Enhabit: Home Health Growth & New Contracts
Enhabit (EHAB) is aggressively pursuing growth in the home health sector, prioritizing payer relationships and strategic expansions. CEO Barb Jacobsmeyer emphasizes the move to become a full-service provider. This is crucial for securing referrals and managing patient volume effectively. The company is also renegotiating contracts to achieve rate increases linked to quality metrics, actively pushing for more episodic contracts, which represent 70% of their home health patient census. Challenges exist, particularly in building payer relationships. News Directory 3 examines how Enhabit plans to navigate a changing landscape, including Medicare fee-for-service volumes. The company anticipates continued revenue normalization. Enhabit aims to expand through new locations and acquisitions, with a focus on hospice services. discover what’s next for this market leader.
Enhabit Prioritizes Payer Relationships for Home health Growth
Updated June 13, 2025
Enhabit (EHAB), a major player in home health and hospice, is strategically focusing on payer relationships and targeted expansion to achieve significant growth. The company’s president and CEO, Barb Jacobsmeyer, emphasizes the importance of becoming a “full-service” provider to secure more referral partners and manage a higher volume of patients.
Jacobsmeyer noted at the Goldman Sachs 46th Annual Global Healthcare Conference that building these payer relationships has been more challenging than initially anticipated. Enhabit operates 364 locations across 34 states, encompassing 251 home health and 113 hospice locations.
The company is actively renegotiating contracts, successfully securing rate increases tied to quality metrics. A key objective is to establish episodic contracts, which currently cover approximately 70% of Enhabit’s home health patient census. This approach allows Enhabit to manage patient visits effectively.
Hospice” width=”600″ height=”400″>According to Jacobsmeyer, Enhabit’s payer mix is experiencing growth in customary Medicare and payer innovation contracts. She also urged Medpac to consider all payer margins, not just Medicare, when analyzing reimbursement trends.
Ryan Solomon, Enhabit’s chief financial officer, reported a decrease in the rate of decline in Medicare fee-for-service volumes, aligning with industry peers. The company anticipates a continued normalization of revenue percentage from Medicare.
Enhabit plans to continue its strategic expansion through both de novo locations and acquisitions, with a slight emphasis on growing its hospice business.
What’s next
Looking ahead, Enhabit will focus on communicating its expanded payer mix to referral sources and strategically growing its hospice services to solidify its position in the home health market.