LHC Group acquisition of Brookdale home health agencies backed by growth strategy: expert – Home Care Daily News

LHC Group’s disclosure Wednesday of expanding its national footprint and buying branches from Brookdale Health Care Services is in line with its expansion plans, a consultant said. The company is building on its approach of gaining size, depth and scale with each acquisition, he noted.

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

The agreement includes 23 home health centers, 11 hospices and 13 therapy agencies in 22 states. It also allows the LHC Group to access two new markets: Minnesota and New Mexico. The agencies will continue to operate under their existing brands.

“In short, this agreement creates an abundance of opportunity for the LHC Group to positively impact more lives through the delivery of quality healthcare in cooperation with our new colleagues at Brookdale Health Care Services,” said said Keith Myers, LHC Group President and CEO, in a statement. declaration. “So we can serve more people from the comfort of their homes or places of residence. LHC Group also looks forward to working with Brookdale Senior Living’s 226 retirement homes in these territories.

HCA Healthcare acquired a majority stake in Brookdale Health Care Services in July to expand services to its customers. Brookdale first revealed last February that it was selling its majority stake in home healthcare, palliative care and therapy to HCA Healthcare.

LHC Group acquires branches located outside HCA’s service area.

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

Lafayette, Los Angeles-based LHC Group has been on a buying spree this year, acquiring home care and hospice businesses in Virginia, Indiana, Arkansas, Louisiana, Texas, Arizona , Idaho and Oregon. The company 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 is expected to close towards the end of the year.