LHC Group Acquires Virginia Hospice, Home Health Companies

LHC Group, Inc. (NASDAQ: LHCG) has signed on the dotted line to acquire Freda H. Gordon Hospice and Palliative Care, located in Virginia Beach, Va. The company also purchased Generations Home Health, also headquartered in that community.

Purchasing a home health provider and a hospice in the same market makes sense for LHC Group. The company seeks to co-locate hospice in areas in which they already have a home health presence. Hospice expansion is essential to LHC Group’s growth strategy.

“LHC Group looks forward to welcoming our new team members from Virginia as we join forces to reach even more patients and families in the Virginia Beach region,” said Keith Myers, LHC Group chairman and CEO. “With our combined expertise, and the great reputation these providers have earned, we will help ensure more access to quality, in-home service in the patient’s preferred setting – their home.”

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Freda H. Gordon and Generations will not rebrand following the deal’s closing, which is expected to occur by Oct. 1. LHC Group anticipates that these transactions will yield nearly $7 million in annual revenues, combined. The company announced that the deals would not materially affect its 2021 diluted earnings per share.

These deals have quickly followed LHC Group’s massive acquisition of home health and hospice assets in 22 states from a joint venture between Brookdale Senior Living (NYSE: BKD) and hospital system HCA Healthcare (NYSE: HCA), which included 11 hospice locations.

LHC Group’s M&A activity has hit a record number this year, with 60% weighted towards hospice. The company intends to spend $400 million on acquisitions during 2021.

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“We opened our first hospice to create the continuum of care with familiar faces for the patients we serve,” Myers recently said. “In all of the markets where we have home health, or our target markets, we’re looking to acquire quality hospice operations.”

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