LHC Group Inc. (Nasdaq: LHCG) and University of Maryland Medical System (UMMS) have teamed up — in a new joint venture agreement — to offer in-home health care services in parts of Maryland.
The aim of this strategic relationship is to increase access to home-based care, as the demand for these services continues to rise. The partnership leverages the resources and expertise of the two organizations, LHC Group Chairman and CEO Keith Myers said in a press statement.
“Joining forces in Maryland with such an accomplished and respected health institution like UMMS is a great opportunity,” Myers said. “Together, we will expand the availability of vital health care services in the place patients want it most – the comfort of their own home. With our combined experience and infrastructure, we will be able to offer more families and patients the high-quality, efficient and effective in-home health care they deserve.”
LHC Group delivers home health, hospice, and home- and community-based services, as well as facility-based care, across 37 states and the District of Columbia. It employs 29,000 individuals.
On its end, UMMS is a private, university-based regional health system that serves the state of Maryland.
“Our partnership with LHC Group is an important step forward in our journey to continue improving access to post-acute care for our patients, which is an increasingly essential element in the continuum of care that we provide at UMMS,” Dr. Mohan Suntha, UMMS’ president and CEO, said in a press statement.
Under the JV agreement, the combined companies will serve 20 Maryland counties, Baltimore and the greater metropolitan area.
The agreement is slated to be finalized in the fourth quarter of 2022. At that time, LHC Group will acquire the bulk of the ownership. The company will also be responsible for management.
As far as return, LHC Group expects that this JV will bring in $4.8 million in annual revenue.
Overall, LHC Group has JV partnerships with more than 400 hospitals across the U.S. Most recently, the company finalized a JV partnership for home-based care services with Archbold Medical Center. The JV includes two locations that will serve Thomas, Brooks, Grady, Colquitt, Mitchell, Decatur and Seminole counties in Georgia.
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