LHC Group to acquire home health, hospice and therapy assets in 22 states from HCA Healthcare and Brookdale Health Care Services Venture
LAFAYETTE, La., Sept. 8, 2021 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) today announced significant expansions of its nationwide footprint, resources, and service capabilities. The company has entered into an agreement to purchase Brookdale Health Care Services agencies from the recently formed home health, hospice and outpatient therapy venture between HCA Healthcare and Brookdale Senior Living Inc. The agencies, which are not in areas served by HCA Healthcare, include 23 home health locations, 11 hospice, and 13 therapy agencies across 22 states. The agencies will continue to operate under their existing brands and locations.
LHC Group expects annualized revenue from this purchase of approximately $146 million and, due to the expected timing of the closing, that it will not materially affect its 2021 diluted earnings per share. It is anticipated that the purchase will be finalized in the fourth quarter of 2021, subject to customary closing conditions.
"In short, this agreement creates an abundance of opportunity for LHC Group to positively impact more lives through the delivery of quality healthcare in cooperation with our new colleagues from Brookdale Health Care Services," said Keith Myers, LHC Group Chairman and Chief Executive Officer. "As such, we will be able to serve more people in the comfort of their home or place of residence. LHC Group also looks forward to working with Brookdale Senior Living's 226 senior living communities in these territories."
"In July, HCA Healthcare purchased a majority stake in Brookdale Health Care Services to expand access to healthcare services for our patients," said Sam Hazen, Chief Executive Officer of HCA Healthcare. "We believe the sale to LHC Group of these sites of care, which were part of that transaction and are not in communities we currently serve, positions them for continued success."
Lucinda "Cindy" Baier, Brookdale Senior Living's President and Chief Executive Officer, said, "We are looking forward to working with LHC Group, another national provider of healthcare services. This transaction will further strengthen our liquidity, maintain our 20% interest in the venture with HCA Healthcare, and ensure that high-quality home health and hospice services continue to be available to our residents at communities in these markets. I'm pleased that Brookdale's residents will benefit from a seamless offering of services across our broad care continuum."
On Aug. 4, 2021, LHC Group's guidance for acquired annual revenue for 2021 was increased from $350 million to $500 million, compared with $150 million to $200 million previously. With this latest agreement, the company has now acquired or announced $308 million in M&A activity year-to-date.
This acquisition marks LHC Group's initial entry into two new states – Minnesota and New Mexico -- and expands its service areas in states where the company already operates. The agencies and locations include the following:
- Nurse On Call, Oneonta, AL
- Nurse On Call, Phoenix, AZ
- Brookdale Home Health, Sonoma, CA
- Brookdale Home Health Hartford, Rocky Hill, CT
- Brookdale Home Health, Naperville, IL
- Nurse On Call, Indianapolis, IN
- Nurse On Call, Shrewsbury, MA
- Brookdale Home Health Detroit, Farmington Hills, MI
- Brookdale Home Health Minnesota, Edina, MN
- Brookdale Home Health St. Louis, Creve Coeur, MO
- Brookdale Home Health Charlotte, Charlotte, NC
- Brookdale Home Health Raleigh, Durham, NC
- Brookdale Home Health Winston, Greensboro, NC
- Brookdale Home Health Albuquerque, Albuquerque, NM
- Brookdale Home Health Cleveland, Brooklyn Heights, OH
- Brookdale Home Health Columbus, Dublin, OH
- Brookdale Home Health Dayton, Moraine, OH
- Brookdale Home Health Tulsa, Broken Arrow, OK
- Brookdale Home Health OKC, Oklahoma City, OK
- Brookdale Home Health Portland, Wilsonville, OR
- Brookdale Home Health Philadelphia, Wayne, PA
- Nurse on Call, Lincoln, RI
- Brookdale Home Health, Lynwood, WA
- Brookdale Hospice, Phoenix, AZ
- Brookdale Hospice, Sacramento, CA
- Brookdale Hospice, Rolling Meadows, IL
- Brookdale Hospice, Indianapolis, IN
- Brookdale Hospice, Farmington Hills, MI
- Brookdale Hospice, Bloomington, MN
- Brookdale Hospice Columbus, Columbus, OH
- Brookdale Hospice, Moraine, OH
- Brookdale Hospice Cleveland, Richfield, OH
- Brookdale Hospice, Wilsonville, OR
- Brookdale Hospice, Wayne, PA
- Brookdale Therapy Roswell, Roswell, GA
- Brookdale Therapy Lake View, Chicago, IL
- Brookdale Therapy Oak Park, Oak Park, IL
- Brookdale Therapy, Farmington Hills, MI
- Brookdale Therapy Carriage Club, Charlotte, NC
- Brookdale Therapy Heritage Hills, Hendersonville, NC
- Brookdale Therapy North Raleigh, Raleigh, NC
- Brookdale Therapy Monroe, Monroe Township, NJ
- Brookdale Therapy Westlake Village, Westlake, OH
- Brookdale Therapy, Tiverton, RI
- Brookdale Therapy Anderson, Anderson, SC
- Brookdale Therapy Maryville, Maryville, TN
- Brookdale Therapy Bristol, Bristol, VA
SVB Leerink is serving as financial advisor and Alston & Bird LLP is serving as legal counsel to LHC Group.
About LHC Group, Inc.
LHC Group, Inc. is a national provider of in-home healthcare services and innovations for communities around the nation, offering quality, value-based healthcare to patients primarily within the comfort and privacy of their home or place of residence. The company's 30,000 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. Through Imperium Health, the company's ACO management and enablement company, LHC Group helps partners improve both savings and patient outcomes with a value-based approach. As the preferred joint venture partner for more than 400 leading U.S. hospitals and health systems, LHC Group works in cooperation with providers to customize each partnership and reach more patients and families with an effective and efficient model of care.
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.
SOURCE LHC Group, Inc.
Released September 8, 2021