Encompass Health Closes 90-Bed Sea Pines Hospital Indefinitely After Melbourne Flooding

Encompass Health has closed its 90-bed Sea Pines Rehabilitation Hospital in Melbourne, Florida, indefinitely after torrential rains flooded the facility on November 1-2, 2026. The company announced the closure on November 6, 2026, in a PR Newswire release. Sea Pines is owned by a joint venture between Encompass Health and Holmes Regional Medical Center, a subsidiary of Health First.

Sea Pines Evacuation and Damage

All patients were safely evacuated from Sea Pines and were either admitted to another appropriate medical facility or discharged home, according to the release. All Sea Pines employees have been accounted for. The flooding caused substantial damage to the hospital, which remains closed.

The joint venture is committed to reopening Sea Pines and is evaluating alternatives for refurbishing or replacing the hospital. "Sea Pines has served the greater Melbourne area for more than 40 years, and we are committed to restoring and enhancing our capacity to do so," said Pat Tuer, Encompass Health executive vice president and chief operating officer. "Reopening Sea Pines is a high priority, and we are currently in discussions with our joint venture partner to determine the best path forward."

During the closure, Sea Pines will incur remediation expenses and continue to incur certain operating expenses. Encompass Health said it intends to exclude these items, as well as any related insurance proceeds, from its reported non-GAAP measures. The company reaffirmed its full-year 2026 guidance provided on October 28, 2026: net operating revenue of $6,450 million to $6,500 million, Adjusted EBITDA of $1,395 million to $1,415 million, and Adjusted earnings per share from continuing operations attributable to Encompass Health of $6.23 to $6.37.

Sea Pines Revenue and Discharges

For the first nine months of 2026, Sea Pines had net operating revenue of approximately $44 million, contributed approximately $14 million to Adjusted EBITDA, and recorded 1,876 total discharges, the company said. According to akta.pro company records, Encompass Health operates more than 175 inpatient rehabilitation hospitals across 39 states and Puerto Rico and treats more than 225,000 patients annually. The same records list full-year 2026 guidance for net operating revenue of $6.38 billion to $6.47 billion.

Encompass Health's Recent Expansion

Encompass Health opened its 50-bed inpatient rehabilitation hospital in Westover Hills, San Antonio, Texas, and began accepting patients, PR Newswire reported in October 2026. The 54,000-square-foot facility provides intensive therapy and 24-hour nursing care for conditions such as strokes and spinal cord injuries. In the same month, PR Newswire reported that Newsweek named Encompass Health America's Most Awarded Leader in Inpatient Rehabilitation for the seventh consecutive year, with a record 78 hospitals across 32 states on the 2026 list.

Sea Pines Reopening Discussions

Encompass Health said it is in discussions with its joint venture partner to determine the best path forward for Sea Pines, and that reopening the hospital is a high priority.