Home health giant Encompass Health Corp. may be on its way to a spin-off of its home health and hospice division. That is according to Jeffries analyst Brian Tanquilut.
Two recent executive appointments indicate that “the business is unlikely to be sold and that a public spin-off is the most likely outcome of the company’s strategic review,” Tanquilut said, according to a report Tuesday on the Seeking Alpha website.
Just this week, the company named Crissy Carlisle, the company chief investment relations officer as the unit’s new CFO. Last week, the firm tapped Barbara A. Jacobsmeyer to be CEO of the home health and hospice business, effective immediately.
A spin-off will enable the Birmingham, AL-based company to “more aggressively pursue acquisitions,” Tanquilut said.
But Hillary Carnel, Encompass Health Associate director of public relations, told McKnight’s Home Care Daily the company has made no decision on its home health and hospice business.
“Our board continues to evaluate an array of alternative strategies and structures for the home health and hospice business,” Carnel said. “We expect to provide an update on the status of this process in connection with our second quarter earnings release in late July.”
Encompass disclosed in December that it was conducting a strategic review of its home health and hospice business and said a possible spin-off, merger or sale of that unit was possible.