May 23, 2018

LHC Group’s first-quarter CMS star ratings continue to outperform national averages

Industry analysts note that company’s performance “continues to shine”

LAFAYETTE, La. – LHC Group, Inc.’s (NASDAQ: LHCG) quality and patient satisfaction ratings once again outperformed national averages and industry peers – according to the latest Centers for Medicare and Medicaid Services (CMS) Five-Star Quality Rating System results released in April 2018.

On a standalone basis (excluding recent transactions), LHC Group providers beat the national averages by a significant margin. LHC Group achieved a quality score of 4.68 in the April report – an improvement over its 4.55 score in the January report. This compares favorably with a national average that has been within a range of 3.25 to 3.28 for the last five quarters. LHC Group’s April patient satisfaction score was 4.32, compared to the industry average of 3.70.

LHC Group’s Q1 2018 ratings achievements include:

  • 192 of LHC Group’s 195 in-home healthcare providers – 98 percent – earned a four-star rating or better in at least one category.
  • 146 providers earned four stars or better in both categories
  • 112 providers earned a five-star rating – the highest possible score – in at least one category
  • 40 providers earned five stars in both categories
  • Excluding recent transactions, LHC Group’s 195 providers operate 310 in-home healthcare locations throughout the nation.

In an independent analysis report also released in April, Jefferies Group LLC remarked that LHC Group is one of a few companies that “continues to shine” and “to outperform in care quality and patient satisfaction.”

Jefferies, a New York-based global investment bank and institutional securities firm that provides financial advisory services, also noted that LHC Group “significantly outperformed the industry in the percentage of their facilities rating four stars and above.”

In analyzing the Q1 2018 ratings, Jefferies separated LHC Group’s results based on its previous standalone businesses from its pro forma star ratings based on the recently closed merger with Almost Family (AFAM).

LHC Group and Almost Family finalized their merger on April 1, 2018, with the new company now operating under one name – LHC Group.

The Jefferies report indicated:

  • “LHCG (standalone) continues to lead the stars performance on both quality and patient satisfaction categories nationally …”
  • “LHCG (both standalone & pro forma) … significantly outperformed the industry …”
  • “… The pro-forma business with AFAM still leads the patient satisfaction survey.”
  • Jefferies analysts stated: “Given LHCG’s success in improving their star ratings historically, we believe that the company will be able to improve … the newly acquired AFAM agencies to LHCG’s standalone business average over time.”

The CMS Five-Star Quality Rating System results are released quarterly and rank providers in two categories: “Quality of Patient Care” and “Patient Satisfaction.” The system was instituted by CMS as part of its Home Health Compare website to provide a “tool for consumers to use when choosing a home health care provider.”