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LHC Group and Methodist Hospital Announce Home Health Joint Venture
Tuesday, May 05, 2009 7:17 AM


Company Also Acquires Central Basin Home Health and Hospice

LHC Group, Inc. (NASDAQ: LHCG), one of the largest providers of home nursing services in the United States, announced today that it has entered into a definitive agreement to enter into a home health joint venture with Methodist Hospital to provide home nursing services in Henderson, Kentucky.

The primary service area of this joint venture spans three counties in Kentucky, a Certificate of Need (CON) state. The estimated population of the service area is 150,000, with almost 14 percent over the age of 65. Net revenue for the Henderson, Kentucky, agency during the most recent 12 months was approximately $3.0 million. This joint venture, which is expected to close on June 1st, is not expected to add materially to LHC Group’s earnings in 2009.

Methodist Hospital is a 205-bed regional healthcare facility located on the banks of the Ohio River in Henderson, Kentucky. Methodist Hospital provides general medical and surgical care for inpatient, outpatient and emergency room patients and also operates a critical access hospital located in Morganfield, Kentucky. Methodist Hospital employs over 875 professionals who provide the nurturing care to those needing hospital services.

"We are excited about this new partnership with LHC Group,” said Bruce Begley, Chief Executive Officer of Methodist Hospital. “LHC is an acknowledged leader in home care services, and our patients will benefit from the expertise they bring to our daily operations. There will be no interruption in service to patients served by our agency. This will be a seamless transition for our patients, but one that results in improved focus and expertise for our home care services.”

Keith G. Myers, Chief Executive Officer of LHC Group, added, “We are proud to be partnering with an organization with such an outstanding reputation and tradition of excellence as Methodist Hospital. We enter this new relationship knowing we have a strong partner who shares our commitment to quality care and efficiency. Together, our organizations will provide the residents of Henderson and the surrounding area with the highest quality of home care services. We are also extremely excited about this transaction since it is our first hospital joint venture in Kentucky, which has been a strong state for LHC Group.



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