Sluggish sales prompt Option Care restructuring
BUFFALO GROVE, Ill. - Option Care’s recent record of staggering revenue growth and bankable acquisitions finally faltered with the announcement in October of third-quarter losses and company restructuring.
Sluggish sales for home infusion and managed care specialty pharmacy services resulted in third quarter revenue projections of just $81 million, according to company projections. Third quarter expectations had revenues topping $85.5 million.
Option Care, which earned $320 million in 2002, pointed to lower hospital admissions, shorter duration of therapies and flat sales for managed care specialty pharmacy services as reasons for the company’s recent stumble.
“This is a theme that is affecting home infusion providers across the country,” said Schuyler Hoss, a healthcare consultant.
In response to its disappointing projections, Option Care went forward with a reorganization effort focused on growing the company and its profits, according to Option Care President and CEO Rick Smith.
Elements of the restructuring include consolidating the infusion and specialty pharmacy businesses at all levels, reducing expenses at marginally profitable branch locations and revamping the sales organization, according to a press release.