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 8, 2019  

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 Number)

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)

(Former name or former address, if changed since last report)

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 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. [   ]

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

Item 2.02. Results of Operations and Financial Condition.

On May 8, 2019, the Company issued a press release announcing its financial results for the first quarter ended March 31, 2019. 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 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished with this Current Report on Form 8-K:

EXHIBIT NO.	DESCRIPTION
99.1	Press Release, dated May 8, 2019, announcing the Company’s financial results for the first quarter ended March 31, 2019.
99.2	First Quarter 2019 Supplemental Financial Information

SIGNATURE

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 8, 2019	By:	/s/ JOSHUA L. PROFFITT
		Joshua L. Proffitt
		Chief Financial Officer

EX-99.1 2 exh_991.htm PRESS RELEASE

EXHIBIT 99.1

LHC Group Announces First Quarter 2019 Financial Results

Increases 2019 Guidance; Maintains Active M&A Pipeline

LAFAYETTE, La., May 08, 2019 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended March 31, 2019. Unless otherwise noted, all results for the first quarter ended March 31, 2019 are compared with the first quarter ended March 31, 2018.

First Quarter of 2019 Financial Results – Strong Start to the Year

• Net service revenue increased 72.7% to $502.6 million.
• Net income attributable to LHC Group’s common stockholders increased 277.5% to $18.9 million. Earnings per diluted share attributable to LHC Group’s common stockholders increased 114.3% to $0.60 which includes a 72.9% increase in weighted average diluted shares outstanding and the effect of costs and expenses described within the adjusted results below.
• Adjusted net income attributable to LHC Group’s common stockholders increased 171.5% to $30.7 million. Adjusted earnings per diluted share attributable to LHC Group’s common stockholders increased 55.6% to $0.98.
• Adjusted results for the first quarter of 2019 exclude transaction and other transition related costs, expenses related to certain closures and relocations and a license change related impairment in the aggregate amount of $11.8 million after tax, or $0.38 per diluted share.
• Total growth in home health admissions was 76.3%; organic growth was 5.7%.
• Total growth in home health revenue was 77.4%; organic growth was 7.0%.
• Total growth in hospice admissions was 13.1%; organic growth was 6.2%.
  
  A reconciliation of all non-GAAP financial results in this release appears on page 10.

Operational and Strategic Highlights

• LHC Group quality and patient satisfaction scores continue to exceed the national average with 99% of its same store locations having CMS Quality Star ratings of four stars or greater when excluding recent acquisitions.
• LHC Group realized a total of approximately $7.4 million in pre-tax synergies in the first quarter from its acquisition of Almost Family, which brings the cumulative amount to $21.6 million.
• During the first quarter and to date in the second quarter, LHC Group also acquired or agreed to acquire 18 home health, hospice or home and community based services locations, all of which, are hospital joint ventures. These acquisitions represent approximately $44.0 million in annualized revenue.

Commenting on the results, Keith G. Myers, LHC Group’s Chairman and Chief Executive Officer, said, “We remain at the forefront of value-based initiatives to deliver better care, better outcomes and better value for patients and payors. As a clinically driven company, we have a long track record of tightly controlling non-patient expenses that enables us to reinvest in our people, technology and education. This commitment to reinvesting in those directly responsible for care has led to industry leading quality and patient satisfaction, long tenured and highly qualified clinicians and leaders and the lowest turnover in our history.

“We have outlined a number of growth opportunities for the next several years that build on our leadership position, expand our national in-home healthcare platform and enhance our relationships with hospitals and health systems as well as managed care providers. Early results in 2019 demonstrate strong progress on each one of our growth priorities and the increasing recognition that LHC Group is creating a model for the future in healthcare.”

Joint Venture Strategy – Accelerating Momentum after Record Year in 2018

On January 31, 2019, LHC Group and Unity Health finalized an equity partnership agreement to purchase and share ownership of two home health providers in Arkansas: Unity Health – White County Medical Center Home Health in Searcy and Unity Health – Harris Medical Center Home Health in Newport. These agencies, which serve their local communities and the Northeast Arkansas region, represent annualized revenue of approximately $4.0 million.

On February 26, 2019, LHC Group and Geisinger Home Health and Hospice, and AtlantiCare Home Health and Hospice entered into a definitive agreement for a joint venture partnership to enhance home health and hospice services at Geisinger locations in Pennsylvania and at AtlantiCare – a Member of Geisinger in Atlantic County, New Jersey. The joint venture for the Pennsylvania locations was completed on April 1, and the joint venture for the New Jersey locations, subject to customary closing conditions, is expected to close by June 1. These agencies, which serve their local communities in the states of Pennsylvania and New Jersey, represent annualized revenue of approximately $35.0 million.

On May 2, 2019, LHC Group and Capital Regional Medical Center (CRMC) entered into a definitive agreement for a joint venture to purchase from SSM Health the assets of three home health and hospice locations in Jefferson City and Mexico, Missouri. The purchase agreement is expected to be completed by June 1, subject to customary closing conditions, at which time the partnership will assume management responsibility. These agencies, which serve their local communities in the state of Missouri, represent annualized revenue of approximately $5.0 million.

Full Year 2019 Guidance Increased – 21.1% Year-over-Year Adjusted Earnings Growth at the Midpoint is Expected to be Fueled by Strong Organic Growth and Acquisition Accretion

Based on strong organic growth, a lower estimated effective tax rate, and an intense focus on achieving non-patient care cost efficiencies and growth synergies, the Company increased its guidance for full year 2019 of net service revenue to a range of $2.09 billion to $2.14 billion from a range of $2.08 billion to $2.13 billion; increased adjusted earnings per diluted share to a range of $4.25 to $4.35 from $4.15 to $4.25; and increased Adjusted EBITDA, less non-controlling interest, to a range of $214 million to $220 million from $212 million to $218 million. The guidance assumes the following:

• The Company expects to achieve a total of $12 million to $17 million in pre-tax cost synergies in 2019 in connection with the Almost Family transaction, of which $7.4 million have been realized in the first quarter. The 2019 synergies would bring the total run-rate cost synergies by the second half of 2019 to a range of $25 million to $30 million; 
• An estimated effective tax rate of 27.5% to 28.5%; and
• Weighted average diluted shares of approximately 31.3 million for the full year of 2019.

The Company’s guidance ranges do not take into account the impact of future reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, location closures, if any, or future legal expenses, if necessary. The adjusted earnings guidance for 2019 is presented on a non-GAAP basis, as it does not include the impact of transaction related costs, integration related expenses or other expenses related to the acquisition of Almost Family or other acquisitions. Given the difficulty in predicting the future amount and timing of these expenses, the Company cannot reasonably provide a full reconciliation of its fiscal year 2019 adjusted earnings per share guidance to GAAP earnings per share.

Conference Call

LHC Group will host a conference call on Thursday, May 9, 2019, at 9:00 a.m. Eastern time to discuss its first quarter 2019 results. The toll-free number to call for this interactive teleconference is (866) 393‑1608 (international callers: (973) 890-8327). A telephonic replay of the conference call will be available through midnight on May 16, 2019, by dialing (855) 859‑2056 (international callers: (404) 537-3406) and entering confirmation number 4068459. The Company 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, providing quality, value-based healthcare to patients primarily within the comfort and privacy of their home or place of residence. LHC Group’s services cover a wide range of healthcare needs for patients and families dealing with illness, injury, or chronic conditions. The company’s 32,000 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. LHC Group is the preferred in-home healthcare partner for 350 leading hospitals around the country.

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 2019 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)
	March 31, 2019			December 31, 2018
	(Unaudited)
ASSETS
Current assets:
Cash	$	38,520		$	49,363
Receivables:
Patient accounts receivable	268,559			252,592
Other receivables	5,517			6,658
Amounts due from governmental entities	1,010			830
Total receivables	275,086			260,080
Prepaid income taxes	7,690			11,788
Prepaid expenses	25,604			24,775
Other current assets	19,422			20,899
Total current assets	366,322			366,905
Property, building and equipment, net of accumulated depreciation of $58,932 and $55,253, respectively	83,040			79,563
Goodwill	1,164,999			1,161,717
Intangible assets, net of accumulated amortization of $15,549 and $15,176, respectively	291,954			297,379
Assets held for sale	2,500			2,850
Operating lease right of use asset	84,805			—
Other assets	20,237			20,301
Total assets	$	2,013,857		$	1,928,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	70,698		$	77,135
Salaries, wages, and benefits payable	102,500			84,254
Self-insurance reserves	31,899			32,776
Current operating lease liabilities	24,454			—
Current portion of long-term debt	—			7,773
Amounts due to governmental entities	4,475			4,174
Total current liabilities	234,026			206,112
Deferred income taxes	43,676			43,306
Income taxes payable	4,481			4,297
Revolving credit facility	239,000			235,000
Long term notes payable	—			930
Operating lease payable	61,985			—
Total liabilities	583,168			489,645
Noncontrolling interest — redeemable	15,060			14,596
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 in 2019 and 2018; 35,816,333 and 35,636,414 shares issued in 2019 and 2018, respectively	358			356
Treasury stock — 5,044,230 and 4,958,721shares at cost, respectively	(56,951		)	(49,374		)
Additional paid-in capital	940,135			937,968
Retained earnings	446,831			427,975
Total LHC Group, Inc. stockholders’ equity	1,330,373			1,316,925
Noncontrolling interest — non-redeemable	85,256			107,549
Total equity	1,415,629			1,424,474
Total liabilities and equity	$	2,013,857		$	1,928,715

LHC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
	Three Months Ended March 31,
	2019			2018
Net service revenue	$	502,585		$	291,054
Cost of service revenue	320,992			188,618
Gross margin	181,593			102,436
General and administrative expenses	145,221			92,031
Other intangible impairment charge	6,319			—
Operating income	30,053			10,405
Interest expense	(3,052		)	(1,450		)
Income before income taxes and noncontrolling interest	27,001			8,955
Income tax expense	3,600			977
Net income	23,401			7,978
Less net income attributable to noncontrolling interests	4,545			2,983
Net income attributable to LHC Group, Inc.’s common stockholders	$	18,856		$	4,995
Earnings per share attributable to LHC Group, Inc.’s common stockholders:
Basic	$	0.61		$	0.28
Diluted	$	0.60		$	0.28
Weighted average shares outstanding:
Basic	30,837			17,790
Diluted	31,187			18,039

LHC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, Unaudited)
	Three Months Ended March 31,
	2019			2018
Operating activities:
Net income	$	23,401		$	7,978
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	4,202			3,293
Amortization of operating lease right of use asset	7,399			—
Stock-based compensation expense	1,804			1,601
Deferred income taxes	1,578			(1,926		)
(Gain) loss on disposal of assets	56			(187		)
Impairment of intangibles and other	6,319			—
Changes in operating assets and liabilities, net of acquisitions:
Receivables	(16,284		)	(7,111		)
Prepaid expenses and other assets	470			3,881
Prepaid income taxes	1,883			2,458
Accounts payable and accrued expenses	471			24,859
Income taxes payable	184			—
Net amounts due to/from governmental entities	(55		)	(1,011		)
Net cash provided by operating activities	31,428			33,835
Investing activities:
Purchases of property, building and equipment	(2,801		)	(2,551		)
Cash payments for business combinations	(1,413		)	(2,770		)
Net cash used in investing activities	(4,214		)	(5,321		)
Financing activities:
Proceeds from line of credit	17,000			13,000
Payments on line of credit	(13,000		)	(32,000		)
Proceeds from employee stock purchase plan	478			332
Payments on debt	(7,650		)	(64		)
Noncontrolling interest distributions	(9,194		)	(3,086		)
Withholding taxes paid on stock-based compensation	(7,577		)	(3,467		)
Purchase of additional controlling interest	(18,000		)	(55		)
Proceeds from exercise of options	(114		)	—
Sale of noncontrolling interest	—			3,322
Net cash provided by (used in) financing activities	(38,057		)	(22,018		)
Change in cash	(10,843		)	6,496
Cash at beginning of period	49,363			2,849
Cash at end of period	$	38,520		$	9,345
Supplemental disclosures of cash flow information:
Interest paid	$	2,855		$	1,397
Income taxes paid	$	318		$	792

Non-cash operating activity: The Company recorded $91.2 million in operating lease right of use assets in exchange for lease obligations.

Non-cash financing activity: The Company accrued $4.6 million for capital expenditures primarily related to the home office expansion project during the three months ended March 31, 2019.

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in thousands, Unaudited)
	Three Months Ended March 31, 2019
	Home health services			Hospice services			Home and community- based services			Facility- based services			HCI			Total
Net service revenue	$	363,035		$	51,736		$	51,785		$	27,701		$	8,328		$	502,585
Cost of service revenue	226,123			33,176			39,855			17,732			4,106			320,992
General and administrative expenses	104,839			14,853			10,982			9,177			5,370			145,221
Other intangible impairment charge	6,318			1			—			—			—			6,319
Operating income (loss)	25,755			3,706			948			792			(1,148		)	30,053
Interest expense	(2,138		)	(343		)	(301		)	(180		)	(90		)	(3,052		)
Income (loss) before income taxes and noncontrolling interest	23,617			3,363			647			612			(1,238		)	27,001
Income tax expense (benefit)	3,208			446			151			5			(210		)	3,600
Net income (loss)	20,409			2,917			496			607			(1,028		)	23,401
Less net income (loss) attributable to noncontrolling interests	3,780			601			(310		)	481			(7		)	4,545
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	16,629		$	2,316		$	806		$	126		$	(1,021	)	$	18,856
Total assets	$	1,421,000		$	220,347		$	226,991		$	79,257		$	66,262		$	2,013,857

	Three Months Ended March 31, 2018
	Home health services			Hospice services			Home and community- based services			Facility- based services			HCI		Total
Net service revenue	$	204,187		$	42,626		$	14,091		$	30,150		$	—	$	291,054
Cost of service revenue	130,161			28,018			10,790			19,649			—		188,618
General and administrative expenses	66,289			13,298			3,298			9,146			—		92,031
Operating income	7,737			1,310			3			1,355			—		10,405
Interest expense	(1,088		)	(218		)	(72		)	(72		)	—		(1,450		)
Income (loss) before income taxes and noncontrolling interest	6,649			1,092			(69		)	1,283			—		8,955
Income tax expense	722			111			(15		)	159			—		977
Net income (loss)	5,927			981			(54		)	1,124			—		7,978
Less net income attributable to noncontrolling interests	2,236			417			21			309			—		2,983
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	3,691		$	564		$	(75	)	$	815		$	—	$	4,995
Total assets	$	530,197		$	157,338		$	47,819		$	69,969		$	—	$	805,323

LHC GROUP, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA
(Unaudited)
	Three Months Ended
	March 31,
		2019			2018
Key Data:
Home-Health Services:
Locations		540			319
Acquired		3			1
De novo		–			–
Divested/Consolidated		(6	)		(1	)
Total new admissions		93,674			53,123
Medicare new admissions		57,456			33,028
Average daily census		75,675			45,156
Average Medicare daily census		49,411			30,362
Medicare completed and billed episodes		90,971			54,320
Average Medicare case mix for completed and billed Medicare episodes		1.08			1.09
Average reimbursement per completed and billed Medicare episodes	$	3,038		$	2,811
Total visits		2,521,009			1,495,118
Total Medicare visits		1,666,907			1,009,425
Average visits per completed and billed Medicare episodes		18.3			18.6
Organic growth:(1)
Net revenue		7.0	%		9.0	%
Net Medicare revenue		1.7	%		4.8	%
Total new admissions		5.7	%		6.7	%
Medicare new admissions		0.2	%		4.3	%
Average daily census		3.6	%		3.4	%
Average Medicare daily census		-1.8	%		-0.6	%
Medicare completed and billed episodes		-0.7	%		-0.2	%
Home and Community-Based Services:
Locations		80			16
Acquired		–			–
De novo		–			4
Divested/Consolidated		(1	)		–
Average daily census		14,692			2,102
Billable hours		2,271,894			478,952
Revenue per billable hour	$	23.43		$	29.87
Hospice-Based Services:
Locations		103			91
Acquired		–			–
De novo		–			–
Divested/Consolidated		(1	)		–
Admissions		4,587			4,054
Average daily census		3,752			3,144
Patient days		337,649			282,993
Average revenue per patient day	$	156.51		$	153.25
Facility-Based Services:
Long-term Acute Care
Locations		12			14
Acquired		–			–
Divested/Consolidated		–			–
Patient days		19,636			22,560
Average revenue per patient day	$	1,287		$	1,248
Occupancy rate		70.4	%		80.9	%
(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.

LHC GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF REVENUE AFTER ADOPTION OF ASU 2014-09
(Amounts in thousands, Unaudited)
	Three Months Ended
	March 31,
		2019		2018
Net Service Revenue, pre-adoption	$	510,937	$	295,980
Less: Implicit price concession (1)		8,352		4,926
Net Service Revenue, post-adoption	$	502,585	$	291,054
RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC.
(Amounts in thousands, Unaudited)
	Three Months Ended
	March 31,
		2019		2018
Net income attributable to LHC Group, Inc.’s common stockholders	$	18,856	$	4,995
Add (net of tax):
AFAM and other acquisition expenses (2)		5,268		6,311
Closures/relocations/consolidations (3)		2,244	─
Provider moratorium impairment (4)		4,332	─
Adjusted net income attributable to LHC Group, Inc.'s common stockholders	$	30,700	$	11,306
RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE
TO LHC GROUP, INC. PER DILUTED SHARE
(Unaudited)
	Three Months Ended
	March 31,
		2019		2018
Diluted earnings per share attributable to LHC Group, Inc.’s common stockholders	$	0.60	$	0.28
Add (net of tax):
AFAM and other acquisition expenses (2)		0.17		0.35
Closures/relocations/consolidations (3)		0.07	─
Provider moratorium impairment (4)		0.14	─
Adjusted diluted earnings per share attributable to LHC Group, Inc.’s common stockholders	$	0.98	$	0.63
(1) Provision for bad debts are classified as implicit price concessions in determining the transaction price of the Company's net service revenue.
(2) Transition, integration and Homecare Homebase conversion expenses and other costs associated with the acquisition of Almost Family and other recently announced or completed acquisitions. ($7.3 million pre-tax in the three months ended March 31, 2019).
(3) Expenses and impairments associated with the closure or consolidation of 8 locations in the first quarter of 2019 along with residual costs and expenses in connection with the closures in the fourth quarter of 2018. ($3.1 million pre-tax in the three months ended March 31, 2019).
(4) During the first quarter of 2019, the Company recorded $6.0 million of moratoria fair value impairment as a result of the Centers for Medicare and Medicaid Services (“CMS”) action to remove all federal moratoria with regard to Medicare provider enrollment. In assigning fair value acquired in acquisitions as required by ASC 805, Business Combinations, the Company had assigned fair value to Certificates of need or license moratoria, as applicable, in certain states.

We have included certain financial measures in this press release, including adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the SEC. We define adjusted net income attributable to LHC Group as net income attributable to LHC Group adjusted for the AFAM acquisition and other closure costs. We define adjusted net income attributable to LHC Group per diluted share as net income attributable to LHC Group adjusted for the AFAM acquisition and other closure costs divided by weighted average diluted shares outstanding.

Adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share are supplemental measures of our performance and are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). Adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share are not measures of our financial performance under GAAP and should not be considered as alternatives to net income attributable to LHC Group, net income attributable to LHC Group per diluted share or any other performance measures derived in accordance with GAAP. Our measurements of adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share may not be comparable to similarly titled measures of other companies. We have included information concerning adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share in this press release because we believe that such information is used by certain investors as measures of a company’s historical performance. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of issuers of equity securities, many of which present adjusted net income and adjusted net income per diluted share when reporting their results. Our presentation of adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.

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

EX-99.1

EdgarFiling

EX-99.2

Exhibit 99.2

Supplemental Financial Information First Quarter Ended March 31, 2019 May 8, 2019

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 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 . 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 presentation . 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 Company and attributable to the Company or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above . ” 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 Company overview ………………………………………………………………………… .................... … 4 - 6 Select key segment statistical and financial data ……………… .. ……………………… ............. 7 Consolidated results ……………………………………………………………… ........................ ……… 8 - 9 Adjustments to net income …………………………………………………………………………… ... …… 10 Segment results …………………………………………………………………………………………… ..... 11 - 15 2019 guidance ………………………………………………………………………………………………… .. 16 - 17 Almost Family update ………………………………………………………………………………………… ... 18 Accelerated joint venture momentum…………………. …………………………..…………………..19 Quality data………………………………………………………………………………………………….……….20 Debt and liquidity metrics………………………………………………………………………………….....21 Focus for 2019………………………………………………………………………………………………….……22 Non - GAAP reconciliations…………………………………………………………………………….....23 - 25

Home Health Hospice HCBS Home Health & Hospice Home Health & HCBS Home Health, Hospice, & HCBS LHC Group Overview 72.2% 10.3% 10.3% 5.5% 1.7% % of Revenue HH Hospice HCBS Facility-based HCI 4

Proven Value Creator on Accelerated Growth Path Unique Assets and Unique Positioning Second largest ACO management company in the U.S., with more than 12,000 unique providers serving more than 460,000 Medicare attributed lives Today’s Industry Vastly Different than 10 Years Ago Home health in front of industry tailwinds with transition to value - based reimbursement and visibility on the reimbursement landscape Preferred setting for lower cost - of - care and higher quality = improved value proposition Accelerated Growth with Multiple Levers Organic growth fed by industry - leading quality scores and co - location strategy Continued momentum of growth from existing and potential JV partners and acquisitions fueled by strong balance sheet Comprehensive in - home healthcare solution on a national scale and the proven leading partner for hospitals and health systems Almost Family Integration Ahead of schedule; demonstrating incremental margin improvement Executing on identified cost synergies of $25 - 30 million; ~$22 million to date 5

• Net service revenue up 72.7% for Q1 as compared to Q1 2018 • Adjusted Earnings Per Share increases 55.6% for Q1 as compared to Q1 2018 • Realized $7.4 million in synergies in Q1 2019 from Almost Family acquisition for a cumulative amount of $21.6 million since Q2 2018 • LHCG standalone quality and patient satisfaction scores continue to lead the industry • Maintained strong pace of acquisitions – acquired or announced acquisitions of $44 million in annualized revenue year to date in 2019 • Organic growth in home health admissions and revenue + growth in hospice admissions and revenue continue to drive earnings growth • 30 ACO’s under management covering 460,000 Medicare lives Commentary on Q1 2019 6

Select Key Segment Statistical and Financial Data Organic growth: (1) Net revenue 7.0% 9.0% Net Medicare revenue 1.7% 4.8% Total new admissions 5.7% 6.7% Medicare new admissions 0.2% 4.3% Average daily census 3.6% 3.4% Average Medicare daily census - 1.8% - 0.6% Medicare completed and billed episodes - 0.7% - 0.2% Three Months Ended March 31, 2019 2018 Home Health Average daily census 14,692 2,102 Billable hours 2,271,894 478,952 Revenue per billable hour $23.43 $29.87 Home and Community - Based Admissions 4,587 4,054 Average daily census 3,752 3,144 Patient days 337,649 282,993 Average revenue per patient day $156.51 $153.25 Hospice Patient days 19,636 22,560 Average revenue per patient day $1,287 $1,248 Occupancy rate 70.4% 80.9% Facility - Based (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. 1Q 2019 Consolidated Growth 7 • Revenue: +72.7% • Adjusted EPS: +55.6% • Adjusted EBITDA: +135.8% • Revenue: +70.3% • Adjusted EPS: +46.7% • Adjusted EBITDA: +84.5%

2019 Adjusted Consolidated Results Three months ended March 31 Consolidated Total Adjustments Adjusted Consolidated Net service revenue $502,585 $0 $502,585 Cost of service revenue 320,992 (4,667) 316,325 Gross margin 181,593 186,260 General and administrative expenses 145,221 (5,418) 139,803 Impairment of intangibles and other 6,319 (6,319) 0 Operating income $30,053 $16,404 $46,457 Add back depreciation 4,202 0 4,202 Less noncontrolling interests (4,545) 0 (4,545) Earnings before interest, tax, and depreciation (EBITDA less NCI) $29,710 $16,404 $46,114 EBITDA less NCI as a percentage of revenue 5.9% 9.2% 8

Adjusted Consolidated Results – 2019 vs 2018 Three months ended March 31 2019 Adjusted Consolidated % of rev 2018 Adjusted Consolidated % of rev Net service revenue $502,585 $291,054 Cost of service revenue 316,325 62.9% 188,618 64.8% Gross margin 186,260 37.1% 102,436 35.2% General and administrative expenses 139,803 27.8% 83,192 28.6% Operating income $46,457 9.2% $19,244 6.6% Depreciation 4,202 3,293 Noncontrolling interests (4,545) (2,983) Earnings before interest, tax, and depreciation (EBITDA less NCI) $46,114 $19,554 EBITDA less NCI as a percentage of revenue 9.2% 6.7% • Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased 250 basis points as a percentage of revenue. This was due to an improvement of 190 basis points in gross margin and 80 basis point improvement in general and administrative expense in the first quarter of 2019 as compared to the same period in 2018. 9

Adjustments to Net Income PRE - TAX ADJUSTMENTS Q1 2019 Q1 2018 Almost Family and other acquisition expenses (1) $7,295 $8,839 Closures/relocations/consolidations (2) $3,109 $0 Provider moratorium impairment (3) $6,000 $0 Total $16,404 $8,839 ADJUSTMENTS NET OF TAX Q1 2019 Q1 2018 Almost Family and other acquisition expenses (1) $5,268 $6,311 Closures/relocations/consolidations (2) $2,244 $0 Provider moratorium impairment (3) $4,332 $0 Total $11,844 $6,311 ADJUSTMENTS NET OF TAX Q1 2019 Q1 2018 Almost Family and other acquisition expenses (1) $0.17 $0.35 Closures/relocations/consolidations (2) $0.07 $0.00 Provider moratorium impairment (3) $0.14 $0.00 Total $0.38 $0.35 10 Footnotes: (1) Transition, integration and Homecare Homebase conversion expenses and other costs associated with the acquisition of Almost Family and other recently announced or completed acquisitions . (2) Expenses and impairments associated with the closure or consolidation of 8 locations in the first quarter of 2019 along w ith residual costs and expenses in connection with the closures in the fourth quarter of 2018. (3) During the first quarter of 2019, the Company recorded $6.0 million of moratoria fair value impairment as a result of the Ce nters for Medicare and Medicaid Services (“CMS”) action to remove all federal moratoria with regard to Medicare provider enrollment. In assigning fa ir value acquired in acquisitions as required by ASC 805, Business Combinations, the Company had assigned fair value to Certificates of need or license morator ia, as applicable, in certain states.

Three Months Ended March 31, 2019 Adjusted Segment Results Home health services Adjustments Adjusted Home health services Hospice services Adjustments Adjusted Hospice services HCBS services Adjustments Adjusted HCBS services Net service revenue $363,035 $363,035 $51,736 $51,736 $51,785 $51,785 Cost of service revenue 226,123 (3,403) 222,720 33,176 (201) 32,975 39,855 (194) 39,661 Gross margin 136,912 140,315 18,560 18,761 11,930 12,124 General and administrative expenses 104,839 (3,649) 101,190 14,853 (925) 13,928 10,982 (286) 10,696 Impairment of intangibles and other 6,318 (6,318) 0 1 (1) 0 0 0 0 Operating income $25,755 $13,370 $39,125 $3,706 $1,127 $4,833 $948 $480 $1,428 Add back depreciation 2,403 2,403 426 426 310 310 Less noncontrolling interests (3,780) (3,780) (601) (601) 310 310 Earnings before interest, tax, and depreciation (EBITDA less NCI) $24,378 $13,370 $37,748 $3,531 $1,127 $4,658 $1,568 $480 $2,048 EBITDA less NCI as a percentage of revenue 6.7% 10.4% 6.8% 9.0% 3.0% 4.0% Facility - based services Adjustments Adjusted Facility - based services HCI Adjustments Adjusted HCI services Net service revenue $27,701 $27,701 $8,328 $8,328 Cost of service revenue 17,732 (158) 17,574 4,106 (711) 3,395 Gross margin 9,969 10,127 4,222 4,933 General and administrative expenses 9,177 (197) 8,980 5,370 (361) 5,009 Impairment of intangibles and other 0 0 0 0 0 0 Operating income $792 $355 $1,147 ($1,148) $1,072 ($76) Add back depreciation 757 757 306 306 Less noncontrolling interests (481) (481) 7 7 Earnings before interest, tax, and depreciation (EBITDA less NCI) $1,068 $355 $1,423 ($835) $1,072 $237 EBITDA less NCI as a percentage of revenue 3.9% 5.1% - 10.0% 2.8% 11

Three months ended March 31, 2019 Adjusted Home health services % of rev 2018 Adjusted Home health services % of rev Net service revenue $363,035 $204,187 Cost of service revenue 222,720 61.3% 130,161 63.7% Gross margin 140,315 38.7% 74,026 36.3% General and administrative expenses 101,190 27.9% 58,927 28.9% Operating income $39,125 10.8% $15,099 7.4% Depreciation 2,403 2,147 Noncontrolling interests (3,780) (2,236) Earnings before interest, tax, and depreciation (EBITDA less NCI) $37,748 $15,010 EBITDA less NCI as a percentage of revenue 10.4% 7.4% • Home Health Adjusted EBITDA margin improved 300 basis points in the first quarter of 2019 compared to the same period in 2018 due to strong cost management in general and administrative expenses, which is down 100 basis points as a percentage of revenue and higher gross margin by 240 basis points due to continual operational efficiencies. 12 Home Health Segment Adjusted Segment Results – 2019 vs 2018

Three months ended March 31, 2019 Adjusted Hospice services % of rev 2018 Adjusted Hospice services % of rev Net service revenue $51,736 $42,626 Cost of service revenue 32,975 63.7% 28,018 65.7% Gross margin 18,761 36.3% 14,608 34.3% General and administrative expenses 13,928 26.9% 12,217 28.7% Operating income $4,833 9.3% $2,391 5.6% Depreciation 426 498 Noncontrolling interests (601) (417) Earnings before interest, tax, and depreciation (EBITDA less NCI) $4,658 $2,472 EBITDA less NCI as a percentage of revenue 9.0% 5.8% • Hospice Adjusted EBITDA margin improved 320 basis points in the first quarter of 2019 compared to the same period in 2018 due to a 200 basis point improvement in the gross margin and 180 basis point improvement in general and administrative expenses as a percentage of revenue. Both improvements are attributable to increasing organic growth in admissions while improving operating efficiencies. 13 Hospice Segment Adjusted Segment Results – 2019 vs 2018

Three months ended March 31, 2019 Adjusted HCBS services % of rev 2018 Adjusted HCBS services % of rev Net service revenue $51,785 $14,091 Cost of service revenue 39,661 76.6% 10,790 76.6% Gross margin 12,124 23.4% 3,301 23.4% General and administrative expenses 10,696 20.7% 2,902 20.6% Operating income $1,428 2.8% $399 2.8% Depreciation 310 111 Noncontrolling interests 310 (21) Earnings before interest, tax, and depreciation (EBITDA less NCI) $2,048 $489 EBITDA less NCI as a percentage of revenue 4.0% 3.5% 14 Home and Community Based Services Segment Adjusted Segment Results – 2019 vs 2018

Facility - Based Services Segment Adjusted Segment Results – 2019 vs 2018 Three months ended March 31, 2019 Adjusted Facility - based services % of rev 2018 Adjusted Facility - based services % of rev Net service revenue $27,701 $30,150 Cost of service revenue 17,574 63.4% 19,649 65.2% Gross margin 10,127 36.6% 10,501 34.8% General and administrative expenses 8,980 32.4% 9,146 30.3% Operating income $1,147 4.1% $1,355 4.5% Depreciation 757 537 Noncontrolling interests (481) (309) Earnings before interest, tax and depreciation (EBITDA less NCI) $1,423 $1,583 EBITDA less NCI as a percentage of revenue 5.1% 5.2% 15

Drivers: • Revenue midpoint increased $10 million due to our recent joint venture partnership with Geisinger Health System. Pennsylvania assets closed on April 1, and the New Jersey assets are expected to close on June 1. • Adjusted earnings per share midpoint increased $0.10 due to solid cost management along with continued operational efficiencies (50% of the increase) and a lower anticipated effective tax rate from approximately 28.5% to 28% at the midpoint (remaining 50% of the increase). • Adjusted EBITDA midpoint increased $2 million due to solid cost management along with continued operational efficiencies in prior acquisitions 2019 Guidance Raised Original FY 2019 Guidance Midpoint – 02/27/2019 ( in millions except for EPS data ) Raised FY 2019 Guidance Midpoint – 05/08/2019 ( in millions except for EPS data ) Revenue $2,105 $2,115 EPS $4.20 $4.30 EBITDA $215 $217 • Net service revenue increased to a range of $2.09 billion to $2.14 billion from $2.08 billion to $2.13 billion • Adjusted earnings per share increased to a range of $4.25 to $4.35 from $4.15 to $4.25 • Adjusted EBITDA increased to a range of $214 million to $220 million from $212 million to $218 million 16

Assumptions • Total of $12 million to $17 million in pre - tax cost synergies in connection with the Almost Family acquisition , of which $7.4 million have been realized in the first quarter. The 2019 synergies would bring the total run - rate cost synergies by the second half of 2019 to a range of $25 million to $30 million. • Estimated effective tax rate of 27.5% to 28.5% • Weighted average diluted shares of approximately 31.3 million for the full year of 2019 • 5% to 7% organic growth in home health admissions • 6% to 8% organic growth in hospice admissions • Implicit price concession of 1.5% to 1.7% as a percentage of revenue 2019 Guidance compared to 2018 FY 2018 Adjusted Results ( in millions except for EPS data ) Raised FY 2019 Guidance Midpoint – 05/08/2019 ( in millions except for EPS data ) Growth in 2019 over 2018 Revenue $1,810 $2,115 +16.9% EPS $3.55 $4.30 +21.1% EBITDA $162 $217 +34.0% • Net service revenue of $2.09 billion to $2.14 billion • Adjusted earnings per share of $4.25 to $4.35 • Adjusted EBITDA of $214 million to $220 million 17

Almost Family and other Integration Updates On pace to achieve the top end of our $25 million to $30 million target for run rate cost synergies by the second half of 2019 Adjusted Almost Family home health contribution margin up 260 bps from 2018 The quality star ratings of Almost Family agencies was up to 3.86 in the CMS April preview, compared with 3.63 in January and 3.61 in October. Operating within transformation phase 6 months ahead of schedule 18 Patient satisfaction star rating was also up in the Almost Family agencies in the April preview to 4.04 as compared to 3.66 in January and 3.57 in October.

Accelerated Joint Venture Momentum Following Successful Almost Family Acquisition Joint Venture Partner State Date Closed Locations Annual Revenue 1st Choice Home Health THR/Methodist Texas 2/1/2018 1 $2,800,000 St. Mary's Regional Medical Center Home Health St. Mary's Regional Medical Center Nevada 5/1/2018 1 $3,000,000 St. Mary's Regional Medical Center Hospice St. Mary's Regional Medical Center Nevada 8/1/2018 1 $5,000,000 Capital Region Medical Center Home Health Capital Region Medical Center Missouri 8/1/2018 1 $1,600,000 Home Health of Wilson LifePoint North Carolina 9/1/2018 1 $3,800,000 Guardian Home Health LifePoint North Carolina 12/1/2018 1 $3,000,000 Commonwealth LifePoint Virginia 12/1/2018 2 $3,300,000 Unity Health Homecare Unity Health Arkansas 1/31/2019 2 $4,000,000 Total acquired revenue since Almost Family acquisition $26,500,000 Geisinger/ AtlantiCare Pennsylvania New Jersey 4/1/2019 (PA) E: 6/1/2019 (NJ) 13 $35,000,000 Capital Region Medical Center Missouri E: 6/1/2019 3 $5,000,000 Total acquired and announced revenue 26 $66,500,000 19

Industry - Leading Quality and Patient Satisfaction • 94% of LHC locations have CMS 4 stars or greater for quality • 96% of LHC same - store locations have CMS 4 stars or greater for patient satisfaction 20 Quality April 2019 Preview Jan 2019 National Avg LHC Group 4.67 4.59 3.28 Almost Family 3.86 3.63 3.28 Combined 4.31 4.16 3.28 Patient Satisfaction April 2019 Preview Jan 2019 National Avg LHC Group 4.51 4.09 3.55 Almost Family 4.04 3.66 3.55 Combined 4.30 3.92 3.55 • 100% of LHC Group agencies are Joint Commission accredited or are seeking accreditation • Fewer than 15% of all home care agencies nationwide earn Joint Commission accreditation

Debt and Liquidity Metrics Outstanding Debt ( amounts in thousands ) As of Mar. 31, 2019 Total Debt – Balance Sheet $239,000 Less: Cash $38,520 Net Debt $200,480 Net debt to estimated 2019 adjusted EBITDA ratio 0.92x Credit Facility ( amounts in thousands ) As of Mar. 31, 2019 Revolver Size $500,000 Less: Outstanding Revolver $239,000 Less: Letters of Credit $30,400 Available Revolver $230,600 Plus: Cash $30,852 Plus: Accordion $200,000 Total Liquidity $461,452 Cash Flow ( amounts in thousands ) As of Mar. 31, 2019 Free Cash Flow (3 Months Ended) $24,082 + Cash adjustments to Q1 2019 EBITDA 10,030 = Adjusted Free Cash Flow (3 Months Ended) $34,112 DSO’s 47 days 21

Focus for 2019 Maintain disciplined capital allocation with new joint ventures and other M&A activity Realize cost synergies from Almost Family acquisition to reach a run rate of $25 - $30 million by second half of 2019 Continue to lead industry with regulatory lobbying and readiness Maximize value of Healthcare Innovations business Capture incremental growth from raising Almost Family quality scores to LHCG standards Accelerate plans for unlocking untapped potential of co - location strategy Capture market share gains and incremental contributions from recent joint ventures and other acquisitions 22 Continue to lead the industry in quality and patient satisfaction scores Continue our focus as an industry leader in key areas around employee recruitment and retention including vacancy rate and voluntary turnover

Non - GAAP Reconciliations (Amounts in thousands, unaudited) RECONCILIATION OF REVENUE AFTER ADOPTION OF ASU 2014 - 09 RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP Three Months Ended March 31, 2019 2018 Net Service Revenue, pre - adoption $510,937 $295,980 Less: Implicit price concession (1) 8,352 4,926 Net Service Revenue, post - adoption $502,585 $291,054 Three Months Ended March 31, 2019 2018 Net income attributable to LHC Group, Inc.’s common stockholders $18,856 $4,995 Add (net of tax): Almost Family and other acquisition expenses (2) 5,268 6,311 Closures/relocations/consolidations (3) 2,244 ─ Provider moratorium impairment (4) 4,332 ─ Adjusted net income attributable to LHC Group, Inc.’s common stockholders $30,700 $11,306 23 Footnotes are on page 26

Non - GAAP Reconciliations (Amounts in thousands, unaudited ) RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP PER DILUTED SHARE Three Months Ended March 31, 2019 2018 Net income attributable to LHC Group, Inc.’s common stockholders $0.60 $0.28 Add (net of tax): Almost Family and other acquisition expenses (2) 0.17 0.35 Closures/relocations/consolidations (4) 0.07 ─ Provider moratorium impairment (5) 0.14 ─ Adjusted net income attributable to LHC Group, Inc.’s common stockholders $0.98 $0.63 Footnotes : 1. All amounts previously classified as provision for bad debts are now classified as implicit price concessions in determining the transaction price of the Company's net service revenue . 2. Transition, integration and Homecare Homebase conversion expenses and other costs associated with the acquisition of Almost Family and other recently announced or completed acquisitions ( $ 7 . 3 million pre - tax in the three months ended March 31 , 2019 ) . 3. Expenses and impairments associated with the closure or consolidation of 8 locations in the first quarter of 2019 along with residual costs and expenses in connection with the closures in the fourth quarter of 2018 . ( $ 3 . 1 million pre - tax in the three months ended March 31 , 2019 ) . 4. During the first quarter of 2019 , the Company recorded $ 6 . 0 million of moratoria fair value impairment as a result of the Centers for Medicare and Medicaid Services (“CMS”) action to remove all federal moratoria with regard to Medicare provider enrollment as required by ASC 805 , Business Combinations, the Company had assigned fair value to Certificates of need or license moratoria, as applicable, in certain states . 24

• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) For the three month period ended March 31, 2019 2018 Net income $18,856 $4,995 Add: Income tax expense 3,600 977 Interest expense, net 3,052 1,450 Depreciation and amortization 4,202 3,293 Adjustment items (1) 16,404 8,839 Adjusted EBITDA $46,114 $19,554 (1) Adjustment items (pre - tax): Almost Family merger and other acquisition expenses $7,295 $8,839 Closures/relocations/consolidations 3,109 ─ Provider moratorium impairment 6,000 ─ Total adjustments $16,404 $8,839 Non - GAAP Reconciliations (Amounts in thousands, unaudited) 25