Encompass Health announced the opening of the Rehabilitation Hospital of Amarillo, a 50‑bed inpatient rehabilitation facility that began accepting patients on November 10, 2025. The new hospital is a joint venture with BSA Health System, the largest health‑care employer in the Texas Panhandle, and is located in Amarillo, Texas.
The Amarillo facility marks Encompass Health’s 29th location in Texas and adds significant capacity to a market that is projected to grow as the state’s population ages. By adding 50 beds, the company increases its ability to serve Medicare‑insured patients and to capture a larger share of the region’s rehabilitation demand, which is driven by a rising number of stroke, neurological, and complex orthopedic cases.
Patients at the new hospital receive a minimum of three hours of therapy daily, five days a week, along with 24‑hour nursing care and frequent physician visits. The facility features private rooms, advanced therapy gyms, and specialized suites designed to support daily living activities, all of which are intended to accelerate recovery and improve patient outcomes.
Encompass Health CEO Mark Tarr said the expansion “reinforces our commitment to delivering high‑quality, patient‑centered care in communities that need it most.” BSA Health System president Michael Cruz added that the partnership “more than doubles the region’s capacity for inpatient rehabilitation.” Craig Funk, president of Encompass Health’s Southwest region, noted that the new hospital will help patients regain independence and expand access to the company’s proven care model.
The opening comes on the heels of Encompass Health’s Q3 2025 earnings, which beat expectations with revenue up 11.13% year‑over‑year and adjusted EBITDA growing 11.4%. The company’s guidance for the full year has been raised, reflecting confidence in continued demand and the impact of new facilities like Amarillo on the revenue pipeline. The expansion is therefore a tangible driver of the company’s growth trajectory and its position as the nation’s largest owner and operator of inpatient rehabilitation hospitals.
Texas is a key growth market for Encompass Health, and the Amarillo hospital strengthens the company’s competitive position in a region with limited inpatient rehabilitation capacity. The joint venture leverages BSA Health System’s local reputation while allowing Encompass Health to deploy its standardized care protocols, creating a scalable model that can be replicated in other underserved markets.
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