Cleveland-based Life Care to sell home health care division for $10 million

Cleveland-based Life Care to sell home health care division for $10 million

July 16th, 2014 by Dave Flessner in Local - Breaking News

Life Care Centers of America, headquartered in Cleveland, Tenn.

Photo by Jenna Walker/Times Free Press.

Forrest Preston

Photo by Contributed Photo/Times Free Press.

Life Care Centers of America is selling its home health division to a Lafayette., La.-based home health care firm for $10 million.

LHC Group Inc. a national provider of home health, hospice and comprehensive post-acute health care services, announced today that it has signed an asset purchase agreement to acquire 14 home health agencies in seven states operated by Life Care Home Health Inc., one of the subsidiaries of the privately held Life Care Centers in Cleveland, Tenn. Life Care's home health division, which was created in 1996, produced revenues of $28.5 million last year, with about 90 percent of the payments coming from Medicare.

The purchase will increase LHC Group's geographical footprint to 352 locations across 30 states. The transaction, which is expected to close on Sept. 1, 2014, is anticipated to be help boost LHC Group's 2015 earnings, with a neutral impact expected for 2014.

Forrest L. Preston, Chairman and CEO of Life Care Home Health Inc. and Life Care Centers of America Inc., said LHC "is a strong provider of high-quality health care services.

"As we pursue a primary strategic focus on our core facilities-based operations, we are very pleased to be selling these home health agencies to an organization that we are confident will continue to provide our patients outstanding care and service, while giving our agency employees a great place to continue their careers," Preston said in a statement today.

Life Care Home Health Inc., operates facilities in Tennessee, Arizona, Colorado, Massachusetts, Rhode Island, Utah and Washington. Life Care Home Health Inc. is a sister company of Life Care Centers of America Inc., which provides nursing home care and long-term health care services for residents in a variety of settings, including skilled nursing homes, assisted living facilities, retirement living communities and home care.

"Life Care Home Health and Life Care Centers of America are two highly regarded health care companies who share a mission and culture similar to LHC Group, which is helping patients maintain the highest quality of life while contributing to the communities in which they serve," said Keith Myers, LHC Group chairman and CEO. "We welcome the health care professionals at Life Care Home Health to the LHC Group family and look forward to combining the best practices of each company with the talents and experiences of the Life Care Home Health clinicians to deliver high-quality care that allows patients to safely remain in the comfort of their homes across the 48 counties in these seven states we are honored to serve."