LHC Group to Acquire Life Care Home Health
Expanding Geographical Footprint to 30 States
LAFAYETTE, La., July 15, 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 asset purchase agreement with Life Care Home Health, Inc. and its
operating subsidiaries, headquartered in Cleveland, Tennessee, to purchase 14
home health agencies across seven states for $10 million in cash. The
transaction will increase LHC Group's geographical footprint to 352 locations
across 30 states. The transaction, which is expected to close on September 1,
2014, subject to customary closing conditions, is anticipated to be accretive
to LHC Group's 2015 earnings, with a neutral impact expected for 2014.
The combined service area of Life Care Home Health, Inc., which began its home
health operations in 1996, includes 48 counties with an estimated 65 and older
population of 2 million in the states of Arizona, Colorado, Massachusetts,
Rhode Island, Tennessee, Utah and Washington. The states of Rhode Island,
Tennessee and Washington are Certificate of Need (CON) states. The home health
agencies to be purchased produced revenues of approximately $28.5 million for
each of the calendar year 2013 and the trailing twelve months ended in May
2014, with approximately 90% coming from Medicare.
Life Care Home Health, Inc. is a sister company of Life Care Centers of
America, Inc., which provides nursing home care and long-term health care
services for residents in a variety of settings, including skilled nursing
homes, assisted living facilities, retirement living communities and home
"Life Care Home Health and Life Care Centers of America are two highly
regarded healthcare companies who share a mission and culture similar to LHC
Group, which is helping patients maintain the highest quality of life while
contributing to the communities in which they serve," said Keith Myers, LHC
Group chairman and CEO. "We welcome the healthcare professionals at Life Care
Home Health to the LHC Group family and look forward to combining the best
practices of each company with the talents and experiences of the Life Care
Home Health clinicians to deliver high-quality care that allows patients to
safely remain in the comfort of their homes across the 48 counties in these
seven states we are honored to serve."
Forrest L. Preston, Chairman and CEO of Life Care Home Health, Inc. and Life
Care Centers of America, Inc., added, "We know and respect LHC Group as a
strong provider of high-quality healthcare services.As we pursue a primary
strategic focus on our core facilities-based operations, we are very pleased
to be selling these home health agencies to an organization that we are
confident will continue to provide our patients outstanding care and service,
while giving our agency employees a great place to continue their careers."
About LHC Group, Inc.
LHC Group, Inc. is a national provider of post-acute healthcare services,
providing quality, cost-effective healthcare 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 agencies in its home-based and hospice-based
divisions 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, 2013, 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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