Activist investment firm Jana Partners is planning to push Encompass Health Corporation (NYSE:EHC) to re-engage with interested third parties on a merger for the company’s home health and hospice business before moving forward with a plan of separating it into an independent public company via a carve-out IPO, spin-off, or split-off.

Jana Partners, which is rumored to have teamed up with health care industry executive Edwin "Mac" Crawford in order to make the company implement this change, believes there is interest from private firms to combine with the home health and hospice business of the company and this is believed to help the company manage challenging conditions in the healthcare industry, including a shortage of nurses.

The company’s share price has declined around 20% since the start of the year.