LHC Group Set To Gain From Expansion Of LifePoint Health JV

 | Dec 10, 2019 08:01PM ET

LHC Group, Inc. (NASDAQ:LHCG) recently announced the expansion of its existing joint venture (JV) partnership with LifePoint Health. The agreement will be finalized in January 2020.
For investors to know, LifePoint Health is a leading healthcare company which aims at providing quality inpatient, outpatient and post-acute services close to home.
How Does LHC Group Stand to Gain?
LHC Group formed a JV with LifePoint Health in 2017 with a view to share ownership and governance of LifePoint's home health agencies and hospices as well as select LHC Group agencies located near LifePoint facilities.
Since then, the partnership has grown to include 49 home health and hospice locations across 10 states.
LHC Group expects approximately $5.4 million in annualized revenues from this transaction. Per the agreement, two additional locations of LifePoint’s Saline Memorial Hospital will now be provided with a home health and hospice provider.
The partnership also announced that it has finalized previously announced additions of CMH Home Health Care in Ohio, Casa de la Paz Hospice in Arizona and St. Joseph Family Hospice in Idaho. The company expects a contribution of $9 million in annualized revenues from these.
That’s not all. In recent times, the company agreed to acquire 17 home health, eight hospice and two home and community-based services locations, the majority of which are hospital joint ventures. These acquisitions represent around $86.7 million in annualized revenues.