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.
C & C Technologies, HIT Fitness, R3 Sciences, the Acadiana Symphony Association and the United Way of Acadiana recognized for innovation.
Under the deal, Teche shareholders would get 1.162 shares of IberiaBank for each share of Teche stock.
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.
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.