Partnership to include home health and home and community based services in four Florida cities
LAFAYETTE, La. (June 24, 2020) – LHC Group (NASDAQ: LHCG) and Orlando Health have announced signing a definitive agreement to form a new joint venture to enhance home health and home and community based services (HCBS) in the state of Florida. The joint venture will include six total locations – three current Orlando Health providers and three current LHC Group providers in Orlando, Clermont, Kissimmee, and Altamonte Springs.
It is anticipated that the joint venture agreement will be finalized on August 1, subject to customary closing conditions, at which time LHC Group will purchase majority ownership and assume management responsibility. LHC Group expects incremental annualized revenue from this joint venture of approximately $3.5 million and that it will not materially affect its 2020 diluted earnings per share.
“We look forward to expanding the availability of in-home healthcare services in the state of Florida, particularly in cooperation with an outstanding partner like Orlando Health,” said Keith G. Myers, LHC Group’s chairman and CEO. “Throughout the state, Orlando Health has earned a reputation for quality through hard work, dedication to patients, and a commitment to the health of the communities they serve. Working together, we will bring that same level of service to even more people.”
“We are pleased that Orlando Health will partner with LHC Group, a leader in providing home health and home and community based services,” said Greg Ohe, SVP ambulatory services, Orlando Health. “LHC Group has been recognized for more than 20 years for its commitment to delivering person-centered care. This agreement will create for the community the most convenient, responsive, high-quality, and full continuum of care currently available.”
Orlando Health is a not-for-profit healthcare network based in Orlando. The system spans nine Florida counties with nearly 450 locations that include 13 wholly-owned or affiliated hospitals and emergency departments; rehabilitation services, cancer centers, heart institutes, imaging and laboratory services, wound care centers, more than 300 physician offices for adults and pediatrics, and 11 urgent care centers in partnership with CareSpot Urgent Care.
LHC Group is a leading national provider of in-home healthcare services and the joint venture partner of choice for 350 hospitals across the United States.
Hospital and home health partnerships focus on delivering patient-centered care in the comfort of the patient’s home or place of residence. They are an increasingly key component in helping patients manage their conditions, avoid unnecessary hospital readmissions, and achieve the best possible health outcomes in the most cost-efficient manner.
About LHC Group, Inc.
LHC Group, Inc. is a national provider of in-home healthcare services and innovations, providing quality, value-based healthcare to patients primarily within the comfort and privacy of their home or place of residence. LHC Group’s services cover a wide range of healthcare needs for patients and families dealing with illness, injury, or chronic conditions. The company’s 32,000 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. LHC Group is the preferred in-home healthcare partner for 350 leading hospitals around the country.
About Orlando Health
Orlando Health is a not-for-profit healthcare organization with $5.6 billion of assets under management. The system spans nine Florida counties with nearly 450 locations that include 13 wholly-owned or affiliated hospitals and emergency departments; rehabilitation services, cancer centers, heart institutes, imaging and laboratory services, wound care centers, more than 300 physician offices for adults and pediatrics, and 11 urgent care centers in partnership with CareSpot Urgent Care. In FY18, Orlando Health served approximately 167,000 inpatients, more than 2.7 million outpatients, and more than 20,000 international patients. The organization is home to the area’s only Level One Trauma Centers for adults and pediatrics, and is a statutory teaching hospital system that offers both specialty and community hospitals. Nearly 3,600 physicians have privileges across the system, which is also one of the area’s largest employers with nearly 20,500 employees. Additionally, Orlando Health provides more than $620 million in total value to the community in the form of charity care, community benefit programs and services, community building activities and more. Additional information can be found at www.orlandohealth.com.
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.