LHC Group and Brentwood, Tenn.-based LifePoint Health plan to form a joint venture aimed at strengthening home health and hospice services.
Here are seven things to know about the plans.
1. The organizations have agreed to share ownership and governance of a new joint venture.
2. The joint venture will operate LifePoint's home health agencies and hospices, as well as select LHC Group agencies located near LifePoint hospitals, according to a news release.
3. Per a definitive agreement, LHC Group, a national provider of home health and hospice, will take over day-to-day operations management of LifePoint's home health agencies and hospices, as well as all future home health and hospice acquisitions.
4. LifePoint's home health agencies and hospices will keep their existing names.
5. A newly-created joint venture governing board with representatives from both companies will direct key governance decisions.
6. William F. Carpenter III, chairman and CEO of LifePoint Health, expressed enthusiasm for the joint venture. "This partnership further demonstrates our commitment to making communities healthier beyond the walls of our hospitals and across the continuum of care," he said in a statement. "By leveraging LHC Group’s expertise, we will gain access to the resources and the infrastructure needed to enhance our existing home health and hospice services, invest more in care coordination across our network and expand access to these services in all our communities."
7. The joint venture is expected to start operations at the end of 2016, subject to certain regulatory approvals and customary closing conditions.