The country’s largest home-health provider touted the company’s robust financial position during the company’s recent fourth-quarter earnings call.
LHC Group Co-founder, Chairman and CEO Keith Myers, along with President Joshua Proffitt and Chief Financial Officer Dale Mackel cited the following encouraging financial figures: fourth-quarter revenue of $532 million, an increase from same-quarter 2019 revenue; organic growth in home health admissions rising 2.2% for the quarter over the same period in 2019 and 1% over third-quarter 2020; and a 4.6% sequential increase in fourth–quarter Medicare revenue following a 10.7% sequential increase in the third quarter of 2020.
“LHC Group plays an increasingly critical role in the nation’s healthcare system, with the last 12 months clearly demonstrating the importance of home as the most patient-preferred and cost-effective setting for care,” Myers said.
LHC Group’s 2020 activity in the joint-venture arena also leaves it well-positioned for continued growth. Among the deals inked last year:
• Home health: On Oct. 1, 2020, LHC Group finalized a joint venture with University Health Care to enhance home health and hospice services in Georgia and South Carolina with 10 locations. LHC Group expects incremental annualized revenue from this joint venture of approximately $8.3 million. It also finalized a joint venture with Northeast Georgia Health System to share ownership of SunCrest Home Health in Gainesville, GA.
• Hospice: On Dec. 31, 2020, LHC Group finalized the purchase of Grace Hospice in Tulsa, OK, and Valley Hospice and East Valley Palliative Care in Mesa, AZ. The purchase of Grace Hospice is expected to produce approximately $12.1 million in annualized revenue while the purchase of East Valley Hospice and Palliative Care is expected to produce approximately $4.8 million in annualized revenue.
“Looking ahead to 2021 and beyond,” Myers said, “we believe LHC Group has an unprecedented opportunity to lead our industry’s transition to value-based care and address the growing needs of the population aged 65, which is expected to double by 2060.”