LHC Group finalizes transactions expanding joint ventures in Texas, Arkansas, and Louisiana
LAFAYETTE, La., Jan. 06, 2020 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ: LHCG) announced today that it has finalized joint venture (JV) purchase and expansion agreements with partners in Texas, Arkansas, and Louisiana – all effective as of January 1, 2020. These transactions represent annualized revenue of approximately $23.8 million.
Texas
DFW Home Health – a separate legal entity jointly owned by partners LHC Group, Texas Health Resources, and North Texas Health Facilities Management, Inc., a subsidiary of Methodist Health System – has completed purchase of a home health provider serving patients and families in Arlington, Texas.
The partnership has been in operation since 2012. This acquisition expands the partnership’s footprint to four locations across the Dallas/Fort Worth Metroplex – joining sister locations in Dallas, Fort Worth, and Denton. LHC Group expects approximately $2.4 million in annualized revenue from this transaction. The agency name will change to DFW Home Health Arlington. It will continue to operate from its current location in Arlington.
Arkansas
LHC Group and JV partner LifePoint Health finalized a purchase agreement adding two additional locations – a home health provider and a hospice provider – in Bryant, Ark., that are associated with LifePoint’s Saline Memorial Hospital.
LHC Group expects approximately $5.4 million in annualized revenue from this transaction. The Bryant, Ark., home health and hospice providers will operate under the names Saline Memorial Home Health and Saline Memorial Hospice, respectively.
LHC Group and LifePoint Health formed their JV partnership in 2017 to share ownership and governance of LifePoint's home health agencies and hospices as well as select LHC Group agencies located near LifePoint facilities. Since it was established, the LHC Group-LifePoint partnership has grown to include 49 home health and hospice locations across 10 states.
Louisiana
LHC Group and Ochsner Health System have purchased five Egan Home Health and Hospice provider locations across South Louisiana as part of their existing JV partnership, operating as Southeast Louisiana HomeCare.
LHC Group expects approximately $16 million in annualized revenue from this transaction. LHC Group and Ochsner have been home health joint venture partners since 2009.
LHC Group and its JV partners will continue to work with current referral sources and patients to ensure there is no interruption in the continuity of care.
LHC Group helps its hospital partners provide patients with solutions for recovery in the comfort of home, helping prevent costly and avoidable hospital readmissions. Working together, they enhance home health services, facilitate better coordination of care delivery, and seamlessly transition patients from the hospital to the recovery setting.
Healthcare JV partnerships are a key component in helping patients manage their conditions and receive efficient and effective care. LHC Group and its partners deliver a level of in-home healthcare service that is recognized industry-wide for consistent quality.
LHC Group is a leading national provider of in-home healthcare services and the JV partner of choice for 350 hospitals across the United States.
About LHC Group, Inc.
LHC Group, Inc. is a national provider of in-home healthcare services and innovations, providing high-quality and affordable healthcare services to patients in the privacy and comfort of the 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. In 2019, the company was named to the inaugural Forbes list of “America’s Best-in-State Employers.”
Forward-looking Statements
Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, and all statements, other than statements of historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as “believe”, “hope”, “may”, “anticipate”, “should”, “intend”, “plan”, “will”, “expect”, “estimate”, “project”, “positioned”, “strategy” and similar expressions, and are based on assumptions and assessments made by LHC Group’s management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and LHC Group undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in LHC Group’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled “Risk Factors”, as well LHC Group’s current reports on Form 8-K, filed with the Securities and Exchange Commission.
Contacts:
LHCG Investor Relations
Eric Elliott
(337) 233-1307
LHCG Media Relations
Mark Willis
(337) 769-0673
