#United States #Melbourne #Encompass Health #Melbourne, Florida #Sea Pines

Encompass Health Announces Indefinite Closure of Sea Pines Rehabilitation Hospital

On November 1 and 2, 2026, Melbourne, Florida faced an unexpected catastrophe as torrential rains caused significant flooding in the area, severely affecting the local healthcare system. The Sea Pines Rehabilitation Hospital, a 90-bed facility operated by Encompass Health and Holmes Regional Medical Center, has announced its indefinite closure following substantial damage incurred during this natural disaster.

Sea Pines Rehabilitation Hospital has a long history of serving the Melbourne community for over 40 years. Thankfully, all patients were safely evacuated during the flooding crisis. Those affected were either transferred to nearby medical facilities or discharged home, ensuring their health and safety throughout the ordeal. Furthermore, all employees of Sea Pines have been accounted for, underscoring the effective emergency protocols in place during such critical situations.

Pat Tuer, Encompass Health’s Executive Vice President and COO, expressed gratitude to the staff and first responders who played a pivotal role in safeguarding patients during this challenging episode. “We are enormously grateful for their heroic efforts in ensuring the safety of our patients during this catastrophic weather event,” Tuer stated. “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.”

In light of the damages, the hospital remains shut indefinitely as a thorough assessment and remediation process commences. The joint venture between Encompass Health and Holmes Regional Medical Center is currently evaluating alternatives, which may include refurbishing or even replacing the facility to meet the community’s ongoing rehabilitation needs.

The closure comes with associated expenses due to remediation and ongoing operational costs. Encompass Health has announced that they will exclude these temporary losses and any forthcoming insurance proceeds from their reported financial measures to maintain a clear picture of ongoing operational performance. They remain poised to uphold their financial guidance, reaffirming their commitment to stakeholders even in the wake of this substantial setback.

For the first nine months of 2026, Sea Pines reported an impressive net operating revenue of approximately $44 million and contributed about $14 million to adjusted EBITDA, demonstrating the facility's strong operational capacity prior to the flooding.

Looking Ahead

Despite the devastation caused by the flood, Encompass Health underscores the importance of Sea Pines Rehabilitation Hospital and its role in the local healthcare landscape. The company is working diligently on plans to reopen the facility, with discussions currently taking place to determine the best path forward in terms of refurbishment or rebuilding.

This crisis shines a light on the critical relationship between community health services and environmental factors—a reminder that swift actions and preparedness can save lives in unforeseen circumstances. As the Melbourne community navigates this challenging time, the resilience and dedication of healthcare providers like Encompass Health will undoubtedly play a significant role in recovery efforts.

For further updates on the reopening of Sea Pines Rehabilitation Hospital and other services offered by Encompass Health, residents are encouraged to stay connected through the company’s official channels.

About Encompass Health

Encompass Health is recognized as the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a network comprising 179 hospitals across 39 states and Puerto Rico, the organization focuses on delivering high-quality rehabilitative care to patients recovering from significant injuries and illnesses. Utilizing advanced technologies and innovative treatment methods, Encompass Health aims to maximize patient recovery.

The company is not only acknowledged as America’s Most Awarded Leader in Inpatient Rehabilitation, but it also ranks among Fortune’s World’s Most Admired Companies and is featured in Forbes' list of America's Best Companies.

For more information, please visit encompasshealth.com or follow them on social media platforms.