An investigation on behalf of current investors of LHC Group, Inc. (NASDAQ:LHCG) over possible breaches of fiduciary duty and other violations of the law by certain officers and directors at LHC Group, Inc. was announced.

LHC Group, Inc., located in Lafayette, LA, provides post-acute health care services to patients through its home nursing agencies, hospices and long-term acute care hospitals (LTACHs). According to the investigation by a law firm the investigation concerns whether LHC Groups directors and officers damaged LHC Group by 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 27, 2010, 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 also named Gentiva Health Services Inc. (Nasdaq: GTIV), LHC Group, Inc. (Nasdaq: LHCG), and Almost Family Inc. (Nasdaq: AFAM). The April 26, 2010 article further 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. LHC Group, Inc. reported in 2007 Total Revenue of $297.02million, in 2008 $382.59million, and in 2009 $531.98million. 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.