Encompass Health plans to spin off its home health and hospice business into a separate public company called Enhabit Home Health and Hospice, the company announced Wednesday.

Birmingham, Alabama-based Encompass Health expects to complete the spin-off in the first half of 2022 and will begin rebranding its home health and hospice units in April, the company said. Press release.

Encompass Health’s board said separating inpatient rehabilitation from its home health and hospice businesses would make both more flexible, focused and be more responsive to the market.

Encompass Health first announces plans to separate home health and hospice divisions through IPO, spin-off or merger December 2020.

The company operates 145 hospitals, 251 home health centers and 96 hospice facilities in the United States and Puerto Rico.