LHC Group continues home health ex­pan­sion

Modern Healthcare - - REGIONAL NEWS - —Bob Her­man

LHC Group, Lafayette, La., has agreed to buy the as­sets of 14 home health agencies as the post-acute-care provider continues an ag­gres­sive ac­qui­si­tion strat­egy.

The pub­licly traded com­pany forged an agree­ment with Life Care Home Health, the home health di­vi­sion of Life Care Cen­ters of Amer­ica, based in Cleve­land, Tenn. For $10 mil­lion in cash, LHC will take con­trol of Life Care’s home health agencies, which are scat­tered across seven states.

LHC—and other large home health providers—has turned to con­sol­i­da­tion to help off­set de­clin­ing Medi­care pay­ments. The CMS ex­pects to cut home health pay­ments by $22 bil­lion through fis­cal 2017.

LHC re­cently com­pleted a $60 mil­lion deal to ac­quire Dea­coness Home­Care, adding 32 post-acute fa­cil­i­ties to its ranks. Adding in other smaller deals, and the Life Care trans­ac­tion, LHC will op­er­ate 352 lo­ca­tions in 30 states.

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