The company announced after market close Tuesday that the SEC asked it to preserve all documents related to its Medicare reimbursement policies. The SEC also notified the company that it will issue a subsequent request to produce the documents.
Gentiva Health Services was also notified, bringing the number of home health care companies that the SEC is investigating to four; market leader Amedisys Inc. of Baton Rouge and Almost Family were notified by the SEC July 1.
The widening investigation did not seem to come as much of a surprise to the market, as LHC Group’s stock fell only 2.3 percent, closing at $22.49 Wednesday; shares did, however, hit a year-low of $20.50 in early trade Wednesday, having traded as high as $37.36 on April 20. The company’s stock had already tumbled 12 percent after Amedisys and Almost Family were notified. All of the companies' shares fell similarly at that time.
LHC Group said it is cooperating fully with the SEC review of its billing practices.
Prompted by a Wall Street Journal investigative story earlier this year, the Senate Finance Committee began looking into whether home health providers intentionally increase the number of therapy visits to trigger higher reimbursements. When they visit patients 10 times, the companies are reimbursed an additional $2,200 per patient.
On word of the investigation, analyst Kevin Ellich of RBC Capital Markets downgraded LHC Group shares to "Sector Perform" from "Outperform," noting physicians, therapists, clients and companies may cut back on business with LHC Group because of the investigation. He also lowered his 2010 and 2011 profit estimates for LHC and cut his price target from $30 per share to $25.
The SEC investigation is likely to change home health agencies’ billing practices, he says. "History has shown us that other providers billed government sources more conservatively when scrutinized for ‘upcoding’ or billing too aggressively and we believe this dynamic could follow suit in the home health industry."
Dave Perkins, LCG Comp Plan honored along with local architects and designers at the 2014 INDesign Awards
Greg Manuel’s Lafayette-based residential development company is taking advantage of exponential industrial growth in Lake Charles.
Longtime Lafayette retailer ventures online.
The annual juried competition recognizes excellence in architecture, interior design and historic preservation in Lafayette and the five surrounding parishes.
It’s not how aggressive or conservative you are — it’s planning for risk that matters most.
Cypress Bayou GM hosts open house Cypress Bayou Casino General Manager and CEO Anthony Patrone hosted an open house at his and wife Roe’s home in Le Triomphe after a long day of golf Saturday, March 29, during the Chitimacha Louisiana Open. Guests mingled and listened to the guitar tunes of Sean Trcalek while dining on bites catered by Cypress Bayou Casino Hotel. Members of the Chitimacha tribe, including chairman John Paul Darden, were in attendance as well as staff and friends of Cypress Bayou Casino Hotel to celebrate a successful day of golf for the annual fundraiser. 1. Megan and Matt Breaux, and Rin and Cecelia Hemelt2. Gabe Lewis and Ray Bourque3. Roe and Anthony Patrone4. O’Neill and Tessa Dardenne, and Roxanne and George Graham5. Richard Picard, Nancy Herrington, Anthoney Patrone, John Paul Darden, Ashley and Montey Spivey, and Jack Darden6. Joyce and Glenn Brou7. Anthony Patrone, Dawna Waterbury, Nancy Herrington and John Paul Darden8. Sean Trcalek9. Kathy Andersen, Richard Picard and Amy Jones
Thanks to cutting-edge digital technology, more and more consumers are banking on ATMs and mobile phones.
Regional bank bids farewell to Downtown May 30
ABiz takes a look back at the most noteworthy moments for the local banking industry over the last year.
Most experts say short-term interest rates will be unchanged through 2014, but long-term rates are inching up.
New hires, promotions, transfers in Acadiana business
The scion of a landmark Four Corners restaurant climbs back into Lafayette’s culinary scene as franchisee for a popular burger chain.
Largest recruitment event in Acadiana returns May 21 to the Cajundome Convention Center
A lawyer’s ad should only be a starting point, as there is much more to consider when seeking quality representation.
Thanks to the inaugural 2012 INNOV8, a design for lifting heavy objects was brought to market.
His company bankrupt and being liquidated, the Lafayette businessman’s financial troubles are mounting.
Georgia-based fried chicken chain would go up against Raising Cane’s, Chick-fil-A and others (like the Popeyes near its proposed location).
A Scott businessman has pleaded guilty to failing to report a conspiracy to award Opelousas Housing Authority construction bids to his company.
Court-appointed examiner says Lafayette businessman was “effectively on both sides” of transactions, opens door for legal action against him.
Lafayette-based insurance broker/risk management group bought by Florida firm for undisclosed sum; principals Landry and Harris continue to run local operations.
The House labor committee rejected bills Thursday that would have set the state minimum wage higher than the hourly federal rate of $7.25 and would have allowed local governments to set their own minimum wage.
Of the major oil- and gas-producing states, Louisiana gained nine rigs, Texas increased by seven, California gained three and New Mexico increased by one.
The Louisiana Workforce Commission said Friday that initial claims rose to 2,101 from the previous week's total of 1,985. There were 2,444 initial claims during the comparable week in 2013.
Eleven Senate Democrats, including Louisiana's Mary Landrieu and five others who face contested races this year, urged President Barack Obama on Thursday to approve the Keystone XL oil pipeline by the end of May.
In a press release issued Wednesday, BancorpSouth announced a deal to acquire Knox Insurance Group of Lafayette.