LHC Group and Capital Region Medical Center announce purchase and expansion of joint venture partnership
LAFAYETTE, La. and JEFFERSON CITY, Mo. (May 2, 2019) – Joint venture partners LHC Group, Inc. (NASDAQ: LHCG) and Capital Region Medical Center (CRMC) today announced an agreement to purchase from SSM Health the assets of one home health agency and one hospice agency in Mexico, Mo., and one home health agency in Jefferson City, Mo.
It is anticipated that the purchase agreement will be completed by June 1, subject to customary closing conditions, at which time the partnership will assume management responsibility. LHC Group expects annualized revenue from this joint venture of approximately $5 million and that it will not materially affect its 2019 diluted earnings per share.
The three providers will change names and operate as Central Missouri Home Health and Central Missouri Hospice, respectively.
This acquisition further supports LHC Group’s strategy to work with its current joint venture (JV) partners to expand their service capacity and capability in key markets. The partnership will also continue working closely with SSM Health providers in the region to provide enhanced services for patients.
Located in Jefferson City, CRMC works to improve the health and wellness of the people and communities it serves. Since 1997, CRMC has been affiliated with University of Missouri Health Care – combining the strengths of an academic medical center with the strengths of a community-based hospital.
SSM Health is a Catholic, not-for-profit health system serving the comprehensive health needs of communities across the Midwest through a robust and fully integrated healthcare delivery system.
“We strive to improve the health and wellness of central Missourians every day, inside hospital walls, in the community and in the home,” said Gaspare Calvaruso, CRMC president. “This opportunity enhances our local capabilities with the robust resources LHC Group provides to improve care transitions and better meet the needs of our patients. We are elated to advance this joint venture.”
“Our two organizations are excited by this new opportunity to expand our footprint and provide an enhanced level of in-home care to patients and families across the Central Missouri region,” said Keith Myers, LHC Group chairman and CEO. “Both LHC Group and Capital Region Medical Center are focused on growing our service capabilities at these locations, facilitating efficient coordination of care delivery, and seamlessly transitioning patients from the acute to the post-acute setting.”
Working together to provide quality in-home healthcare, Capital Region Medical Center and LHC Group help patients regain strength and independence, attain the quality of life they deserve, offer valuable guidance and support, and provide the educational tools and resources patients and families need to make an informed decision on care for themselves or a loved one.
Healthcare JV partnerships are a key component in helping patients manage their conditions and receive efficient and effective care. LHC Group and its partners deliver a level of in-home healthcare service that is recognized industry-wide for consistent quality.
LHC Group is a leading national provider of in-home healthcare services and the JV 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 Capital Region Medical Center
Capital Region is a 100-bed facility offering a continuum of care in-house from prenatal and maternity services to home health services. It also offers one of the few accredited rehabilitation centers in the state, and advanced cardiac and oncology services. In addition to being a full-service hospital, Capital Region Medical Center operates an extensive clinic system, from urgent care centers to specialty physician practices. Throughout the history of Capital Region Medical Center, the mission has stayed the same—to improve the health and promote the wellness of the communities we serve.
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.