8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 5, 2021

LHC GROUP, INC.

(Exact name of registrant as specified in charter)

Delaware	001-33989	71-0918189
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

901 Hugh Wallis Road South, Lafayette, LA 70508

(Address of Principal Executive Offices) (Zip Code)

(337) 233-1307
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	LHCG	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐

Item 2.02 Results of Operations and Financial Condition.

On May 5, 2021, the Company issued a press release announcing its financial results for the first quarter ended March 31, 2021.  A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

The information furnished pursuant to Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.

In addition, a copy of the supplemental slides which will be discussed during the Company’s earnings call at 9:00 a.m. ET on Thursday, May 6, 2021, is attached to this report as Exhibit 99.2 and incorporated herein by reference.

The information furnished pursuant to Item 7.01 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibit is furnished with this Current Report on Form 8-K: 

EXHIBIT NO.	DESCRIPTION
99.1	Press Release, dated May 5, 2021, announcing the Company’s financial results for the first quarter ended March 31, 2021 (furnished only).
99.2	First Quarter 2021 Supplemental Financial Information (furnished only).
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LHC GROUP, INC.
Date: May 6, 2021	By:	/s/ Joshua L. Proffitt
		Name:	Joshua L. Proffitt
		Title:	President

EX-99.1

Exhibit 99.1

LHC Group announces first quarter 2021 financial results

Raises full year 2021 guidance

LAFAYETTE, La., May 5, 2021 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended March 31, 2021. Unless otherwise noted, all results are compared with the first quarter ended March 31, 2020.

First Quarter 2021 Financial Results

• Net service revenue increased 2.3% to $524.8 million.
• Net income attributable to LHC Group's common stockholders increased 57.4% to $34.7 million. Earnings per diluted share attributable to LHC Group's common stockholders increased 57.1% to $1.10.
• Adjusted net income attributable to LHC Group's common stockholders increased 86.7% to $43.6 million, or $1.39 adjusted earnings per diluted share. Adjusted results for the first quarter of 2021 exclude a pre-tax amount of $12.0 million in COVID-19 related costs and expenses for purchases of personal protective equipment (PPE), supplies, employee related costs and expenses and other categories of costs and expenses incurred in response to the pandemic and $0.2 million for an impairment of a closed home health location.
• EBITDA increased 48.3% to $49.4 million.
• Adjusted EBITDA increased 61.3% to $61.5 million.
• Organic growth in home health admissions decreased 0.4% in the first quarter of 2021 as compared to the first quarter of 2020 and increased sequentially by 5.9% in the first quarter of 2021 over the fourth quarter of 2020.
• Organic growth in hospice admissions increased 7.6% in the first quarter of 2021 as compared to the first quarter of 2020 and increased sequentially by 1.3% in the first quarter of 2021 over the fourth quarter of 2020.
  
  A reconciliation of all non-GAAP financial results in this release appears on pages 10-11.

Operational and Strategic Highlights

• LHC Group's quality and patient satisfaction scores continue to exceed the national average as the Company remains a leader among industry peers.
• LHC Group's acquisition pipeline is currently over $502 million with over $300 million of the targets in exclusive discussions. This gives the Company a high level of confidence in reaching or exceeding its target of $150 million to $200 million in acquired revenue in 2021.
• Non-Medicare episodic organic growth in home health admissions increased by 22.6% in the first quarter of 2021 compared with the same period in 2020 and increased by 25.1% sequentially over the fourth quarter of 2020.
• LHC Group's goal of becoming an invaluable asset and citizen of each community it is privileged to serve was reinforced by the 2021 Environmental, Social & Governance (ESG) Report published in April 2021 and available on the Company's ESG page.

Commenting on the results, Keith G. Myers, LHC Group's Chairman and Chief Executive Officer, said, "This is a year of great opportunity for LHC Group. We have begun the year on a strong clinical, operational and financial footing, and we have brought to light the broad impact we are undertaking to provide the thousands of communities we serve with our enhanced ESG reporting. With our operational and clinical strategies stress tested throughout PDGM and the COVID-19 public health emergency, we are positioned to earn more market share with leading quality scores, increased physician referrals and a proven history of delivering value for our partners and improved outcomes for patients. Our M&A pipeline remains very robust with our activity expected to accelerate throughout the year with new opportunities in a number of our service lines as well as new and expanded joint ventures. We are also benefiting from an improved legislative and regulatory outlook as legislative initiatives from Congress, innovation from CMS and stated budget and stimulus priorities of the Biden Administration are all emphasizing the need for at home care."

COVID-19 Update
The COVID-19 pandemic had an impact on our operations and financial results for the first quarter of 2021 with a continued impact expected throughout 2021, although to a lesser extent than what we have experienced to date. During the first quarter, we incurred $12.0 million ($8.9 million net of tax), or $0.28 per diluted share, in additional COVID-19 costs and expenses related to PPE, supplies, employee related costs and expenses, including, without limitation, bonuses, increased wages, and wage supplements for front line caregivers, and other categories of costs and expenses incurred in response to the pandemic.

LHC Group has also implemented a number of cost containment initiatives, including eliminating non-essential travel and expenses and other measures. We continue to have strong access to capital with approximately $555.7 million of available liquidity from cash and our revolving credit facility net of the $411.2 million liability associated with the Medicare Accelerated and Advance Payments and Provider Relief Funds.

Since April 2020, we received funds totaling $318.0 million under the Medicare Accelerated and Advance Payment Program as provided for by the CARES Act. The accelerated Medicare payments are interest free and the program currently requires that the Centers for Medicare and Medicaid Services (CMS) recoup the accelerated payments beginning 12 months after receipt by the provider, by withholding 25% of future Medicare fee-for service payments for claims for 11 months and then withholding 50% of future Medicare fee-for service payments for claims for an additional six months. An interest rate of 4% will be assessed on any outstanding balances after 29 months from the date of the initial advance but we intend to repay the full amount before any interest will accrue. CMS began recouping these funds on April 13, 2021.

As of March 31, 2021, we have received funds totaling $93.3 million related to the Provider Relief Fund as provided for by the CARES Act. The full amount received was recorded as a short-term liability in government stimulus advance in our condensed consolidated balance sheet, but no funds were recognized in our condensed consolidated statements of income for the three months ended March 31, 2021 or for the twelve months ended December 31, 2020. It is our intent to return the funds to the government.

Operational Trends
Please refer to the supplemental information that can be found under Quarterly Results on the Company's Investor Relations page to access more detailed statistics on pre-COVID-19 and post-COVID-19 trends.

Full Year 2021 Guidance
The Company raised its guidance for 2021 to account for the extension of the Public Health Emergency to July 20, 2021 and the suspension of Medicare sequestration to December 31, 2021. Full year 2021 net service revenue is now expected to be in a range of $2.215 billion to $2.265 billion (compared with $2.200 billion to $2.260 billion previously) adjusted earnings per diluted share is expected to be in a range of $6.20 to $6.40 (compared with $5.65 to $5.90 previously), and EBITDA, less non-controlling interest, is expected to be in a range of $290 million to $300 million (compared with $268 million to $280 million previously).

Joshua L. Proffitt, LHC Group's President, added, "The first quarter results continue to reflect the sequential acceleration in our business with revenue within our projected range and adjusted earnings and adjusted EBITDA ahead of our expectations. This performance and the positive sequential trends we have experienced provide us with even greater confidence in our outlook and in the number of new growth opportunities we can pursue. We are intently focused on driving organic growth, enhancing our position as the partner of choice for hospitals and health systems, delivering leading quality and patient satisfaction, deploying resources to new hospice opportunities and capitalizing on the consolidation opportunity in home health."

The Company's guidance ranges reflect a number of assumptions that are subject to change based on uncertainties related to the impact of the COVID-19 pandemic. The Company's guidance ranges do not take into account the impact of future COVID-19 related costs and expenses. The Company is estimating COVID-19 related costs and expenses in the range of $20 million to $25 million in the full year of 2021. The Company's guidance ranges also do not take into account reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, location closures, if any, or future legal expenses, if necessary. Please refer to the supplemental information that can be found under Financial Results on the Company's Investor Relations page to access more detailed guidance assumptions.

Conference Call
LHC Group will host a conference call on Thursday, May 6, 2021, at 9:00 a.m. Eastern time to discuss its first quarter 2021 results. The toll-free number to call for this interactive teleconference is (877) 870-4263 (international callers: (412) 317-0790). A telephonic replay of the conference call will be available through midnight on Thursday, May 13, 2021, by dialing (877) 344-7529 (international callers: (412) 317-0088) and entering confirmation number 10154018.

The Company has posted supplemental financial information on the first quarter results that it will reference during the conference call. The supplemental information can be found under Quarterly Results on the Company's Investor Relations page. A live webcast of LHC Group's conference call will be available under the Investor Relations section of the Company's website, www.LHCGroup.com. A one-year online replay will be available approximately one hour following the conclusion of the live broadcast.

About LHC Group, Inc.
LHC Group, Inc. is a national provider of in-home healthcare services and innovations for communities around the nation, offering quality, value-based healthcare to patients primarily within the comfort and privacy of their home or place of residence. The company's 30,000 employees deliver home health, hospice, home and community based services, and facility-based care in 35 states and the District of Columbia – reaching 60 percent of the U.S. population aged 65 and older. As the preferred joint venture partner for approximately 400 leading U.S. hospitals and health systems, LHC Group works in cooperation with providers to customize each partnership and reach more patients and families with an effective and efficient model of care.

Forward-looking Statements
This press release contains "forward-looking statements" (as defined in the Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of the Company, or anticipated benefits of the transaction. Words such as "anticipate," "expect," "project," "intend," "believe," "will," "estimates," "may," "could," "should" and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to: our 2021 revenue and earnings guidance, statements about the benefits of the acquisition, including anticipated earnings accretion, synergies and cost savings and the timing thereof; the Company's plans, objectives, expectations, projections and intentions; and other statements relating to the transaction that are not historical facts. Forward-looking statements are based on information currently available to the Company and involve estimates, expectations and projections. Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties, and important factors could cause actual events or results to differ materially from those indicated by such forward-looking statements. With respect to the acquisition, these risks, uncertainties and factors include, but are not limited to: the risk that the businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on integration-related issues; and the risk that costs associated with the integration of the businesses are higher than anticipated. With respect to the Company's businesses, these risks, uncertainties and factors include, but are not limited to: changes in, or failure to comply with, existing government regulations that impact the Company's businesses; legislative proposals for healthcare reform; the impact of changes in future interpretations of fraud, anti-kickback, or other laws; changes in Medicare and Medicaid reimbursement levels; changes in laws and regulations with respect to Accountable Care Organizations; changes in the marketplace and regulatory environment for Health Risk Assessments; decrease in demand for the Company's services; the potential impact of the transaction on relationships with customers, joint venture and other partners, competitors, management and other employees, including the loss of significant contracts or reduction in revenues associated with major payor sources; ability of customers to pay for services; risks related to any current or future litigation proceedings; potential audits and investigations by government and regulatory agencies, including the impact of any negative publicity or litigation; the ability to attract new customers and retain existing customers in the manner anticipated; the ability to hire and retain key personnel; increased competition from other entities offering similar services as offered by the Company; reliance on and integration of information technology systems; ability to protect intellectual property rights; impact of security breaches, cyber-attacks or fraudulent activity on the Company's reputation; the risks associated with assumptions the parties make in connection with the parties' critical accounting estimates and legal proceedings; the risks associated with the Company's expansion strategy, the successful integration of recent acquisitions, and if necessary, the ability to relocate or restructure current facilities; and the potential impact of an economic downturn or effects of tax assessments or tax positions taken, risks related to goodwill and other intangible asset impairment, tax adjustments, anticipated tax rates, benefit or retirement plan costs, or other regulatory compliance costs.

Many of these risks, uncertainties and assumptions are beyond the Company's ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the Company on the date they are made, and the Company does not undertake any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. The Company does not give any assurance (1) that the Company will achieve its guidance or expectations, or (2) concerning any result or the timing thereof. All subsequent written and oral forward-looking statements concerning the transaction or other matters and attributable to the Company or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) (Unaudited)
	March 31, 2021		December 31, 2020
ASSETS
Current assets:
Cash	$	292,317	$	286,569
Receivables:
Patient accounts receivable	331,715		301,209
Other receivables	9,821		11,522
Amounts due from governmental entities	223		—
Total receivables	341,759		312,731
Prepaid expenses	26,038		22,058
Other current assets	23,561		25,664
Total current assets	683,675		647,022
Property, building and equipment, net of accumulated depreciation of $86,521 and $82,721, respectively	139,663		138,366
Goodwill	1,259,127		1,259,147
Intangible assets, net of accumulated amortization of $17,963 and $17,659, respectively	314,532		315,355
Assets held for sale	3,137		1,900
Operating lease right of use asset	101,193		100,046
Other assets	21,527		21,518
Total assets	$	2,522,854	$	2,483,354
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	63,975	$	64,864
Salaries, wages, and benefits payable	110,327		88,666
Self-insurance reserves	33,893		35,103
Income tax payable	22,382		21,464
Government stimulus advance	93,257		93,257
Contract liabilities - deferred revenue	317,962		317,962
Current operating lease liabilities	32,627		32,676
Amounts due to governmental entities	1,164		1,516
Current liabilities - deferred employer payroll tax	25,928		25,928
Total current liabilities	701,515		681,436
Deferred income taxes	54,954		47,237
Income taxes payable	6,404		6,203
Revolving credit facility	—		20,000
Other long term liabilities	25,928		25,928
Long-term operating lease liabilities	71,431		70,275
Total liabilities	860,232		851,079
Noncontrolling interest — redeemable	17,939		18,921
Commitments and contingencies
Stockholders' equity:
LHC Group, Inc. stockholders' equity:
Preferred stock – $0.01 par value; 5,000,000 shares authorized; none issued or outstanding	—		—
Common stock — $0.01 par value; 60,000,000 shares authorized; 36,507,148 and 36,355,497 shares issued, and 31,240,270 and 31,139,840 shares outstanding, respectively	365		364
Treasury stock — 5,266,878 and 5,215,657 shares at cost, respectively	(78,552)		(69,011)
Additional paid-in capital	966,201		962,120
Retained earnings	669,956		635,297
Total LHC Group, Inc. stockholders' equity	1,557,970		1,528,770
Noncontrolling interest — non-redeemable	86,713		84,584
Total stockholders' equity	1,644,683		1,613,354
Total liabilities and stockholders' equity	$	2,522,854	$	2,483,354

LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data) (Unaudited)
	Three Months Ended March 31,
	2021		2020
Net service revenue	$	524,835	$	512,871
Cost of service revenue (excluding depreciation and amortization)	310,272		321,202
Gross margin	214,563		191,669
General and administrative expenses	163,249		157,866
Impairment of intangibles and other	177		—
Operating income	51,137		33,803
Interest expense	(263)		(2,768)
Income before income taxes and noncontrolling interest	50,874		31,035
Income tax expense	9,441		3,359
Net income	41,433		27,676
Less net income attributable to noncontrolling interests	6,774		5,652
Net income attributable to LHC Group, Inc.'s common stockholders	$	34,659	$	22,024
Earnings per share:
Basic	$	1.11	$	0.71
Diluted	$	1.10	$	0.70
Weighted average shares outstanding:
Basic	31,165		31,020
Diluted	31,432		31,303

LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited)
	Three Months Ended   March 31,
	2021		2020
Operating activities:
Net income	$	41,433	$	27,676
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	4,999		5,133
Amortization of operating lease right of use asset	8,918		8,512
Stock-based compensation expense	3,513		3,680
Deferred income taxes	7,717		4,367
Amortization of operating leases	—		(13)
Loss on disposal of assets	31		47
Impairment of intangibles and other	177		—
Changes in operating assets and liabilities, net of acquisitions:
Receivables	(28,805)		(67,470)
Prepaid expenses	(3,980)		(11,728)
Other assets	1,627		2,268
Prepaid income taxes	—		(4,537)
Accounts payable and accrued expenses	(2,894)		(11,159)
Salaries, wages, and benefits payable	20,451		24,826
Operating lease liabilities	(8,925)		(8,415)
Income taxes payable	1,119		2,298
Net amounts due to/from governmental entities	(575)		51
Net cash provided by (used in) operating activities	44,806		(24,464)
Investing activities:
Purchases of property, building and equipment	(4,849)		(13,502)
Proceeds from sale of property, building and equipment	45		1,149
Cash received (paid) for acquisitions	—		3,125
Proceeds from sale of entities	200		—
Net cash used in investing activities	(4,604)		(9,228)
Financing activities:
Proceeds from line of credit	—		188,728
Payments on line of credit	(20,000)		(143,657)
Proceeds from employee stock purchase plan	649		610
Noncontrolling interest distributions	(5,704)		(4,874)
Withholding taxes paid on stock-based compensation	(9,541)		(7,064)
Purchase of additional controlling interest	(142)		(23,575)
Exercise of vested awards and stock options	—		160
Sale of noncontrolling interest	284		—
Net cash provided by (used in) financing activities	(34,454)		10,328
Change in cash	5,748		(23,364)
Cash at beginning of period	286,569		31,672
Cash at end of period	$	292,317	$	8,308
Supplemental disclosures of cash flow information:
Interest paid	$	495	$	2,830
Income taxes paid	$	621	$	1,269
Non-Cash Operating Activity:
Operating right of use assets in exchange for lease obligations	$	11,748	$	9,041
Non-Cash Investing Activity:
Accrued capital expenditures	$	1,973	$	2,226

LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands) (Unaudited)
	Three Months Ended March 31, 2021
	Home health services		Hospice services		Home and community- based services		Facility- based services		HCI		Total
Net service revenue	$	373,828	$	62,734	$	49,125	$	33,369	$	5,779	$	524,835
Cost of service revenue	212,373		38,570		34,872		21,175		3,282		310,272
Gross margin	161,455		24,164		14,253		12,194		2,497		214,563
General and administrative expenses	119,397		18,127		11,529		11,257		2,939		163,249
Impairment of intangibles and other	177		—		—		—		—		177
Operating income (loss)	41,881		6,037		2,724		937		(442)		51,137
Interest expense	(182)		(36)		(24)		(14)		(7)		(263)
Income (loss) before income taxes and noncontrolling interest	41,699		6,001		2,700		923		(449)		50,874
Income tax expense (benefit)	7,890		1,067		518		57		(91)		9,441
Net income (loss)	33,809		4,934		2,182		866		(358)		41,433
Less net income (loss) attributable to non controlling interests	4,849		1,015		279		657		(26)		6,774
Net income (loss) attributable to LHC Group, Inc.'s common stockholder	$	28,960	$	3,919	$	1,903	$	209	$	(332)	$	34,659
Total assets	$	1,785,486	$	308,009	$	262,538	$	97,692	$	69,129	$	2,522,854
	Three Months Ended March 31, 2020
	Home health services		Hospice services		Home and community- based services		Facility- based services		HCI		Total
Net service revenue	$	367,821	$	60,531	$	48,464	$	29,681	$	6,374	$	512,871
Cost of service revenue	220,440		38,034		38,453		20,342		3,933		321,202
Gross margin	147,381		22,497		10,011		9,339		2,441		191,669
General and administrative expenses	116,023		16,626		11,459		10,380		3,378		157,866
Operating income (loss)	31,358		5,871		(1,448)		(1,041)		(937)		33,803
Interest expense	(1,900)		(303)		(266)		(219)		(80)		(2,768)
Income (loss) before income taxes and noncontrolling interest	29,458		5,568		(1,714)		(1,260)		(1,017)		31,035
Income tax expense (benefit)	3,289		608		(206)		(199)		(133)		3,359
Net income (loss)	26,169		4,960		(1,508)		(1,061)		(884)		27,676
Less net income (loss) attributable to non controlling interests	4,606		967		(155)		243		(9)		5,652
Net income (loss) attributable to LHC Group, Inc.'s common stockholder	$	21,563	$	3,993	$	(1,353)	$	(1,304)	$	(875)	$	22,024
Total assets	$	1,548,224	$	251,354	$	252,846	$	90,791	$	69,067	$	2,212,282

LHC GROUP, INC. AND SUBSIDIARIES SELECT CONSOLIDATED KEY STATIISTICAL AND FINANCIAL DATA (Unaudited)
	Three Months Ended March 31,
Key Data:	2021			2020
Home Health Services:
Locations	531			556
Acquired	—			6
De novo	—			—
Divested/consolidated	(3)			(3)
Total new admissions	107,922			108,182
Medicare new admissions	54,413			59,880
Average daily census	83,938			76,978
Average Medicare daily census	45,237			46,093
Medicare completed and billed episodes	84,610			90,227
Average Medicare case mix for completed and billed Medicare episodes	1.01			1.06
Average reimbursement per completed and billed Medicare episodes	$	2,862		$	2,797
Total visits	2,057,632			2,135,791
Total Medicare visits	1,061,978			1,236,711
Average visits per Medicare episodes	12.6			13.7
Organic growth: (1)(2)
Net revenue	3.1		%	(2.5)		%
Net Medicare revenue	(3.1)		%	(6.3)		%
Total new admissions	(0.4)		%	7.1		%
Medicare new admissions	(9.0)		%	(2.4)		%
Average daily census	10.1		%	(1.5)		%
Average Medicare daily census	(0.8)		%	(9.4)		%
Medicare completed and billed episodes	(4.7)		%	(3.3)		%
Hospice Services:
Locations	120			112
Acquired	—			3
De novo	1			—
Divested/Consolidated	—			(1)
Admissions	5,577			5,060
Average daily census	4,457			4,290
Patient days	401,119			390,369
Average revenue per patient day	$	160.21		$	154.13
Organic growth: (1)(2)
Total new admissions	7.6		%	0.2		%
Home and Community-Based Services:
Locations (3)	129			111
Acquired	—			4
De novo	4			—
Divested/Consolidated	—			—
Average daily census	13,711			14,384
Billable hours	1,901,281			1,985,600
Revenue per billable hour	$	26.04		$	25.34
Facility-Based Services:
Long-term Acute Care
Locations	12			13
Acquired	—			—
Divested/Consolidated	—			—
Patient days	21,160			20,161
Average revenue per patient day	$	1,518		$	1,355
Average Daily Census	235			222

(1)	Organic growth is calculated as the sum of same store plus de novo for the period divided by total from the same period in the prior year.
(2)	The number of locations for HCBS has been updated to not only include the physical standalone locations but also the locations that are part of a home health provider.

RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. (Amounts in thousands) (Unaudited)
	Three Months Ended  March 31,
	2021		2020
Net income attributable to LHC Group, Inc.'s common stockholders	$	34,659	$	22,024
Add (net of tax):
Acquisition and de novo expenses (1)	—		1,106
Closures/relocations/consolidations (2)	131		343
COVID-19 impact:
PPE, supplies and wages (3)	8,852		2,108
CARES Act tax benefit (4)	—		(2,210)
Adjusted net income attributable to LHC Group, Inc.'s common stockholders	$	43,642	$	23,371

RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE (Amounts in thousands) (Unaudited)
	Three Months Ended  March 31,
	2021		2020
Net income attributable to LHC Group, Inc.'s common stockholders	$	1.10	$	0.70
Add (net of tax):
Acquisition and de novo expenses (1)	—		0.04
Closures/relocations/consolidations (2)	0.01		0.01
COVID-19 impact:
PPE, supplies and wages (3)	0.28		0.07
CARES Act tax benefit (4)			(0.07)
Adjusted net income attributable to LHC Group, Inc.'s common stockholders	$	1.39	$	0.75

1.	Expenses and other costs associated with recently announced or completed acquisitions and de novos. ($1.5 million pre-tax in the three months ended March 31, 2020).
2.	Expenses associated with the impairment on a closed home health location which occurred in the first quarter of 2021 and the closure or consolidation of 4 locations in the first quarter of 2020 along with residual costs and expenses in connection with the closures in the fourth quarter of 2019 ($0.2 million pre-tax in the three months ended March 31, 2021 and $0.5 million pre-tax in the three months ended March 31, 2020).
3.	COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies and wage adjustments ($12.0 million pre-tax in the three months ended March 31, 2021; $2.9 million pre-tax in the three months ended March 31, 2020).
4.	Tax benefit related to new legislation in the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") which lifts certain tax deduction limitations and eliminates 80% of taxable income limitations for Net Operating Losses ("NOL"), which we are now able to fully utilize NOLs associated with Almost Family prior to the merger.

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (Amounts in thousands) (Unaudited)
	Three Months Ended
	2021		2020
Net income attributable to LHC Group, Inc.'s common stockholders	$	34,659	$	22,024
Add:
Income tax expense	9,441		3,359
Interest expense, net	263		2,768
Depreciation and amortization	4,999		5,133
Adjustment items (1)	12,167		4,856
Adjusted EBITDA	$	61,529	$	38,140
1. EBITDA Adjustment items (pre-tax):
Acquisition and de novo expenses (1)	—		1,510
Closures/relocations/consolidations (2)	177		468
COVID-19 PPE, supplies and wages (3)	11,990		2,878
Total adjustments	$	12,167	$	4,856

Contact:
Eric Elliott
Senior Vice President of Finance
(337) 233-1307
eric.elliott@lhcgroup.com

EX-99.2

Supplemental Financial Information First Quarter Ended March 31, 2021 May 5, 2021 Exhibit 99.2

Forward-Looking Statements This presentation contains “forward-looking statements” (as defined in the Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of the Company.  Words such as “anticipate,” “expect,” “project,” “intend,” “believe,” “will,” “estimate,” “may,” “could,” “should,” “outlook,” and “guidance” and words and terms of similar substance used in connection with any discussion of future plans, actions, events or results identify forward-looking statements.   Forward-looking statements are based on information currently available to the Company and involve estimates, expectations and projections. Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including, but not limited to, the risks and uncertainties related to the COVID-19 pandemic and those otherwise described in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Many of these risks, uncertainties and assumptions are beyond the Company’s ability to control or predict. Because of these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements. Non-GAAP Financial Information   This presentation includes certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including EBITDA and Adjusted EBITDA. The company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items. The company presents these financial measures to investors because they believe they are useful to investors in evaluating the primary factors that drive the company's operating performance. The items excluded from these non-GAAP measures are important in understanding LHC Group’s financial performance, and any non-GAAP measures presented should not be considered in isolation of, or as an alternative to, GAAP financial measures. Since these non-GAAP financial measures are not measures determined in accordance with GAAP, have no standardized meaning prescribed by GAAP and are susceptible to varying calculations, these measures, as presented, may not be comparable to other similarly titled measures of other companies.  EBITDA of LHC Group is defined as net income (loss) before income tax benefit (expense), interest expense, and depreciation and amortization expense. Adjusted EBITDA of LHC Group is defined as net income (loss) before income tax expense benefit (expense), depreciation and amortization expense, and transaction costs related to previous transactions. 2 Please visit the Investors section on our website at Investor.LHCgroup.com for additional information on LHC Group and the industry. Nasdaq: LHCG

Table of Contents 3 Overview & Policy Tailwinds 4 - 8 Differentiated Strategies 9 - 16 First Quarter Consolidated Results Segment Results Guidance, Liquidity & Outlook Appendix LHC Group Overview Commentary on Q1 2021 At Home Care Policy Tailwinds Differentiated Strategy Leading to Quality Growth Multiple Organic and Inorganic Growth Levers Building Blocks of Long-Term Earnings Growth Recruiting and Retention Sequential Operational Trends Continue to Improve Home Health and Hospice Growth Industry-Leading Quality and Patient Satisfaction 17 - 20 2021 Adjusted Consolidated Results Adjusted Consolidated Results – 2021 vs 2020 Adjustments to Net Income 21 - 28 Three Months Ended March 31, 2021 Home Health Home Health Revenue Factors Hospice Home and Community Based Services Facility-Based Services Healthcare Innovations 29 - 32 Full Year 2021 Guidance Debt and Liquidity Metrics Focus for 2021 33 - 35 Non-GAAP Reconciliations

4 Overview & Policy Tailwinds

Home Health Hospice HCBS Home Health & Hospice Home Health & HCBS Home Health, Hospice, & HCBS LHC Group Overview 5 531 home health locations 60% Of U.S. population aged 65+ included in service area 120 hospice locations 129 home & community based services locations 12 Long term acute care hospitals locations 37 other service locations 829 total locations 400 leading hospital JV partners 35 states and District of Columbia

Organic growth in admissions for home health locations decreased -0.4% for the quarter compared to the same period in 2020 with 5.9% same store sequential growth over the fourth quarter of 2020. Our non-Medicare episodic same store admissions increased 22.6% in Q1 as compared to Q1 in 2020 with 25.1% same store sequential growth over the fourth quarter of 2020. The majority of this growth is from episodic contracts that pay Medicare rates. Organic growth in admissions for hospice increased 7.6% for the quarter compared to the same period in 2020 with 1.3% same store sequential growth over the fourth quarter of 2020. Momentum from new physician referral sources continues with 5,280 new home health referral sources added in the first quarter which is a 34.8% increase over the first quarter of 2020. Home Health average daily census of 83,938 in Q1 2021 was 9.0% higher than 76,978 in Q1 2020. Hospice average daily census of 4,457 in Q1 2021 was 3.9% higher than 4,290 in Q1 2020. Adjusted net income attributable to LHC Group’s common stockholders increased 86.7% to $43.6 million, or $1.39 adjusted earnings per diluted share, in Q1 2021 as compared to $23.4 million, or $0.75 adjusted earnings per diluted share in Q1 2020. Adjusted EBITDA increased 61.3% to $61.5 million in Q1 2021 compared to $38.1 million in Q1 2020. Our confidence remains high in our PDGM execution as we continue to improve on our revenue per episode sequentially and the execution of sustainable cost initiatives. Commentary on Q1 2021 6

On April 14, President Biden signed into law a bill extending relief through year end for the home health, hospice and other health care sectors from the statutory Medicare 2% sequestration provider payment cut. On April 20, Sec. of Health and Human Services Becerra signed an Administrative Order extending the declaration of the Public Health Emergency for an additional 90 days through July 20th thereby extending significant flexibilities for the provision of home health services previously afforded administratively. Flexibilities include a temporary waiver of the home health Medicare homebound requirement, telehealth and remote patient certification flexibilities. Extends the suspension of site neutral payment for LTCHs. The Biden administration continues to promote the expansion of home health services, including HCBS services, as a portion of its infrastructure proposal known currently as the American Jobs Plan. This plan includes a proposal to expand HCBS and related services with an outlay of $400 billion over 10 years. The HCBS Access Act proposed by Sens. Hassan, Brown and Casey and Congresswoman Dingell proposes to create an entitlement of HCBS and eliminate the need for state waivers. On April 16, Senators Hassan, Brown, and Casey and Congresswoman Dingell circulated a draft, called the HCBS Access Act, of a proposal to create a new, mandatory entitlement under the Social Security Act for HCBS services. This proposed legislation, among other things, increases the FMAP for HCBS services to 100%, nationalizes a presumption for patients in favor of in-home care as opposed to institutional care and eventually eliminates state Medicaid waivers/State Plans in favor of a new national program. Relatedly, these members of Congress solicited formal comment on the legislation indicating a component of their consideration will be methods to increase payment for providers of HCBS community-based services and a plan to address workforce and minimum wage issues. At Home Care Policy Tailwinds 7

Senator Casey introduced legislation known as the PACE Plus Act significantly expanding Programs for All-Inclusive Care for the Elderly (PACE), a Medicare and Medicaid program that helps keep people in their homes and communities instead of nursing homes. Congress has previously acknowledged the value of this program and urged CMS to “move forward expeditiously” to expand this program. On April 22, a bipartisan group of Senators introduced the new version of the Home Health Emergency Access to Telehealth (HEAT) Act that would give CMS the authority to issue a waiver allowing for telehealth visits to count towards in-person visits as included on the plan of care only during a PHE. The HEAT Act, which seeks to provide reimbursement for telehealth visits, was originally introduced in both the House and Senate in October 2020. Several states in which we operate enacted legislation in Q1 to operationalize recently passed federal legislation enabling nurse practitioners to certify Medicare home health services. Proposed FY22 regulations for Hospice and LTCHs have recently been released. The Hospice rule includes an increase to the MBI of 2.3% with some significant changes to the quality of care measures, and inclusion of recent legislation affecting program integrity issues. CMS expects LTACH-PPS payments to increase by 1.4%.  LTACH-PPS payments for fiscal year 2022 for discharges paid using the standard LTACH payment rate is expected to increase by 1.2% due primarily to the annual standard Federal rate update for fiscal year 2022 of 2.2% and a projected 0.8% decrease in high cost outlier payments.  LTACH-PPS payments for fiscal year 2022 for discharges paid the site neutral payment rate is expected to increase by 3%.  At Home Care Policy Tailwinds continued 8

9 Differentiated Strategies

Joint ventures drive organic growth and margin improvement Same store growth for JV locations averaged 200 basis points higher than non-JV locations for the years 2016-2019. Revenue growth rate for JVs average 10% to 15% in year 2 and 3. Margins for JV locations average 100 to 200 basis points higher than non-JV locations. Continued focus on growth in episodic admissions and rate improvement on non-Medicare admissions Non-Medicare episodic admissions grew by 32.7% in 2020 compared to 2019; and by 20.6% in Q1 2021 as compared to Q1 2020. Improved rate-per-visit by 8% in 2020 over 2019 and 12% over the last three years; and by 3.7% in Q1 2021 as compared to Q1 2020. Continued focus on quality and patient satisfaction to drive higher referrals Increased new home health physician referral sources by 22% in 2020 over 2019; and by 34.8% in Q1 2021 as compared to Q1 2020. Untapped growth in home health and hospice co-locations remains top priority 81 hospice locations co-located with home health out of 120 total hospice locations, or 68%. Up from 77 locations in 2020, 63 locations in 2019 and 58 locations in 2018. Currently averaging 15% to 16% of home health census that gets discharged to hospice. Continue with strategic rollout strategy for HCBS 55 HCBS locations co-located with home health out of 129 total HCBS locations, or 43%. Grow HCBS in markets with value-based arrangements with JV partners and payors. Differentiated Strategy Leading to Quality Growth 10

Multiple Organic and Inorganic Growth Levers Organic Growth Acquisition Growth Upside Opportunities Move to taking risk on total cost of HH from MA plans and health systems Grow Imperium ACOs and extend proven record of managing post-acute network building Create high performing post-acute networks for ACO partners and increase utilization of LHC platform Extend use of data analytics to gain insight on cost of post-acute care Core Market Growth Market Share Gains JVs with Hospital and Health Systems New Acquisitions Value Based Strategy New acquisitions in home health, hospice and home and community based care Expand geographic reach in untapped markets Capitalize on highly fragmented provider base with historic consolidation opportunity Top 5 providers account for only ~21% of home health market Only in-home healthcare provider with track record of JV’s Expand into new markets along with partners’ footprint Leverage value proposition and unmatched national scale to pursue strong pipeline of new JV partners nationwide COVID-19 experience is real-time value demonstration Industry leadership in quality and accreditation driving unique physician referral growth Smaller operators are capital constrained Drive untapped growth in personal care and hospice businesses across expanded geographic footprint Supportive recent payment reform Near to medium-term reimbursement a known quantity In demand from referral sources, partners & patients Home health a net beneficiary of value-based purchasing 1 2 3 4 5 11

Building Blocks of Long-Term Earnings Growth Developing alternative reimbursement models (PMPM; Case Rate; episodic) with regional and national payors, demonstrating continued progression beyond fee-for-service and per visit relationships Revising contracts and developing processes with major payors to optimize administrative efficiencies Leveraging participation with JV and non-JV ACO’s to capture increasing share of HH eligible admissions 10% share today Value based awards with annual run-rate of $14M Core Market Growth Market Share Gains JVs with Hospital and Health Systems New Acquisitions Value Based Strategy Pursue new acquisitions in home health, hospice and HCBS Acquired $369.6M in annual revenue 2017-2020 excluding AFAM. These acquisitions currently pacing to $424.0M in annual revenue Target $150 to $200 million in acquired annual revenue per year Current M&A pipeline = $502.5M 28% Home Health 71% Hospice 1% HCBS 22% of Home Health is JV Acquire revenue with JV’s $65M-$70M/year on average (2017-2020) Target corporate EBITDA profile within 12-18 months Organic admission growth typically outperforms wholly owned locations by 100 to 200 bps Drive untapped growth in HH, hospice and HSBC locations Avg HH agency = $2-$3M annual revenue Avg hospice agency = $2-3M annual revenue HH/hospice co-location = $400,000 - $500,000 incremental annual revenue per hospice location 68% of HH/hospice co-locations Drive organic growth as lowest cost of incremental revenue and margin HH organic admission growth target of 8-10% Hospice organic admission growth target of 8-10% 1 2 3 4 5 12 Organic Growth Acquisition Growth Upside Opportunities

Recruiting and Retention 13 We continue to see positive trends in recruiting and retention. We have two consecutive quarters in which we have hired a record number of employees while our turnover has continued to decrease. Our headcount statistics are a direct correlation and validation to our company’s continued census growth and focus on patient satisfaction and quality. Voluntary Turnover for full time employees company wide in the first quarter of 2021: 14.1%   Voluntary Turnover for full time clinical staff in Home Health and Hospice in the first quarter of 2021: 15.9% Recruiting/Hiring Trend

Sequential Operational Trends Continue to Improve 14 Home Health, Hospice and HCBS Trends

15 Home Health and Hospice Growth Same Store Organic Admission Growth over Prior-Year Periods Sequential Same Store Organic Admission Growth New Physician Home Health Referral Sources

Industry-Leading Quality and Patient Satisfaction 85% of LHC Group same-store providers have CMS 4 stars or greater for quality 16 100% of LHC Group home health and hospice agencies are Joint Commission accredited or are in the accreditation process within 12 to 18 months after acquisition. Approximately 15% of all Medicare certified home health agencies nationwide are Joint Commission accreditation. 90% of LHC Group same-store providers have CMS 4 stars or greater for patient satisfaction (1) Please note that the October 2020 refresh of the quality and patient satisfaction star ratings is the last scheduled refresh of this data by CMS until January 2022.  

17 First Quarter Consolidated Results

2021 Adjusted Consolidated Results 18

Adjusted Consolidated Results – 2021 vs 2020 19

Adjustments to Net Income 20

21 Segment Results

Three Months Ended March 31, 2021 Adjusted Segment Results 22

23 Home Health Segment Adjusted Segment Results – 2021 vs 2020 For the three months ended March 31, 2021, consolidated Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased $15.8 million and improved 410 basis points as a percentage of revenue as compared to Q1 2020. The increase is due to a 9% increase in patient average daily census in Q1 2021 as compared to Q1 2020, a 2.3% improvement in Medicare revenue per episode along with an improvement in cost of service. Revenue from sequestration suspension in the first quarter of 2021 was $4.9 million.

24 Home Health Revenue Factors The first 30-day period in an episode is referred to as P1 or Period 1. All other subsequent 30-day periods are referred to as P2. P1 is considered an early episode and receives a higher payment than a P2. * April is an estimate

25 Hospice Segment Adjusted Segment Results – 2021 vs 2020 For the three months ended March 31, 2021, consolidated EBITDA increased $0.6 million and improved 60 basis points as a percentage of revenue as compared to Q1 2020. The increase is due to a 3.9% increase in patient average daily census in Q1 2021 as compared to Q1 2020, a 3.9% improvement in revenue per patient day along with an improvement in cost of service. Revenue from sequestration suspension in the first quarter of 2021 was $1.2 million.

26 Home and Community Based Services Segment Adjusted Segment Results – 2021 vs 2020 For the three months ended March 31, 2021, consolidated EBITDA increased $4.0 million and improved 810 basis points as a percentage of revenue as compared to Q1 2020. The increase is due to $2.4 million in improved collections in addition to an increase in contract rates.

Facility-Based Services Segment Adjusted Segment Results – 2021 vs 2020 27 For the three months ended March 31, 2021, consolidated EBITDA increased $2.5 million and improved 720 basis points as a percentage of revenue as compared to Q1 2020. The increase is due to a 6.1% increase in patient average daily census in Q1 2021 as compared to Q1 2020, a 12.0% improvement in revenue per patient day due to the Public Health Emergency. Revenue from sequestration suspension in the first quarter of 2021 was $0.3 million.

Home Care Innovations Segment Adjusted Segment Results – 2021 vs 2020 28 For the three months ended March 31, 2021, consolidated EBITDA increased $0.6 million and improved 860 basis points as a percentage of revenue as compared to Q1 2020. The increase is due to effective cost management strategies within the four business lines that make up the HCI segment.

29 Guidance, Liquidity & Outlook

Assumptions Guidance updated for sequestration suspension extension to December 31, 2021, and extension of the Public Health Emergency through July 20, 2021. Estimated effective tax rate of 26.0% to 26.5% for full year 2021. 8% to 10% organic growth in home health admissions for the year. 8% to 10% organic growth in hospice admissions for the year. Increase in Home Health Medicare revenue rates by 1.7%, or $16 million, and 2.4%, or $5 million, for Hospice Medicare rates Gross margin as a percent of revenue range 42.0% to 43.0%. General and administrative expense as a percent of revenue range 29.0% to 30.0%. Fully diluted shares of 31.6 million. We are estimating COVID-19 related cost in 2021 to be in the range of $20 to $25 million, which is down from $53 million in 2020 and not included in our FY 2021 guidance. Full Year 2021 Guidance 30

Debt and Liquidity Metrics 31

Focus for 2021 32 Maintain disciplined capital allocation with new joint ventures and other M&A activity. Accelerate unlocking the potential of our co-location and tri-location strategies. Maintain proactive posture to COVID-19 pandemic response. Continue to be a leader in the industry in quality and patient satisfaction scores. Capture market share gains and incremental contributions from recent joint ventures, other acquisitions and consolidation. Continue our focus as an industry leader in key areas around employee recruitment and retention including vacancy rate and voluntary turnover.

33 Appendix

Non-GAAP Reconciliations (Amounts in thousands, unaudited) 34 Footnotes are on page 23

Non-GAAP Reconciliations (Amounts in thousands, unaudited) 35 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)

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Cover	May 05, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 05, 2021
Entity File Number	001-33989
Entity Registrant Name	LHC GROUP, INC.
Entity Central Index Key	0001303313
Entity Tax Identification Number	71-0918189
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	901 Hugh Wallis Road South
Entity Address, City or Town	Lafayette
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	70508
City Area Code	337
Local Phone Number	233-1307
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	LHCG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false