Encompass Health closes Florida hospital after flood, reaffirms 2026 guidance
Encompass Health said its 90-bed Sea Pines hospital in Melbourne, Florida, will stay closed indefinitely after flooding, and reaffirmed its full-year 2026 guidance.
Key takeaways
- Encompass Health (EHC) said its 90-bed Sea Pines Rehabilitation Hospital in Melbourne, Florida, remains closed indefinitely after flooding from torrential rains on Nov. 1-2, 2026. All patients were evacuated safely. The company reaffirmed its full-year 2026 guidance, including net operating revenue of $6.45 billion to $6.50 billion.
Encompass Health (EHC) said Sea Pines Rehabilitation Hospital in Melbourne, Florida, is closed indefinitely after torrential rains flooded the building Nov. 1-2, 2026.
Shares fell 2.6% at 3:59 p.m. ET, from a $141.27 close.
All patients were evacuated safely, and all employees have been accounted for.
The 90-bed hospital is owned by a joint venture of Encompass Health and Holmes Regional Medical Center, a Health First subsidiary. The joint venture is committed to reopening Sea Pines and is evaluating refurbishment or replacement.
The company expects remediation and certain operating expenses while the hospital is closed, and will exclude them, and related insurance proceeds, from non-GAAP measures.
2026 guidance
The company reaffirmed its full-year 2026 guidance, issued Oct. 28, 2026: net operating revenue of $6.45 billion to $6.50 billion, Adjusted EBITDA of $1.40 billion to $1.42 billion, and adjusted earnings per share from continuing operations of $6.23 to $6.37 per share.
Sea Pines results
In the first nine months of 2026, Sea Pines had about $44 million in net operating revenue, contributed about $14 million to Adjusted EBITDA and recorded 1,876 total discharges.
"Reopening Sea Pines is a high priority, and we are currently in discussions with our joint venture partner to determine the best path forward," said Pat Tuer, Encompass Health chief operating officer.