LHC Group and University Health Care System announce joint venture agreement
LAFAYETTE, La. and AUGUSTA, Ga. (August 27, 2020) – LHC Group (NASDAQ: LHCG) and University Health Care System have announced signing a definitive agreement to form a new joint venture to enhance home health and hospice services across eight cities in Georgia and South Carolina.
The joint venture will include 10 total locations: three University Health home health providers, three University Health home health branches, two LHC Group home health providers, and two LHC Group hospice providers.
It is anticipated that the joint venture agreement will be finalized on October 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 $8.3 million and that it will not materially affect its 2020 diluted earnings per share.
“We are pleased to join our new partners at University Health in announcing plans to expand the availability of vital healthcare services in the states of Georgia and South Carolina,” said Keith G. Myers, LHC Group’s chairman and CEO. “With our combined experience and infrastructure, we will be able to offer more families and patients the high-quality, efficient, and effective in-home healthcare and hospice services they deserve.”
The joint venture with LHC Group helps fulfill the mission of University Health Care System by ensuring the long-term sustainability of high-quality home health and hospice services in the communities we serve, according to James R. Davis, University Health Care System president and CEO.
“This partnership combines the expertise and experience of two high-quality medical providers, creating new opportunities to further develop and expand our in-home healthcare services to include hospice, completing University’s continuum of care, Mr. Davis said. “The great success LHC Group has demonstrated with other partnerships has shown us that their focus on in-home medical services will move the safe, quality, and compassionate care University is known for to the next level.”
Throughout the COVID-19 pandemic and public health emergency, LHC Group has repeatedly proven to be essential in helping its hospital and health system joint venture partners deliver industry leading quality care in the most cost-effective setting. More than ever before, hospitals and health systems are fully leveraging LHC Group’s infrastructure and capabilities as an integral part of their healthcare delivery model – including communicating on capacity planning, following COVID-19 protocols, and accepting patients at the top of the home health acuity capability.
Hospital and home health joint venture 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.
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.
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 University Health Care System
University Health Care System is anchored by University Hospital, an 812-bed nonprofit, acute care hospital serving Augusta-Richmond County, Ga., and the surrounding region. Founded in 1818 as City Hospital, University has moved through four facilities to its present location on Walton Way and includes its Summerville Campus on Wrightsboro Road. Together they specialize in heart, vascular, orthopaedic, spine, neurosurgery, medicine and women’s services. Over the years, University has expanded its main campus and established medical centers in South Richmond County, Grovetown, Aiken, North Augusta and Columbia County to include physician practices, Prompt Care facilities, Home Health and three skilled nursing centers. In addition to being the longest serving health system in the region, University has the largest and most experienced medical staff and leads the region in quality and safety.
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.