LifePoint Health has entered into a joint venture with post-acute care provider LHC Group to jointly own and operate its home health and hospice facilities.
The partnership, announced Wednesday, will shift operations management of LifePoint's 20 home health and 10 hospice locations to LHC Group, a publicly traded company based in Lafayette, La. LHC will also manage any future home health and hospice locations LifePoint acquires.
LifePoint's locations will continue to operate under their existing names.
A governing board with equal representation from both companies will direct the venture.
“Post-acute services are an increasingly important part of our business and our communities' healthcare needs,” said William Carpenter, CEO of LifePoint. “By leveraging LHC Group's expertise, we will gain access to the resources and the infrastructure needed to enhance our existing home health and hospice services, invest more in care coordination across our network, and expand access to these services in all our communities.”
LHC currently operates more than 289 home health locations and 64 hospice locations. The company manages 133 home health and hospice locations through partnerships with hospitals and health systems.
LHC has made recent efforts to expand its home health and hospice business through acquisitions and partnerships.
Brentwood, Tenn.-based LifePoint owns and operates 70 hospitals in 22 states.
LifePoint reported strong third-quarter earnings last week as a result of acquisitions. The company posted net income of $41.2 million in the third quarter, compared with net income of $45.8 million in same quarter a year ago. Revenue in the quarter was also up by 21% from the third quarter in 2015 at $1.59 billion from $1.31 billion.
The partnership is expected to begin at the end of the year.
