A national provider of home health and hospice services, LHC Group announced Wednesday that its board of directors and management are “engaged in a process to review strategic alternatives.”
The company says the review process involves an exploration and evaluation of a range of strategic alternatives to enhance stockholder value.
LHC Group (NASDAQ: LHCG) shares closed Tuesday trading at $17.13, down from $15.37 Monday and on the bottom end of a 52-week range of $12.34-$30.64. The shares were up to $17.57 by Wednesday’s close but were down to $17.28 in early afternoon trading Thursday.
No timetable for completion of the process has been set, and the company did not disclose what specific options it is exploring. “There can be no assurance that this review process will result in a transaction or strategic alternative of any kind,” the company wrote. When a company launches such a review, options can range from share buybacks to a share dividend to an outright sale of the entity.
LHC Group said it would have no further statement on the matter, also stressing that it will not disclose developments or provide updates unless disclosure is appropriate or required.
The company has retained J.P. Morgan Securities as its financial adviser and Alston & Bird as its legal counsel to assist in the review process.
Home health providers like LHC Group have been hit by reductions in Medicare reimbursement rates and for almost two years have battled accusations that they intentionally increase the number of therapy visits to trigger higher reimbursements from Medicare, the federal health insurance program that covers more than 47 million seniors.
In September, LHC Group reached a $65 million settlement agreement with the feds that brought closure to a civil inquiry involving its Medicare reimbursement for home health services from 2006 to 2008. The settlement was reached in conjunction with a lawsuit brought against the home health provider by the U.S. District Court for the Western District of Louisiana. The suit, filed by an individual who worked for a regional consulting firm LHC Group previously used to support the company’s quality initiatives, was based on a complaint regarding how LHC Group determined “medical necessity,” the legal justification for the coverage of certain medical services.
LHC Group said it cooperated fully with investigators and maintained that the settlement agreement reflected no admission or determination of wrongdoing. Read more here.
In late October, the Senate Finance Committee issued a report describing its findings from an investigation into therapy visits ordered by LHC Group, Amedisys, Gentiva, and Almost Family, four of the largest publicly-traded home health care companies. Read the report here.
The Houston firm said Friday in its weekly report that 1,575 rigs were exploring for oil and 338 for gas. One was listed as miscellaneous. A year ago there were 1,776 active rigs.
It will be next month before Gov. Bobby Jindal will likely get a chance to change the membership of a South Louisiana flood board that is suing dozens of oil, gas and pipeline companies.
Newly established honor recognizes outstanding local attorneys; Neuner and McGoffin win President's Award; and Blanchard named Outstanding Young Lawyer.
Daily paper constructing new digs near production plant on Rieger Road at Siegen Lane, near I-10.
Investigation finds Arnaud’s Furniture, Carroll Building Specialties and Crazy Charlie’s Shoes running misleading going-out-of-business sales.
Critics say workers and retirees are being held responsible for the Jindal administration's mismanagement of their program.
Potenza Marketing makes fastest-growing companies list.
Local 101 class Friday
“Byzantine” is the word members of the nominating committee for the local flood protection authority often use to describe the complicated, multi-layered matrix of qualifications that must be met to fill a vacancy on that board.
In the Pelican State, Benjamin Franklin buys you about $109 worth of stuff.
Brittan Bush joins Liskow & Lewis, Blake David installed as the Third District Member of the Louisiana State Bar Association’s board of governors, and Simien & Miniex announces 2014 scholarship winners.
“In some cases, we’ve found that these parts are nothing more than used junk yard parts. In others, we’ve found them to be foreign knock-off parts of questionable quality.”
The old Daily Advertiser building on Jefferson Street is being rehabbed as the owner prepares to move it back into commerce.
Its fourth leader gone after two years on the job, the facility struggles to balance the tension between its two missions.
Hub City Cycles hits the ground running through small-business center opportunity.
The future of the coastal loss lawsuit could rest in hands of board’s nominating committee.
Leaders from the local tech community ponder the question: What's missing from Acadiana's tech ecosystem?
AT&T’s U-verse heads our way. Here’s what it means for you.
LITE’s virtual environments are changing the way local employees learn how to do their jobs.
Local tech gurus will go the distance to call Lafayette home.
A look at recent hires, promotions and other news from Acadiana's business community.
New Johnston Street eatery catapults to No. 1 spot in nearly 200-location chain.
By identifying companies that match the output of its post-secondary educational institutions, Lafayette is creating opportunities that keep highly trained graduates in the area.
Gideon’s Promise lauds G. Paul Marx’s work to improve the quality of indigent defense and helps train five new public defenders.
What will INNOV8 4.0 look like?