Business Combinations (Tables)

6 Months Ended

Jun. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date

The fair value of the assets acquired at the acquisition date were as follows (in millions):









Identifiable intangible assets:
Noncompete agreement (useful life of 3 years)	$	0.4
Trade name (useful life of 20 years)	0.3


Goodwill	3.5
Other long-term assets	0.1
Total assets acquired	$	4.3

The preliminary fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):


Cash and cash equivalents	$	0.8
Accounts receivable, net	0.9
Prepaid expenses and other current assets	0.2
Property and equipment	0.1
Operating lease right-of-use-assets	0.9
Identifiable intangible assets:
Noncompete agreement (useful life of 5 years)	1.7
Trade name (useful life of 3 months)	0.2
Certificates of need (useful lives of 10 years)	3.1
Licenses (useful lives of 10 years)	4.8
Goodwill	90.1

Total assets acquired	102.8
Liabilities assumed:
Current operating lease liabilities	0.3
Accounts payable	0.2
Accrued payroll	0.8
Other current liabilities	0.7
Long-term operating lease liabilities	0.7

Total liabilities assumed	2.7
Noncontrolling interests	1.6
Net assets acquired	$	98.5

Schedule of Business Acquisitions, by Acquisition

Information regarding the net cash paid for the inpatient rehabilitation acquisitions during each period presented is as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Fair value of assets acquired	$	0.8	$	1.4	$	0.8	$	1.7
Goodwill	3.5		6.6		3.5		9.2

Fair value of noncontrolling interest owned by joint venture partner	(3.2)		(8.0)		(3.2)		(10.9)

Net cash paid for acquisitions	$	1.1	$	—	$	1.1	$	—

Information regarding the net cash paid for the home health and hospice acquisitions during each period presented is as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Fair value of assets acquired, net of $0.8 million of cash acquired	$	11.9	$	—	$	11.9	$	0.1
Goodwill	90.1		—		90.1		1.0
Fair value of liabilities assumed	(2.7)		—		(2.7)		—
Fair value of noncontrolling interest owned by joint venture partner	(1.6)		—		(1.6)		—

Net cash paid for acquisitions	$	97.7	$	—	$	97.7	$	1.1

Summary of Actual and Pro Forma Results of Operations for Acquisitions

The following table summarizes the results of operations of the above mentioned acquisitions from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2020 (in millions):


	Net Operating Revenues		Net (Loss) Income Attributable to Encompass Health
Acquired entities only: Actual from acquisition date to June 30, 2021
Inpatient Rehabilitation	$	—	$	—

Home Health and Hospice	3.2		(0.3)
Combined entity: Supplemental pro forma from 04/01/2021-06/30/2021	1,295.0		113.8
Combined entity: Supplemental pro forma from 04/01/2020-06/30/2020	1,085.2		34.1
Combined entity: Supplemental pro forma from 01/01/2021-06/30/2021	2,537.2		221.9
Combined entity: Supplemental pro forma from 01/01/2020-06/30/2020	2,278.2		121.7