The LHC Group (LHCG) teams up to improve home healthcare services

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LHC Group, Inc. LHCG recently signed an agreement with Archbold Medical Center to form a new joint venture to boost home health services in Thomasville, GA and the greater area. This joint venture will include two sites serving Thomas, Brooks, Grady, Colquitt, Mitchell, Decatur and Seminole counties, expanding the LHC Group’s service area to five additional counties.

It should be mentioned that the joint venture agreement will be finalized on May 1 (subject to customary closing conditions), at which time LHC Group will purchase the majority stake and assume management responsibility. In fact, the company expects additional annualized revenue from this joint venture of approximately $5 million, although this agreement will not have a material impact on its adjusted earnings per share.

This transaction is likely to provide a substantial boost to the company’s home healthcare business.

Importance of collaboration

Archbold Medical Center is a health system of four hospitals and three nursing homes equipped with 540 patient beds.

Hospital and home health partnerships help provide patient-centered care from the comfort of their home or place of residence. These collaborations are essential to help patients manage their condition, avoid unnecessary hospital readmissions, and achieve the best possible health outcomes in a cost-effective manner.

According to LHC Group management, this agreement will help the company collaborate with an exceptional partner who can expand the availability of home health care services in Thomasville and throughout South Georgia.

Market Outlook

By a report by Grand View Researchthe global home healthcare market was worth USD 299 billion in 2020 and is expected to grow at a CAGR of 7.9% from 2021 to 2028. Rising geriatric population and increasing incidence of target diseases and orthopedic diseases are factors likely to drive the growth of this market. .

Recent development

In February, the company released its fourth quarter and full year 2021 results. In addition to revenue growth, the company saw organic growth in home care admissions.

Some other broader medical companies that have been involved in partnerships are Da Vita Inc. DVA, Baxter International Inc. BAx and Pacific Biosciences of California, Inc. PACB.

This month, Baxter announced a long-term strategic partnership with Digital Diagnostics to advance the detection of diabetic retinopathy. The reconciliation aims to help frontline care providers deliver better quality care and improve care outcomes.

In January, DaVita Integrated Kidney Care (“DaVita IKC”), which is an integrated care division of DaVita subsidiary DaVita Kidney Care, launched 11 value-based care programs across the United States. These programs were started in collaboration with approximately 1,000 nephrologists, transplant providers, palliative care providers and advanced care practitioners.

Additionally, during the same month, Pacific Biosciences of California, Inc., also known as PacBio, partnered with the Care4Rare Canada Consortium (“Care4Rare”) to investigate some of the most complicated unexplained rare disease cases. in Canada. It is worth mentioning that the study will use PacBio’s long-read whole genome sequencing (WGS) HiFi technology to learn more about rare disease samples, already sequenced with short-read WGS technology, but for which no genetic variant was found.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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