LHC Group completes two home health acquisitions in Kentucky
Signs definitive agreement to add hospice to hospital partnership in Missouri
LAFAYETTE, La. (December 3, 2015) – LHC Group, Inc. (NASDAQ: LHCG), a national provider of home health, hospice, community-based and comprehensive pre- and post-acute healthcare services, today announced the completion of two home health acquisitions in the Certificate of Need state of Kentucky and the addition of hospice to its joint venture with Missouri Delta Medical Center in Missouri.
LHC Group has completed the previously announced acquisition of substantially all of the assets of Nurses Registry and Home Health Corp. (“Nurses Registry”), which became effective on November 11, 2015. In addition, the Company also acquired substantially all of the assets of The Visiting Nurses Association of Greater Cincinnati and Northern Kentucky, Inc’s Kentucky home health operations, effective December 1, 2015. The combined licensed home health service area of these two home health acquisitions covers 19 counties in Kentucky with an estimated population of approximately 1.2 million and more than 150,000 people over 65 years of age. Estimated combined annualized revenue from these transactions is approximately $7.6 million and is anticipated to be dilutive to LHC Group’s fourth quarter 2015 earnings per diluted share by approximately $0.02 due to transaction and integration costs, but accretive to LHC Group’s 2016 earnings by approximately $0.02 to $0.03 per diluted share.
LHC Group also announced today that it and its hospital partner, Missouri Delta Medical Center, have signed a definitive agreement to acquire the assets of Four Oaks Hospice located in Dexter, Missouri, with trailing twelve month revenue of $1.1 million and is expected to close on January 1, 2016. The joint venture will now include all three service delivery options of LHC Group’s in-home tri-level of care delivery model consisting of home health, hospice and community-based services providing quality care to residents in Southeast Missouri.
Keith G. Myers, LHC Group chairman and CEO, said, “It is with great pleasure that I welcome the healthcare professionals from Nurses Registry and VNA of Northern Kentucky into our growing LHC Group family. We would also like to welcome the employees from Four Oaks Hospice into our partnership with Missouri Delta Medical Center. We are proud to be part of these communities and look forward to collaborating with local physicians and other members of the healthcare delivery community to deliver high-quality healthcare that allows patients to safely remain in the comfort of their homes.”
About LHC Group, Inc.
LHC Group, Inc. is a national provider of post-acute healthcare services, providing quality, cost-effective healthcare to patients primarily within the comfort and privacy of their home or place of residence. LHC Group provides a comprehensive array of healthcare services through home health, hospice, community‑based services agencies and long-term acute care hospitals.
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s future financial performance and the strength of the Company’s operations. Such forward-looking statements may be identified by words such as “continue,” “expect,” and similar expressions. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including risks related to the integration of the operations of Nurses Registry into LHC Group’s business as well as Nurses Registry’s future financial condition and operating results, changes in reimbursement, changes in government regulations, changes in LHC Group’s relationships with referral sources, increased competition for LHC Group’s services, increased competition for joint venture and acquisition candidates, changes in the interpretation of government regulations and other risks set forth in Item 1A. Risk Factors in LHC Group’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission. LHC Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.