it threatens the recent stabilization of the business.

AREX’s nominees are demonstrably inferior to the Company’s nominees in terms of relevant industry experience, public company board experience, complementary skill sets and career accomplishments. Furthermore, while it appears AREX has attempted to field a slate with the sole purpose of claiming they have Home Health and Hospice experience (to the exclusion of other relevant skills), the industry experience their candidates do possess is largely inapplicable to the specific issues facing Enhabit in today’s industry climate.

AREX has made three primary critiques of the Company’s performance.

  1. AREX Assertion: Enhabit is hemorrhaging Medicare Fee-for-Service home health market share.

AREX frames this issue in the present tense; however, AREX’s critique focuses on Enhabit’s performance going back to the first quarter of 2021, nearly six quarters before Enhabit became a separate, standalone company from Encompass, and when nearly all of our proposed director candidates were not on the Encompass Board. 


What’s more, AREX’s assertion illustrates that it does not understand past and present market dynamics. For example:

  • Following the separation, it became clear that patients were trending from traditional fee-for-service Medicare, the more profitable payor, to Medicare Advantage plans more quickly than the industry as a whole anticipated. At that time, traditional Medicare made up approximately 75% of Enhabit’s total Home Health revenue.
  • Furthermore, referral sources needing to service a mix of Medicare and Medicare Advantage patients were seeking providers that would take all patients.
  • As a result, not only were we not growing, but we were also losing Medicare fee-for-service business we had because we were not seen as “full service”.
  • Conversely, our peers’ mix of Medicare was declining over a slower and longer period because they had been slowly growing Medicare Advantage. Our existing payor contracts negotiated prior to the separation by a different management team or inherited as part of acquisitions prior to the separation, did not allow us to keep pace.

While AREX claims that the Board did not identify these issues and develop a timely remediation strategy, in fact, the root causes were identified, and change was implemented, as quickly as possible. We are working aggressively to regain an advantaged position, and those efforts are bearing fruit:

  • Beginning around the time of the separation, Enhabit implemented its payor innovation strategy, which centered around negotiating Medicare Advantage contracts with existing and new payors at better rates. We have negotiated 64 new contracts since the time of the spin-off and have a strong pipeline of additional opportunities.
  • The discount of these contracts to Medicare is now 0% to 25% (vs. 35% to 40% at the time of separation). This success has driven an improving Medicare Advantage rate and steady increases in our non-Medicare revenue per visit. We expect future contracts will continue to enhance the profitability of the business.
  • We have been successful with this part of our strategy and have stabilized the decline of Medicare admissions. Today our Home Health Medicare revenue mix is 61%, which is in-line with Amedisys, our only public peer with a similar business and payor mix.
  • With the appropriate contracts in place, we have implemented additional strategies to regain Medicare market share. Our actions include, but are not limited to:
    • Evaluating each sales team member for their “book of business” to ensure that the business maintains an effective payor mix;
    • Training and retraining business development representatives to ensure they are appropriately messaging Medicare vs. Medicare Advantage;
    • Piloting changes in sales compensation plans with the primary focus on driving our traditional Medicare business with Medicare Advantage growth; and
    • Developing new payor relationships with an appropriate patient mix.
  1. AREX Assertion: Enhabit’s Hospice Business Continues to Lag
  • We have been intensely focused on increasing hospice admissions and census. In Q3 2023, we completed implementation of a new staffing model, which enhanced our staffing capacity and improved our recruitment and retention capabilities.
  • Once the staffing model was implemented, we could enhance our business development. This includes building sales headcount (currently a year-over-year increase) and enhancing our ability to further diversify referral sources. We are also using data from loss loyalty reports to strengthen referral source relationships.
  • In addition, we reallocated certain hospice resources to form centralized admissions departments and are building efficiencies in the referral to admission process.

Together, these initiatives have led to tangible results. Enhabit’s hospice revenue grew by 2.9% from Q2 2022 to Q1 2024, while Amedisys’ revenue grew by 1.3% during the same period. Similarly, Enhabit’s hospice admissions grew by 6.9% from Q2 2022 to Q1 2024, while Amedisys’ admissions declined by 5.3% during the same period. Enhabit’s monthly hospice census has continued to increase sequentially in Q2 2024.

  1. AREX Assertion: Enhabit’s Overhead is Not Optimized

AREX asserts that Enhabit’s home office costs are unacceptably high relative to what they were at the time of the spin-off. However, this is exactly what Encompass publicly communicated prior to Enhabit being a public company.

Enhabit needed to build out certain public company functions, such as IT systems and the finance organization. In fact, Enhabit outperformed the estimated standalone cost plan for 2023 by 15%, a point which was acknowledged by AREX.

AREX also incorrectly asserts that there are “significant cost savings opportunities” based on a crude comparison of our overhead costs to “public peers”, which inherently ignores differences in the size, business models and cost allocation methodologies and doesn’t account for the lack of true public peers for Enhabit. Furthermore, Enhabit’s home office G&A as a percentage of revenue is at approximately 10%, which is ahead of our closest public peer, Amedisys, at approximately 11%. Notably, Enhabit achieved this level of efficiency while also being less than half the size of Amedisys.

Enhabit continues to seek out and evaluate opportunities to reduce overhead costs while maintaining the appropriate infrastructure to support operations.

In addition to these critiques, AREX also criticizes our recent strategic review, with AREX stating that its “analysis and diligence have left us profoundly skeptical of the integrity and effectiveness of the Company’s strategic review process.”

We have previously made public highly detailed disclosures about our strategic review process to put to rest any doubt that the Company did not run a comprehensive and exhaustive process. In addition to searching broadly for potential bidders, the Company publicly announced the review process, ensuring that any unidentified bidders had an opportunity to contact Enhabit and become part of the process. AREX’s claims that its distrust of the process is rooted in its “analysis and diligence” is simply not credible. Prior to the termination of our strategic review on May 8, 2024, AREX indicated to us that its nomination of seven directors was a “placeholder” and that they did not intend to run a contest if the Company announced a sale. Since May 8, 2024, AREX has pivoted its approach to justify its attempt to take control of the Board. AREX stated it will publish a likely hastily drafted yet-to-be-disclosed “plan”, despite not having provided any operational suggestions to the Company over the past year. Until that time, they were singularly focused on achieving a sale of the Company, stating that “it seems manifestly clear that the appropriate path for the Company is a sale”,[1] which is “the only acceptable outcome for this [strategic review] process.”[2]

We have the right strategy and right set of directors to oversee our strategy and the management of Enhabit. We have stabilized the business over the past two quarters and positioned the Company for success going forward. We urge you to protect the value of your investment and vote for Enhabit’s superior Board via the YELLOW proxy card today.

Thank you for your continued support of and investment in Enhabit.

Sincerely,

The Enhabit Board of Directors


If you have questions or need assistance voting your shares, please contact:

MACKENZIE PARTNERS, INC.

Toll-Free: 1-800-322-2885 or Email: [email protected]

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s 2024 annual meeting of stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOW PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOW proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Investors” section of the Company’s website, http://investors.ehab.com, or by contacting [email protected] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

[1] AREX Letter August 14, 2023

[2] AREX Letter October 5, 2023

Investor relations


Crissy Carlisle
[email protected]
469-860-6061

Media


Erin Volbeda
[email protected]
972-338-5141

Enhabit Home Health & Hospice Named in U.S. News & World Report’s 2024-2025 Best Companies to Work For

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced it was named as one of U.S. News & World Report’s 2024-2025 Best Companies to Work For in the South.

The U.S. News Best Companies Ratings are calculated through an evaluation of characteristics such as work-life balance, total rewards, flexibility and professional development opportunities. This year, the rankings consisted of 549 companies across the overall best company list, 24 industry lists and four regional lists.

The achievement of this award demonstrates Enhabit’s commitment to building an environment where employees feel valued and recognized for their talents and contributions. In addition to fostering an inclusive workplace, Enhabit supports its employees’ personal growth and helps them navigate their professional development.

“One of the most powerful things you can do inside an organization is value the role of each team member and make sure they get to do what they do best – and that’s a top priority at Enhabit,” Chief Human Resources Officer Tanya Marion said. “We are excited to receive this award as a testament to the positive, supportive culture we’ve built. When we invest in our people personally and professionally, we see the reflection in the high-quality, compassionate care they deliver for our patients and their loved ones.”

Enhabit is one of the largest Medicare-certified home health and hospice providers in the nation, with over 10,000 employees across its vast footprint. Enhabit provides flexible schedules, professional development opportunities, a competitive compensation and benefits package and access to advanced technology to assist employees in providing industry-leading care to patients and their loved ones.

To learn more about Enhabit and its care offerings, visit ehab.com. To learn more about joining the Enhabit team, visit careers.ehab.com.

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Contacts

Erin Volbeda
[email protected]
972-338-5141

Enhabit Details Decisive Actions to Successfully Stabilize Business and Position Company for Value Creation 

 Files Definitive Proxy Materials and Mails Letter to Stockholders 

AREX’s Unqualified Slate of Nominees Risks Detracting from the Talent Currently on the Board 

Urges Stockholders to Vote “FOR” Only Enhabit’s Nine Nominees on the YELLOW Proxy Card 

DALLAS, June 10, 2024 – Enhabit, Inc. (NYSE: EHAB) (“Enhabit” or the “Company”), a leading home health and hospice provider, today announced that it has filed definitive proxy materials with the Securities and Exchange Commission in connection with its upcoming 2024 annual meeting of stockholders (the “2024 Annual Meeting”) scheduled for July 25, 2024. Stockholders of record as of the close of business on June 5, 2024, are entitled to vote at the 2024 Annual Meeting. 

In connection with the filing of its definitive proxy statement, Enhabit is mailing a letter to stockholders. Enhabit’s definitive proxy materials and other materials regarding the Board of Directors’ recommendation for the 2024 Annual Meeting can be found at investors.ehab.com. 

The full text of the letter follows: 

Dear Fellow Stockholder, 

 At our upcoming 2024 Annual Meeting of Stockholders (“Annual Meeting”), you will have an important decision to make about the future of Enhabit Home Health & Hospice (“Enhabit” or the “Company”) – whether our Board should be replaced and control of Enhabit handed to one of our stockholders, AREX Capital Management, LP (together with its affiliates, “AREX”). 

Your current Board unanimously believes the answer to this question is emphatically, no. Allow us to explain. Previously a subsidiary of Encompass Health Corporation (“Encompass”), Enhabit has been a public company for just seven full quarters. Neither our financial results nor our stock performance has satisfied expectations during this period and certainly have not met the standard your Board has set for Enhabit. This is due to a variety of factors, including the structure and condition of our Company at the time of the spin-off, as well as industry headwinds that were exacerbated due to our business mix. We also experienced a few operational missteps, which did not meet the high standards we have set for ourselves. 

But that is the past. Looking forward, the Company is focused on improving our execution in areas that we directly control beyond business mix and market conditions. As demonstrated by our financial performance at the end of 2023 and beginning of 2024, the Board and management team have taken the necessary steps to evolve Enhabit into a stronger, more resilient post-spin public company, well-positioned for growth, including: 

  • Standing up a public company despite challenging structural circumstances, including enhancing our standalone financial control environment; 
  • Executing a well-designed Board refreshment program that included the appointment of two new directors pursuant to an agreement with stockholders; 
  • Undertaking a comprehensive nine-month review process to evaluate all strategic alternatives for the Company, including a potential sale; and 
  • Most importantly, executing on its strategic plan to stabilize the business amidst significant industry headwinds. 

Despite our demonstrable progress and current trajectory, AREX has initiated a proxy contest to replace the majority of the Board with a seven-candidate slate that has largely outdated experience and numerous other flaws. Most prominently, none of the six independent candidates have any board experience at a NYSE- or NASDAQ-listed company. Furthermore, if AREX takes control of the Company, their stated intent is to institute a “Transformation Committee,” which will presumably operate as a shadow management team, to implement a yet-to-be-disclosed strategic plan – this is not the recipe for success. 

We have engaged with AREX extensively since our infancy as a public company and have accommodated their requests for discussions with both management and members of the Board. To date, AREX has not indicated any willingness to entertain a reasonable settlement offer that does not include delivering to AREX control of the Board. The Company remains open to a constructive resolution of the proxy contest in a manner that does not destabilize the business. 

AREX’s public statements contain numerous mischaracterizations, cherry-picked time periods and misleading assertions, which we will address in future communications. However, we wholeheartedly agree with AREX on the following: 

“The only thing that matters now is setting the Company on a path that will unlock Enhabit’s substantial value for all stockholders.” 

And we believe the current Board is the superior choice to do so. We urge you to protect the value of your investment by voting the YELLOW proxy card “FOR” ONLY Enhabit’s nine highly qualified nominees – Jeffrey W. Bolton, Tina L. Brown-Stevenson, Charles M. Elson, Erin P. Hoeflinger, Barbara A. Jacobsmeyer, Susan A. La Monica, Stuart M. McGuigan, Gregory S. Rush and Barry P. Schochet. 

ENHABIT’S BOARD AND MANAGEMENT TEAM HAVE NAVIGATED A CHALLENGING ENVIRONMENT AND STABILIZED THE BUSINESS 

Enhabit has faced a series of headwinds since it separated from Encompass in July 2022, which impacted the Company’s ability to accurately forecast its performance. 

  • Spinning out with levels of debt notably higher than many of Enhabit’s peers, which has inhibited its ability to make opportunistic acquisitions. 
  • A rapid acceleration of Medicare beneficiaries’ moving from Medicare to Medicare Advantage across the industry affected the Company more than its peer companies due to Enhabit’s relatively high mix of Medicare business and low number of Medicare Advantage payor contracts at favorable rates at the time of the spin, leading to a disproportionate decline in adjusted EBITDA as the mix of business normalized. 
  • High interest rate environment, which further limited Enhabit’s ability to be acquisitive and increased its cost of debt. 
  • Inflationary wage trends and labor market shortage, which created capacity constraints, limiting growth and increasing Enhabit’s cost per visit. 

Against this challenging backdrop, the Board and management team have executed a multi-faceted strategy in our home health and hospice businesses to strengthen Enhabit’s foundation, including: 

  • Stabilizing Medicare admissions as a percentage of total home health revenue. Enhabit’s traditional Medicare mix of home health revenue is at approximately 60% and now in line with peers. While we still have work to do in this area, we expect this to result in improved performance. For example, while year-over-year Medicare admissions declined 11.4% in the first quarter of 2024, we experienced a Medicare admission increase of 3.4% sequentially. 
  • Improving our Medicare Advantage rate. As we shift business to our payor innovation contracts, we are driving higher revenue per visit. We have driven steady increases in our non-Medicare revenue per visit, from approximately $136 in FY 2022, to approximately $140 in FY 2023, to approximately $145 in the first quarter of 2024. These improvements are a result of our payor innovation process, which began in the summer of 2022. Notably, in Q1 2023, only 6% of non-Medicare visits were covered by payor innovation contracts at improved rates. In Q1 2024, that figure was 38%. In addition, admissions in our historically lower paying contracts declined from 42% of total admissions in Q1 2023 to 29% in Q1 2024. 
  • Growing our payor network. Since the spin-off in July 2022, we have secured 64 new agreements, two of which are new national agreements. Our pipeline includes 30 potential new agreements, along with 28 historic agreements that are being re-negotiated. 
  • Increasing hospice admissions and census. We stabilized the clinical work force and are now focused on business development to drive admissions and census growth. Since the spin-off in July 2022, we have grown hospice revenue by approximately 3% and admissions by approximately 7%, outpacing our closest peer. 
  • Bolstering our talent pool. In 2023, we eliminated all hospice and home health nursing contract labor, which is traditionally more expensive driving lower overall profitability. In Q1 2024, Enhabit’s full-time nursing candidate pool increased over 30% year-over-year and resulted in the addition of 151 net new full-time nurses. 
  • Delivering consistently excellent care to our patients. Our success is a competitive advantage in negotiations with payors. In 2023: o Enhabit’s 30-day hospital readmission rate was 20.5% lower than the 2022 national average. 
    • Enhabit’s Quality of Patient Care star rating was 16.7% better than the national average. 
    • Enhabit is 52.3% better than the national average in hospice visits by a RN or medical social worker in two of the last three days of the patient’s life.

ENHABIT IS POISED TO DRIVE GROWTH AND VALUE CREATION 

With Enhabit on more solid footing, we can now leverage our business stability to drive growth. Our priorities include

Home Health. We are increasing clinical staffing, enhancing ability to accept new payors and aligning clinical resource utilization with patient needs. 

  • We continue to increase net full-time nursing and therapy headcount to support home health growth. 
  • Our payor innovation team is contracting with new payors. This positions us to accept more patients and be a preferred provider to referral sources. We have two new national payor agreements in place as of January 1, 2024, which positions us much better than we were at the beginning of 2023. 
  • We are utilizing analytics and clinical management software, such as Medalogix Pulse, to optimize our care plans without compromising our industry leading outcomes. 

Hospice. We are growing census through improved staffing capacity, increasing use of analytics to drive high-quality care and focusing on efficiencies in the referral to admission process. 

  • We have no capacity constraints in our hospice locations, enabling us to take referrals that our business development team sources for us. 
  • Enhabit has implemented a case management staffing model that continues to improve recruitment and retention of hospice staff while eliminating all contract nursing and staffing constraints. Now that we have sufficient clinical staffing, we are focused on recruiting additional business development team members to increase referrals. 
  • Enhabit has successfully reallocated certain hospice resources to form centralized admission departments. The sole focus of these departments is to improve our ability to respond quickly to referral sources. 
  • The Company also leverages both internally developed tools as well as third-party software to reduce our cost per visit, enhance our productivity and optimize the use of our nursing and therapy staff. 

De Novos. We are making investments through our de novo strategy focused on staffing and hiring the clinical team to build patient census and aim to achieve 10 de novo locations per year which will allow us to enter new markets. 

  • De novos present attractive economics, with an initial investment of approximately $250,000 to $350,000, allowing Enhabit to capitalize on growth opportunities in overlapping geographies. 
  • Enhabit’s operational and sales teams have been focused on ramping up referrals and admission growth in the eight existing de novo locations that opened in 2023. 
  • The Company added resources to our integration team to support our de novo strategy. 
  • We have opened three thus far in 2024. De novos that have reached their one-year anniversary are generally at or ahead of plan. 

People. Through our employee-first culture, we undertake significant efforts to ensure our clinical and support staff receive the education, training, support and recognition necessary to provide the highest quality care in the most cost-effective manner. 

  • With our demonstrated success in nursing hires, we can now turn some talent acquisition resources to recruiting additional therapists that will allow us to grow volumes. 
  • The success of our human capital management strategy is evidenced by acknowledgement in many industry and national workforce awards, including the  recently announced 2024 Top Workplaces USA award issued by Energage,1 and results from our employee engagement survey that show active engagement by employees beyond the national average. 

ENHABIT’S REFRESHED, HIGHLY QUALIFIED BOARD IS FIT FOR PURPOSE AND SUPERIOR TO THE AREX PROPOSED NOMINEES 

As Enhabit continues to mature as a public company, the Board is ensuring that it has the right mix of skills along with a balanced mix of tenures to help drive Enhabit’s next phase of growth. 

Today, the Company’s Board consists of 13 directors, 12 of whom are independent directors, including five transitional directors who previously served on the Encompass board. The Company believes the historical knowledge of the business and public company board experience provided by the transitional directors was invaluable as we navigated obstacles and headwinds during our transition to a standalone public company. Most spin-off companies have legacy directors for this reason. As part of our well-designed, previously disclosed Board refreshment plan, four of the five transitional directors will step down from the Board at the Annual Meeting. 

Importantly, the skillsets and expertise of the Company’s directors up for re-election at the Annual Meeting are strongly aligned with the opportunities we see ahead. As AREX aptly highlighted, Charles Elson, the sole former Encompass director remaining on Enhabit’s Board, stated, “The skills-based composition of a corporate board is critically important to proper board function…a wide range of talents that are tailored to the business of the corporation is vital to effective management monitoring.”2 Mr. Elson had Enhabit’s Board in mind when he made this statement in August 2023. 

The eight independent Enhabit Board nominees include: 

  • Directors with ample experience serving on public company boards; 
  • Six directors who have overseen Enhabit through a period of instability and positioned the Company for growth and stockholder value creation; 
  • Two directors with executive-level expertise at two large payors that have distinct but complementary operations; this experience is invaluable as Enhabit’s payor innovation strategy continues to expand; 
  • A Chief Human Resources Officer for a publicly traded organization with nearly 20,000 employees whose perspective gained over ten years in this role pertains specifically to the Company’s efforts to improve recruitment and retention across our locations in the U.S., as well as to implement executive compensation programs designed to create value for stockholders, and broader human capital management objectives; 
  • A former Chief Administrative Officer and Chief Financial Officer in a leading health services company with over 20 years of leadership experience and strong accounting acumen that is necessary considering the Company’s recently enhanced financial controls; 
  • A director identified and selected by a stockholder of the Company that has a proven track record navigating industry cycles as a senior executive; 
  • A former Chief Information Officer at the U.S. Department of State, Johnson & Johnson and CVS Caremark with over three decades of Information Technology expertise, and a former Senior Vice President of Health System Analytics and Decision Support with significant experience in health system analytics and data, both of which have proved critical as we build out our analytics capabilities; 
    A Certified Public Accountant with more than 30 years of experience and significant M&A expertise gleaned from serving as Chief Financial Officer at two public companies prior to their respective sales to private equity; and 
    A renowned corporate governance expert (who has been quoted by AREX), with prior service as a director nominee of shareholder activists. 
  • 1 https://investors.ehab.com/news/news-details/2024/Enhabit-Home-Health–Hospice-Named-a-Winner-of-the-2024-Top-Workplaces-USA-Award/default.aspx 
  • 2 Elson, C. (2023, August 9). Editor’s Note: Planes, Trains and Corporate Governance. Directors & Boards.  

If elected, this Board, whose skillsets align greatly with the strategic initiatives of the Company, intends to oversee a management team poised to grow the business and enhance value for all stockholders. 

Compare this experience with the seven AREX proposed nominees and the vast disparity in quality is readily apparent: 

  • Seven nominees with only a combined four years of public company experience – one at a discount retail company that filed for bankruptcy and another at a holding company not registered with the SEC; 
  • Nominees whose healthcare experience is either tangential to home health and hospice operations and payor relationships, unproven because of short track records, or dated with limited relevance because of today’s Medicare Advantage marketplace dynamics; 
  • Candidates whose “payor” experience is at convenors (a third-party administrator working and coordinating with payors and providers), and not actually at payors; 
  • No candidates with extensive experience in leveraging analytics, which is a core initiative; 
  • No candidate with extensive experience in implementing executive compensation policies and programs, ESG initiatives, or IT/cybersecurity infrastructure; and 
  • Lack of candidates with the requisite accounting and internal control experience or compensation expertise to form properly functioning Audit and Human Capital Committees – qualities that are critical for any board to effectively oversee internal controls and communicate with auditors and design executive compensation plans to ensure alignment with management and stockholders. 

If elected, AREX intends to form a “Transformation Committee.” In addition to concerns about the AREX nominees’ experience and ability to effectively oversee the Company, we believe it will take months for them to get up to speed. 

ENHABIT’S INDEPENDENT BOARD OVERSAW A ROBUST STRATEGIC REVIEW PROCESS: THE BOARD HAS DEMONSTRATED THAT IT IS OPEN TO ALL OPPORTUNITIES TO MAXIMIZE STOCKHOLDER VALUE 

Your Board actively seeks and carefully evaluates stockholder input on an ongoing basis. To that end, at the urging of AREX and other stockholders, the Board oversaw a robust strategic review process which included a potential sale of the Company. The process involved 38 potential counterparties, including strategic buyers and financial sponsors – with certain parties expressing varying degrees of interest; however, due to a variety of factors (including macro and industry headwinds), none submitted formal offers despite the Board’s extensive efforts. 

The Board remains open to all opportunities to maximize stockholder value and will continue to take actions that best position Enhabit for the future, whether operating as a standalone entity or as part of a larger platform. 

PROTECT THE VALUE OF YOUR INVESTMENT IN ENHABIT: 

VOTE THE YELLOW PROXY CARD TODAY 

We strongly urge stockholders to vote for the entire slate of nine highly qualified and experienced Enhabit director nominees. Your vote is extremely important, no matter how many shares you own. Please use the enclosed YELLOW proxy card to vote ONLY FOR Enhabit’s nine nominees today. 

You can elect our nominees by signing, dating and returning the YELLOW proxy card in the postage-paid envelope included in your proxy materials. 

DISCARD the white proxy card you receive from AREX. If you mistakenly voted using the white proxy card, you may cancel that vote by simply voting again using Enhabit’s YELLOW proxy card – only your latest-dated vote will count. 

Thank you for your continued support of and investment in Enhabit. 

Sincerely, 

The Enhabit Board of Directors 

If you have questions or need assistance voting your shares, please contact: 

Mackenzie Partners, Inc.

Toll-Free: 1-800-322-2885 

Or 

Email: [email protected] 

About Enhabit Home Health & Hospice 

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com. 

Forward-Looking Statements 

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All 

forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release. 

Important Additional Information and Where to Find It 

The Company has filed a definitive proxy statement on Schedule 14A and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s 2024 annual meeting of stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOW PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOW proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Investors” section of the Company’s website, http://investors.ehab.com, or by contacting [email protected] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC. 

Investor relations contact 

Crissy Carlisle [email protected] 469-860-6061 

Media contact 

Erin Volbeda [email protected] 972-338-5141 

Enhabit Provides Additional Details on Robust Strategic Review Process

Files Preliminary Proxy Statement; Elaborates on AREX Capital Management’s Singular Focus in Demanding a Sale of the Company

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB) (“Enhabit” or the “Company”) today announced that it has filed its preliminary proxy materials with the Securities and Exchange Commission (the “SEC”) in connection with its upcoming 2024 annual meeting of stockholders (the “2024 Annual Meeting”). The preliminary proxy statement is available on the Investor Relations section of the Enhabit website at investors.ehab.com.

The Company is filing a preliminary proxy statement because AREX Capital Management, LP (together with its affiliates and associates, “AREX”) has notified the Company that it intends to nominate seven candidates for election to the Company’s nine-member board at the 2024 Annual Meeting.

In connection with the filing, Enhabit provided additional information regarding its recently concluded strategic review process. Highlights include:

  • Enhabit, with the assistance of its financial advisor, Goldman Sachs, and its legal advisor, Sidley Austin, ran a comprehensive process that lasted approximately nine months. Goldman Sachs received full leeway to engage potential counterparties.
  • The process involved 38 potential counterparties, including strategic buyers and financial sponsors. Of those parties, 26 executed non-disclosure agreements and nine participated in management presentations.
  • Four parties, consisting of two financial sponsors and two strategic acquirors, provided initial indications of interest.
  • The parties expressed varying degrees of interest; however, none submitted formal offers despite the Company’s extensive efforts to facilitate diligence.
  • Significant headwinds impacted the strategic review process, including regulatory developments related to changes in Medicare Advantage rates and the antitrust landscape, a difficult healthcare operating environment, and persistently high interest rates.

The Board, which includes two directors appointed as part of a cooperation agreement with Cruiser Capital and Harbour Point Capital, was actively engaged throughout the strategic review process. The Enhabit Board of Directors and management team remain steadfast in their commitment to maximize value for stockholders and will continue to evaluate all opportunities to do so.

The eight independent directors who have been nominated for reelection to the Enhabit Board at the 2024 Annual Meeting issued the following statement:

“Enhabit’s strategic alternatives process was robust and included outreach to a significant number of potentially interested third parties. In addition, Enhabit issued a public announcement of the process to ensure that other potential counterparties would be aware of the process. After nine months and having received no actionable proposals, despite giving the most interested parties an abundance of time to submit such a proposal, the Board unanimously determined to conclude the strategic review. We remain confident the Company has taken the right steps to improve financial and operational results, enhance growth, and create significant value for all Enhabit stockholders. We are disappointed that AREX has initiated a proxy contest to take control of the Board in the wake of the extensive strategic review that they demanded.”

Summary of the Strategic Review Process

Stage 1: AREX Demands a Review of Strategic Alternatives

In May 2023, AREX sent a private letter to the Board urging a review of strategic alternatives, the immediate resignation of five directors who had previously served on the board of directors of Encompass Health Corporation (“Encompass”, and such directors, the “Transitional Directors”), and the immediate appointment of two director candidates proposed by AREX. In June 2023, AREX sent a second letter to the Board, which was publicly disclosed in a press release, in which AREX again demanded a strategic review process by the end of the year and the appointment of its two director candidates. AREX failed to acknowledge the appointment of the two new directors pursuant to the cooperation agreement with Cruiser Capital and Harbour Point Capital, including one with substantial experience in mergers and acquisitions, earlier in the year.

Stage 2: Company Initiates a Strategic Review

Prior to AREX’s private letter and public campaign, the Board had already contemplated a variety of options that would enhance stockholder value, including strategic transactions. The Board had considered the possibility of a strategic transaction with its financial advisor, Goldman Sachs, as early as the summer of 2022, in the initial months following the Company’s separation from Encompass. This workstream involved a review of market trends, a valuation workstream, and an assessment of the Company’s options for pursuing a strategic transaction given certain restrictions in the tax matters agreement with Encompass executed in connection with the Company’s spin-off (the “Tax Matters Agreement”). In particular, the Tax Matters Agreement prohibited the Company from undertaking any strategic transaction before the second anniversary of the Separation unless it received the advance approval of Encompass, and it also required the Company to indemnify Encompass and its stockholders from any tax liabilities, which could be substantial, if the Internal Revenue Service were to determine that the Separation no longer qualified as a tax-tree transaction.

The Board believed, as of early June 2023, that while a strategic review process would be an appropriate step to take in the medium-term, doing so in the coming months as demanded by AREX was not the appropriate course. As of that time, the Board and its advisors identified several significant market-wide and industry-wide factors that could limit the desire or ability for likely counterparties to make an offer for the Company. These factors included the broad transition of payor mix from Medicare to Medicare Advantage, the generally lower payment rates of Medicare Advantage, the high interest rate environment, inflationary wage trends, and labor market shortages.

Nevertheless, the Board continued to consider a strategic review throughout June, July and early August 2023, with the input of management and the Company’s financial and legal advisors. During this time, the Company and its outside legal counsel also thoroughly evaluated the Tax Matters Agreement.

Developments during this period informed the Board’s decision to launch a strategic review. First, a strategic party in the healthcare industry approached the Company on an unsolicited basis to ask if the Company would consider a sale or running a process. Second, the Company’s outside legal counsel completed negotiations with Encompass regarding the Tax Matters Agreement and delivered an opinion that undertaking a strategic review would not cause the spin-off to fail to qualify as tax-free under applicable law. In addition, certain other stockholders continued to ask the Board to initiate a strategic review.

Ultimately, the Board concluded that, despite certain clear headwinds in the market, initiating a strategic review would serve the dual purposes of thoroughly exploring options to maximize stockholder value and satisfying investors that the Board was taking all reasonable measures to maximize stockholder value. Additionally, AREX’s mid-June press release, demanding that the Company commit to a strategic review, had already yielded negative effects traditionally associated with the announcement of a strategic review, such as industry rumors, which subsequently reduced the downside of publicly announcing the review.

When the Board announced its intent to launch the strategic review on August 9, 2023, the Board consisted of five Transitional Directors, five independent directors without prior service on the Encompass board of directors (each with a tenure of less than two years), two new directors appointed pursuant to the cooperation agreement with Cruiser Capital and Harbour Point Capital, and the CEO. The Company had previously disclosed that four of the five Transitional Directors would not stand for reelection to the Board at the 2024 Annual Meeting.

On August 14, 2023, AREX issued a public letter applauding the launch of the strategic review that it had demanded. AREX’s press release further implied that the Transitional Directors were entrenched and unwilling to run a full and fair process to sell Enhabit. These allegations ignored the Company’s prior disclosures that four of the five Transitional Directors would step off the Board in 2024, regardless of whether a sale occurred.

Starting in September 2023, Goldman Sachs made outbound calls to 38 parties, including 10 parties who contacted the Company in August in response to the Company’s announcement regarding the strategic review process. Of the 38 parties, 13 were strategic buyers and 25 were financial sponsors. 26 parties executed non-disclosure agreements and nine participated in management presentations in October 2023. Following management presentations, the Company provided parties with access to a virtual data room. Throughout October and into November, the Board, with the advice of Goldman Sachs, worked to identify the parties who were most likely to present a compelling offer. During this period, multiple potential counterparties noted the impact of elevated interest rates on the feasibility of a potential transaction.

Stage 3: Initial Indications of Interest and Diligence

In November 2023, four parties, consisting of two financial sponsors and two strategic acquirors, provided Goldman Sachs with initial indications of interest. The financial sponsors provided indicative valuation ranges of $11 to $12 per share. One strategic acquiror provided a valuation of $10 per share. The other strategic acquiror proposed all-stock consideration without providing a valuation.

The Board determined that the all-stock proposal from the second strategic acquiror did not present a credible proposal as the party had not provided a valuation, had not signed a non-disclosure agreement, and had not received any confidential information prior to the submission of its indication of interest.

The Company facilitated significant follow-up diligence from the other three parties, including hundreds of diligence requests.

Stage 4: Focused Engagement with Two Parties

In January 2024, the Company requested updated indications of interest by a specified date within the month, and requested that the parties also address a number of specific requirements, including commenting on a draft transaction document. Later in January, the remaining strategic acquiror submitted a letter confirming its interest, but did not include any information around a valuation or a clear path to signing a definitive agreement. One financial sponsor provided an updated indication of interest, which the Board viewed as not actionable due to concerns around the party’s ability to finance a transaction. The financial sponsor had contemplated financing to be provided by one of its portfolio companies. The second financial sponsor declined to provide a formal proposal as its strategic partner was not interested in pursuing the transaction.

The Company’s advisors continued engaging the remaining strategic acquiror over several months given the strategic acquiror’s continued expressions of interest in the Company. The strategic acquiror had referenced a desire to submit an updated offer after the announcement of the annual financial results, and despite repeated outreach from the Company’s financial advisors and the process remaining open through April to facilitate continued engagement, the strategic acquiror did not submit a formal offer. Discussions with the strategic acquiror had been gated by various milestones, such as the Company’s fourth-quarter earnings, the Company’s filing of its Form 10-K, and the final Medicare Advantage rate announcement on April 1, 2024. The strategic acquiror, along with its industry peers, also faced additional challenges which the Company believes hampered its ability to proceed with a transaction.

An additional strategic acquiror, which had not previously taken part in the Company’s process, approached Goldman Sachs in late March 2024. The acquiror expressed general interest in the process and indicated that it would follow with additional specificity about its bid and valuation after further review. Goldman Sachs urged the party to submit its indication of interest as soon as possible. The continuation of the Company’s process through April afforded reasonable additional time for the formulation of an indication of interest, but the acquiror did not continue its engagement.

During this period of engagement from November 2023 until May 2024, significant, well-recognized headwinds impacted the strategic review process. In addition to preexisting factors such as the interest rate environment, inflationary wage trends, labor shortages, and the increase in Medicare Advantage utilization in skilled home health services, the process was also impacted by new changes to rates in the Medicare Advantage market. On January 31, 2024, the Centers for Medicare & Medicaid Services (“CMS”) published an advance notice indicating that rates for Medicare Advantage were expected to decrease. On April 1, 2024, CMS released its 2025 rate announcement for Medicare Advantage, which finalized certain previously proposed policies. Unlike in prior years, the finalized rates were not revised upwards following the advance notice, further impacting the health services market and potential counterparties. The April announcement resulted in a broader decline in the median market capitalization of the managed care industry of approximately 6%, based on stock price performance of the Cigna Group, Centene Corporation, CVS Health, Elevance Health, Humana, Molina Healthcare and UnitedHealth Group from April 1 to April 2, 2024.

The strategic review process, as described above, was publicly announced, comprehensive, and deliberate, lasting nine months and involving 38 potential counterparties. On May 8, 2024, having received no formal proposals, the Company announced that the Board had unanimously determined to terminate the strategic review.

About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Forward-Looking Statements

Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contact counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com.

Important Additional Information and Where to Find It

The Company intends to file a proxy statement on Schedule 14A, an accompanying YELLOW proxy card, and other relevant documents with the SEC in connection with such solicitation of proxies from the Company’s stockholders for the Company’s 2024 annual meeting of stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOW PROXY CARD, AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOW proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Investors” section of the Company’s website, http://investors.ehab.com, or by contacting [email protected] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

Participants in the Solicitation

The Company, its directors, certain of its officers, and other employees may be deemed to be “participants” (as defined in Section 14(a) of the Exchange Act of 1934, as amended) in the solicitation of proxies from the Company’s stockholders in connection with matters to be considered at the Company’s 2024 annual meeting of stockholders.

Information about the names of the Company’s directors and officers, their respective interests in the Company by security holdings or otherwise, and their respective compensation is set forth in the sections entitled “Election of Directors,” “Compensation of Directors,” “Executive Compensation,” and “Security Ownership of Certain Beneficial Owners and Management” of the Company’s Proxy Statement on Schedule 14A in connection with the 2023 annual meeting of stockholders, filed with the SEC on May 19, 2023 (available here) and the Company’s 10-K/A, filed with the SEC on April 26, 2024 (available here). To the extent the security holdings of directors and executive officers have changed since the amounts described in these filings, such changes are set forth on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC, which can be found at no charge at the SEC’s website at www.sec.gov. Updated information regarding the identity of potential participants and their direct or indirect interests, by security holdings or otherwise, in the Company will be set forth in the Company’s Proxy Statement on Schedule 14A for the 2024 annual meeting of stockholders and other relevant documents to be filed with the SEC, if and when they become available. These documents will be available free of charge as described above.

Contacts

Investor relations contact


Crissy Carlisle
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141

Enhabit Announces Participation in Upcoming Goldman Sachs 45th Annual Global Healthcare Conference

DALLAS – May 21, 2024 – Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced its participation in the Goldman Sachs 45th Annual Global Healthcare Conference.

Enhabit’s President and Chief Executive Officer Barbara Jacobsmeyer and Chief Financial Officer Crissy Carlisle will participate in a fireside chat on Tuesday, June 11, at 10 a.m. EDT. The fireside chat will be webcast live and available for replay at https://investors.ehab.com.  

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About Enhabit Home Health & Hospice  

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Investor relations contact

Crissy Carlisle [email protected] 469-860-6061

Media contact

Erin Volbeda [email protected] 972-338-5141