LAFAYETTE, La. (AP) — Home health care provider LHC Group Inc. said Wednesday that it has started a review of strategic alternatives to boost its stock value.
Lafayette-based LHC Group said the review would involve "an exploration and evaluation of a range of strategic alternatives to enhance stockholder value." It did not detail what those options might be — and did not 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.
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LHG Group said it would 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 allegations of deliberately increasing their visits to get higher payments from Medicare, the program that provides health coverage to more than 47 million seniors.
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 said it still disputed the claims. The company said there were no findings that the company billed or received payments for services not rendered.
The Senate Finance Committee is investigating the visitation practices of LHG Group and competitors Amedisys Inc. and Gentiva Health Services.
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