The private equity giant approached LHC last month shortly after appointing JP Morgan to advise it on its options, according to a report by Reuters.
It said the company, which has a market capitalisation of about $360m, had begun a strategic review process to enhance stockholder value and had not set a definitive timetable for the process.
The news comes days after the Texan buy-out firm was reportedly seeking an eight times return by selling Iasis Healthcare for about $2.8bn.
LHC made a net loss of $13.2m in 2011 compared to a $48.8m profit the year before despite revenues increasing from $631.6m to $633.9m in the same time period.
Its loss per share worked out a $0.73, compared to a $2.68 earning per share for 2010 according to the company’s end of year results.
TPG is currently embroiled in a drawn-out attempt to purchase beleaguered Australian surfwear brand Billabong, having had its third offer rejected at the end of February.
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