LAFAYETTE, La. (July 1, 2021) – LHC Group, Inc. (NASDAQ: LHCG) today announced agreements to purchase three home health, hospice, and palliative care providers across three states – as well as closure on previously announced purchases in four western states.
In Virginia, the company will purchase Cavalier Healthcare Services, a home health agency in Alexandria. The acquisition represents a new service area, allowing LHC Group to better leverage its operations with a broader service area in the Washington, D.C. and Maryland markets and provide continuity of care for patients across contiguous counties. The agency will continue operating under its existing name.
In Indiana, the company will expand its services in the Evansville market with the purchase of MSA Hospice. The provider will rebrand as OMNI Hospice in alignment with the company’s home health provider of the same name, supporting its co-location growth strategy to provide multiple in-home healthcare services in certain markets.
In Arkansas, LHC Group will purchase Ashley County Medical Center Home Health in Crossett, bolstering the company’s home health footprint in the state. The provider will continue operating under the ACMC name.
All three agreements are expected to close August 1, 2021, subject to customary closing conditions. LHC Group expects annualized revenue from these purchases of approximately $8 million and that it will not materially affect its 2021 diluted earnings per share.
LHC Group also finalized several purchases that were previously announced – involving locations in the states of Idaho, Oregon, Arizona, and Texas.
In Idaho and Oregon, the company finalized purchase of Heart ‘n Home Hospice, including three hospice providers with a total of six locations in southwestern Idaho and four locations in central and eastern Oregon. The agencies will continue to operate under the Heart ‘n Home Hospice and Treasure Valley Hospice names. LHC Group expects annualized revenue from this purchase of approximately $20 million.
In Arizona, LHC Group has finalized the purchase of Casa de la Luz, a hospice and palliative care provider in Tucson. The provider will continue operating as Casa de la Luz, and the company expects annualized revenue of $23 million from this purchase.
In Texas, the company finalized the purchase of Regent Home Health, expanding its joint venture (JV) footprint with hospital partners Texas Health Resources and Methodist Health System. The agency will rebrand to DFW Home Health, joining the partnership’s current network across the Dallas-Fort Worth Metroplex.
Also in Texas, LHC Group finalized the purchase of Community Care Health, a home and community based (HCBS) agency that will rebrand as DFW HomeCare.
About LHC Group, Inc.
LHC Group, Inc. is a national provider of in-home healthcare services and innovations for communities around the nation, offering quality, value-based healthcare to patients primarily within the comfort and privacy of their home or place of residence. The company’s 30,000 employees deliver home health, hospice, home and community based services, and facility-based care in 35 states and the District of Columbia – reaching 60 percent of the U.S. population aged 65 and older. Through Imperium Health, the company’s ACO management and enablement company, LHC Group helps partners improve both savings and patient outcomes with a value-based approach. As the preferred joint venture partner for almost 400 leading U.S. hospitals and health systems, LHC Group works in cooperation with providers to customize each partnership and reach more patients and families with an effective and efficient model of care.
Forward-looking Statements
Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, and all statements, other than statements of historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as “believe”, “hope”, “may”, “anticipate”, “should”, “intend”, “plan”, “will”, “expect”, “estimate”, “project”, “positioned”, “strategy” and similar expressions, and are based on assumptions and assessments made by LHC Group’s management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and LHC Group undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in LHC Group’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled “Risk Factors”, as well LHC Group’s current reports on Form 8-K, filed with the Securities and Exchange Commission.