Mark Tarr

The Medicare Treasurer

President and Chief Executive Officer, Encompass Health (NYSE: EHC)

Treasurer, 2027Inpatient rehabilitation, 179 hospitals

Last verified November 6, 2026

82%

Revenue from Medicare and Medicare Advantage, 2025

$10.3M

Tarr pay, 2025

203:1

CEO-to-median-worker pay ratio, 2025

$48M

False Claims Act settlement, 2019

Overview

Mark Tarr joined HealthSouth in 1993, ten years before the company's accounting fraud came to light. He has run its successor, Encompass Health, since December 2016. Encompass operates 179 inpatient rehabilitation hospitals and gets 82% of its revenue from Medicare and Medicare Advantage. That makes site-neutral payment reform, which FAH opposes, a direct threat to its model. Tarr was paid $10.3 million in 2025, 203 times the median employee. He is FAH treasurer for a second year.

Since April 2026

What has changed

April 7, 20262026 proxy: Tarr's 2025 pay $10.3 million; ratio 203:1. source
April 30, 2026Q1 2026 call: nurse turnover at its lowest since at least 2012; premium labor spend down 9.4%. source
June 9, 2026Loganville, Georgia hospital opens. source
August 7, 2026Dividend raised to $0.21; $1 billion buyback authorization. source
October 14, 2026FAH re-elects Tarr as Treasurer for 2027. source
October 28, 2026Q3 2026: revenue up 8.9%, guidance raised, 179 hospitals. source

The company

Encompass Health

•2025 net operating revenues $5.94 billion, up 10.5%. Net income $566 million. 173 hospitals in 39 states and Puerto Rico at year end (10-K, 2025).
•Payer mix 2025: Medicare 65.4%, Medicare Advantage 16.4%, together roughly 82% of revenue (10-K, 2025).
•Q3 2026: revenue $1.61 billion, up 8.9%. Net income $150 million. 179 hospitals. 2026 revenue guidance raised to $6.45 billion to $6.5 billion.
•Long-term debt $2.55 billion at September 30, 2026. Quarterly dividend raised to $0.21; buyback authorization raised to $1 billion.
•The 10-K cites a MedPAC estimate that a unified post-acute payment system would cut rehabilitation hospital reimbursement by roughly 15%. The company says it cannot verify the methodology.
•Tarr: President and CEO since December 29, 2016; joined HealthSouth in 1993; COO from February 2011 (2026 proxy).
•HealthSouth's accounting fraud: the SEC charged the company and CEO Richard Scrushy on March 19, 2003 with overstating earnings by at least $1.4 billion. Later tallies put it near $2.7 billion. The company became Encompass Health in January 2018.

Ownership and control

•Widely held public company. No controlling holder, private equity sponsor, sovereign stake or REIT master lease.
•66 of 174 hospitals were joint ventures as of March 31, 2026, mostly with nonprofit health systems (Q2 2026 slides).

Settlements, investigations and lawsuits

•June 28, 2019: $48 million to resolve False Claims Act allegations. Some rehabilitation facilities gave Medicare inaccurate information to keep their status and admitted ineligible patients. Three whistleblowers shared $12.4 million.
•No new DOJ, False Claims Act, state enforcement, data breach or major lawsuit against Encompass Health was found for January 2025 through November 6, 2026.

Compensation

Year	Total compensation	CEO-to-worker pay ratio
2025	$10,297,258	203:1
2024	$9,301,929	204:1

Deals since 2025

•November 25, 2025: 40-bed joint venture rehabilitation hospital with Vanderbilt Health announced for Lebanon, Tennessee, opening 2028.
•June 9, 2026: opened a 40-bed hospital in Loganville, Georgia, the eighth joint venture with Piedmont. Pipeline of 13 hospitals and 606 beds beyond 2026.
•Through Q3 2026: four hospitals opened with 189 beds, plus 85 beds added to existing hospitals.
•No acquisitions, divestitures or sale-leasebacks were found for 2025 or 2026.

Political giving

•February 18, 2025: $3,000 to Friends of John Thune and $3,000 to Thune Victory Committee (FEC).
•January 6, 2026: $2,500 to Federation of American Hospitals PAC (FEC).

Red flags

Conflicts and concerns

Eighty-two percent of revenue comes from Medicare, so every dollar of site-neutral reform FAH blocks is a dollar kept by the FAH treasurer's company.

The 2019 settlement involved telling Medicare inaccurate information to keep facilities qualified for rehabilitation rates.

Tarr spent his career inside HealthSouth, whose earnings were overstated by at least $1.4 billion while he ran its inpatient division.

Physician-owned hospitals

Encompass does not compete with physician-owned hospitals on inpatient surgery. Its stake in FAH's agenda is site-neutral payment: MedPAC's unified post-acute system would cut its rates by roughly 15%. As treasurer, Tarr signs off on the budget FAH spends to stop that reform. Physicians who do rehabilitation in office or ASC settings are paid the lower rate today.

Sources