LHC Group was an attractive acquisition for UnitedHealth Group because the home health company is headquartered in Louisiana and has a large number of employees working in the office, the Acadiana Advocate reported.
"When we engaged in conversations with UnitedHealth, who we have known and worked with for a long time, they think we're more valuable because we're in Lafayette," LHC Board chair and Founder Keith Myers told local business leaders April 5. "When they walked around the building and see people, they see people engaged and not shy. They couldn’t believe how many people were in the office (after COVID). You go to Minneapolis, and the parking lots are all empty. Nobody wants to come to the office."
UnitedHealth Group closed on its $5.4 billion acquisition of LHC in February, which will be merged with Optum. The deal was proposed in March 2022 and further expands UnitedHealth's ability to provide value-based care to Medicare patients.
Mr. Myers said UnitedHealth has also inquired about using space on the LHC campus in Lafayette to house other company departments in the future. Mr. Myers will serve as chairman, CEO emeritus and senior adviser to Optum. Joshua Proffitt, LHC Group’s president and COO, will become CEO.
LHC employs about 30,000 people, including front-line care providers and administrative and support personnel. Many of LHC's home-health and hospice operations are owned in partnership with hospital systems across 38 states.