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EHC - LHC Group May Thrive In New Policy Environment
Encompass Health Corporation
Thesis
The Centers for Medicare and Medicaid Services ((CMS)) recently issued its final rule for the Patient-Driven Groupings Model (PDGM) for home health care. LHC Group (LHCG) welcomed the final rule. Executives on the recent Q3-19 earnings call said they believed the new rule would play to the advantage of large home health players like LHC Group.
Various other industries commentaries on the final rule have echoed similar sentiment. Small home health players are likely to struggle under the final rule. LHC Group itself has estimated that up to 30% of home health