Option Care Health weathers 'turbulent period'

BANNOCKBURN, Ill. - Option Care Health saw a decline in new patient referrals during the second quarter of 2020 due to COVID-19, but that was offset by growth in its chronic care business, says CEO John Rademacher.

“Patient transfers onto service with us from other sites of care drove low double-digit growth in the second quarter,” said Rademacher during a conference call to discuss the company's recent financial results. “We continue to work with referral sources and payers to identify patients who will benefit from receiving therapy in the home or infusion suite setting, which represents a lower-cost site of care and, frankly, is preferred by patients given the current situation.”

Option Care Health reported net revenue of $740.8 million for the second quarter ended June 30, a 49% increase compared to the same period in 2019. (However, given the merger last August between Option Care Health and BioScrip, comparisons to historical periods are for Option Care Health only and incorporate BioScrip results from Aug. 6, 2019.) It reported a net loss of $7.7 million vs. $13.6 million.

When the scope of the pandemic became clear in the first quarter, Option Care Health quickly established a command center to manage employee safety and continuity of patient care - a proactive approach that ensured it had enough personal protective equipment and infusion drugs, says Rademacher.

“Our dependability during this turbulent period has only strengthened our relationship with payers and providers,” he said.

Other highlights from the call:

� The integration of Option Care Health and BioScrip is winding down, says Rademacher. “Sitting here today, one year from the merger, we have achieved our goal of at least $60 million in synergies,” he said. “We will continue to drive cost savings and, given recent learnings from COVID-19, we will examine our business model for additional sources of synergy.”

� Option Care Health will continue to seek out relationships with payers, including a new multi-year agreement with Humana, says Rademacher.

� The company also plans to return approximately $11.7 million in grants received as part of the CARES Act, which will be reflected in the third quarter, says CFO Mike Shapiro. “We appreciate the response of the federal government; however, we have determined that the money is best utilized for other purposes,” he said.