National home health and hospice provider LHC Group Inc. (NASDAQ: LHCG) has expanded its reach by acquiring a southern hospice care provider with four locations.
Lafayette, Louisiana-based LHC Group already has a strong position in the south and operates in 25 states. It acquired Heartlite Hospice, a subsidiary of Hospice of America Inc., which has two locations in Alabama and two located in Georgia.
The acquisition price was not disclosed.
“It is with great pleasure that I welcome the health care professionals from Heartlite Hospice into our growing LHC Group family,” Keith G. Meyers, LHC Group chairman and CEO, said in a statement. “We are proud to be part of these communities in Alabama and Georgia and look forward to collaborating with local physicians to provide caring and compassionate services to terminally ill patients and their families within the comfort and privacy of their home.”
The post-acute provider has been positioning itself as a joint venture partner with more than 60 hospitals and health systems over nearly two decades in addition to its core home health and community-based services.
Within Alabama, Heartlite’s licensed hospice serve area extends over eight counties. The locations in Georgia cover 29 counties, 19 of which LCH is already licensed for home health services. Combined, these locations cover an estimated licensed service area of 5.7 million people, with 652,000 who are older than 65, according to a press release.
LHC Group estimates the annualized revenue from the transaction is $6.8 million. LCH Group’s 2016 accretive earnings are anticipated to be approximately $0.01 per diluted share. The acquisition was announced the day prior to LHC Group’s scheduled 2015 fourth quarterly and end-of-year earnings conference call.
LHC Group did not respond to requests for comment from HHCN by press time.
Written by Amy Baxter
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