LHC Group earned $6 million in the second quarter of this year, or 32 cents per share, compared with $9.8 million, or 53 cents per share, for the same period last year. The company said second quarter earnings include $471,000 (3 cents per diluted share), after tax, associated with the strategic alternatives process it ended in June and legal expenses associated with federal investigations of its Medicare billing practices. Net service revenue was $158.1 million for the second quarter of 2012 compared with $161 million in 2011.
Keith G. Myers, the home health and hospice provider’s chairman and CEO, said in a prepared statement that corporate overhead costs were reduced by 13 percent in the second quarter, calling the savings a testament to the success of the company’s efficiency initiatives. “Our 6.3 percent increase in organic growth in home health admissions in the second quarter, building on a 5.6 percent increase in organic growth in home health admissions in the first quarter, is a clear indicator that more hospitals, physicians and patients around the country are choosing LHC Group for post-acute care,” he said. “Our company’s proven ability to grow admissions while simultaneously becoming more efficient in our operations is the key to long-term success in today’s health care environment.”
LHC Group’s net income for the six months ended June 30 was $13.7 million, including $884,000, after tax, of expenses from the strategic analysis process and legal problems, compared with $17.5 million for the same period last year. Diluted earnings per share was 74 cents compared with 95 cents for the first half of 2011 on revenue of $316.8 million and $322.8 million, respectively.
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