In July LHC Group Inc received a subpoena from the U.S. Securities and Exchange Commission (SEC). Meanwhile the investigation on behalf of current long term investors of LHC Group, Inc. (NASDAQ:LHCG) over possible breaches of fiduciary duty by certain officers and directors at LHC Group, Inc. in connection with its Medicare reimbursement practices continues.

The investigation by a law firm on behalf of current long term investors in LHC Group, Inc. (NASDAQ:LHCG) concerns whether certain LHC Groups directors and officers damaged LHC Group by allegedly causing or allowing it to unfairly take advantage of the Medicare reimbursement system by increasing the number of in-home therapy visits, some of which may not have been medically necessary.

On April 26, 2010 The Wall Street Journal published an article entitled Home Care Yields Medicare Bounty. The Wall Street Journal reported that an analysis by the Wall Street Journal of Medicare payments to home health-care companies in recent years raised questions about whether some companies, including LHC Group, Inc., are taking advantage of the Medicare reimbursement system. The article stated that [t]he results show that the number of in-home therapy visits tracks Medicare financial incentives. According to the WSJ article, the percentage of LHC Group patients receiving 10 visits dropped by 64% from 2007 to 2008, when the 10 visit reimbursement bonus was eliminated from Medicare in January 2008. As a result of the WSJ article, the Company has come under intense scrutiny, including hearings in front of the United States Senate Finance Committee.

On May 12, 2010, LHC Group, Inc received a letter from the United States Senate Finance Committee in response to the April 26, 2010 article in The Wall Street Journal. The letter from the Senate Finance Committee asked LHC Group, Inc to provide documents and data related to the issues referenced in The Wall Street Journal article.

On June 25, 2010, LHC Group, Inc completed their response to the Senate Finance Committees letter and intend on fully cooperating with their inquiry.
Then on July 16, 2010, LHC Group, Inc received a subpoena from the SEC that included a request for documents related to our participation in the Medicare Home Health Prospective Payment System as well as the documents and information we produced in response to the Senate Finance Committees investigation set forth above. We are in the process of responding to the SECs request. Because the investigation is at an early stage, we cannot predict its outcome or its effect, if any, on our business.

Shares of LHC Group are down from its 52weekHigh of $37.49 per share and declined from $37.36 per share on April 20,201 to recently $24.83 per share.