LHC Group (NASDAQ:LHCG) filed Quarterly Report for the period ended 2011-06-30.
Lhc Group has a market cap of $326.9 million; its shares were traded at around $18.39 with a P/E ratio of 7.4 and P/S ratio of 0.5. Lhc Group had an annual average earning growth of 30.4% over the past 5 years.
Highlight of Business Operations:On July 6, 2011, CMS issued the Medicare home health reimbursement proposal for FY 2012, which would reduce the national standardized episodic payment rate to $2,112.37 from the current $2,192.07, a 3.56% reduction. The reduction includes a 1.5% market basket increase that became effective subsequent to the 1.0% reduction that was mandated by the Affordable Care Act and a 5.06% coding creep reduction. CMS is proposing
federal standard rate for 2011 LTACH-PPS rate year (RY), which began October 1, 2010 and ends September 30, 2011, is $39,600 per Medicare discharge and the high cost outlier threshold is $18,785. This is a decrease of 0.8% from the RY 2010 standard rate of $39,896 and an increase of 1.9% from the RY 2010 high cost outlier threshold of $18,425. Pursuant to the final rule, CMS also updated LTACH rates by increasing the market basket by 2.5%, but reducing the inflation update by 0.5% as required by the Affordable Care Act. Further, CMS applied an adjustment of negative 2.5% to the LTACH standard payment rate to account for the estimated increase in spending in FYs 2008 and 2009 due to documentation and coding that did not reflect increases in patients severity of illness. CMS estimated that aggregate payments to LTACHs would increase by approximately 0.5%, taking into account all provisions in the final rule that would affect spending.
On August 1, 2011, CMS released its rule for LTACH Medicare reimbursement for FY 2012, which spans from October 1, 2011 through September 30, 2012. In aggregate, payments for FY 2012 will increase 2.5% from FY 2011. Included in the final regulations is (1) a 2.9% market basket increase to the standard payment rate; (2) an aggregate reduction in the standard payment rate of 1.1% mandated by the Affordable Care Act; and (3) a reduction in the high cost outlier threshold per discharge from $18,785 in FY 2011 to $17,931 in FY 2012. The final rule would result in a 1.8% increase in average Medicare payments to LTACHs. Some of the other changes in the final rule include:
Consolidated net service revenue for the three months ended June 30, 2011 was $161.0 million, an increase of $7.4 million, or 4.8%, from $153.6 million for the three months ended June 30, 2010.
Home-Based Services. Net service revenue for home-based services for the three months ended June 30, 2011 was $142.0 million, an increase of $6.3 million, or 4.6%, from $135.7 million for the three months ended June 30, 2010. Total admissions increased 11.8% to 25,980 during the current period, compared to 23,233 for the same period in 2010. Average home-based patient census for the three months ended June 30, 2011 increased 9.2% to 34,867 patients as compared to 31,941 patients for the three months ended June 30, 2010.
Net service revenue for home-based services for the six months ended June 30, 2011 was $283.8 million, an increase of $20.1 million, or 7.6%, from $263.7 million for the six months ended June 30, 2010. Total admissions increased 16.2% to 53,093 during the current period, versus 45,703 for the same period in 2010. Average home-based patient census for the six months ended June 30, 2011, increased 10.7% to 35,002 patients as compared to 31,611 patients for the six months ended June 30, 2010.
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