LHC Group to Acquire Assets of Extendicare of West Tennessee Company Also Announces Formation of Partnership with Columbus Regional Medical Center and Conversion of License Lease Agreement to Joint Venture

New Orleans,AP - LHC Group, Inc. , a premier provider of post-acute healthcare services primarily in rural markets, announced recently that it has signed a definitive agreement to acquire 100% of the assets of Extendicare of West Tennessee, effective September 1, 2007. Extendicare of West Tennessee has four home health agencies located in Jackson, Union City, Paris and Henderson.

The service area of this acquisition spans 21 counties in West Tennessee, of which 16 are not currently covered by an existing LHC Group agency. This brings LHC Group's total service area in Tennessee to 42 counties. The primary service area has an estimated total population of 1.5 million, with almost 12% over the age of 65. Total Medicare revenue for 12 months for this location is approximately $4.1M.

LHC Group also announced recently two additional separate transactions. The Company signed a definitive agreement to form a partnership with Columbus Regional Medical Center located in Columbus, Georgia. LHC Group will sell a 33% interest in an existing agency in Pine Mountain, Georgia, to Columbus Regional Medical Center. Columbus Regional Medical Center is a 471 licensed bed facility that serves as a referral center for Western Georgia and Eastern Alabama.

In addition, LHC Group signed a definitive agreement with Mississippi Baptist Medical Center to convert a license lease agreement implemented in October 2003 to a joint venture. In commenting on the announcement, Jerry Cotton, president of Mississippi Baptist Medical Center, said, "We are very pleased to be entering into a more permanent and long-term relationship with LHC Group. Having had the opportunity to work closely with the management team and healthcare professionals from LHC Group for nearly four years, it has become clear that we have very similar operating strategies, each with a strong commitment to providing quality care."

Keith Myers, president and chief executive officer of LHC Group, said, "LHC Group is very excited about the acquisition of Extendicare of West Tennessee and the partnership with Columbus Regional Medical Center in Columbus, Georgia. We look forward to working with our new families in Tennessee and Georgia. Our commitment is to help people in these communities by providing the highest quality home-based services available to the patients and families in the area."

Mr. Myers continued, "We are also pleased to have formed a partnership with one of the premier hospitals, Mississippi Baptist Medical Center, located in Jackson, Mississippi. Our successful track record for operating the home health agency associated with Mississippi Baptist Medical Center since October 2003 made the decision to enter into this partnership a natural progression. This partnership ensures that people in these communities will continue to have access to quality home-based services available to the patients and families in the area."

SOURCE: LHC Group, Inc.