September 6, 2018

LHC Group’s CMS Star ratings continue to stand out in latest report

Analysts expect increased quality and patient satisfaction performance to continue

LAFAYETTE, La. – LHC Group, Inc.’s (NASDAQ: LHCG) most recent star ratings continue to stand out among the industry’s best, significantly exceeding national averages for both quality and patient satisfaction – according to the latest Centers for Medicare and Medicaid Services (CMS) Five-Star Quality Rating System results released in July 2018.

Excluding the recent merger with Almost Family, as well as other 2017 acquisitions, LHC Group standalone providers produced a score of 4.70 in the quality category – an improvement over the 4.68 score in the April 2018 report. This compares favorably with a national average that has been within a range of 3.25 to 3.28 over the last five quarters. In the patient satisfaction category, LHC Group providers scored at 4.36, also a favorable comparison to a national industry average of 3.70.

With all LHC Group providers included (Almost Family legacy locations and recent acquisitions), the company achieved a quality score of 4.14 and an industry-leading patient satisfaction rating of 4.14 in the July report – compared to national averages of 3.28 (quality) and 3.70 (patient satisfaction), respectively.

In an independent analysis report released in August, Jefferies Group LLC – a New York-based global investment bank and institutional securities firm that provides financial advisory services – once again noted that LHC Group “significantly outperformed the industry in the percentage of their facilities rating four stars and above.”

In total, 98 percent of LHC Group standalone providers scored at four stars or greater in the quality category, while 92 percent scored four stars or better in the patient satisfaction category.

In analyzing the Q2 2018 ratings, Jefferies separated LHC Group’s results based on its previous standalone businesses from its pro forma star ratings based on the recently closed merger with Almost Family (AFAM).

The Jefferies report indicated:

  • “…LHCG (standalone) continues to lead the Stars performance on both quality and patient satisfaction categories nationally…”
  • “LHCG (including AFAM) leads its public peers in the patient satisfaction ratings…”

Jefferies analysts also stated that they expect LHC Group’s recent acquisitions to reach the company’s standalone business performance level, “Given LHCG’s success in improving their star ratings historically…”

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.”

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 approximately 30,000 employees deliver home health, hospice, home and community based services, and facility-based care from more than 780 locations in communities in 36 states. Through its healthcare innovations business, LHC Group drives increased utilization of home healthcare and enhances patient and caregiver engagement. LHC Group is the preferred in-home healthcare partner for 76 health systems, consisting of 337 leading hospitals around the country.