LHC Group (LHCG, Financial) filed Amended Quarterly Report for the period ended 2008-09-30.
LHC Group provides post-acute healthcare services primarily to Medicare beneficiaries in rural markets in the southern United States. They provide home-based services through their home nursing agencies and hospices and facility-based services through their long-term acute care hospitals and outpatient rehabilitation clinics. LHC Group has a market cap of $619.17 million; its shares were traded at around $34.75 with a P/E ratio of 22.7 and P/S ratio of 2.08.
Under Medicare, the Company is reimbursed for rehabilitation services based on a fee schedule for services provided adjusted by the geographical area in which the facility is located. On February 1, 2006, Congress passed the Deficit Reduction Act of 2005, which implemented, among other things, an annual $1,740 Medicare Part B outpatient therapy cap that was effective on January 1, 2006. CMS subsequently increased the therapy cap to $1,780 on January 1, 2007, and to $1,810 on January 1, 2008. The legislation also required CMS to implement a broad process for reviewing medically necessary therapy claims, creating an exception to the cap. The exception process, which was set to expire on January 1, 2007, was included in the Tax Relief and Health Care Act of 2006 and continued to function as an exception to the Medicare Part B outpatient therapy cap until January 1, 2008. The MMSEA further extended the Medicare Part B outpatient therapy cap until June 30, 2008. H.R. 6331 extended the therapy cap exception for outpatient rehabilitation clinics to December 31, 2009.
Consolidated net service revenues for the three months ended September 30, 2008 was $98.2 million, an increase of $20.7 million, or 26.7%, from $77.5 million for the three months ended September 30, 2007. For the three months ended September 30, 2008, home-based services accounted for 86.1% of revenue and facility-based services accounted for 13.9% of revenue compared with 81.6% and 18.4%, respectively, for the comparable quarter last year.
Consolidated net service revenues for the nine months ended September 30, 2008 was $271.8 million, an increase of $55.0 million, or 25.4%, from $216.8 million for the nine months ended September 30, 2007. For the nine months ended September 30, 2008, home-based services accounted for 84.4% of revenue and facility-based services accounted for 15.6% of revenue compared with 81.3% and 18.7%, respectively, for the comparable period in the prior year.
Home-Based Services. Net service revenue for home-based services for the three months ended September 30, 2008 was $84.5 million, an increase of $21.3 million, or 33.7%, from $63.2 million for the three months ended September 30, 2007. Total admissions increased 24.2% to 13,925 during the current period, versus 11,216 for the
Net service revenue for home-based services for the nine months ended September 30, 2008 was $229.3 million, an increase of $53.0 million, or 30.1%, from $176.3 million for the nine months ended September 30, 2007. Total admissions increased 24.3% to 40,604 during the current period, versus 32,656 for the same period in 2007. Average home-based patient census for the nine months ended September 30, 2008, increased 25.8% to 20,386 patients as compared to 16,208 patients for the nine months ended September 30, 2007.
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10-year financial history of LHCG.
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LHC Group provides post-acute healthcare services primarily to Medicare beneficiaries in rural markets in the southern United States. They provide home-based services through their home nursing agencies and hospices and facility-based services through their long-term acute care hospitals and outpatient rehabilitation clinics. LHC Group has a market cap of $619.17 million; its shares were traded at around $34.75 with a P/E ratio of 22.7 and P/S ratio of 2.08.
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Also, to address the increases in case-mix that CMS views as unrelated to home health patients clinical conditions, the Final Rule implemented a reduction in the national standardized 60-day episode payment rate for four years. A 2.75 percent reduction began in 2008 and will continue for three years, with a 2.71 percent reduction in the fourth year. Also, in the Final Rule, CMS finalized the market basket increase of 3.0 percent, a 0.1 percent increase from the proposed rule. When the market basket update is viewed in conjunction with (1) the 2.75 percent reduction in home health payment rates for 2008; (2) the implementation of the new case-mix adjustment system; (3) the changes in the wage index; and (4) the other changes made in the Final Rule CMS predicts a 0.8 percent increase in payments for urban HHAs and a 1.77 percent decrease in payments for rural HHAs. Collectively, the changes in the Final Rule (not including the case-mix or wage index adjustments) decrease the national 60-day episode payment rate for HHAs from the 2007 level of $2,339 to $2,270 in 2008.Under Medicare, the Company is reimbursed for rehabilitation services based on a fee schedule for services provided adjusted by the geographical area in which the facility is located. On February 1, 2006, Congress passed the Deficit Reduction Act of 2005, which implemented, among other things, an annual $1,740 Medicare Part B outpatient therapy cap that was effective on January 1, 2006. CMS subsequently increased the therapy cap to $1,780 on January 1, 2007, and to $1,810 on January 1, 2008. The legislation also required CMS to implement a broad process for reviewing medically necessary therapy claims, creating an exception to the cap. The exception process, which was set to expire on January 1, 2007, was included in the Tax Relief and Health Care Act of 2006 and continued to function as an exception to the Medicare Part B outpatient therapy cap until January 1, 2008. The MMSEA further extended the Medicare Part B outpatient therapy cap until June 30, 2008. H.R. 6331 extended the therapy cap exception for outpatient rehabilitation clinics to December 31, 2009.
Consolidated net service revenues for the three months ended September 30, 2008 was $98.2 million, an increase of $20.7 million, or 26.7%, from $77.5 million for the three months ended September 30, 2007. For the three months ended September 30, 2008, home-based services accounted for 86.1% of revenue and facility-based services accounted for 13.9% of revenue compared with 81.6% and 18.4%, respectively, for the comparable quarter last year.
Consolidated net service revenues for the nine months ended September 30, 2008 was $271.8 million, an increase of $55.0 million, or 25.4%, from $216.8 million for the nine months ended September 30, 2007. For the nine months ended September 30, 2008, home-based services accounted for 84.4% of revenue and facility-based services accounted for 15.6% of revenue compared with 81.3% and 18.7%, respectively, for the comparable period in the prior year.
Home-Based Services. Net service revenue for home-based services for the three months ended September 30, 2008 was $84.5 million, an increase of $21.3 million, or 33.7%, from $63.2 million for the three months ended September 30, 2007. Total admissions increased 24.2% to 13,925 during the current period, versus 11,216 for the
Net service revenue for home-based services for the nine months ended September 30, 2008 was $229.3 million, an increase of $53.0 million, or 30.1%, from $176.3 million for the nine months ended September 30, 2007. Total admissions increased 24.3% to 40,604 during the current period, versus 32,656 for the same period in 2007. Average home-based patient census for the nine months ended September 30, 2008, increased 25.8% to 20,386 patients as compared to 16,208 patients for the nine months ended September 30, 2007.
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10-year financial history of LHCG.
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