LHC Group begins review in hopes of boosting stock value

Lafayette-based home health care provider LHC Group Inc. says it has started a review of strategic alternatives to boost its stock value. The review will involve “an exploration and evaluation of a range of strategic alternatives to enhance stockholder value,” the company says. It did not detail what those options might be, nor did it set a timetable for when the review might be finished. Generally, when a company undertakes such a review, options include share buybacks, a share dividend or sale of the company. LHG Group says it will not discuss the status of the review “unless it deems further disclosure is appropriate or required.” LHC Group and other home health providers have been hit by cuts in federal Medicare reimbursement rates and bruised by allegations of deliberately increasing their visits to get higher payments from Medicare. Last September, LHC Group agreed to pay $65 million to settle a civil inquiry with the federal government over whether some government-reimbursed patient care was medically necessary. In the agreement, LHC Group did not admit wrongdoing and maintained it still disputed the claims. The company says there were no findings that it billed or received payments for services not rendered. The Senate Finance Committee is investigating the visitation practices of LHC Group as well as competitors such as Baton Rouge’s Amedisys Inc. and Atlanta’s Gentiva Health Services. LHC Group shares closed Tuesday at $17.13, near the bottom of a 52-week range of $13.56 to $30.64.