Board Dossier
President and CEO, Encompass Health · FAH Treasurer
ModerateEncompass Health operates the largest network of inpatient rehabilitation hospitals in the United States.
| Metric | Value |
|---|---|
| IRF Hospitals | 165+ |
| Home Health/Hospice | 100+ agencies |
| States | 40+ |
| Revenue FY2023 | $4.80B |
| Medicare Revenue % | ~82–83% |
| FAH Role | Treasurer |
Encompass Health is the successor to HealthSouth Corporation, which was the subject of a $2.7 billion accounting fraud scandal in 2003 under founder Richard Scrushy.
| Year | Event |
|---|---|
| 1993 | Tarr joins HealthSouth |
| 2003 | HealthSouth $2.7B accounting fraud discovered. Richard Scrushy charged. 15 executives plead guilty. Tarr not implicated. |
| 2016 | Tarr becomes CEO during post-fraud restructuring era |
| 2018 | Company rebranded as Encompass Health |
| 2022 | Home health/hospice business spun off as Enhabit |
In June 2019, Encompass Health paid $48 million to resolve False Claims Act allegations that its facilities admitted patients who did not meet IRF criteria.
| Detail | Value |
|---|---|
| Case | Three consolidated qui tam lawsuits |
| Case Numbers | 8:12-cv-236, 8:14-cv-776, 8:14-cv-1216 (M.D. Fla.) |
| Amount | $48 million |
| Allegations | False information to Medicare to maintain IRF status; admitted ineligible patients |
| Note | Encompass denied wrongdoing |
Encompass Health derives 82% of its revenue from Medicare. A 7% site-neutral payment reduction would cost the company approximately $280 million annually.
| Year | Total Revenue | Medicare % |
|---|---|---|
| 2023 | $4.80B | ~83.8% |
| 2022 | $4.35B | ~82.0% |
| 2021 | $4.01B | ~81.0% |
| 2020 | $3.66B | ~80.0% |
| 2019 | $3.51B | ~82.0% |
Tarr serves as FAH Treasurer while his company derives 82% of revenue from the Medicare reimbursement rates FAH lobbies to protect. A 7% site-neutral reduction on $4B in Medicare revenue represents approximately $280M in annual exposure.
Tarr earned $9.3 million in 2023. The CEO-to-median worker ratio: 204 to 1.
| Year | Total Compensation | CEO-to-Median |
|---|---|---|
| 2023 | $9,301,929 | 204:1 |
| 2022 | $7,735,969 | — |
| 2021 | $8,252,128 | — |
In July 2025, KFF Health News and the New York Times documented grave errors and patient deaths at specific Encompass facilities, citing insufficient CMS oversight.
Approximately 90% of Encompass facilities maintain 4 or 5 CMS stars. July 2025 KFF/NYT investigation documented patient safety failures at Florida facilities that went unpenalized by CMS.
Source: KFF Health News, July 2025