LHC Group today announced it has closed a previously disclosed deal to acquire two home health subsidiaries of BioScrip Inc. (Nasdaq:BIOS) for $59.5 million.
LHC, which provides home health, hospice and post-acute care services nationally, has purchased Deaconess HomeCare and Elk Valley services in a transaction that will add 32 agencies in four states to the company’s footprint. In total, LHC now operates 340 post-actue care agencies across 26 states. The company says it expects the acquisitions to be accretive to 2014 full year earnings by $0.05 to $0.10 per diluted share.
Deaconess HomeCare and Elk Valley Health Services together span counties across Mississippi, Tennessee, Kentucky and Illinois with annual revenues totaling roughly $72 million. Deaconess HomeCare is a charter member of the National Association of Homecare and Hospice.
“As consolidation continues to occur in our industry, we look forward to more opportunities like this to join forces with other high-quality providers who share our values and commitment to excellence,” said LHC Group Chairman and CEO Keith Myers. “We welcome the healthcare professionals at Deaconess HomeCare and Elk Valley Health Services to the LHC Group family and look forward to combining our strengths and partnering with local clinicians to deliver high-quality health care that allows patients to safely remain in the comfort of their homes.”
BioScrip said it will continue to focus its efforts on home infusion services following the completion of the deal and financial flexibility it achieves for the company.
“With the completion of the Home Health transaction, we now have additional financial flexibility to continue building on BioScrip’s solid foundation in home infusion services,” said Rick Smith, president and CEO of BioScrip. “We continue to position BioScrip as a leader in the home infusion industry. We look forward to optimizing the value of our assets while maintaining our reputation for clinical excellence.”
Written by Elizabeth Ecker