LHC Group shareholders on Tuesday approved its $5.4 billion merger with UnitedHealth Group, which was first announced in March.
Optum Health, a national provider of in-home health services and part of UnitedHealth Group, and LHC Group will merge in a move that involves UnitedHealth acquiring the Lafayette company’s outstanding common stock for $170 per share.
The move will add one of the country’s largest home-health firms to a portfolio that already includes doctor groups, clinics and surgery centers, as well as some home-based services. The combined companies will form what would be the world’s largest home health care company and will have its headquarters in LHC Group’s Lafayette office.
Shareholders voted overwhelmingly in favor of the merger and the compensation to the company's executive officers. More than 27 million votes were either present or represented by proxy.Â
LHC Group’s board unanimously approved the merger just prior to the announcement.
The deal will include current CEO and board chair Keith Myers moving into a role of chairman and CEO emeritus and senior adviser to Optum, according to  SEC filing. Joshua Proffitt, LHC Group’s president and chief operating officer, will become CEO.
Myers will earn a base salary of $550,000 and Proffitt will earn $690,000, and Myers will receive a one-time sign-on payment of $5.5 million on the first regular payroll date after closing. Proffitt will receive an initial sign-on grant of non-qualified stock options and restricted stock units valued at $3 million.
LHC Group, which has 30,000 employees ranging from front-line care providers to administrative and support personnel across the country, provides 12 million annual in-home visits and is recognized for its quality in-home care. It has 964 locations in 37 states and employs about 700 at its Lafayette office on Hugh Wallis Road.Â
The company’s leadership team will continue forward as part of Optum Health, which works with more than 100 health plans.
Shares of LHC Group stock was valued at $154 per share at the close of market Tuesday, down from the $168 the day the merger was announced.
