LHC Group, Inc. (NASDAQ: LHCG), one of the largest providers of home health services in the United States, announced today that it has expanded its footprint in the Certificate of Need (CON) states of Washington and Alabama. Neither transaction is expected to add materially to LHC Group’s earnings in 2009.

The Company has entered into a home health business relationship with Northeast Washington Health Programs Association to provide home health services in Chewelah, Washington, and the surrounding area. The service area, which covers four counties in the CON state of Washington, has an estimated population of approximately 506,000, with almost 13 percent over the age of 65. Net revenue for the Chewelah, Washington agency during the most recent 12 months was approximately $2.5 million.

Northeast Washington Health Programs Association (NEWHP) is a private non-profit healthcare organization providing medical, dental, home health, hospice and assisted living services. NEWHP offers primary and preventive healthcare through professional teams, which include physicians, physician assistants, nurse practitioners and registered nurses. Services are provided in five life cycle groups: prenatal care, pediatric, adolescent, adult and geriatric. NEWHP serves the Tri-County area of Northeast Washington and specializes in providing access to high quality, affordable healthcare in the rural areas of Northeast Washington.

NEWHP is a Federally Qualified Health Center (FQHC) and is LHC Group’s first business relationship with this type of organization. A FQHC is a reimbursement designation in the United States, referring to several health programs funded under the Health Center Consolidation Act (Section 330 of the Public Health Service Act). FQHCs are community-based organizations that provide comprehensive primary care and preventive care, including health, oral and mental health/substance abuse services to persons of all ages, regardless of their ability to pay. FQHCs operate under a consumer Board of Directors governance structure and function under the supervision of the Health Resources and Services Administration, which is part of the United States Department of Health and Human Services. FQHCs were originally meant to provide comprehensive health services to the medically underserved to reduce the patient load on hospital emergency rooms.

“LHC Group has significant experience in providing home health services,” said Tom Hochwalt, Executive Director of Northeast Washington Health Programs Association.