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 care."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."