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 Louisiana Workforce Commission said Friday that initial claims rose to 2,125 from the previous week's total of 1,964. There were 2,887 initial claims during the comparable week in 2013.
Oilfield service company’s year-over-year revenues climbed 3.7 percent.
Move is part of company-wide consolidation of residential call centers.
Contentious deposition renders LOGA chief too ill to testify. Here's why.
Proposal for the upcoming legislative session would set Louisiana’s minimum wage at $10 per hour, beginning in 2015, up from the federal rate of $7.25 per hour.
Patrick Kane II recalls his mother awakening him 50 years ago to say his dad’s plane was missing.
His health affected by a contentious deposition last week, the LOGA chief says he can't testify (court will reconvene March 10).
Chair of the energy committee, Mary Landrieu (discussing the urgency of Keystone with Canadian Foreign Minister John Baird) should get the respect she deserves in Louisiana.
A fundraiser co-chaired by former U.S. attorneys from both sides of the political aisle could signal the end of Mike Harson’s long grip on the D.A.’s office.
Former W. Home Furnishings owner Rene Ward faces seven years in prison.
Stuller’s Danny Clark focuses on satisfied customers and effective employees as he settles in as the company’s president/COO.
Sterling Ford-Lincoln of Opelousas ribbon cutting and the State of the Parish address
Increases in higher-end home sales say a lot about the health of the overall market.
Who joined whom or got promoted?
World-class athlete riding high in custom bike biz.
Setting the record straight on that February story in HuffPo
Liability waivers — what you need to know before you sign
A one-man operation, Brett Gauthier is bringing the oil and gas industry into the age of digital animation.
Planning a meeting with results
Local Ad Fed’s Copywriter of the Year and recently named creative director at Russo tapped for Boston Marathon project.
Forecasts for more frigid weather drive prices to highest level in four years.
CiCi's Pizza on Johnston Street will be torn down to make way for popular bakery-café Panera Bread's first Lafayette store.
A computer services company announced Tuesday that it plans to open a new technology center in Bossier City, creating 800 new jobs and bolstering efforts to position northwest Louisiana as a center for cybersecurity work.
The four-week moving average, which is a less volatile measure of claims, decreased to 2,332 from the previous week's average of 2,566.
Auto dealership welcomes the community to celebrate