2021 DIVERSITY, EQUITY & INCLUSION ANNUAL REPORT

Reflecting on our progress, preparing for our future

Encompass Health is dedicated to creating a culture where differences are valued. I’m proud to say we’ve come a long way. As with any strategic effort, it’s important to take time for reflection in order to continually improve.

This report provides an opportunity for us to celebrate the significant progress we’ve made in the past year—but there’s always more to do. We’ll continue to expand and improve our DEI efforts in 2022 and beyond.

- Mark Tarr, President & Chief Executive Officer

View the Annual Report

Our strategic focus areas

Our Company's core values inform our business decisions and guide employee interactions with each other and those we serve. The focus of Encompass Health's DEI program includes four strategic areas: our workforce, patient experience, supplier diversity and community partnerships. Incorporating DEI into our day-to-day business practices is The Encompass Health Way in action.

• Workforce
• Patient experience
• Supplier diversity
• Community partners
• Culture and accountability are in the center of the 4 strategies

Incorporating diversity into healthcare hiring practices is crucial, especially when it comes to maintaining a healthy nursing population. In recent years, Encompass Health has developed strong alliances with nursing schools and associations, utilized diverse job boards and websites, and participated in diverse nursing conferences and events. “Having a presence in those spaces is so important,” said Vidette Forbes, south central regional VP of operations. “Our hospital culture is strengthened when we successfully bring in people of different backgrounds.”

Hiring diversity infuses a variety of talents, skills and experiences into the hospital culture. Forbes believes these are the building blocks of a positive work environment, which makes our valued employees want to stick around for the long haul.

Encompass Health’s annual Employee Engagement Survey showcases the Company’s strengths and opportunities from the viewpoint of our staff. In 2021, our inpatient rehabilitation hospital segment scored an 83% overall favorability rating on questions from our DEI index. The index questions cover topics related to respect, trust, culturally competent care and inclusion.

While there is still more work to be done, this number rose from 79% in 2020 and 77% in 2019. We are definitely trending in the right direction. With help from our hospital leadership teams, the Company is excelling in the continued expansion of hospital diversity committees, bi-annual delivery of relevant DEI training, and consistent companywide DEI communications.

- Tony Hernandez, Chief Human Resources Officer