Six months after I last wrote on LHC Group (NASDAQ:LHCG), not all that much has changed in the home health provider world. While the industry got a partial reprieve in a one-year delay in Sustainable Growth Rate (or SGR) cuts, rebasing is still going to lead to significant revenue and margin pressure for many players. LHC Group is likely to fare relatively better due to its focus on rural locations and states that require Certificates of Need (or CONs), as well as its growing hospice business and desire to act as a consolidator in the space. LHC Group shares do still look undervalued on a long-term cash flow basis, but this remains a tough, tough industry right now....
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