LHC Group Inc. in Lafayette reported a fourth-quarter profit and an acquisition of the assets of Heartlite Hospice, a subsidiary of Hospice of America Inc., with two locations each in Alabama and Georgia.
The home health, hospice and post-acute health care services provider reported fourth-quarter net income attributable to LHC of $7.7 million, or 44 cents per share, compared with $5.5 million, or 32 cents per, a year earlier. Income was $32.3 million, or $1.84 per share, for 2015.
Net service revenue increased 13.2 percent to $219 million in the fourth quarter and 11.3 percent to $816.4 million for the year.
Keith G. Myers, LHC Group’s chairman and CEO, said the company’s acquisition strategy drove its results. During 2015, LHC completed seven acquisitions that gave it nine home health agencies, 17 hospice agencies and two community-based services agencies, generating annual revenue of $64.6 million.
The Heartlite deal is expected to generate annualized revenue of about $6.8 million and add 1 cent per share to LHC’s 2016 earnings.
Heartlite’s licensed hospice service area covers eight counties in Alabama and 29 counties in Georgia, including 19 counties in which LHC is licensed for home health. The estimated population of the licensed service area is about 5.7 million with more than 652,000 over 65 years of age.
For 2016, LHC is projecting net service revenue in the range of $870 million to $890 million and earnings per share in the range of $1.90 to $2.