Encompass Health and University of Maryland Medical System announce joint venture to own and operate rehabilitation hospital in Bowie

BIRMINGHAM, Ala. and BOWIE, Md., July 18, 2023 – Encompass Health Corp. (NYSE: EHC) and the University of Maryland Medical System (UMMS) today announced they have executed a joint venture agreement to own and operate Rehabilitation Hospital of Bowie. The 60-bed inpatient rehabilitation hospital, located at 17351 Melford Boulevard, began serving patients in June 2023.

The joint venture combines the expertise and resources of Encompass Health, the nation's largest owner and operator of inpatient rehabilitation hospitals, and the University of Maryland Medical System, one of the largest private employers in Maryland, with 11 primary and specialty care hospitals and more than 150 locations across the state. This is the first joint venture partnership between the two parties.

"This new partnership with Encompass Health opens new doors for patients and communities and further expands the spectrum of healthcare services for the residents of Prince George's County and the region," said Mohan Suntha, MD, MBA, President and CEO of UMMS. "Along with our public and private sector partners, the University of Maryland Medical System has made numerous essential investments in high-quality healthcare delivery in the region, including a new state-of-the art hospital and the county's only standalone comprehensive cancer center in Largo, as well as a freestanding medical facility and growing health campus in Laurel. As we expand our services in the Capital Region, we remain deeply committed to delivering a Better State of Care in our communities by providing a wide range of comprehensive services from primary care to complex specialty care and rehabilitation."

"We are excited for this new joint venture partnership with the University of Maryland Medical System, a strong healthcare entity known for its preeminent, comprehensive healthcare services and dedication to the communities it serves," said Abe Sims, President of Encompass Health's MidAtlantic Region. "Through this new hospital and our joint venture with UMMS, we look forward to providing access to high‑quality care for Prince George's County area residents in need of rehabilitative services. By leveraging the strengths of both organizations, we will help patients regain their independence through our coordinated and connected care."

Complementing local acute care services provided by the University of Maryland Capitol Region Health across Prince George's County, the Rehabilitation Hospital of Bowie serves patients recovering from debilitating illnesses and injuries including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24‑hour nursing care, the hospital offers physical, occupational and speech therapies to restore functional ability and quality of life. Care is provided by highly specialized nurses, therapists and physicians. The hospital, totaling approximately 60,000 square feet, features all private patient rooms, a large therapy gym with advanced rehabilitation technologies and an activities of daily living suite, a therapy courtyard, a cafeteria and a dayroom.

The Rehabilitation Hospital of Bowie is Encompass Health's 158^th inpatient rehabilitation hospital nationwide and its second inpatient rehabilitation hospital in Maryland.

About University of Maryland Medical System

The University of Maryland Medical System (UMMS) is an academic private health system, focused on delivering compassionate, high-quality care and putting discovery and innovation into practice at the bedside. Partnering with the University of Maryland School of Medicine and University of Maryland, Baltimore who educate the state's future health care professionals, UMMS is an integrated network of care, delivering 25 percent of all hospital care in urban, suburban and rural communities across the state of Maryland. UMMS puts academic medicine within reach through primary and specialty care delivered at 11 hospitals, including the flagship University of Maryland Medical Center, the System's anchor institution in downtown Baltimore, as well as through a network of University of Maryland Urgent Care centers and more than 150 other locations in 13 counties. For more information, visit www.umms.org.

About Encompass Health

Encompass Health (NYSE: EHC) is the largest owner and operator of rehabilitation hospitals in the United States. With a national footprint that includes 158 hospitals in 37 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune's 100 Best Companies to Work For and Modern Healthcare's Best Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook.

Forward-Looking Statements

Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this joint-venture hospital, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health 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 necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events 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 results or events to differ materially from those anticipated include, but are not limited to, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings that may be brought by or against Encompass Health or University of Maryland Medical System; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or University of Maryland Medical System's information systems; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended Dec. 31, 2022 and Form 10-Q for the quarter ended March 31, 2023.