LHC Group alters 2010 guidance due to reduction in Medicare reimbursement

LHC Group, Inc. (Nasdaq:LHCG), a national provider of home health and hospice services, announced today that the Company is adjusting its full year earnings per share outlook for 2010 solely due to the 4.89% reduction to Medicare reimbursement that was outlined in the Centers for Medicare & Medicaid Services (CMS) Home Health Prospective Payment System (PPS) Rate Update for Calendar Year 2011, which was released on November 3, 2010, following the Company's third quarter earnings call.

Although CMS has not issued definitive guidance, based on past experience, the Company believes that any episode that ends on or after January 1, 2011 (including admissions on or after November 3, 2010), may be reimbursed using the new 2011 rates. Assuming the 2011 rate cut will impact episodes starting in the fourth quarter of 2010 and ending in 2011, the Company is adjusting guidance of fully diluted earnings per share for full year 2010 from the range of $2.75 to $2.85 to $2.65 to 2.75.  The Company is reaffirming full year 2010 net service revenue in the range of $625 million to $635 million.  This guidance does not take into account the impact of any future acquisitions or share repurchases, if made, or de novo locations, if opened.