LAFAYETTE, La. (September 7, 2021)—LHC Group, Inc. announced it has finalized its previously announced agreement to purchase Heart of Hospice from EPI Group, LLC—a deal that expands the company’s hospice footprint in five states. The agreement was first announced on June 2, 2021.
The acquisition expands the company’s hospice footprint in five states—Arkansas, Louisiana, Mississippi, Oklahoma and South Carolina—bringing 16 new hospice locations into the LHC Group family of now 144 hospice locations. These new locations will continue to operate under the Heart of Hospice name. LHC Group expects annualized revenue from this purchase of approximately $92.5 million and that it will not materially affect its 2021 diluted earnings per share.
“This is a tremendous achievement in our ongoing initiative to grow and expand our hospice services, as we welcome more than 750 Heart of Hospice employees, a combined 150 years in executive hospice leadership, and an outstanding reputation for quality and compliance to the LHC Group family,” said Keith Myers, LHC Group chairman and CEO.
The company also announced that Carla Davis, Heart of Hospice CEO, will continue leading her team as president of the newly created Heart of Hospice division.
“We are thrilled to be part of the LHC Group family, and I look forward to joining the hospice leadership team to transform end-of-life care across America,” Davis said. “Heart of Hospice and LHC Group care for both small and large communities. One of the unique organizational tenants we share is our commitment to serve all people, including those living in rural communities who wish to remain there and still receive high-quality care. Heart of Hospice will maintain the same excellent service and compassionate caregivers, and with the additional benefit of supportive infrastructure and health system and payor partnerships forged by LHC Group in the 27 years since its founding.”
In addition to expanding LHC Group’s scope of services, the acquisition aligns with the company’s co-location strategy to provide multiple in-home healthcare services in certain markets, as well as its strategy of retaining and operating under a family of well-known local, community-focused brands.
Visit lhcgroup.com for more information.
The M&A market for healthcare companies continues to strengthen in 2021 and ahead of the projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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