Company Issues Preliminary Third Quarter Results and Adjusted Fiscal Year 2011 Guidance

LAFAYETTE, La., Oct. 26, 2011 — LHC Group, Inc. (Nasdaq:LHCG), a national provider of home health and hospice services, announced today details for the release of its results for the third quarter and nine months ended September 30, 2011, as well as preliminary third quarter results and adjusted fiscal year 2011 guidance.

Third Quarter Earnings Call

LHC Group plans to issue its earnings release for the third quarter ended September 30, 2011, after the market closes on Wednesday, November 2, 2011, and will host a conference call on Thursday, November 3, 2011, at 11:00 a.m. Eastern time. The toll-free number to call for this interactive teleconference is (866) 393-1608 (international callers should call 973-890-8327). A telephonic replay of the conference call will be available through midnight on Thursday, November 10, 2011, by dialing (800) 642-1687 (international callers should call 706-645-9291) and entering confirmation number 44151158.

A live broadcast of LHC Group’s conference call will be available under the Investor Relations section of the Company’s website, www.LHCGroup.com. A one-year online replay will be available approximately an hour following the conclusion of the live broadcast.

Preliminary Third Quarter Results and Adjusted 2011 Guidance

For the third quarter of 2011, the Company expects to report net service revenue in the range of $150 million to $155 million and fully diluted loss per share in the range of $2.10 to $2.25, subject to final tax treatment of the settlement. With respect to fiscal year 2011, the Company is adjusting its guidance for net service revenue to a range of $630 million to $640 million and fully diluted loss per share to a range of $0.75 to $0.85. This change in the fiscal year 2011 guidance is primarily the result of the following factors:

• The Company’s recently announced settlement with the government and the associated legal and other expense incurred in connection with reaching the settlement (the effect of the settlement, after tax, reduces 2011 fully diluted earnings per share by $2.50);
• An unexpected increase in self insured employee healthcare costs during the third quarter of $2.3 million or fully diluted earnings per share of $0.08;
• A lower than anticipated patient census in home health and LTACHs during the third quarter; and
• The positive impact of pay for performance payments in the third quarter, which increased net income by $674,000 or fully diluted earnings per share of $0.04, after tax.

The Company will give further detail regarding each of these factors during the third quarter earnings call. This guidance for fiscal year 2011 does not take into account the impact of any future acquisitions or share repurchases, if made, de novo locations, if opened, future legal or other expenses associated with the Company’s ongoing investigations or future reimbursement changes, if any. Specifically, this guidance does not take into account the proposed 2012 rule issued by the Centers for Medicare and Medicaid Services, which if adopted would apply to episodes for patients on service at December 31, 2011. The Company estimates the impact to the fourth quarter 2011 operating results from the proposed 2012 rule would be to decrease revenue approximately $1.2 million and impact fully diluted earnings per share by $0.04, after tax.

About LHC Group, Inc.

LHC Group, Inc. is a national provider of home health and hospice services, providing quality, cost-effective healthcare to patients within the comfort and privacy of their home or place of residence. LHC Group provides a comprehensive array of post-acute healthcare services through home health, hospice and private duty locations in its home-based division and long-term acute care hospitals in its facility-based division.

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s future financial performance and the strength of the Company’s operations. Such forward-looking statements may be identified by words such as “continue,” “expect,” and similar expressions. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including changes in reimbursement, changes in government regulations, changes in LHC Group’s relationships with referral sources, increased competition for LHC Group’s services, increased competition for joint venture and acquisition candidates, changes in the interpretation of government regulations, and other risks set forth in Item 1A. Risk Factors in LHC Group’s Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission. LHC Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Eric Elliott
Investor Relations
(337) 233-1307
eric.elliott@lhcgroup.com