LHC Group SWOT and PESTLE Analysis

Strength

1. Wide range of services provided: High-quality, cost effective and post-acute health care services are provided by the LHC group. By the end of 2020, the group had 827 service providers in 35 states in the U.S and the District of Columbia. LHC services are divided into five groups: home health services, hospice services, home and community-based services, facility based services, offered by the long-term acute care hospitals (LTACH), and health care innovations (HCI). The home health services is designed in a way that the nurses and specialist work with patients and families and implement individual treatment plans in accordance with a physician-prescribed plan of care. The hospice services include end-of-life care to patients with fatal illness via interdisciplinary terms of physician, nurses, home health services, counsellors and volunteers. The patients who have complex medical conditions and have transitioned out hospital care are transferred to the LTACH locations where the patients are provided with all the health care facilities. As of December 2020, LHC operated 537 home health services, 120 hospice services, 124 home and community based locations, 377 licensed beds for LTACH locations and 12 HCI locations in total.

2. Numerous joint ventures with hospital systems expands the reach of the group: As of December 31, 2020, LHC Group had 83 equity joint ventures including 76 with hospital and health systems, which are comprised of over 350 hospitals, four with physicians, and three with other parties. Its equity joint ventures are generally structured as limited liability companies in which the Group owns a majority equity interest and its partners owns a minority equity interest. LHC Group structures its equity joint ventures as either manager-managed or board-managed. It controls its manager-managed joint ventures, since LHC Group, Inc. is typically designated as the manager to oversee the day-to-day operations of the joint venture. Most of the Group’s equity joint ventures include a buy/sell option that grants to it and its equity joint venture partners the right to require the other party to either purchase all of the exercising member’s membership interests or sell to the exercising member all of the non-exercising member’s membership interests, at the non-exercising member’s option, within 30 days of the receipt of notice of the exercise of the buy/sell option. These ventures allow the Group to provide services all throughout USA at a lower cost and less expenditure on management.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Impact of climate change on USA’s healthcare sector: U.S health care sector is the world’s seventh largest producer of carbon dioxide. Increase in carbon dioxide in the atmosphere, leads to air pollution and climate change. Due to climate change there has been many natural disasters like, cyclone, floods, thunderstorm which damages the health care facilities. At times these disasters disable the functionality of these facilities during the time when their services are most required. For example, when the Hurricane Sandy was struck in 2012, New York City’s Bellevue Hospital had to shut down its facility. When it reopened, the infrastructure was made in such a way that it was more resilient to natural disasters.