Six months after I last wrote on LHC Group (LHCG),
not all that much has changed in the home health provider world. While
the industry got a partial reprieve in a one-year delay in Sustainable
Growth Rate (or SGR) cuts, rebasing is still going to lead to
significant revenue and margin pressure for many players. LHC Group is
likely to fare relatively better due to its focus on rural locations and
states that require Certificates of Need (or CONs), as well as its
growing hospice business and desire to act as a consolidator in the
space. LHC Group shares do still look undervalued on a long-term cash
flow basis, but this remains a tough, tough industry right now.
To continue reading, click this link:
LHC Group Looking For M&A And Hospice Growth To Offset Reimbursement
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