Enhabit wrapped up a turbulent 2023 with wind in its sails. Operational success and strategic growth has primed the company for success in the year ahead, according to leaders of the home health and hospice provider.
“Persistent focus on our company strategies drove our fourth quarter results,” Barbara Jacobsmeyer, president and chief executive officer, said during an earnings conference call Thursday morning. “We anticipate our home health and hospice quality will continue to drive our future growth as well as employee retention.”
Enhabit performed exceptionally well in its workforce initiatives in the fourth quarter, company leaders said during the call. Though recruitment and retention becomes difficult around the holiday season, Enhabit’s applicant pool was up 21% in the quarter ended Dec. 31, they noted.
“Continued progress with our people strategy remains a priority and we believe we’re winning the battle for labor,” Jacobsmeyer said. “Given our strong nursing hires in 2023. We eliminated all hospice nursing contract labor by the end of quarter three and all home health nursing contract labor by the end of the year. Our focus in 2024 will be on employee engagement.”
Another focus is strategic growth, she noted. Enhabit added one home health and one hospice location in the fourth quarter, bringing the company’s 2023 total to eight new locations. About 12 new centers are slated to open in the coming year, Jacobsmeyer said.
Still, in the fourth quarter of 2023, Enhabit suffered a net loss of $6.4 million. That compares to a $95 million loss in the previous year quarter, according to an earnings report. The company generated more than $260 million in sales during that time, which was a decline of 1% year-over-year. Throughout the whole year 2023, Enhabit lost $79 million behind revenues exceeding $1 billion.
Home health was Enhabit’s stronger segment, contributing roughly 80% of the company’s sales. The segment generated more than $209 million in the first quarter, which was still a 2.9% decrease from the prior year quarter. Hospice, meanwhile, fueled about $51 million in revenues, which was a 7.8% improvement year-over-year.
Last August, Enhabit announced that it would seek strategic alternatives in the form of a merger, sale or acquisition as its falling revenues and stock price have not lived up to shareholders’ expectations. Jacobsmeyer opted not to comment on the progress of the review.
“The board, with the assistance of our advisers, is being comprehensive in its assessment of strategic alternatives and discussions with interested parties are ongoing,” Jacobsmeyer said during the call Thursday. “We are in the later stages of our strategic review but don’t intend to disclose developments unless and until we determine further disclosure is appropriate or necessary.”
