LCH Group (NASDAQ: LHCG) added two more companies to its empire of home health, hospice, community-based services agencies and long-term acute care hospitals (LTACs). Professional Healthcare Resources in Annadale, Virginia and East Arkansas Health Holdings in Little Rock, Arkansas are now part of the fold. They are expected to produce annualized revenues of approximately $44 million, which consists of $23.3 million in home health revenue, $5.1 million in hospice revenue and $15.6 million in community-based services revenue.
PHR delivers a wide range of home healthcare services, including skilled nursing, therapy, personal care services and hospice. Its licensed service area covers a combined 16 counties in the Certificate of Need (CON) District of Columbia, the CON state of Maryland, and the state of Virginia. The estimated population of the service area is over 8.7 million, with more than 1 million over 65 years of age. Estimated annualized revenue from this transaction is approximately $33.5 million. The transaction is expected to be accretive to LHC Group’s 2017 earnings per diluted share by between 10 cents and 15 cents. The deal is expected to close on August 1, 2016.
East Arkansas Health Holdings operates four home health locations, two hospice locations and a community-based services location that serve 11 counties primarily in eastern Arkansas. The estimated population of the licensed service area is more than 800,000 with more than 110,000 over 65 years of age. Estimated annualized revenue from this transaction is approximately $10.5 million and the transaction is expected to be accretive to LHC Group’s 2017 earnings per diluted share by between 5 cents and 10 cents. This transaction is expected to close on July 1, 2016.
As of March 31, 2016, LHC Group operated 284 home health services locations, 61 hospice locations, 11 community-based service locations and six long-term acute care hospitals with eight locations.