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): February 23, 2022

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 February 23, 2022, the Company issued a press release announcing its financial results for the fourth quarter and year ended December 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, February 24, 2022, is attached to this report as Exhibit 99.2 and incorporated herein by reference.

In addition, a copy of the fourth quarter 2021 earnings overview, which will serve as the Company’s prepared remarks for its earnings call at 9:00 a.m. ET on Thursday, February 24, 2022, is attached to this report as Exhibit 99.3 and incorporated herein by reference.

The information furnished pursuant to Item 7.01, Exhibit 99.2 and Exhibit 99.3 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 Exhibits are filed herewith as part of this Current Report on Form 8-K.

Exhibit Number	Description
99.1	Press Release, dated February 23, 2022, announcing the Company’s financial results for the fourth quarter and year ended December 31, 2021 (furnished only).
99.2	Fourth Quarter 2021 Supplemental Financial Information (furnished only).
99.3	Fourth Quarter 2021 Earnings Overview (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: February 24, 2022	By:	/s/ Dale Mackel
		Name:	Dale Mackel
		Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

LHC Group announces fourth quarter and full year 2021 financial results

Issues full year and first quarter 2022 guidance

LAFAYETTE, La., Feb.23, 2022 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter and year ended December 31, 2021.

Fourth Quarter 2021 Financial Results

• Net service revenue increased 9.6% to $583.4 million.
• Net income attributable to LHC Group's common stockholders was $15.7 million, or $0.50 per diluted share.
• Adjusted net income attributable to LHC Group's common stockholders was $39.4 million, or $1.26 adjusted earnings per diluted share.
• Adjusted EBITDA was $61.6 million.

Full Year 2021 Financial Results

• Net service revenue increased 7.6% to $2.220 billion.
• Net income attributable to LHC Group's common stockholders was $115.7 million, or $3.69 per diluted share.
• Adjusted net income attributable to LHC Group's common stockholders was $179.5 million, or $5.73 per diluted share.
• Adjusted EBITDA was $265.5 million.

A reconciliation of all non-GAAP financial results in this release appears on pages 11-12.

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.
• Average Home Health quality star ratings of 4.37 during the period of April 2021 through December 2021 according to Strategic Healthcare Partners, up from 4.10 for the period of July 2020 through March 2021 per the most recent CMS data.
• Organic growth in total home health admissions increased 3.8% in the fourth quarter of 2021 compared with the same period in 2020 and increased by 5.5% in 2021 over 2020.
• Organic growth in non-Medicare episodic home health admissions increased by 18.1% in the fourth quarter of 2021 compared with the same period in 2020 and increased by 21.9% in 2021 over 2020.
• Non-Medicare rates increased 4% in 2021 over 2020 and increased 17% over the last 5 years.
• Organic growth in hospice admissions decreased 6.2% in the fourth quarter of 2021 compared with the same period in 2020 and increased by 0.5% in 2021 over 2020. Organic growth in hospice admissions are pacing to 8% to 10% for the first quarter of 2022 compared to the first quarter of 2021and 18% to 20% sequentially over the fourth quarter of 2021.
• Home Health average daily census of 86,228 in the fourth quarter of 2021 was 3.0% higher than 83,686 in the fourth quarter of 2020. For the year, Home Health average daily census of 84,734 was 5.8% higher in 2021 than 2020.
• Hospice average daily census of 7,024 in the fourth quarter of 2021 was 62.6% higher than 4,320 in the fourth quarter of 2020. For the year, Hospice average daily census of 5,405 was 24.4% higher in 2021 than 2020. The year-over-year growth was due to a net increase of 40 hospice locations added during 2021.
• The percentage of Home Health clinicians on quarantine due to COVID-19 went from a high of 6.5% in January 2022 down to 0.6% today which is the lowest quarantine level since July 2021.
• On November 2, 2021, LHC Group finalized the acquisition of selected home health, hospice, and therapy assets from HCA Healthcare and Brookdale Health Care Services venture that marks the entry into two new markets – Minnesota and New Mexico - and expands service areas in 20 states where the company already operates. The acquisition includes 47 total locations and LHC Group expects incremental annualized revenue from this acquisition of approximately $130 million.
• On December 6, 2021, LHC Group's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $250 million of its common stock. During the fourth quarter, the Company repurchased 634,869 shares of common stock for approximately $83.7 million.

Commenting on the results, Keith G. Myers, LHC Group's Chairman and Chief Executive Officer, said, "For perhaps the first time in our industry's existence, we believe there is a general consensus throughout the country for emphasizing the advantages of at-home care. The demand for at-home healthcare is as strong as ever with patients and families overwhelmingly preferring care in the home and senior advocates, Congress and policymakers increasingly recognizing the better outcomes and efficiency. As the proven partner to 435 leading hospitals and health systems, an extensive national footprint and very particular assets that can lead the transition to value-based care, we are embracing our mission, values and culture to lead this industry once again in 2022 and beyond."

Full Year 2022 and First Quarter 2022 Guidance

Full year 2022 net service revenue is expected to be in a range of $2.500 billion to $2.550 billion, adjusted earnings per diluted share is expected to be in a range of $5.60 to $6.00, and adjusted EBITDA, less non-controlling interest, is expected to be in a range of $270 million to $290 million.

For the first quarter ending March 31, 2022, net service revenue is expected to be $560 million to $580 million, adjusted earnings per diluted share is expected to be in a range of $1.00 to $1.10, and adjusted EBITDA, less non-controlling interest, is expected to be in a range of $50 million to $55 million.

Joshua L. Proffitt, LHC Group's President and Chief Operating Officer, added, "We have established a strong foundation for growth in 2022 with our leading quality and patient satisfaction scores, momentum in physician referrals, and underlying strength in our organic growth and M&A activity. While late fourth quarter and early first quarter operating trends were affected by reduced capacity to service the strong demand for our services due to COVID variants and labor availability, we expect to benefit in 2022 from recent stabilization in those trends and from our implementation of certain cost improvement initiatives and efficiencies. Additionally, we believe our continued focus on maintaining a disciplined approach to operations and capital allocation will accelerate our growth as the year progresses."

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 take into account the impact of future COVID-19 related costs and expenses. 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 Thursday, February 24, 2022, at 9:00 a.m. Eastern time to discuss its fourth quarter 2021 results. The toll-free number to call for this interactive teleconference is (877) 407-9208 (international callers: (201) 493-6784). A telephonic replay of the conference call will be available through midnight on Thursday, March 3, 2022, by dialing (844) 512-2921 (international callers: (412) 317-6671) and entering confirmation number 13726712.

The Company has posted supplemental financial information on the fourth quarter results that it will reference during the conference call. The supplemental information can be found under Financial 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 37 states and the District of Columbia – reaching 60 percent of the U.S. population aged 65 and older. Through Imperium Health, the company's ACO management and enablement company, LHC Group helps partners improve both savings and patient outcomes with a value-based approach. As the preferred joint venture partner for more than 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 2020 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)
	As of December 31,
	2021	2020
ASSETS
Current assets:
Cash	$                     9,809	$                 286,569
Receivables:
Patient accounts receivable	348,820	301,209
Other receivables	13,780	11,522
Total receivables	362,600	312,731
Prepaid income taxes	7,531	—
Prepaid expenses	28,401	22,058
Other current assets	24,801	25,664
Total current assets	433,142	647,022
Property, building and equipment, net of accumulated depreciation of $98,394 and $82,721, respectively	153,959	138,366
Goodwill	1,748,426	1,259,147
Intangible assets, net of accumulated amortization of $19,152 and $17,659, respectively	400,002	315,355
Assets held for sale	—                         —	1,900
Operating lease right of use asset	113,399	100,046
Other assets	46,693	21,518
Total assets	$             2,895,621	$             2,483,354
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$                   98,118	$                   64,864
Salaries, wages and benefits payable	100,532	88,666
Self insurance reserves	33,784	35,103
Government stimulus advance	—                         —	93,257
Contract liabilities - deferred revenue	106,489	317,962
Current operating lease payable	37,630	32,676
Amounts due to governmental entities	5,447	1,516
Income taxes payable	—                         —	21,464
Current liabilities - deferred employer payroll tax	26,790	25,928
Total current liabilities	408,790	681,436
Deferred income taxes	70,026	47,237
Income taxes payable	7,320	6,203
Revolving credit facility	661,197	20,000
Other long term liabilities	—                         —	25,928
Operating lease payable	78,688	70,275
Total liabilities	1,226,021	851,079
Noncontrolling interest-redeemable	17,501	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; 36,549,524  and 36,355,497 shares issued, and 30,634,414 and 31,139,840 shares outstanding, respectively	365	364
Treasury stock – 5,915,110  and 5,215,657 shares at cost, respectively	(164,790)	(69,011)
Additional paid-in capital	979,642	962,120
Retained earnings	751,025	635,297
Total LHC Group, Inc. stockholders' equity	1,566,242	1,528,770
Noncontrolling interest – non-redeemable	85,857	84,584
Total stockholders' equity	1,652,099	1,613,354
Total liabilities and stockholders' equity	$             2,895,621	$             2,483,354

LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data)
	Three Months Ended December 31, (unaudited)				Year Ended   December 31,
	2021		2020		2021		2020
Net service revenue	$	583,429	$	532,329	$	2,219,622	$	2,063,204
Cost of service revenue (excluding depreciation and amortization)	364,603		317,243		1,336,609		1,250,403
Gross margin	218,826		215,086		883,013		812,801
General and administrative expenses	189,681		162,944		696,435		632,847
Impairment of intangibles and other	-		1,227		937		1,849
Operating income	29,145		50,915		185,641		178,105
Interest expense	(2,797)		(89)		(4,338)		(4,129)
Income before income taxes and noncontrolling interest	26,348		50,826		181,303		173,976
Income tax expense	4,778		12,862		37,687		36,043
Net income	21,570		37,964		143,616		137,933
Less net income (loss) attributable to noncontrolling interests	5,878		7,584		27,888		26,337
Net income attributable to LHC Group, Inc.'s common stockholders	$	15,692	$	30,380	$	115,728	$	111,596
Earnings per share:
Basic	$	0.50	$	0.98	$	3.71	$	3.59
Diluted	$	0.50	$	0.97	$	3.69	$	3.56
Weighted average shares outstanding:
Basic	31,167		31,128		31,195		31,092
Diluted	31,317		31,443		31,397		31,366

LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)
	For the year ended December 31,
	2021	2020
Operating activities:
Net income	$             143,616	$             137,933
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	20,917	21,249
Amortization and impairment of operating lease right of use asset	37,506	34,546
Stock-based compensation expense	15,868	14,347
Deferred income taxes	22,789	(13,261)
(Gain) Loss on disposal of assets	(1,134)	412
Impairment of intangibles and other	937	1,849
Changes in operating assets and liabilities, net of acquisitions:
Receivables	(35,361)	(16,561)
Prepaid expenses	(5,902)	(754)
Other assets	(11,015)	(3,169)
Prepaid income taxes	(7,531)	9,652
Accounts payable and accrued expenses	12,345	(22,506)
Salaries, wages, and benefits payable and self-insurance reserves	3,004	6,482
Other long term liabilities	(26,758)	51,856
Contract liabilities - deferred revenue	(211,473)	317,962
Operating lease payable	(37,360)	(34,226)
Income tax payable	(20,347)	23,800
Net amounts due to/from governmental entities	(433)	(364)
Net cash (used in) provided by operating activities	(100,332)	529,247
Investing activities:
Cash paid for acquisitions, net of cash acquired	(569,583)	(24,545)
Minority interest investments	(10,100)	—
Proceeds from sale of assets	3,350	7,920
Proceeds from sale of an entity	1,531	—
Purchases of property, building and equipment	(32,976)	(65,875)
Net cash used in investing activities	(607,778)	(82,500)
Financing activities:
Proceeds from line of credit	1,025,559	296,229
Payments on line of credit	(384,362)	(529,229)
Government stimulus advance	(93,257)	93,257
Proceeds from employee stock purchase plan	2,472	2,177
Payments on deferred financing fees	(3,556)	—
Payments on repurchasing common stock	(74,643)	—
Noncontrolling interest distributions	(28,857)	(24,837)
Purchase of additional controlling interest	(2,113)	(24,295)
Sale of noncontrolling interest	1,934	4,856
Withholding taxes paid on stock-based compensation	(11,827)	(10,008)
Net cash provided by (used in) financing activities	431,350	(191,850)
Change in cash	(276,760)	254,897
Cash at beginning of period	286,569	31,672
Cash at end of period	$                 9,809	$             286,569
Supplemental disclosures of cash flow information
Interest paid	$                 4,168	$                 5,011
Income taxes paid	$               43,728	$               16,830
Non-Cash Operating activity:
Operating right of use assets in exchange for lease obligations	41,364	43,047
Non-Cash Investing activity:
Accrued capital expenditures	417	2,922
Net working capital adjustment	890	—
Non-Cash Financing activity:
Contribution of noncontrolling interest	—	230

LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands) (Unaudited)
	Three Months Ended December 31, 2021
	Home health		Hospice		Home and community-based		Facility-based		HCI		Total
Net service revenue	$	394,481	$	102,027	$	46,229	$	35,284	$	5,408	$	583,429
Cost of service revenue	238,548		65,047		33,911		23,910		3,187		364,603
Gross margin	155,933		36,980		12,318		11,374		2,221		218,826
General and administrative expenses	131,795		30,904		11,508		12,091		3,383		189,681
Impairment of intangibles and other	—		—		—		—		—		—
Operating income (loss)	24,138		6,076		810		(717)		(1,162)		29,145
Interest expense	(2,004)		(334)		(270)		(135)		(54)		(2,797)
Income (loss) before income taxes and noncontrolling interest	22,134		5,742		540		(852)		(1,216)		26,348
Income tax expense (benefit)	4,086		1,123		180		(270)		(341)		4,778
Net income (loss)	18,048		4,619		360		(582)		(875)		21,570
Less net income (loss) attributable to noncontrolling interests	4,554		989		26		313		(4)		5,878
Net income (loss) attributable to LHC Group, Inc.'s common stockholders	$	13,494	$	3,630	$	334	$	(895)	$	(871)	$	15,692

LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands) (Unaudited)
	Three Months Ended December 31, 2020
	Home health		Hospice		Home and community-based		Facility-based		HCI		Total
Net service revenue	$	382,636	$	62,419	$	50,058	$	31,914	$	5,302	$	532,329
Cost of service revenue	217,554		38,190		36,514		21,487		3,498		317,243
Gross margin	165,082		24,229		13,544		10,427		1,804		215,086
General and administrative expenses	119,544		16,894		11,923		11,451		3,132		162,944
Impairment of intangibles and other	1,227		—		—		—		—		1,227
Operating income (loss)	44,311		7,335		1,621		(1,024)		(1,328)		50,915
Interest expense	(52)		(18)		(8)		(9)		(2)		(89)
Income (loss) before income taxes and noncontrolling interest	44,259		7,317		1,613		(1,033)		(1,330)		50,826
Income tax expense (benefit)	10,936		1,631		301		76		(82)		12,862
Net income (loss)	33,323		5,686		1,312		(1,109)		(1,248)		37,964
Less net income (loss) attributable to noncontrolling interests	6,154		1,370		104		(35)		(9)		7,584
Net income (loss) attributable to LHC Group, Inc.'s common stockholders	$	27,169	$	4,316	$	1,208	$	(1,074)	$	(1,239)	$	30,380

LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands)
	Year Ended December 31, 2021
	Home Health	Hospice	Home and Community-Based	Facility-Based	HCI	Total
Net service revenue	$    1,551,542	$ 311,218	$  189,561	$  132,098	$   35,203	$      2,219,622
Cost of service revenue (excluding depreciation and amortization)	901,685	194,895	137,852	89,270	12,907	1,336,609
General and administrative expenses	501,132	89,693	46,724	45,304	13,582	696,435
Impairment of intangibles and other	937	—	—	—	—	937
Operating income (loss)	147,788	26,630	4,985	(2,476)	8,714	185,641
Interest expense	(3,103)	(529)	(413)	(208)	(85)	(4,338)
Income (loss) before income taxes and noncontrolling interests	144,685	26,101	4,572	(2,684)	8,629	181,303
Income tax expense (benefit)	30,089	5,344	1,069	(919)	2,104	37,687
Net income (loss)	114,596	20,757	3,503	(1,765)	6,525	143,616
Less net income (loss) attributable to noncontrolling interests	22,060	4,297	467	1,105	(41)	27,888
Net income (loss) attributable to LHC Group, Inc.'s common stockholders	$         92,536	$  16,460	$      3,036	$   (2,870)	$      6,566	$         115,728
Total assets	$    1,719,403	$ 786,671	$  239,314	$  85,005	$   65,228	$      2,895,621

LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands)
	Year Ended December 31, 2020
	Home Health	Hospice	Home and Community-Based	Facility-Based	HCI	Total
Net service revenue	$       1,463,779	$  243,806	$  194,584	$  128,578	$     32,457	$  2,063,204
Cost of service revenue (excluding depreciation and amortization)	848,663	150,675	150,378	85,827	14,860	1,250,403
General and administrative expenses	464,568	66,454	45,443	43,435	12,947	632,847
Impairment of intangibles and other	1,249	600	—	—	—	1,849
Operating income (loss)	149,299	26,077	(1,237)	(684)	4,650	178,105
Interest expense	(2,856)	(469)	(390)	(297)	(117)	(4,129)
Income (loss) before income taxes and noncontrolling interests	146,443	25,608	(1,627)	(981)	4,533	173,976
Income tax expense (benefit)	30,435	4,925	(357)	(185)	1,225	36,043
Net income (loss)	116,008	20,683	(1,270)	(796)	3,308	137,933
Less net income (loss) attributable to noncontrolling interests	20,525	4,822	(171)	1,193	(32)	26,337
Net income (loss) attributable to LHC Group, Inc.'s common stockholders	$            95,483	$    15,861	$     (1,099)	$     (1,989)	$       3,340	$     111,596
Total assets	$       1,741,044	$  301,475	$  263,708	$  103,401	$     73,726	$  2,483,354

LHC GROUP, INC. AND SUBSIDIARIES SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA (Unaudited)
	Three Months Ended December 31,						Twelve Months Ended December 31,
Key Data:	2021			2020			2021			2020
Home Health Services:
Locations	557			537			557			537
Acquired	25			4			27			13
De novo	—			—			—			1
Divested/consolidated	—			(16)			(7)			(30)
Total new admissions	111,141			104,440			436,637			410,408
Medicare new admissions	51,983			54,968			213,913			221,300
Average daily census	86,228			83,686			84,995			80,112
Average Medicare daily census	43,325			47,219			44,342			46,311
Medicare completed and billed episodes	84,242			89,824			339,065			350,239
Average Medicare case mix for completed and billed Medicare episodes	1.01			1.01			1.02			1.02
Average reimbursement per Medicare episode (1)	$	2,860		$	2,840		$	2,868		$	2,795
Total visits	2,222,050			2,100,914			8,544,552			8,282,047
Total Medicare visits	1,091,125			1,141,298			4,307,968			4,615,612
Average visits per Medicare episodes	13.0			12.7			12.7			13.2
Organic growth: (2)
Net revenue	0.6		%	(0.1)		%	6.0		%	(4.8)		%
Net Medicare revenue	(8.5)		%	(5.0)		%	(1.3)		%	(9.7)		%
Total new admissions	3.8		%	2.2		%	5.5		%	1.6		%
Medicare new admissions	(7.2)		%	(6.0)		%	(3.7)		%	(7.4)		%
Average daily census	0.7		%	4.9		%	5.8		%	1.5		%
Average Medicare daily census	(10.6)		%	(5.4)		%	(4.6)		%	(8.2)		%
Medicare completed and billed episodes	(7.7)		%	(7.9)		%	(2.4)		%	(8.0)		%
Hospice Services:
Locations	170			120			170			120
Acquired	16			3			49			6
De novo	—			6			1			6
Divested/consolidated	(1)			—			(3)			(2)
Admissions	7,516			5,336			24,400			20,342
Average daily census	7,024			4,320			5,408			4,345
Patient days	646,231			397,456			1,972,643			1,590,322
Average revenue per patient day	$	161.87		$	157.55		$	161.09		$	155.33
Organic growth: (2)
Total new admissions	(6.2)		%	10.9		%	0.5		%	6.4		%
Home and Community-Based Services:
Locations (3)	136			124			136			124
Acquired	6			—			1			4
De novo	—			3			13			16
Divested/consolidated	—			(1)			(2)			(3)
Average daily census	12,281			14,021			13,159			14,365
Billable hours	1,779,058			1,884,411			7,376,187			7,734,517
Revenue per billable hour	$	26.22		$	27.33		$	25.91		$	26.22
Facility-Based Services:
Long-term Acute Care
Locations	12			12			12			12
Acquired	—			—			—			—
Divested/consolidated	—			(1)			—			(1)
Patient days	22,443			21,836			86,524			89,930
Average revenue per patient day	$	1,423		$	1,407		$	1,459		$	1,373
Average Daily Census	244			237			237			246

(1)	Prior year Medicare revenue per episode calculation was previously based on standard Medicare episodes. This calculation has been modified to include LUPAs and Outliers in order to achieve a proper comparison to current year under PDGM.
(2)	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.
(3)	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  December 31,				Twelve Months Ended  December 31,
	2021		2020		2021		2020
Net income attributable to LHC Group, Inc.'s common stockholders	$	15,692	$	30,380	$	115,728	$	111,596
Add (net of tax):
Acquisition, de novo and legal expenses (1)	7,385		2,284		17,737		5,629
Closures/relocations/consolidations (2)	302		2,856		1,850		3,722
COVID-19 impact:
PPE, supplies and other expenses (3)	10,860		8,641		38,001		38,608
CARES Act tax benefit (4)	—		—		—		(2,210)
ERP implementation (5)	601		—		1,827		—
Hurricane Ida (6)	—		—		844		—
Gain on sale of asset (7)	—		—		(951)		—
Cost improvement initiatives (8)	4,498		—		4,498		—
Adjusted net income attributable to LHC Group, Inc.'s common stockholders	$	39,338	$	44,161	$	179,534	$	157,345
RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE (Amounts in thousands) (Unaudited)
	Three Months Ended  December 31,				Twelve Months Ended  December 31,
	2021		2019		2021		2019
Net income attributable to LHC Group, Inc.'s common stockholders	$	0.50	$	0.97	$	3.69	$	3.56
Add (net of tax):
Acquisition, de novo and legal expenses (1)	0.24		0.07		0.57		0.17
Closures/relocations/consolidations (2)	0.01		0.09		0.06		0.12
COVID-19 impact:
PPE, supplies and other expenses (3)	0.35		0.27		1.22		1.23
CARES Act tax benefit (4)	—		—		—		(0.07)
ERP implementation (5)	0.02		—		0.05		—
Hurricane Ida (6)	—		—		0.03		—
Gain on sale of asset (7)	—		—		(0.03)		—
Cost improvement initiatives (8)	0.14		—		0.14		—
Adjusted net income attributable to LHC Group, Inc.'s common stockholders	$	1.26	$	1.40	$	5.73	$	5.01

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (Amounts in thousands) (Unaudited)
	Three Months Ended December 31,				Twelve Months Ended December 31,
	2021		2020		2021		2020
Net income attributable to LHC Group, Inc.'s common stockholders	$	15,692	$	30,380	$	115,728	$	111,596
Add:
Income tax expense	4,778		12,862		37,687		36,043
Interest expense, net	2,797		89		4,338		4,129
Depreciation and amortization	6,018		5,648		20,917		21,249
Adjustment items (1)	32,281		19,392		86,805		65,731
Adjusted EBITDA	$	61,566	$	68,371	$	265,475	$	238,748
1. Adjustment items (pre-tax):
Acquisition, de novo and legal expenses (1)	10,082		3,214		24,154		7,770
Closures/relocation/consolidations (2)	412		4,019		2,510		5,193
COVID-19 PPE, supplies and other expenses (3)	14,826		12,159		51,661		52,768
ERP implementation (5)	820		—		2,485		—
Hurricane Ida (6)	—		—		1,150		—
Gain on sale of asset (7)	—		—		(1,296)		—
Cost improvement initiatives (8)	6,141		—		6,141		—
Total adjustments	$	32,281	$	19,392	$	86,805	$	65,731

1.	Expenses and other costs associated with recently announced or completed acquisitions, de novos and legal expenses ($10.1 million and $24.2 million pre-tax in the three months and year ended December 31, 2021, respectively; $3.2 million and $7.8 million pre-tax in the three months and year ended December 31, 2020, respectively).
2.	Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($0.4 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively; $4.0 million and $5.2 million in the three months and year ended December 31, 2020, respectively).
3.	COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies, wage adjustments and employee healthcare costs ($14.8 million and $51.7 million pre-tax in the three months and year ended December 31, 2021, respectively; $12.2 million and $52.8 million pre-tax in the three months and year ended December 31, 2021, respectively).
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.
5.	Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($0.8 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively).
6.	Direct recovery costs associated with Hurricane Ida ($1.2 million pre-tax).
7.	As of December 31, 2020, the Company's assets held for sale was $1.9 million, which consisted of one hospice facility in Knoxville, Tennessee.  The Company sold the property during the third quarter of 2021 for $3.2 million.
8.	Expenses associated from cost improvement initiatives implemented in the fourth quarter of 2021, which consisted of contract terminations and general and administrative cost reductions ($6.1 million pre-tax).

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

EX-99.2

Supplemental Financial Information Fourth Quarter Ended December 31, 2021 February 23, 2022 1 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. Please visit the Investors section on our website at Investor.LHCgroup.com for additional information on LHC Group and the industry. Nasdaq: LHCG 2

Full Year 2022 Guidance First Quarter 2022 Guidance Bridge from Q4 2021 to Q2 2022 Bridge from Q4 2021 to 1H 2022 2H 2022 Assumptions Home Health Trend Home Health Census vs. Clinician Quarantine Hospice Census vs. Clinician Quarantine Debt and Liquidity Metrics Focus for 2022 TABLE OF CONTENTS Business & Legislative Overview 4 - 10 Differentiated Strategies 11 - 22 2021 Consolidated Results Segment Results Guidance, Liquidity & Outlook Appendix LHC Group Overview Commentary on Q4 2021 Commentary on Q4 2021 and FY 2021 Favorable Legislation and Policies on Home Care Policies on Home Care Unprecedented Support for Homecare Differentiated Strategy Leading to Quality Growth Multiple Organic and Inorganic Growth Levers Building Blocks of Long-Term Earnings Growth Clinical Staff Hires Sequential Operational Trends Home Health and Hospice Clinicians on Quarantine Trend Home Health Labor Cost per Visit Home Health and Hospice Growth Industry-Leading Quality and Patient Satisfaction M&A Activity Sets the Stage for 2022 23 - 27 2021 Adjusted Consolidated Results Adjusted Consolidated Results – 2021 vs 2020 Adjustments to Net Income 28 - 35 Three Months Ended Dec. 31, 2021 Adjusted Segment Results Year Ended Dec. 31, 2021 Adjusted Segment Results Home Health Hospice Home and Community Based Services Facility-Based Services Health Care Innovations 36 - 47 48 - 51 Non-GAAP Reconciliations 3

BUSINESS & LEGISLATIVE OVERVIEW 4

Home Health Hospice HCBS Home Health & Hospice Home Health & HCBS Home Health, Hospice, & HCBS LHC GROUP OVERVIEW LEGEND: 557 home health locations 170 hospice locations 136 home & community based services locations 12 long term acute care hospital locations 95 other service locations 435 leading hospital JV partners 68% (37 states & the District of Columbia) 12M+ annual patient encounters 3,600 referral hospitals 64,000 referral physicians of the U.S. population aged 65+ included in service area 5

Higher labor costs and capacity constraints caused by the lingering impact of clinicians on quarantine caused significant headwinds for Q4 2021. The percentage of clinicians on quarantine increased to 3.5% at the end of the fourth quarter of 2021, up from 3.0% at the end of the third quarter. The elevated percentage resulted in an estimated negative impact to census of approximately 2,500, revenue of $13.8 million and EBITDA of $4.1 million. See slide 18 on the progression of the volume in our quarantined clinical staff. Despite the challenges faced in the quarter, organic growth in admissions for home health locations increased 3.8% for Q4 compared to the same period in 2020. Despite the challenges faced in the quarter, our Home Health non-Medicare episodic same store admissions increased 18.1% in Q4 as compared to the same period in 2020. Organic growth in admissions for hospice decreased 6.2% in Q4 compared to the same period in 2020. In Q4 2021, due to a very active year of hospice acquisitions, we realigned our sales leadership beginning on October 1, 2021 with an effective date of January 1, 2022.  The new alignment is already yielding great same-store and newly acquired agency results but did cause some initial disruption in the fourth quarter of 2021. Q1 2022 same store admission growth pacing to 8% to 10% over Q1 2021 and 18% to 20% sequentially over Q4 2021. Q4 2021 same store growth in hospice census was 1.3% over Q4 2020. Discharged length of stay improved to 85.6 days in Q4 2021 as compared to 79.7 days in Q4 2020. COMMENTARY ON Q4 2021 6

Momentum from new physician referral sources continued with 4,578 new and unique home health referral sources added in Q4 which is a 9.2% increase over the same period in 2020. For 2021, 19,948 new and unique home health referral sources were added, 19.6% higher than 2020. Home Health average daily census of 86,228 in Q4 2021 was 3.0% higher than 83,686 in Q4 2020. For the year, Home Health average daily census of 84,734 was 5.8% higher in 2021 than 2020. Hospice average daily census of 7,024 in Q4 2021 was 62.6% higher than 4,320 in Q4 2020. For the year, Hospice average daily census of 5,405 was 24.4% higher in 2021 than 2020. The year-over-year growth was due to a net increase of 40 hospice locations added during 2021. Adjusted net income attributable to LHC Group’s common stockholders was $39.3 million, or $1.26 adjusted earnings per diluted share, in Q4 2021 as compared to $44.2 million, or $1.40 adjusted earnings per diluted share in Q4 2020. For 2021, adjusted net income attributable to LHC Group’s common stockholders was $179.5 million, or $5.73 adjusted earnings per diluted share, 14.4% higher than 2020. Adjusted EBITDA was $61.6 million in Q4 2021 compared to $68.4 million in Q4 2020. For 2021, Adjusted EBITDA was $265.5 million compared to $238.7 million in 2020. COMMENTARY ON Q4 2021 AND FY 2021 7

Choose Home Care Act of 2021 allows Medicare seniors to choose to recover at home as opposed to an in-patient healthcare facility after a hospitalization and who meet the eligibility for Skilled Nursing Facility (SNF). Senate bill (S-2562) has bipartisan support and now 18 co-sponsors from both parties and committees of healthcare and aging jurisdictions. House bill (HR5514) has bipartisan support with 30 co-sponsors from both parties and House committees of healthcare jurisdiction. Bill has been sent to CBO (Congressional Budget Office) for scoring/review of budget implications and for consideration in a legislative vehicle this Congress. It has also been received by CMS for technical advice to Congress. Mandatory PAY-GO 4% cut (as a result of American Rescue Plan Act 2021) delayed until 2023. 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 April 16, 2022, thereby extending significant flexibilities for the provision of home health services previously afforded administratively. Flexibilities including telehealth and remote patient certifications. Extends the suspension of site neutral payment for LTCHs. Sequestration suspension of mandated 2% cut through March 31, 2022. Strong hospital advocacy to extend the full 2% suspension beyond this date is underway in Congress. Home Health Final Rule for FY22 posted on November 2, 2021: No cuts for 2022 and an aggregate increase of payment rates of 2.5% ($445 million) which includes a decrease in payments due to reduction in rural add-on payments mandated by BBA 2018. (The payment update is based on a 3.1% market basket, reduced by 0.5% productivity adjustment or a net of 2.6% this is further reduced by 0.1% for the reduction in rural add-on percentages for a net of 2.5%.) The 2022 national standardized 30-day payment will be $2,031.64 versus the $1,901.12 from 2021. The rule includes a proposal to expand nationally the Home Health Value Based Payment demonstration from 9 states to all 50 states and territories beginning Jan. 1, 2023, with a baseline year of 2019, pre-implementation year in 2022 and first performance year for HHAs of 2023. The rule provides for a maximum payment adjustment of plus or minus 5% reflected in 2025 payments. FAVORABLE LEGISLATION AND POLICIES ON HOME CARE 8

The Better Care Better Jobs Act: Senators Casey (D-PA), Wyden (D-OR), Schumer (D-NY), Murray (D-WA), Duckworth (D-IL), Hassan (D-NH) and Brown (D-OH) are introducing the Better Care Better Jobs Act, a key element of President Biden’s American Jobs Plan. Representatives Dingell (D-MI-12), Pallone (D-NJ-6), Schakowsky (D-IL-9) and Matsui (D-CA-6) introduced the House companion. This legislation would make a historic investment in home and community-based services by strengthening and expanding access to quality home care services and lifting up the caregiving workforce that provides them. Specifically, the bill would: Enhance Medicaid funding for HCBS, strengthen and expand access to HCBS, strengthen and expand the HCBS workforce, show improvement over time, encourage innovative models that benefit direct care workers and care recipients, support quality and accountability, facilitate state planning, permanent spousal impoverishment protections and make permanent Make Money Follows the Person. POLICIES ON HOME CARE CONTINUED 9

UNPRECEDENTED SUPPORT FOR HOME CARE 10 Adults prefer to recover at home after a hospital stay* 86% of adults and 94% of Medicare beneficiaries say they would prefer to receive post-hospital short-term health care at home Expanding home recovery options should be a government priority* 85% of adults, 91% of caretakers for someone over age 65 and 90% of adults over age 65 say it should be a high priority for the federal government to expand Medicare coverage for home health care There is strong bipartisan support for the Choose Home Care Act* 86% of adults, 94% of Medicare beneficiaries, 92% of Democrats and 83% of Republicans support the Choose Home Care Act * Based on a poll conducted by Morning Consult between August 11-15, 2021 among a sample of 2,200 adults. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on gender, educational attainment, age, race, and region. Results from the full survey have a margin of error of plus or minus two percentage points. “The Biden-Harris administration recognizes the value and dignity that come with access to home- and community-based services. Thanks to the American Rescue Plan, we can support states working to expand access to home- and community-based services for Medicaid beneficiaries.” Xavier Becerra, Secretary of U.S. Department of Health and Human Services (10.21.21)   “We want to design models that give providers those tools that enable the delivery of integrated, whole-person care in the settings beneficiaries prefer, such as in the home or community.” Purva Rawal, Chief Strategy Officer for U.S. Centers for Medicare & Medicaid Services (10.20.21)   “We’re going to expand services for seniors in the home and for families to help them take care of their parents at home. It’s a matter of dignity and pride they want to live at home independently and for millions of Americans this is the most important issue they are facing.” President Joe Biden (10.28.21)

DIFFERENTIATED STRATEGIES 11

Joint ventures drive organic growth and margin improvement Same store growth for JV locations average between 200 and 300 basis points higher than non-JV locations. 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 inorganic growth through acquisitions and organic growth on previous acquisitions. Acquired $300 million in annual revenue in 2021 which will add incremental revenue in 2022 of approximately $200 million and incremental EBITDA of approximately $20 million. Continued focus on growth in episodic admissions and rate improvement on non-Medicare admissions Non-Medicare episodic admissions grew by 18.1% in the fourth quarter of 2021 compared to 2020; and by 21.9% in 2021 compared to 2020. Non-Medicare rates increased 4% in 2021 over 2020 and increased 17% over the last 5 years. DIFFERENTIATED STRATEGY LEADING TO QUALITY GROWTH 12

Continued focus on quality and patient satisfaction to drive higher referrals Increased new home health physician referral sources by 22.0% in 2020 over 2019; by 19.1% in 2021 compared to 2020 and by 9.2% in Q4 of 2021. Untapped growth in home health and hospice co-locations remains top priority 86 hospice locations co-located with home health out of 170 total hospice locations, or 50.1%. 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 136 total HCBS locations, or 40.4%. Grow HCBS in markets with value-based arrangements with JV partners and payors. DIFFERENTIATED STRATEGY LEADING TO QUALITY GROWTH CONTINUED 13

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 14

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 $20M 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 $300 million in acquired annual revenue in 2021 which will add incremental revenue in 2022 of approximately $200 million. Annual revenue acquired in 2021 is expected to add $20 million in incremental EBITDA in 2022. Acquired $54.7 million in annual revenue in 2020. Acquired $114.3 million in annual revenue in 2019. Revenue from acquisitions during 2017-2020 grew by 14.7% on average from time of acquisition through 2021 and contribution margin grew by over 430%*. 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 HCBS 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 Approximately 15% of HH locations are co-located with hospice. Drive organic growth as lowest cost of incremental revenue and margin HH organic admission growth target of 5% to 7% for 2022 and increasing back to mid- to high- single digits Hospice organic admission growth target of 6% to 8% for 2022 and increasing back to mid- to high- single digits 1 2 3 4 5 Organic Growth Acquisition Growth Upside Opportunities 15 * Please refer to slide 13 in our 2022 J.P. Morgan Healthcare Conference Presentation which is located on our website. https://investor.lhcgroup.com/company-information/presentations

FULL TIME CLINICAL STAFF HIRES 16 We continue to see positive trends in recruiting. We have four consecutive quarters in which we have hired a record number of employees while our turnover continues to be well below industry averages. 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 for the twelve months ended December 31, 2021: 17.0% Voluntary Turnover for full time clinical staff in Home Health and Hospice for the twelve months ended December 31, 2021: 18.7%

SEQUENTIAL OPERATIONAL TRENDS Home Health, Hospice, and HCBS Trends 17

HOME HEALTH AND HOSPICE CLINICIANS ON QUARANTINE TREND 18

HOME HEALTH LABOR COST PER VISIT 19

HOME HEALTH AND HOSPICE GROWTH Same Store Organic Admission Growth over Prior-Year Periods New Physician Home Health Referral Sources 20 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Pacing Home Health - 0.4% 16.4% 3.6% 3.8% 5.5% 5% to 7% Hospice 7.6% 1.1% 0.1% - 6.2% 0.5% 8% to 10%Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 # of Referrals sources 5,280 5,317 4,773 4,578 19,948 % change compared to prior year 34.8% 33.1% 4.2% 9.2% 19.6%

INDUSTRY-LEADING QUALITY AND PATIENT SATISFACTION 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. Average star rating for April 2021 through December 2021 from Strategic Healthcare Partners (SHP) data. Average star rating for July 2020 through March 2021 from CMS data. Average star rating for January 2019 through December 2019 from CMS data. The change is mainly due to adjustments that CMS made to the cut point ranges in the 2022 calculation.    21

2021 M&A ACTIVITY SETS THE STAGE FOR 2022 GROWTH The acquired annual revenue of approximately $300 million for 2021 is expected to have an incremental impact to 2022 of approximately $200 million in revenue and approximately $20 million in EBITDA. 22 Acquisition/Joint Venture Partner State Date Closed/ Estimated Close Locations Annual Revenue Grace Hospice N/A Oklahoma 1/1/2021 1 $12,100,000 East Valley Hospice N/A Arizona 1/1/2021 1 $4,800,000 Regent Home Health THR/Methodist Texas 6/1/2021 1 $630,000 Community Home Care Based Services N/A Texas 6/1/2021 1 $600,000 Casa de la Luz Hospice N/A Arizona 7/1/2021 1 $23,000,000 Heart ‘n Home Hospice N/A Idaho/Oregon 7/1/2021 6 $20,000,000 Cavalier Home Health N/A Virginia 8/1/2021 1 $5,700,000 MSA Hospice N/A Indiana 8/1/2021 1 $1,200,000 Ashley County Home Health N/A Arkansas 8/1/2021 1 $1,200,000 Heart of Hospice N/A AR/LA/MS/OK/SC 9/1/2021 16 $92,500,000 Freda H. Gordon Hospice and Palliative Care N/A Virginia 10/1/2021 1 $4,000,000 Generations Home Health N/A Virginia 10/1/2021 1 $3,400,000 HCA Healthcare/Brookdale Health Care Services N/A 22 in Total 11/1/2021 47 $130,000,000 YTD total TTM acquired revenue in 2021 79 $299,130,000

2021 CONSOLIDATED RESULTS 23

2021 ADJUSTED CONSOLIDATED RESULTS 24 Three months ended December 31 Twelve months ended December 31 Consolidated Total Adjustments Adjusted Consolidated Consolidated Total Adjustments Adjusted Consolidated Net service revenue $583,429 $0 $583,429 $2,219,622 $0 $2,219,622 Cost of service revenue 364,603 (18,763) 345,840 1,336,609 (50,029) 1,286,580 Gross margin 218,826 237,589 883,013 933,042 General and administrative expenses 189,681 (13,518) 176,163 696,435 (35,839) 660,596 Impairment of intangibles and other 0 0 0 937 (937) 0 Operating income $29,145 $32,281 $61,426 $185,641 $86,805 $272,446 Depreciation 6,018 0 6,018 20,917 20,917 Noncontrolling interests (5,878) 0 (5,878) (27,888) (27,888) Earnings before interest, tax and depreciation (EBITDA less $29,285 $32,281 $61,566 $178,670 $86,805 $265,475 EBITDA less NCI as a percentage of revenue 5.0% 10.6% 8.0% 12.0%

ADJUSTED CONSOLIDATED RESULTS – 2021 VS 2020 25 Three months ended December 31, Twelve months ended December 31, 2021 Adjusted Consolidated % of rev 2020 Adjusted Consolidated % of rev 2021 Adjusted Consolidated % of rev 2020 Adjusted Consolidated % of rev Net service revenue $583,429 $532,329 $2,219,622 $2,063,204 Cost of service revenue 345,840 59.3% 307,527 57.8% 1,286,580 58.0% 1,213,912 58.8% Gross margin 237,589 40.7% 224,802 42.2% 933,042 42.0% 849,292 41.2% General and administrative expenses 176,163 30.2% 154,495 29.0% 660,596 29.8% 605,456 29.3% Operating income $61,426 10.5% $70,307 13.2% $272,446 12.3% $243,836 11.8% Depreciation 6,018 5,647 20,917 21,249 Noncontrolling interests (5,878) (7,584) (27,888) (26,337) Earnings before interest, tax and depreciation (EBITDA less $61,566 $68,370 $265,475 $238,748 EBITDA less NCI as a percentage of revenue 10.6% 12.8% 12.0% 11.6%

ADJUSTMENTS TO NET INCOME 26 *See footnotes on page 27 PRE TAX ADJUSTMENTS Q4 2021 Q4 2020 2021 2020 Acquisition, de novo and legal expenses ( $10,082 $3,214 $24,154 $7,770 Closures/relocations/consolidations ( 412 4,019 2,510 5,193 COVID 19 PPE, supplies and other expenses ( 14,826 12,159 51,661 52,768 ERP implementation ( 820 - 2,485 - Hurricane Ida ( - - 1,150 - Gain on sale of asset ( - - (1,296) Cost improvement initiatives ( 6,141 - 6,141 - Total $32,281 $19,392 $86,805 $65,731 ADJUSTMENTS NET OF TAX Q4 2021 Q4 2020 2021 2020 Acquisition, de novo and legal expenses ( $7,385 $2,284 $17,737 $5,629 Closures/relocations/consolidations ( 302 2,856 1,850 3,722 COVID 19 impact: PPE, supplies and other expenses ( 10,860 8,641 38,001 38,608 CARES Act tax benefit ( - - - (2,210) ERP implementation ( 601 - 1,827 - Hurricane Ida ( - - 844 - Gain on sale of asset ( - - (951) Cost improvement initiatives ( 4,498 - 4,498 - Total $23,646 $13,781 $63,806 $45,749

ADJUSTMENTS TO NET INCOME CONTINUED Expenses and other costs associated with recently announced or completed acquisitions, de novos and legal expenses ($10.1 million and $24.2 million pre-tax in the three months and year ended December 31, 2021, respectively; $3.2 million and $7.8 million pre-tax in the three months and year ended December 31, 2020, respectively). Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($0.4 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively; $4.0 million and $5.2 million in the three months and year ended December 31, 2020, respectively). COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies, wage adjustments and employee healthcare costs ($14.8 million and $51.7 million pre-tax in the three months and year ended December 31, 2021, respectively; $12.2 million and $52.8 million pre-tax in the three months and year ended December 31, 2021, respectively). 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. Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($0.8 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively). Direct recovery costs associated with Hurricane Ida ($1.2 million pre-tax). As of December 31, 2020, the Company's assets held for sale was $1.9 million, which consisted of one hospice facility in Knoxville, Tennessee.  The Company sold the property during the third quarter of 2021 for $3.2 million.  Expenses associated from cost improvement initiatives implemented in the fourth quarter of 2021, which consisted of contract terminations and general and administrative cost reductions ($6.1 million pre-tax). 27

SEGMENT RESULTS 28

THREE MONTHS ENDED DEC. 31, 2021 ADJUSTED SEGMENT RESULTS 29 Home health services Adjustments Adjusted Home health services Hospice services Adjustments Adjusted Hospice services HCBS services Adjustments Adjusted HCBS services Net service revenue $394,481 $394,481 $102,027 $102,027 $46,229 $46,229 Cost of service revenue 238,548 (13,890) 224,658 65,047 (2,484) 62,563 33,911 (599) 33,312 Gross margin 155,933 169,823 36,980 39,464 12,318 12,917 General and administrative expenses 131,795 (9,289) 122,506 30,904 (2,400) 28,504 11,508 (943) 10,565 Operating income (loss) $24,138 $23,179 $47,317 $6,076 $4,884 $10,960 $810 $1,542 $2,352 Add back Depreciation 3,430 3,430 997 997 462 462 Less Noncontrolling interests (4,554) (4,554) (989) (989) (26) (26) Earnings before interest, tax and depreciation (EBITDA less NCI) $23,014 $23,179 $46,193 $6,084 $4,884 $10,968 $1,246 $1,542 $2,788 EBITDA less NCI as a percentage of revenue 5.8% 11.7% 6.0% 10.8% 2.7% 6.0% Facility based services Adjustments Adjusted Facility based services HCI Adjustments Adjusted HCI services Net service revenue $35,284 $35,284 $5,408 $5,408 Cost of service revenue 23,910 (1,755) 22,155 3,187 (35) 3,152 Gross margin 11,374 13,129 2,221 2,256 General and administrative expenses 12,091 (769) 11,322 3,383 (117) 3,266 Operating income (loss) ($717) $2,524 $1,807 ($1,162) $152 ($1,010) Add back Depreciation 881 881 248 248 Less Noncontrolling interests (313) (313) 4 4 Earnings before interest, tax and depreciation (EBITDA less ($149) $2,524 $2,375 ($910) $152 ($758) EBITDA less NCI as a percentage of revenue - 0.4% 6.7% - 16.8% - 14.0%

YEAR ENDED DEC. 31, 2021 ADJUSTED SEGMENT RESULTS 30 Home health services Adjustments Adjusted Home health services Hospice services Adjustments Adjusted Hospice services HCBS services Adjustments Adjusted HCBS services Net service revenue $1,551,542 $0 $1,551,542 $311,218 $0 $311,218 $189,561 $0 $189,561 Cost of service revenue $901,685 ($35,908) 865,777 $194,895 ($5,434) 189,461 $137,852 ($2,417) 135,435 Gross margin 649,857 685,765 116,323 121,757 51,709 54,126 General and administrative expenses 501,132 (26,255) 474,877 89,693 (3,596) 86,097 46,724 (2,962) 43,762 Impairment of intangibles and other $937 (937) 0 $0 0 0 $0 0 0 Operating income (loss) $147,788 $63,100 $210,888 $26,630 $9,030 $35,660 $4,985 $5,379 $10,364 Depreciation 12,040 12,040 2,912 2,912 1,662 1,662 Noncontrolling interests (22,060) (22,060) (4,297) (4,297) (467) (467) Earnings before interest, tax and depreciation (EBITDA less NCI) $137,768 $63,100 $200,868 $25,245 $9,030 $34,275 $6,180 $5,379 $11,559 EBITDA less NCI as a percentage of revenue 8.9% 12.9% 8.1% 11.0% 3.3% 6.1% Facility based services Adjustments Adjusted Facility based services HCI Adjustments Adjusted HCI services Net service revenue $132,098 $0 $132,098 $35,203 $0 $35,203 Cost of service revenue $89,270 ($6,046) 83,224 $12,907 ($224) 12,683 Gross margin 42,828 48,874 22,296 22,520 General and administrative expenses 45,304 (2,681) 42,623 13,582 (345) 13,237 Impairment of intangibles and other $0 0 0 $0 0 0 Operating income (loss) ($2,476) $8,727 $6,251 $8,714 $569 $9,283 Depreciation 3,329 3,329 974 974 Noncontrolling interests (1,105) (1,105) 41 41 Earnings before interest, tax and depreciation (EBITDA less ($252) $8,727 $8,475 $9,729 $569 $10,298 EBITDA less NCI as a percentage of revenue - 0.2% 6.4% 27.6% 29.3%

HOME HEALTH SEGMENT ADJUSTED SEGMENT RESULTS – 2021 VS 2020 31 For the three months ended December 31, 2021, Revenue increased by $11.8 million or 3.1% as compared to Q4 2020. The increase in revenue is due to approximately $9.4 million of inorganic revenue from the HCA/Brookdale acquisition, an approximate 1% increase same store census, along with an increase in Revenue per Completed Medicare Episode of approximately 1.0%. For the three months ended December 31, 2021, Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased $8.5 million, or 260 basis points as a percentage of revenue, as compared to Q4 2020. The decrease is primarily due to the staffing shortages and cost pressures owing to clinicians being quarantined, resulting in higher utilization of contract labor, more overtime and higher shift premium pay. Total labor cost per visit increased 7.5% as compared to Q4 2020 due to higher wages, higher sign on and retention bonuses, and higher training and orientation cost. General and administrative expenses as a percent of revenue increased 120 basis points for the three months ended December 31, 2021 as compared to the same period in 2020 due to the HCA/Brookdale acquisition which closed on November 1, 2021. Revenue from sequestration suspension in the fourth quarter of 2021 was $4.8 million and $19.5 million for the twelve months ended December 31, 2021.

HOSPICE SEGMENT ADJUSTED SEGMENT RESULTS – 2021 VS 2020 32 For the three months ended December 31, 2021, revenue increased $39.6 million. The increase in revenue is due to approximately $38.8 million of inorganic revenue from recent acquisitions and approximately $2 million from same store growth offset by an increase in implicit price concession of approximately $2 million. For the three months ended December 31, 2021, Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased $2.7 million but decreased 240 basis points as a percentage of revenue, as compared to Q4 2020. The decrease is primarily due to the staffing shortages and cost pressures owing to clinicians being quarantined, resulting in higher utilization of contract labor, more overtime and higher shift premium pay. Total cost per patient day increased 2.2% as compared to Q4 2020 due to higher wages, higher sign on and retention bonuses, and higher training and orientation cost. General and administrative expenses as a percent of revenue increased 200 basis points for the three months ended December 31, 2021 as compared to the same period in 2020 due to recent acquisitions that closed on September 1 and November 1, 2021. Revenue from sequestration suspension in the fourth quarter of 2021 was $1.9 million and $5.9 million for the twelve months ended December 31, 2021.

HOME AND COMMUNITY BASED SERVICES SEGMENT ADJUSTED SEGMENT RESULTS – 2021 VS 2020 33 For the three months ended December 31, 2021, revenue decreased $3.8 million or -7.6% as compared to Q4 2020. The decrease in revenue is due to a 5.6% decline in billable hours owing to ongoing staffing constraints due to the COVID-19 pandemic. For the three months ended December 31, 2021, the HCBS segment EBITDA decreased $1.0 million and declined 170 basis points as a percentage of revenue as compared to Q4 2020. The decrease is due to the impact of fixed costs on lower revenue.

FACILITY-BASED SERVICES SEGMENT ADJUSTED SEGMENT RESULTS – 2021 VS 2020 34 For the three months ended December 31, 2021, Revenue increased by $3.4 million or 10.6% as compared to Q4 2020. The increase in revenue is due to approximately $3 million of inorganic revenue from the recent acquisition of therapy service providers from Brookdale, along with an increase in patient days in the LTACHs of approximately 2.8%. For the three months ended December 31, 2021, Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was flat, as compared to Q4 2020. Revenue from sequestration suspension in the fourth quarter of 2021 was $0.3 million and $1.3 million for the twelve months ended December 31, 2021.

HEALTH CARE INNOVATIONS SEGMENT ADJUSTED SEGMENT RESULTS – 2021 VS 2020 35 Three months ended December 31, Twelve months ended December 31, 2021 Adjusted HCI services % of rev 2020 Adjusted HCI services % of rev 2021 Adjusted HCI services % of rev 2020 Adjusted HCI services % of rev Net service revenue $5,408 $5,302 $35,203 $32,457 Cost of service revenue 3,152 58.3% 3,459 65.2% 12,683 36.0% 14,731 45.4% Gross margin 2,256 41.7% 1,843 34.8% 22,520 64.0% 17,726 54.6% General and administrative expenses 3,266 60.4% 3,056 57.6% 13,237 37.6% 12,739 39.2% Operating income ($1,010) - 18.7% ($1,213) - 22.9% $9,283 26.4% $4,987 15.4% Depreciation 248 306 974 1,203 Noncontrolling interests 4 9 41 32 Earnings before interest, tax and depreciation (EBITDA less NCI) ($758) ($898) $10,298 $6,222 EBITDA less NCI as a percentage of revenue - 14.0% - 16.9% 29.3% 19.2%

GUIDANCE, LIQUIDITY & OUTLOOK 36

Assumptions: 5% to 7% organic growth in home health admissions for the year; 6% to 8% organic growth in hospice admissions for the year. Gross margin as a percent of revenue range 40% to 41%. General and administrative expense as a percent of revenue range 28% to 29%. Estimated interest expense of $15 million and depreciation expense of $19.5 million for full year 2022. Estimated effective tax rate of 27.0% for full year 2022. Fully diluted shares of 30.7 million. FULL YEAR 2022 GUIDANCE 37 (1) The growth rate assumes that $51.7 million in 2021 COVID expenses are added back to into the 2021 EBITDA and EPS numbers in order to compare with 2022 guidance. COVID expenses will not be adjusted out of earnings in 2022.

FULL YEAR 2022 GUIDANCE CONTINUED 38 NSR $ EBITDA $ EBITDA % 2021 BASELINE $2,219.6 $265.5 12.0% 2022 DEVELOPMENTS: SEQUESTRATION ($16.0) ($16.0) COVID SPEND ($30.0) HIGHER LABOR COST ($26.5) HOME HEALTH RATE INCREASE $25.0 $25.0 HOSPICE RATE INCREASE $7.0 $7.0 ORGANIC GROWTH $90.0 $10.0 INCREMENTAL CONTRIBUTION FROM 2021 M&A $200.0 $20.0 COST IMPROVEMENT INITIATIVES $0.0 $25.0 2022 GUIDANCE $2,525.6 $280.0 11.1%

FIRST QUARTER 2022 GUIDANCE (SEE BRIDGE ON SLIDE 40) 39 Low Midpoint High Revenue $560 million $570 million $580 million Adjusted EPS $1.00 $1.05 $1.10 Adjusted EBITDA less NCI $50 million $52.5 million $55 million

BRIDGE FROM Q4 2021 TO Q2 2022 (SEE ASSUMPTIONS ON SLIDE 41) 40

BRIDGE FROM Q4 2021 TO 1H 2022 41 Bridge Growth Assumptions from Q1 2022 to Q2 2022 Home Health average census assumed for the first quarter of 2022 is approximately 86,500. Home Health average census to achieve the second quarter of 2022 bridge growth is approximately 88,900. On February 21, 2022, our Home Health census was approximately 89,328. Same store admission growth for the first quarter of 2022 is pacing to be 5% to 7% over the first quarter of 2021. Hospice average census assumed for the first quarter of 2022 is approximately 7,000. Hospice average census to achieve the second quarter of 2022 bridge growth is approximately 7,250. On February 21, 2022, our Hospice census was 7,075. Same store admission growth for the first quarter of 2022 is pacing to be 8% to 10% over the first quarter of 2021. HCBS billable hours assumes approximately 1.7 million in the first quarter of 2022 and approximately 1.8 million in the second quarter of 2022. HCBS billable hours for the fourth quarter of 2021 were 1.8 million.

2H 2022 ASSUMPTIONS 42 Bridge from 1st half of 2022 to 2nd half of 2022 Improvement in contribution margin from 2021 acquisitions COVID spend improvement Improvement in contract labor utilization Assumes 1% utilization improvement in Q2 and in Q3. Every 1% improvement in utilization equates to $1.4 million in cost savings.

OCT 2021 – FEB 2022 HOME HEALTH TREND 43 Home Health average weekly census declined to a low 83,061 during the week ended January 15, 2022 as the average percentage of clinicians quarantined increased to 6.04% for the week ending January 15th, exacerbating the normal seasonal dip in January. Home Health average weekly census has increased 6.2% from 83,061 during the week ended January 15, 2022 to 88,198 during the week ended February 19, 2022 as the percentage of clinicians quarantined has continued to decline and admissions have re-accelerated. During the first quarter of 2022, we experienced severe winter weather over much of our service area. During the quarter, we had 181 agency closures resulting in reduced admissions. *Completed purchase of home health assets from Brookdale which had approximately 2,500 patients on census

OCT 2021 – FEB 2022 HOME HEALTH CENSUS VERSUS CLINICIAN QUARANTINE CORRELATION 44

OCT 2021 – FEB 2022 HOSPICE CENSUS VERSUS CLINICIAN QUARANTINE CORRELATION 45

DEBT AND LIQUIDITY METRICS 46 Outstanding Debt ( amounts in thousands As of Dec. 31, 2021 Total Debt Balance Sheet $661,197 Less: Cash $9,809 Net Debt $651,388 Net debt to estimated TTM adjusted EBITDA ratio 2.5x Credit Facility amounts in thousands As of Dec. 31, 2021 Revolver Size $1,000,000 Less: Outstanding Revolver $661,197 Less: Medicare Advanced Payments $106.489 Less: Letters of Credit $24,341 Available Liquidity $207,973 Plus: Cash $9,809 Plus: Accordion $300,000 Total Liquidity $517,782 Cash Flow amounts in thousands As of December 31, 2021 Free Cash Flow (12 Months Ended) $(161,196) + Cash adjustments net of tax to 2021 EBITDA 63,096 + Payments made on Medicare Advanced Payment, tax related to PRF and payroll tax deferral 258,578 = Adjusted Free Cash Flow (12 Months Ended) $160,478 DSO’s 55 days 46

FOCUS FOR 2022 47 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. 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. Accelerate initiatives to operationalize Advanced Care @ Home. Focus on cost improvement initiative and efficiencies. Continued improvement in our Hospice and HCBS service lines.

APPENDIX 48

NON-GAAP RECONCILIATIONS (AMOUNTS IN THOUSANDS, UNAUDITED) 49 *Footnotes are on page 51 RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP Three Months Ended Dec 31, Three Months Ended Dec 31, Twelve Months Ended Dec 31, Twelve Months Ended Dec 31, 2021 2020 2021 2020 Net income attributable to LHC Group, Inc.’s common stockholders $15,692 $30,380 $115,728 $111,596 Add (net of tax): Acquisition, de novo and legal expenses (1) 7,385 2,284 17,737 5,629 Closures/relocations/consolidations (2) 302 2,856 1,850 3,722 COVID 19 impact: PPE, supplies and other expenses ( 10 860 8,641 38,001 38,608 CARES Act tax benefit (4) - - - (2,210) ERP implementation (5) 601 - 1,827 - Hurricane Ida (6) - - 844 - Gain on sale of asset (7) - - (951) - Cost improvement initiatives (8) 4,498 - 4,498 - Adjusted net income attributable to LHC Group, Inc.’s common stockholders $39,338 $44,161 $179,534 $157,345

NON-GAAP RECONCILIATIONS (AMOUNTS IN THOUSANDS, UNAUDITED) *Footnotes are on page 51 50 RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP PER DILUTED SHARE Three Months Ended Dec 31, Three Months Ended Dec 31, Twelve Months Ended Dec 31, Twelve Months Ended Dec 31, 2021 2020 2021 2020 Net income attributable to LHC Group, Inc.’s common stockholders $0.50 $0.97 $3.69 $3.56 Add (net of tax): Acquisition, de novo and legal expenses (1) 0.24 0.07 0.57 0.17 Closures/relocations/consolidations (2) 0.01 0.09 0.06 0.12 COVID 19 impact: PPE, supplies and other expenses ( 0.35 0.27 1.22 1.23 CARES Act tax benefit (4) - - - (0.07) ERP implementation (5) 0.02 - 0.05 - Hurricane Ida (6) - - 0.03 - Gain on sale of asset (7) - - (0.03) - Cost improvement initiatives (8) 0.14 - 0.14 - Adjusted net income attributable to LHC Group, Inc.’s common stockholders $1.26 $1.40 $5.73 $5.01

NON-GAAP RECONCILIATIONS (AMOUNTS IN THOUSANDS, UNAUDITED) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) 51 Expenses and other costs associated with recently announced or completed acquisitions, de novos and legal expenses ($10.1 million and $24.2 million pre-tax in the three months and year ended December 31, 2021, respectively; $3.2 million and $7.8 million pre-tax in the three months and year ended December 31, 2020, respectively). Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($0.4 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively; $4.0 million and $5.2 million in the three months and year ended December 31, 2020, respectively). COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies, wage adjustments and employee healthcare costs ($14.8 million and $51.7 million pre-tax in the three months and year ended December 31, 2021, respectively; $12.2 million and $52.8 million pre-tax in the three months and year ended December 31, 2021, respectively). 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. Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($0.8 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively). Direct recovery costs associated with Hurricane Ida ($1.2 million pre-tax). As of December 31, 2020, the Company's assets held for sale was $1.9 million, which consisted of one hospice facility in Knoxville, Tennessee.  The Company sold the property during the third quarter of 2021 for $3.2 million.  Expenses associated from cost improvement initiatives implemented in the fourth quarter of 2021, which consisted of contract terminations and general and administrative cost reductions ($6.1 million pre-tax).

52

EX-99.3

Exhibit 99.3

LHC GROUP

Q4 2021 EARNINGS CONFERENCE CALL

THURSDAY, FEBRUARY 24, 2022

8:00 A.M. CT

BUSINESS AND LEGISLATIVE OVERVIEW

• There is a fundamental shift underway that is rapidly transforming and prioritizing the delivery of high-quality care to the home. This acceleration in demand is providing a resounding case for long-term growth and optimism and should drive our organic growth as well as the future contributions from acquisitions and partnerships for many years to come.

o Home health referrals are up 11.6% in 2021 to 637,000 on top of a 9.1% increase in 2020 over 2019

o New Home health referral sources are up 19.6% in 2021 to 19,948 on top of an 22.0% increase in 2020 over 2019

o Hospice referrals are up 29.1% in 2021 to 35,302 on top of an 10.2% increase in 2020 over 2019

o Home Health Final Rule for FY 22 posted on November 2, 2021

▪ No cuts for 2022 and an aggregate increase of payment rates of 2.6%.

▪ CMS estimates the overall impact to be +3.2% or an aggregate increase in payment of by $570 million due to the payment increase and other policy changes in the Rule.

▪ HHVBP was expanded from demonstration from nine states to all 50 states and territories beginning January 1, 2023 with the first payment year in 2025

• The baseline year is 2019 and the initial performance year is 2023

• Provides a maximum payment adjustment of +/- 5%

• HHVBP is very supportive of our advanced care @ home service line expansion

• We’ve been operating under the current demonstration in seven states

• This is a substantial opportunity as we have a number of highly successful SNF diversion programs with hospital partners

o Choose Home Care Act of 2021

▪ Would provide clinically appropriate Medicare beneficiaries the option to safely recover in their homes vs. more costly and restrictive inpatient post-acute care settings

▪ Introduced in the Senate (S.2562) in July 2021 with sponsorship by Sens. Stabenow (D-MI) and Young (R-IN); the legislation now has 18 total sponsors from both parties and from both committees of healthcare and aging jurisdictions

▪ Introduced in the House in October 2021, HB 5514 by Cong. Cuellar (D-TX) and Comer (R-KY); the legislation now has 30 total sponsors from both parties and committees of healthcare jurisdiction

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▪ CBO is scoring/reviewing it now for budget implications and CMS has already reviewed it for technical advice

▪ The more likely vehicles for passage are in the budget reconciliation process or other legislative packages

o We are the partner of choice for 435 leading hospitals and health systems across the country

▪ Our JV strategy is a true differentiator for us, the core of our overall strategy, and a top priority for us in 2022 and beyond

▪ The advanced care @ home partnership with SCP Health provides another opportunity to work closely with our partners, leverage our 756 collective relationships, and provide the missing link that these programs have needed for highly coordinated care and taking risks on post-acute cost and care management

o Value-based care plays to our strengths with our experience and data analytics capabilities across the HCI segment

▪ Value-Based annual earned run-rate at $20 million

• M&A activity during 2021 sets the stage for another strong year of growth in 2022

o We had a record year in 2021 with approximately $300 million of acquired annual revenue

o Our largest transaction was the purchase of 47 locations from the HCA/Brookdale joint venture which represents approximately $130 million in annual revenue

▪ Home health, hospice and therapy services agencies are located in 22 states, two of which (MN and NM) are new to LHC Group

▪ This transaction closed on November 1

o We anticipate the incremental EBITDA contribution from our M&A activity to be $20 million in 2022

o Revenue from acquisitions during 2017-2020 grew by 14.7% on average from time of acquisition through 2021 and contribution margin grew by over 430%.

▪ Please refer to slide 13 in our 2022 J.P. Morgan Healthcare Conference Presentation which is located on our website.

▪ https://investor.lhcgroup.com/company-information/presentations

• LHC Group is an industry leader in quality and patient satisfaction

o Our overall home health quality star ratings continue to be a leader in the industry

o Average quality star ratings of 4.37 during the period of April 2021 through December 2021 according to Strategic Healthcare Partners.

o Average quality star ratings of 4.10 during the period of July 2020 through March 2021 according to CMS.

o Average quality star ratings of 4.23 during the period of January 2019 through December 2019 according to CMS.

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OPERATIONAL OVERVIEW

KEY METRICS

• Higher labor costs and capacity constraints caused by the lingering impact of clinicians on quarantine caused significant headwinds for Q4.

▪ The percentage of clinicians on quarantine increased to 3.5% at the end of the fourth quarter of 2021, up from 3.0% at the end of the third quarter. The elevated percentage resulted in an estimated unfavorable impact to census of approximately 2,500, revenue of $13.8 million and EBITDA of $4.1 million.

o Home health organic admission growth

▪ 3.8% in Q4 2021

▪ 5.5% for the year ended December 31, 2021

▪ Pacing to 5% for Q1 2022

o Home health average daily census

▪ 86,228 in Q4 2021

▪ 83,686 in Q4 2020

▪ 84,258 in Q3 2021

▪ 84,986 QTD in Q1 2022

▪ 89,328 on February 21, 2022

o Home health non-Medicare episodic same store admission growth

▪ 18.1% in Q4 2021

▪ 21.9% for the year ended December 31, 2021

▪ Pacing to 21.7% for Q1 2022

o Hospice organic admission growth

▪ -6.2% in Q4 2021

▪ 0.5% for the year ended December 31, 2021

▪ Pacing to 10.2% for Q1 2022

o Hospice average daily census

▪ 7,024 in Q4 2021

▪ 4,320 in Q4 2020

▪ 5,697 in Q3 2021

▪ 7,051 QTD in Q1 2022

▪ 7,075 on February 21, 2022

▪ Discharged length of stay improved to 85.6 days in Q4 2021 as compared to 79.7 days in Q4 2020.

• Average discharged length of stay trend from Q1 2019 through Q4 2021

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FOURTH QUARTER 2021 AND FIRST QUARTER 2022 TRENDS

• The headwinds we faced in late Q4 2021 and early Q1 2022 were primarily related to reduced capacity to service demand due to COVID variants and labor availability

o After declining throughout November and into early December, our percentage of clinicians spiked until mid-January 2022 to the highest levels we have experienced during the pandemic

• In Home Health, our clinicians on quarantine reached a high of 6.5% on January 17, 2022 and declined to 0.6% the week of February 19, 2022 which is the lowest quarantine level since July 2021.

• In Hospice, our clinicians on quarantine reached a high of 5.5% the week of January 10, 2022, and declined to 1.7% on February 19, 2022 which is the lowest quarantine level since July 2021.

• Labor costs and availability remain a challenge for LHC Group and for the industry

o Labor supply remains tight, but we have been able to decrease the use of nursing contract labor for contract visits sequentially in home health compared to Q3 2021

▪ 3.8% of home health total nursing visits in Q4 2021

▪ 2.4% of home health total nursing visits in Q4 2020

▪ 4.0% of home health total nursing visits in Q3 2021

o Labor costs have stabilized and were slightly down sequentially from Q3 2021 to Q4 2021

RECRUITING AND RETENTION

• Recruiting and retention are top priorities, and we continue to experience net positive hiring across all service lines

o We have had four consecutive quarters of hiring a record number of employees

o Voluntary turnover continues to be well below industry averages

▪ 17.0% voluntary turnover for the year ended December 31, 2021 for FTE’s company wide

▪ 18.7% voluntary turnover for the year ended December 31, 2021, for full time home health and Hospice clinical staff

o Q4 2021 produced the most hires compared to any other Q4 in company history

o 2021 total year hiring produced over 20% more new hires compared to any other year

FINANCIAL OVERVIEW

Q4 RECAP

• Q4 2021 adjusted results were within our guide range as communicated on November 4, 2021, as part of the 3Q ’21 earnings call.

• Net Service Revenue of $583.4 million was up 9.6% year-over-year and up 3.2% sequentially

o Home Health, Hospice and Hospital segments were all firmly up on both a year-over-year and sequential quarter basis

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o Q4 revenues in all three segments benefitted from recent acquisitions, including a full quarter of Heart of Hospice and two months of HCA/Brookdale

o Sequential growth despite $11.7 million seasonal MSSP benefit in 3Q ’21.  Excluding MSSP, sequential quarter revenues were up +$29.6M

• Adjusted EBITDA of $61.6 million was down ($6.8M) year-over-year.

o Year-over-year EBITDA reduction driven largely by ongoing labor cost pressures, owing to the persisting shortage of nursing talent, which not only creates wage pressures, but also creates a greater reliance on contract labor

▪ On a positive note, contract labor utilization and rates moderated in the Home Health segment sequentially compared to Q3 2021

▪ In both the Home Health and Hospice segment, cost trends were flat to slightly down sequentially compared to Q3 2021

▪ LHC has made significant strides to leverage indirect costs, integrate newly acquired businesses, and adjust COVID pay policies, all of which has tempered the impact of higher direct wages, positioning the company for stronger cost management going forward

o Sequential Quarter EBITDA reduction driven largely by the seasonal benefit of MSSP ($11.7 million) recognized in 3Q ’21.  Excluding MSSP, sequential quarter EBITDA was up +$4.5M on $29.6M of higher revenue.  

• Adjusted EPS of $1.26 was down ($0.14) year-over-year, driven by the labor dynamics highlighted above, but also due to:

o Higher year-over-year interest expense of +$2.7 million or -$.06 EPS, owing to the M&A capital deployed in 2021, coupled with approximately $83M of stock repurchases executed in December 2021.

o Sequential Quarter EPS reduction driven largely by the seasonal benefit of MSSP ($0.27 per diluted share) recognized in 3Q ’21.  Excluding MSSP, sequential quarter EPS was up $0.08 per diluted share.  

HOME HEALTH SEGMENT

• Net Service Revenue of $394.5M, up 3.1% versus 4Q 2020, driven by non-Medicare admission and census growth and HCA/Brookdale acquired volume

• EBITDA Margin of 11.7% down from 14.3% in 4Q 2020, due largely to higher cost of service, coupled with higher G&A related to sales investments and immature G&A related to the HCA/Brookdale acquisition

• Home Health employed visiting staff base wage cost per visit increased +5.5% versus 4Q 2020 and was flat sequentially compared to Q3 2021

o Contract Labor Cost per Visit +13.0% year-over-year, but down (30) bps sequentially compared to Q3 2021

▪ Contract nursing utilization = 3.8% of nursing visits in 4Q ’21 versus 2.4% in 4Q ’20 and 4.0% in 3Q ‘21

▪ Contract nursing CPV +12.8% versus 4Q ’20, but down (4.9%) versus 3Q ‘21

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o Direct Cost per Visit was up 6.8% year-over-year, but down (1.0%) sequentially compared to Q3 2021

o Indirect costs, benefitting from operating leverage, were down nearly 9% on both a year-over-year and sequential quarter basis, helping temper the direct cost pressures

o When considered on a pro forma basis, forward leading labor initiatives, COVID policy changes, and non-recurring acquisition related expenses, further helped to offset the direct cost pressures highlighted above.  These actions position the service line for improved cost performance going forward

HOSPICE SEGMENT

• Net Service Revenue of $102.0M, up 63.5% versus 4Q 2020, driven by the acquisitions of Heart of Hospice, which closed on 9/1/21, and HCA/Brookdale, which closed on 11/1/21, resulting in census growth year-over-year of +62.6%.  Revenue per patient day increased +2.7%, but was largely offset by a higher Implicit Price Concession reserve

• Hospice EBITDA Margins decreased 250 bps year-over-year and 80 bps sequentially, largely driven by higher cost of service, coupled with higher G&A related to sales investments and immature acquired G&A

• Hospice employed visiting staff base wage cost per day increased +1.2% versus last year’s 4Q and was up a more modest 50 bps sequentially compared to Q3 2021

o Contract Labor utilization and rates at unprecedented levels for Hospice

▪ Contract nursing utilization at 2.2% of visits, up from 0.3% in 4Q ’20 and up from 1.7% in 3Q ‘21

▪ Contract nursing CPV +122% year-over-year and up +7.9% sequentially

o Direct Cost per Day was up 1.1% year-over-year, but flat sequentially

PERSONAL CARE BUSINESS SEGMENT

• Personal Care business continues to deal with labor supply headwinds, but at a moderating rate, with Billable hours down 5.6% year-over-year and down 2.1% sequentially

o Q4 2021 = 1,779,058

o Q4 2020 = 1,884,411

o Q3 2021 = 1,817,711

CASH FLOW AND LIQUIDITY

• Balance sheet and liquidity remain strong and continue to support our organic and inorganic growth initiatives

• Adjusted Free Cash Flow in 4Q of $56.0M and $160.5M YTD

• Net debt to Adjusted TTM EBITDA at 2.45x as of December 31, 2021

• Medicare Advance Payment recoveries were $69.8M in 4Q and $211.5M Year-to-Date

• DSO up 2.9 days versus last year and up modestly sequentially, driven by acquired A/R

o Q4 2021 = 55.0 days

o Q4 2020 = 52.1 days

o Q3 2021 = 54.2 days

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• Total Liquidity stands at $518 million as of 12/31/21

FULL YEAR 2022 GUIDANCE

• Net service revenue of $2.500B to $2.550B

• Adjusted EBITDA, less NCI, of $270M to $290M

• Adjusted EPS of $5.60 to $6.00

• Full Year Assumptions include:

o Estimated effective tax rate of 27.0%

o 5% to 7% organic growth in Home Health admissions for the year

o 6% to 8% organic growth in Hospice admissions for the year

o Gross Margin as a percent of revenue at 40.0% to 41.0%

o General and Administrative expense as a percent of revenue at 28.0% to 29.0%

o Net Interest Expense of $15 million

o Depreciation & Amortization expense of $20 million

o Fully diluted shares outstanding of 30.7 million

o Estimated COVID-19 related spend of $30 million

FIRST QUARTER 2022 GUIDANCE

• Net service revenue of $560 million to $580 million

• Adjusted EBITDA, less NCI, of $50 million to $55 million

• Adjusted EPS of $1.00 to $1.10

• 1Q 2022 Mid-Point Guidance incorporates the following key items as a bridge from 4Q ‘21:

($ in Millions)	Net Service Revenue	EBITDA
Adjusted Q4 ’21 Actual	$583.4	$61.6
Seasonal Payroll Tax	$0.0	($6.0)
COVID Spend	$0.0	($10.0)
Omicron Surge/Clinician Quarantine	($13.8)	($4.1)
Winter Weather Closures	($5.7)	($1.7)
Home Health Rate Increase	$6.1	$6.1
M&A Maturation	$0.0	$2.0
Cost Improvement Initiatives	$0.0	$4.9
Adjusted Q1 ‘2022 Estimate	$570.0	$52.8

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XML

Cover	Feb. 23, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 23, 2022
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