{
  "docId": "019dd923-622c-750b-8b98-dbf69e8285f9",
  "docSlug": "c97bc876ffb7",
  "documentTitle": "LHC Group, Inc. (LHCG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-01-15 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 18,
  "pageCount": 41,
  "prevPage": 17,
  "nextPage": 19,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 45,
  "notes": "Uses a line chart to show divergence between legacy and acquired locations, with a callout box summarizing the 'net effect' of the accounting treatment.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-dbf69e8285f9/18",
  "deckHref": "/decks/019dd923-622c-750b-8b98-dbf69e8285f9",
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  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-dbf69e8285f9#slide-18",
  "components": [
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      "bbox": {
        "h": 0.2,
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      "kind": "callout",
      "text": "NET EFFECT: Accelerated REPORTED organic sales growth (due to shift in mix). Minimal \"TRUE\" / \"OVERALL\" organic sales growth (including anniversaried AFAM locations)",
      "attrs": null,
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    {
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      "kind": "callout",
      "text": "“true” organic sales growth is far lower than management’s reported figure, which excludes more than half of its locations (and its worst-performing).",
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      "subkind": null,
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        "h": 0.45,
        "w": 0.55,
        "x": 0.05,
        "y": 0.42
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      "kind": "chart",
      "text": "Average Episodes per Home Health Location (Monthly)",
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      "subkind": "line",
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      "bbox": {
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        "y": 0.97
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      "kind": "disclaimer",
      "text": "Note: No data available for AFAM for Q1 FY18. AFAM location count above includes a marginal number of other acquired locations.",
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      "kind": "metric",
      "text": "Average Episodes per Home Health Location: 31%",
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      "subkind": "primary",
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      "toolSlug": "quantification",
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      "kind": "paragraph",
      "text": "A close analysis of LHCG's financial statements reveals a sudden and growing divergence between throughput at AFAM locations and legacy LHCG locations...",
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      "kind": "title",
      "text": "Is LHCG's reported organic growth set up to collapse once AFAM locations are finally included in the organic base?",
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      "kind": "title",
      "text": "LHCG Organic Growth Artificially Inflated By A Sudden (And Suspicious) Shift In Mix?",
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  "frameworks": [
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      "evidence": "The slide explicitly argues that reported metrics are artificially inflated by excluding underperforming segments.",
      "confidence": 0.9
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      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The expose contradiction slides detail various issues with LHCG's financials and management practices.",
      "position": 1,
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      "parentBeatName": "Development",
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  "loops": [
    {
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      "name": "Cost Of Inaction",
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      "evidence": "The deck implies that investors will suffer financial losses if they do not heed Spruce Point's warning.",
      "position": 0,
      "objective": "The cost of inaction for investors who fail to recognize LHCG's true financial performance.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    },
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      "to": 33,
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      "evidence": "The expose contradiction slides test this hypothesis and present evidence.",
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      "objective": "Testing the hypothesis that LHCG's financial practices are aggressive and misleading.",
      "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)",
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