Opportunity binge

LHC Group’s acquisition of Brookdale home health agencies builds on growth strategy:

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LHC Group’s disclosure Wednesday to broaden its national footprint and buy Brookdale Health Care Services agencies is consistent with its expansion plans, a consultant said. The company is building on its approach of gaining size, depth and breadth with each acquisition, he noted.  

“LHC has done a really good job of executing against their strategy of being a partner with top-notch strategic partners, whether it’s health systems or senior housing type assets,” Rich Tinsley, president and CEO of healthcare advisory firm Stoneridge Partners, told McKnight’s Home Care Daily. “I think this goes a long way to show that Brookdale Health Services will be a good partner with them.”

The deal includes 23 home health locations, 11 hospice and 13 therapy agencies across 22 states. It also gives LHC Group access to two new markets: Minnesota and New Mexico. The agencies will continue operating under their existing brands. 

“In short, this agreement creates an abundance of opportunity for LHC Group to positively impact more lives through the delivery of quality healthcare in cooperation with our new colleagues from Brookdale Health Care Services,” Keith Myers, LHC Group chairman and CEO, said in a statement. “As such, we will be able to serve more people in the comfort of their home or place of residence. LHC Group also looks forward to working with Brookdale Senior Living’s 226 senior living communities in these territories.”

HCA Healthcare purchased a majority stake in Brookdale Health Care Services in July to expand services to its clients. Brookdale first disclosed last February that it was selling its majority stake in home health, hospice and therapy to HCA Healthcare.  

LHC Group is acquiring agencies that are outside of HCA’s service area.

“We believe the sale to LHC Group of these sites of care, which were part of that transaction and are not in communities we currently serve, positions them for continued success,” Sam Hazen, CEO of HCA Healthcare, said.

Lafayette, LA-based LHC Group has been on a buying binge this year, acquiring home health and hospice businesses in Virginia, Indiana, Arkansas, Louisiana, Texas, Arizona, Idaho and Oregon. The company has also partnered with an acute-care provider and two hospital systems, and invested $20 million in the University of Louisiana at Lafayette’s College of Nursing to recruit and train staff.

LHC Group said the deal will not materially affect its 2021 diluted earnings per share and should close towards the end of the year.

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