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Enhabit appoints new CFO to drive growth

Published 11/07/2024, 08:38 PM
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DALLAS - Enhabit, Inc. (NYSE: EHAB), a prominent provider of home health and hospice services, has announced the appointment of Ryan Solomon as its new chief financial officer, set to take his post on Dec. 9, 2024. Solomon succeeds Crissy Carlisle, marking a significant executive transition for the company.

With over two decades of experience in corporate strategy and finance, Solomon brings a wealth of knowledge to Enhabit. His background includes eight years as CFO in the home health and hospice industry, among others. He has a proven track record of financial leadership, having previously held the CFO position at AccentCare and Aspirion, a leading technology-enabled health care revenue cycle management provider.

At AccentCare, Solomon was responsible for an array of financial operations, including financial planning, accounting, and tax, which he will now manage at Enhabit. His expertise extends to building finance teams, systems integration, and mergers and acquisitions, all of which will be instrumental in his new role.

Barb Jacobsmeyer, president and CEO of Enhabit, praised Solomon's appointment, citing his experience and successful track record as aligning perfectly with the company's objectives. Jacobsmeyer expressed confidence in Solomon's ability to contribute fresh perspectives and build on the company's momentum.

Solomon himself expressed enthusiasm for joining Enhabit, acknowledging the company's high-quality patient care and its potential for growth. He looks forward to collaborating with the leadership team to further Enhabit's mission of delivering compassionate care.

As Solomon prepares to step into his new role, Enhabit also recognized the contributions of outgoing CFO Crissy Carlisle, thanking her for her partnership and ensuring a smooth transition.

Enhabit operates across 34 states with 256 home health locations and 112 hospice locations, employing advanced technology and compassionate care teams to provide exceptional patient care. The information for this article is based on a press release statement.

In other recent news, Enhabit Home Health & Hospice reported a mixed performance in its second quarter 2024 earnings. Despite a slight decrease in consolidated net revenue by 0.6% to $260.6 million, the company saw growth in its Home Health and Hospice segments, with a notable 6.4% increase in Home Health admissions. Adjusted EBITDA for the quarter also rose by 5.4% to $25.2 million.

Enhabit has updated its full-year 2024 guidance, narrowing the expected net service revenue and adjusted EBITDA ranges, indicating confidence in its long-term prospects. The company anticipates mid to high single-digit growth rates in both home health admissions and hospice volumes over the next three years.

However, the proposed 2025 home health payment rule could lead to a 1.7% net decrease for Enhabit. Despite this potential challenge, the company plans to open approximately 10 de novo locations annually, subject to licensing and regulatory approvals. These recent developments underscore Enhabit's commitment to navigate industry challenges while capitalizing on strategic initiatives to foster growth.

InvestingPro Insights

As Enhabit, Inc. (NYSE: EHAB) prepares for this significant executive transition, investors may find value in examining the company's financial health and market performance. According to InvestingPro data, Enhabit's market capitalization stands at $397.74 million, reflecting its position in the home health and hospice services sector.

Despite recent challenges, there are positive indicators for Enhabit's future. An InvestingPro Tip suggests that net income is expected to grow this year, which could be a promising sign for the company as Ryan Solomon takes on the CFO role. This projection aligns with another InvestingPro Tip indicating that analysts predict the company will be profitable this year, potentially marking a turnaround from its current unprofitable status over the last twelve months.

The company's financial metrics reveal a mixed picture. With a revenue of $1.04 billion in the last twelve months as of Q2 2024, Enhabit demonstrates a substantial operational scale. However, the company faces headwinds, as evidenced by a slight revenue decline of 1.35% over the same period. This context underscores the importance of Solomon's extensive experience in financial management and strategy as he joins Enhabit.

Investors should note that Enhabit has shown a significant return over the last week, with a 14.8% price total return. This recent positive momentum could be indicative of market optimism surrounding the company's future prospects, including the upcoming leadership change.

For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 6 more tips available for Enhabit, providing a deeper understanding of the company's financial position and market outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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