Another major home health company struggled in the second quarter of 2022. LHC Group earned $14.9 million in the quarter ended June 30, a whopping decrease of 68% compared with the second quarter of 2021, the company disclosed on Wednesday.
Net service revenue for the company, which is based in Lafayette, LA, and offers an array of home care services, including home health, hospice and home- and community-based services, rose by 5.5% to $576.2 million. Profits at all of its subsidiaries fell in the quarter, except for home- and community-based services, which increased slightly to $1.3 million. Earnings at its home health operations decreased by 55.6%, while profits in hospice tumbled by 95.9%. Both its facility-based services and healthcare innovation arms went into the red in the second quarter.
Executives did not comment on the poor performance in the earnings statement. Due to the pending acquisition of LHC by UnitedHealth Group Inc., the company will not hold an earnings call, LHC said.
LHC is not the only company to have lackluster results in the quarter. Amedisys’ earnings decreased on lower revenues for the second quarter, while Enhabit Home Health & Hospice’s earnings fell sharply in the same period— its first as an independent company from Encompass Health. Addus HomeCare’s profits dipped just slightly in the second quarter but still fell short of Wall Street expectations.
Companies cited the impact of the pandemic on their operations as reasons for the downturn, along with labor challenges and inflation. Enhabit blamed the quarter’s woes on spin-off issues, including rebranding and staff time-off.
