Enhabit, Inc. (EHAB)

Enhabit, Inc. was a provider of home health and hospice care headquartered in Dallas, Texas. The business began as the home health and hospice segment of Encompass Health, a Birmingham, Alabama-based post-acute care provider. Encompass Health formed Enhabit as a separate entity and completed a spin-off in July 2022, distributing its shares to Encompass shareholders, after which Enhabit began trading on the New York Stock Exchange under the symbol EHAB.

Enhabit's home health business provided skilled nursing, physical, occupational and speech therapy, wound care and chronic disease management to patients in their homes, typically after a hospital stay or surgery. Its hospice operations provided pain and symptom management, counseling and bereavement support for terminally ill patients and their families. At the time of the spin-off it operated hundreds of home health and hospice locations across more than thirty states, with Medicare as its dominant payer.

As a standalone company, Enhabit faced a difficult operating environment. Medicare Advantage plans, which paid lower rates and required more authorizations than traditional Medicare, represented a growing share of its referrals, and proposed reductions in Medicare home health payment rates created pressure on margins. The company also dealt with labor costs, clinician staffing and a heavy debt load carried since the spin-off, and its leadership worked on a turnaround plan under chief executive Barb Jacobsmeyer.

In 2024, the company explored strategic options, including a potential sale, and a transaction with a buyer was not completed at that time. Share price weakness and the continuing cost of its debt kept the question of ownership open. In 2026, Enhabit agreed to be acquired by Kinderhook Industries, a New York-based private equity firm, in an all-cash take-private transaction.

Under the merger agreement Enhabit shareholders were to receive $13.80 per share in cash. The company filed proxy materials in 2026, and the transaction required approval by Enhabit stockholders. In announcing the deal, Kinderhook said it intended to provide additional resources to support the company's growth and clinical capabilities, and that Ms. Jacobsmeyer would continue as chief executive officer.

The transaction was completed on May 15, 2026. Enhabit's common stock stopped trading on the New York Stock Exchange, and the NYSE filed a Form 25 with the SEC to remove the shares from listing and registration. Enhabit now operates as a privately held company and no longer files periodic reports as a public registrant.