LAFAYETTE, La. (September 9, 2021)—LHC Group, Inc. announced significant expansions of its nationwide footprint, resources and service capabilities. The company has entered into an agreement to purchase Brookdale Health Care Services agencies from the recently formed home health, hospice and outpatient therapy venture between HCA Healthcare and Brookdale Senior Living Inc. The agencies, which are not in areas served by HCA Healthcare, include 23 home health locations, 11 hospice and 13 therapy agencies across 22 states. The agencies will continue to operate under their existing brands and locations.
LHC Group expects annualized revenue from this purchase of approximately $146 million and, due to the expected timing of the closing, that it will not materially affect its 2021 diluted earnings per share. It is anticipated that the purchase will be finalized in the fourth quarter of 2021, subject to customary closing conditions.
“In short, this agreement creates an abundance of opportunity for LHC Group to positively impact more lives through the delivery of quality healthcare in cooperation with our new colleagues from Brookdale Health Care Services,” said Keith Myers, LHC Group chairman and CEO. “As such, we will be able to serve more people in the comfort of their home or place of residence. LHC Group also looks forward to working with Brookdale Senior Living’s 226 senior living communities in these territories.”
“In July, HCA Healthcare purchased a majority stake in Brookdale Health Care Services to expand access to healthcare services for our patients,” said Sam Hazen, Chief Executive Officer of HCA Healthcare. “We believe the sale to LHC Group of these sites of care, which were part of that transaction and are not in communities we currently serve, positions them for continued success.”
Lucinda “Cindy” Baier, Brookdale Senior Living’s president and chief executive officer, said, “We are looking forward to working with LHC Group, another national provider of health care services. This transaction will further strengthen our liquidity, maintain our 20% interest in the venture with HCA Healthcare, and ensure that high-quality home health and hospice services continue to be available to our residents at communities in these markets. I’m pleased that Brookdale’s residents will benefit from a seamless offering of services across our broad care continuum.”
On Aug. 4, 2021, LHC Group’s guidance for acquired annual revenue for 2021 was increased from $350 million to $500 million, compared with $150 million to $200 million previously. With this latest agreement, the company has now acquired or announced $308 million in M&A activity year-to-date. This acquisition marks LHC Group’s initial entry into two new states—Minnesota and New Mexico—and expands its service areas in states where the company already operates. The agencies and locations include the following:
Home Health
- Nurse On Call, Oneonta, AL
- Nurse On Call, Phoenix, AZ
- Brookdale Home Health, Sonoma, CA
- Brookdale Home Health Hartford, Rocky Hill, CT
- Brookdale Home Health, Naperville, IL
- Nurse On Call, Indianapolis, IN
- Nurse On Call, Shrewsbury, MA
- Brookdale Home Health Detroit, Farmington Hills, MI
- Brookdale Home Health Minnesota, Edina, MN
- Brookdale Home Health St. Louis, Creve Coeur, MO
- Brookdale Home Health Charlotte, Charlotte, NC
- Brookdale Home Health Raleigh, Durham, NC
- Brookdale Home Health Winston, Greensboro, NC
- Brookdale Home Health Albuquerque, Albuquerque, NM
- Brookdale Home Health Cleveland, Brooklyn Heights, OH
- Brookdale Home Health Columbus, Dublin, OH
- Brookdale Home Health Dayton, Moraine, OH
- Brookdale Home Health Tulsa, Broken Arrow, OK
- Brookdale Home Health OKC, Oklahoma City, OK
- Brookdale Home Health Portland, Wilsonville, OR
- Brookdale Home Health Philadelphia, Wayne, PA
- Nurse on Call, Lincoln, RI
- Brookdale Home Health, Lynwood, WA
Hospice
- Brookdale Hospice, Phoenix, AZ
- Brookdale Hospice, Sacramento, CA
- Brookdale Hospice, Rolling Meadows, IL
- Brookdale Hospice, Indianapolis, IN
- Brookdale Hospice, Farmington Hills, MI
- Brookdale Hospice, Bloomington, MN
- Brookdale Hospice Columbus, Columbus, OH
- Brookdale Hospice, Moraine, OH
- Brookdale Hospice Cleveland, Richfield, OH
- Brookdale Hospice, Wilsonville, OR
- Brookdale Hospice, Wayne, PA
Therapy
- Brookdale Therapy Roswell, Roswell, GA
- Brookdale Therapy Lake View, Chicago, IL
- Brookdale Therapy Oak Park, Oak Park, IL
- Brookdale Therapy, Farmington Hills, MI
- Brookdale Therapy Carriage Club, Charlotte, NC
- Brookdale Therapy Heritage Hills, Hendersonville, NC
- Brookdale Therapy North Raleigh, Raleigh, NC
- Brookdale Therapy Monroe, Monroe Township, NJ
- Brookdale Therapy Westlake Village, Westlake, OH
- Brookdale Therapy, Tiverton, RI
- Brookdale Therapy Anderson, Anderson, SC
- Brookdale Therapy Maryville, Maryville, TN
- Brookdale Therapy Bristol, Bristol, VA
SVB Leerink is serving as financial advisor and Alston & Bird LLP is serving as legal counsel to LHC Group.
Visit lhcgroup.com for more information.
