June 11, 2019

LHC Group is top performer in latest CMS Star quality and patient satisfaction scores

LAFAYETTE, La. – LHC Group, Inc.’s (NASDAQ: LHCG) most recent Centers for Medicare and Medicaid Services (CMS) Five-Star Quality Rating System results showed an increase in both quality and patient satisfaction ratings – according to the latest CMS figures released in April 2019.

LHC Group maintained its position as the top-ranked home health company in both categories, and continues to significantly outperform national industry averages.

The CMS Five-Star Quality Rating System results are released quarterly and rank providers in two categories: “Quality of Patient Care” and “Patient Satisfaction.” The system was instituted by CMS as part of its Home Health Compare website to provide a tool for consumers to use when choosing a home healthcare provider.

In evaluating the April 2019 scores, Jefferies Group LLC – a New York-based global investment bank and institutional securities firm that provides financial advisory services – stated: “Our view is that as hospitals and physicians increase focus on performance-based reimbursements, referral flows will continue to shift toward higher quality players.”

Given this trend, the analysts said they expect high-performing providers like LHC Group “to continue delivering healthy, above-peers’ organic growth rates going forward.”

Jefferies analysts once again separated LHC Group’s results based on its previous standalone businesses from its pro forma star ratings based on the April 2018 acquisition of Almost Family (AFAM).

The Jefferies report pointed out the following:

  • “LHCG (standalone & including AFAM) leads its public peers in the patient satisfaction ratings…”
  • “…LHCG (standalone) continues to lead the Stars performance on both quality and patient satisfaction categories nationally. We note that LHCG (including AFAM) had the largest Q/Q increase in average quality star rating (implying the AFAM facilities had the largest Q/Q increase).”

“Improvements in LHCG’s home health star ratings has translated to higher same-store revenue growth rates; we believe legacy AFAM star ratings could reach LHCG’s average within 18 months,” the report further stated.

CMS rates providers on a scale of 1 to 5 stars for both categories – with 5 being the highest rating.

LHC Group, excluding Almost Family and other recently acquired providers, once again led the industry with an average score of 4.64 in the quality category. With Almost Family and recent acquisitions included, LHC Group’s combined quality score was 4.29. The national industry average was 3.27.

In the patient satisfaction category, LHC Group same-store providers, excluding Almost Family and recently acquired providers, achieved an average score of 4.50 – also the top mark among home health providers and a favorable comparison to a national average of 3.87. With Almost Family and recent acquisitions included, LHC Group’s combined patient satisfaction score was 4.29.

LHC Group’s latest CMS Star Ratings achievements for standalone locations also include:

  • 94 percent of LHC Group locations have a quality rating of four stars or better.
  • 96 percent of LHC Group same-store locations have a patient satisfaction rating of four stars or better.
  • 187 LHC Group providers achieved a five-star rating in at least one of the two categories.
  • 80 LHC Group providers achieved a five-star rating in both the quality and patient satisfaction categories – more than twice as many as the previous quarter.

“Thanks to a company-wide commitment to quality and service, our local teams around the nation continue to both set the standard and raise the bar for our industry’s most coveted performance measures,” said Keith Myers, LHC Group chairman and CEO. “These results validate the hard work and commitment to excellence exemplified by our providers across the nation. We are honored to earn independent outside recognition as the industry leader in providing consistent quality care that meets and exceeds the needs and expectations of the patients and families we are privileged to serve.”

To access more detailed information on the latest scores, visit Data.Medicare.gov.

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.