LHC Group’s CMS Star Ratings Continue to Lead Home Healthcare Industry

LHC Group, Inc. (NASDAQ: LHCG) has again emerged as the top performer among national publicly traded home healthcare providers in the latest Centers for Medicare and Medicaid Services (CMS) Five-Star Quality Rating System results – released in July 2017.

The CMS star ratings results are released quarterly and rank providers in two categories: “Quality of Patient Care” and “Patient Satisfaction.” The ratings system was instituted by CMS as part of its Home Health Compare website to provide a “tool for consumers to use when choosing a home health care provider.”

In the July 2017 results, LHC Group saw 35 of its home health locations achieve a five-star rating in both categories. In addition, 209 of the company’s locations achieved a four-star rating or better in each category, while another 63 locations earned four stars in at least one category.

Jefferies Group LLC – a New York-based global investment bank and institutional securities firm that provides financial advisory services – said in a report also released in July (https://goo.gl/mUrBRR) that “LHCG significantly outperformed the industry in the percentage of its facilities rating four stars and above.”

The firm’s analysis shows LHC Group maintaining its position as the industry leader in both quality and patient satisfaction, with ratings “well above” the industry average. The July report further states that “…LHCG continues to deliver improved Stars performance on both quality and patient satisfaction categories nationally.”

LHC Group is a national provider of post-acute care services with over 13,000 employees operating more than 400 locations in 28 states.

The Jefferies’ July report also affirms their analysts’ view that “…publicly-traded providers deliver superior care quality vs. smaller peers and that they remain on track for upside-driving bonus payments as CMS rolls out value-based payments…”

The report further states: “Hospitals are increasingly focused on discharging patients to optimal cost and quality settings/providers, due to factors such as readmission penalties and outcomes-based payment programs (ACOs, bundled payments). We believe SS (same-store) admission trends for the public home health providers will continue to be strong in Q2 (2017), providing validation that as care quality becomes a more important factor for referrals (as well as bonus payments from hospital and/or payor partners), Stars ratings should drive volumes toward high-quality providers…”

CMS star ratings are highly respected performance indicators for home health providers and are viewed as a key differentiator in the post-acute care industry. As healthcare providers seek ways to better support the health and well-being of their patients both within and outside hospital settings, effective post-acute care solutions are growing in importance.

“LHC Group’s ability to both maintain and improve our performance in leading the CMS star ratings for our industry is no accident,” said Keith Myers, LHC Group chairman and CEO. “We operate under the firm belief that there is no aspect of our business – no matter how seemingly insignificant – that does not ultimately impact quality. The consistently high performances achieved by our local teams around the nation are the result of a company-wide commitment to quality at every level of our organization.

“We agree with respected analysts – like Jefferies – in their view that quality metrics will remain the preferred standard for evaluating healthcare providers, and that the ratings provide ‘…a quantifiable measure and differentiation point for provider quality that could encourage MA plans to utilize more home nursing services while also offering adequate and rational reimbursement for high-quality service,’” said Myers.

LHC Group’s dedication to producing quality patient outcomes is facilitated in part through proactive and consistent internal monitoring and review that helps quickly identify and address opportunities for improvement at the agency level. The ability to design and implement improvements in real time at a local level has helped the company achieve and maintain its position as the post-acute care industry’s recognized leader in quality.

About LHC Group, Inc.

LHC Group, Inc. is a national provider of post-acute healthcare services, providing quality, cost-effective healthcare to patients primarily within the comfort and privacy of their home or place of residence. LHC Group provides a comprehensive array of healthcare services through home health, hospice, community-based services, and facility-based services.

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