LHC Group, a Lafayette home health company, reported its second-quarter earnings fell to $9.8 million, or 53 cents per share, compared to $12.4 million, or 68 cents per share, a year earlier.
Stock analysts surveyed by Thomson Reuters expected earnings of 50 cents per share on revenue of $161.8 million. LHC reported revenue of $161.0 million.
In a news release, Chief Executive Officer Keith G. Myers said the company’s earnings were dampened by a 5.2 percent cut in Medicare reimbursements and a requirement that patients see a doctor “face-to-face” in order to receive treatment under Medicare.
The changes put “significant pressure” on patient volume, revenue and internal resources, Myers said. However, by educating its staff and physicians during the first quarter, LHC has been able to adapt to the new regulations.
As proof, Myers pointed to admissions at LHC’s same-location agencies. Those agencies increased home health admissions by 4.8 percent during the quarter.
Amedisys Inc., a Baton Rouge-based home health provider, saw its same-location admissions drop by 4 percent.
LHC said it still expects 2011 per-share earnings in the range of $2.15 to $2.25, but the company is lowering its revenue forecast to between $640 million and $650 million. In March, LHC estimated its annual revenue would range from $660 million to $670 million.
However, LHC said the forecast does not include the proposed 2012 rate cut proposed by the Centers for Medicare and Medicaid. The rule change would reduce fourth-quarter revenue by an estimated $1.2 million and earnings by 4 cents per share after taxes.
Stock analysts have forecast LHC’s 2011 earnings to be $2.18 per share for the year on revenue of $665.4 million.
The company’s stock closed Wednesday at $20.81 per share, up $1.14, or 5.8 percent. More than 520,000 shares changed hands Wednesday, triple the normal trading volume.