LHC Group to Acquire Deaconess Homecare
Joins Two of Nation's Largest Providers
LAFAYETTE, La., Feb. 3, 2014 (GLOBE NEWSWIRE) -- LHC Group Inc. (Nasdaq:LHCG),
a national provider of home health, hospice and comprehensive post-acute
healthcare services, announced today that it has signed a definitive stock
purchase agreement with BioScip®, Inc. (Nasdaq:BIOS) to purchase two of its
operating subsidiaries, doing business as Deaconess HomeCare and Elk Valley
Health Services, for $60 million. The transaction will add 33 locations in
five states, increasing LHC Group's geographical footprint to 342 locations
across 27 states. The transaction, which is expected to close by the end of
the first quarter of 2014, subject to customary closing conditions, is
anticipated to be accretive to LHC Group's 2014 earnings by between $0.05 and
$0.10 per diluted share.
The combined service area of Deaconess HomeCare and Elk Valley Health
Services, collectively one of the nation's largest home health providers,
includes 121 counties for home health, 30 counties for hospice and 95 counties
for community-based services in the states of Mississippi, Tennessee,
Kentucky, Illinois, and Nebraska. Annual revenues are approximately $72.6
Established in 1969, Deaconess HomeCare – a charter member of the National
Association of Homecare and Hospice and accredited by the Accreditation
Commission for Health Care (ACHC) – is a nationally recognized provider with a
long-standing reputation for providing quality care and exceptional service to
patients, families and communities they serve.
"When we founded LHC Group 20 years ago, Deaconess HomeCare already had a
strong reputation as one of the nation's premier providers," said Keith Myers,
LHC Group chairman and CEO. "Joining forces with a provider of this caliber
marks a great day for our company."
"As consolidation continues to occur in our industry, we look forward to more
opportunities like this to join forces with other high-quality providers who
share our values and commitment to excellence. We welcome the healthcare
professionals at Deaconess HomeCare and Elk Valley Health Services to the LHC
Group family and look forward to combining our strengths and partnering with
local clinicians to deliver high-quality health care that allows patients to
safely remain in the comfort of their homes."
"We feel the time is right to form this partnership for the benefit of our
patients and employees – and given our shared values and culture, it is clear
that LHC Group is the right partner," said Penny Lovitt, vice president of
operations at Deaconess HomeCare. "Over our 45 years of business, we have
learned that success comes through a constant focus on employee satisfaction
and making quality patient care the top priority. The professionals at LHC
Group share this view and are committed to supporting Deaconess HomeCare and
Hospice and Elk Valley Health Services so that we can continue to provide the
same high level of service."
About LHC Group Inc.
LHC Group Inc. (LHCGroup.com) is a national provider of post-acute care
services, providing quality, cost-effective health care to patients 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 and
community-based services locations in its home-based division and long-term
acute care hospitals in its facility-based division.
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 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, 2012, 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.
CONTACT: Eric Elliott
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