Infusion Care Provider’s Clinical Expertise and National Scale Ensure High-Quality Care in a Lower-Risk Setting
BANNOCKBURN, Ill., April 14, 2020 (GLOBE NEWSWIRE) — Option Care Health, Inc. (“Option Care Health”) (NASDAQ: OPCH), the nation’s largest independent provider of home and alternate site infusion services, is on the frontlines of the COVID-19 pandemic, working in collaboration with our nation’s hospitals and their clinical teams to ensure patients continue to receive vital care. Option Care Health provides essential infusion services that enable patients to transition home from the hospital sooner, freeing up beds for critically ill COVID-19 patients.
Serving patients in all 50 states, Option Care Health is easing the burden on strained health systems in critical markets. Physicians and patients rely on infusion therapies for a wide variety of acute and chronic needs, from nutrition support and immune disorders to infections and neurologic conditions. Option Care Health is a critical part of the pandemic response, developing unique solutions that safely transition patients requiring infusion therapy out of the hospital – flexing capacity by deploying and shifting resources where the need is the greatest and utilizing the more than 125 infusion sites it operates across the country.
“We are fighting this pandemic side by side with our health system partners, fully prepared and able to support the needs of their patients who can transition home to continue their therapy. Whether they are in pre-plan preparation or already at surge capacity in a pandemic hotspot, our team is responding quickly and effectively to meet their needs,” said Harriet Booker, Chief Operating Officer of Option Care Health. “We’re not missing a beat. If our partners need us to accommodate a 10 p.m. bedside discharge for a patient on anti-infective medication, transfer a rheumatoid arthritis patient from a hospital-based ambulatory care center or virtually discharge an immunocompromised patient to reduce the risk of COVID-19 transmission, we’re where they need us to be.”
Option Care Health’s comprehensive network and business continuity plans ensure its ability to provide infusion pharmacy and nursing care to patients on a consistent and reliable basis nationwide. This real-time agility employs added shifts, remote staffing rotations and expanded pharmacy hours to compound and administer vital medications. In addition, Option Care Health has the ability to redeploy clinical resources to cities with the greatest need.
Option Care Health has implemented rigorous protocols to ensure the safety of patients and staff working directly with its infectious disease experts and following Centers for Disease Control and Prevention (CDC) guidelines. These measures include comprehensive training of employees, strict protocols for infection control at home and infusion suites, screening of staff and patients for COVID-19 symptoms, ongoing virus-specific updates and education and the use of personal protection equipment (PPE). Staff members can call an Option Care Health COVID-19 hotline 24/7 to address questions regarding their health or a patient’s health.
“Infusion at home or an infusion suite is a safe and effective care setting that is even more vital during times of national emergency, such as the current COVID-19 crisis,” said John C. Rademacher, President and Chief Executive Officer of Option Care Health. “Our highly skilled team of healthcare professionals provide infusion services that deliver hope to patients and physicians by easing the burden on hospital inpatient census, while lowering the patient’s risk and ensuring they receive excellent care after they are discharged.”
Option Care Health’s clinical team, consisting of 2,900 nurses, dietitians and pharmacists, annually care for more than 220,000 patients of all ages. The Option Care Health clinical team elevates the infusion therapy experience through customized care plans specific to every patient. Experienced clinicians and nurses are available 24 hours a day, seven days a week, 365 days a year to answer questions and provide support for patients, families and providers.
For more information on Option Care Health’s response to the COVID-19 pandemic, visit optioncarehealth.com/coronavirus.
About Option Care Health
Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 5,000 teammates, including 2,900 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is re-imagining the infusion care experience for patients, customers and employees. To learn more, please visit our website at OptionCareHealth.com.
How are you updating Option Care Health’s Highly Infectious Disease (HID) policy in light of the COVID-19 outbreak?
Option Care Health has always had a robust emergency management plan and HID policy in place. This policy outlines our response to all highly infectious diseases based on information provided by the Centers for Disease Control (CDC). Furthermore, we maintain a task force consisting of multiple clinical and operational leaders, which meets with our infectious disease consultant frequently to review and update our response plans related to the COVID-19 pandemic.
As we learn more about this unprecedented pandemic, our HID policy is being referenced, monitored and updated as needed. Components of the policy include:
- Identifies the responsibility for monitoring the CDC website as well as applicable state and federal resources related to the HID
- Describes the collaboration between departments required for an effective response and the necessity for counsel with an infectious disease medical consultant to ensure appropriate actions that protect staff, families, and patients.
- Promptly secures adequate personal protective equipment (PPE) and medical supplies
- Implements screening tools for risk stratification
- Includes up-to-date information regarding vaccines and any other preemptive treatment
- Outlines responsibility for fulfillment of required tasks
- Summarizes tracking for both patient and employee infections and identifies those responsible for reporting
- Defines patient management principles
- Explains management of human resources, including the allowance for flexible attendance and telecommuting
- Specifies required training both upon hire and annually at a minimum
- Addresses patient prioritization, handling new referrals, and implementation of an emergency plan
- Identifies respiratory hygiene, handwashing, standard, and droplet precautions
- Describes PPE use, order of donning and doffing as well as patient education regarding PPE and overall infection control
- Communicates about the central repository for questions and concerns during a HID outbreak (including pandemic) that is monitored by senior members of the clinical services department
Are you experiencing any service issues/shortage of nurses?
At this time, we are not experiencing any major service issues or shortage of nurses. We are constantly monitoring CDC and WHO information and will provide what is needed to promote the health and safety of our team members, while delivering needed care to the community based on CDC guidelines.
What are you doing to keep your nurses safe?
The health and safety of all employees is our top priority. Our infectious disease prevention plan calls for PPE and education of our team members and patients on the following:
- Preventive actions that have been suggested to help prevent the spread of the virus:
- Wash your hands often with soap and water for at least 20 seconds (If soap and water are not available, use an alcohol-based hand sanitizer)
- Avoid touching your eyes, nose and mouth with unwashed hands
- Avoid close contact with people who are sick
- Stay home when you are sick
- Cover your cough or sneeze with a tissue, then throw the tissue in the trash
- Clean and disinfect frequently touched objects and surfaces
- Steer clear of crowds whenever possible
- Necessary PPE for our clinicians (including goggles, mask, and gowns if needed) in our cleanrooms as well as employees in contact with patients who have a HID
- Proper donning and doffing is vital to protect patients and employees
- Consider having the coughing/sneezing patient or caregiver wear a mask
- If an employee is sick, our HR policies are designed for additional PTO or remote work as needed
- Screening every patient in advance of a face to face encounter to identify patients with a potential risk and to ensure proper PPE is on hand for the visit
What are you doing to protect your patients?
The screening we do is intended to protect patients as well.
Prior to an infusion suite visit, patients additionally must complete an intake questionnaire before any appointment with an Option Care Health team member. Nurses and other care staff are using PPE in accordance with the CDC guidelines.
Above all, we want to assure you that we are taking active measures to help protect patients, our healthcare workers and employees from COVID-19. Our infusion suite network across the United States can help protect healthier or immunocompromised patients from the impacted COVID-19 population.
How are you maintaining the safety of your infusion suites?
Option Care Health follows HID and pandemic protocols for maintaining cleanliness of our infusion suites. On top of our infection prevention plans, we are also ensuring:
- Infusion suites will be re-stocked and cleaned on a frequent basis and will be maintained in a clean, patient-ready condition, at all times
- Manage patient flow into infusion suites by limiting points of entry to reduce foot traffic and maximize spacing
- Pre-screen patients by phone before their scheduled appointment and upon facility entry to minimize the chance for exposure
- Counter tops and work surfaces will remain clear of clutter and disinfected between each use, including prior to preparation of any medications or sterile supplies for patient use
- Patient and visitors’ chairs, diagnostic equipment, infusion room tables and non-disposable equipment used for patient care as well as all equipment used by a patient while in the treatment room, will be disinfected with an approved sanitizer (i.e. Sani wipes) between patients or when visibly soiled
- Waiting room chairs and floors in the infusion suite will be cleaned daily and after each patient visit
- Patient and guest restrooms shall be cleaned and disinfected weekly and after each use, if the individual has a known infection
- Additional cleaning precautions and procedures:
- Differentiated disinfecting protocols implemented based on levels of facility exposure
- CDC-approved cleaners for disinfection containing alcohol solutions with at least 70% alcohol
- Staff wears disposable gloves when cleaning and disinfecting surfaces and discards gloves after
- Scheduling patients at alternating times when possible and ensuring a minimum of 6 feet of space between chairs during concurrent appointments
How do you plan to service patients in the event a pharmacy branch closes?
At Option Care Health, providing extraordinary care for our patients is at the center of everything we do – and this has never been more important than right now. As the nation’s largest infusion provider, Option Care Health is uniquely positioned to treat patients in all 50 states, due to our nationwide pharmacy network.
Each of our pharmacies has updated an emergency dispensing and compounding plan, which includes back up plans based on adequate staffing and appropriate licensure. At least one back up compounding pharmacy has been identified for each existing site. Our technology platforms and multi-state licenses will allow us to transfer prescriptions as needed in the event of a partial or complete shutdown of a particular pharmacy.
Dear Option Care Health Patients and Customers,
Providing extraordinary care for our patients is at the center of everything we do – and this has never been more important than right now. As the coronavirus (COVID-19) situation unfolds, please know we are actively monitoring CDC guidelines and working with Infectious Disease experts so we can continue to provide care – and keep our patients and team members safe.
Protecting Patients and Team Members is our top priority
As the nation’s largest infusion provider, we have always had an Infectious Disease Prevention Plan, which calls for Personal Protective Equipment (PPE) and education of our team members and patients. This is what we do. In light of the coronavirus, we have augmented our plan and mobilized a response team that meets daily to review updates reported by the CDC, as well as state and local health departments across the country. Due to the rapidly changing situation, we are proactively taking steps to keep our team members and patients informed and protected from the spread of any illness.
Maintaining continuity of care
Our Supply Chain team is working with our vendors across the country to make sure we have adequate supplies available for both patient care and PPE for our team members, so we can maintain continuity of care. This situation can be stressful and overwhelming for our patients, many of whom have acute and chronic conditions. We are thankful we can treat patients in the safe environment of their own homes and our alternate infusion suites, (AIS), which reduces exposure to further risk in more public settings.
We want you to know we are here for you during this difficult time. At this time, we are continuing to accept and service referrals to care for patients. Please continue to check our website – and the CDC website – for the latest information.
President & CEO
- As the nation’s largest infusion provider, we are uniquely positioned to treat patients in the safe environment of their own homes and our alternate infusion suites (AIS), which reduces their exposure to further risk in more public settings.
- We’ve always had an Infectious Disease Prevention Plan, which calls for Personal Protective Equipment (PPE) and education of our staff and patients. In light of the coronavirus outbreak, we are actively monitoring CDC guidelines and working with Infectious Disease experts and updating our plans, policies and guidelines as appropriate. We continue to accept and service referrals to care for patients.
- In the event of an employee exposure, including travel to countries that are determined by the CDC to be “Widespread Sustained (ongoing) Transmission,” we have asked employees to please alert Human Resources so that we can determine a go forward plan that may include staying home or working from home for at least 14 days upon their exposure or return from travel.
- Option Care Health, in conjunction with our Infectious Disease expert and in accordance with CDC guidelines, is currently screening all new and existing patients prior to in-person contact. For patients determined to be at risk (due to travel or known exposure), a registered nurse will follow up with both the patient and the prescriber for next steps.
- We are providing updated education and information to our teams on an almost daily basis.
- Our Supply Chain team is working with our vendors to make sure that Option Care Health has adequate supplies available for both patient care and PPE for our employees to maintain continuity of care.
Largest Independent Home and Alternate Site Infusion Provider Establishes the Standard of Care Across the United States Through Its Clinical Leadership and Technology-Enabled Patient-Centered Model
BANNOCKBURN, Ill. & DENVER, August 7, 2019 — Option Care Enterprises, Inc. (“Option Care”) and BioScrip, Inc. (“BioScrip”) today announced the successful completion of their merger, which follows the satisfaction of the transaction’s closing conditions, including approval by BioScrip shareholders and the receipt of all necessary regulatory approvals.
The newly combined company, Option Care Health, Inc. (“Option Care Health” or the “Company”), emerges as the largest independent home and alternate site infusion services provider in the United States. Option Care Health’s common stock will be listed on the Nasdaq Global Select Market under the ticker symbol BIOS.
John Rademacher, Chief Executive Officer of Option Care Health, said, “Today marks the beginning of an exciting new chapter as we unite two strong organizations with proud histories as market leaders. This combination enables us to reimagine the infusion care experience to unleash the full potential of high-quality care in a lower cost setting on a national scale. We are now the only independent provider focused on delivering a full spectrum of infusion therapies to patients across the country. Our deep clinical expertise, broad therapy portfolio and enhanced financial profile empower us to deliver superior outcomes and set the standard for patient care.”
Option Care Health will continue to focus on:
- Patient-Centered Care Model, providing deeply personalized care to patients in all 50 states, supported by the broadest commercial and clinical coverage with our unique product offering.
- Clinical and Market Leadership, leveraging our best-in-class clinical team to consistently raise quality standards and patient outcomes while collaborating with health systems, payers and manufacturers to broaden our therapy portfolio and clinical reach.
- Investing in People, Technology and Operations to drive profitable growth, while setting the industry standard for infusion services.
Daniel E. Greenleaf, former Chief Executive Officer of BioScrip, commented, “I’m proud of the BioScrip team and the care that we delivered every day to patients who trusted us to provide extraordinary care. This new enterprise combines two independent market leaders and enables the organization to truly redefine infusion therapy in the alternate site setting. With a significantly improved capital structure and financial profile, I’m confident Option Care Health will continue to build upon the momentum of BioScrip and Option Care.”
Option Care Health will be headquartered in Bannockburn, Illinois and led by Rademacher as Chief Executive Officer and Mike Shapiro as Chief Financial Officer. Harry Kraemer, former Chairman and Chief Executive Officer of Baxter International Inc., will serve as Chairman of the Board of Option Care Health.
In connection with the transaction, Jefferies LLC and Moelis & Company LLC acted as joint financial advisors to BioScrip, and Gibson, Dunn & Crutcher LLP served as legal advisor. Goldman Sachs & Co. LLC and BofA Merrill Lynch acted as financial advisors and Kirkland & Ellis LLP acted as legal advisor to Option Care.
Forward Looking Statements
This communication contains “forward-looking statements ” (as defined in the Private Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of Option Care Health. All statements other than statements of historical facts are forward-looking statements. In addition, words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words, and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements.
Forward-looking statements relating to Option Care Health include, but are not limited to: statements about the benefits of the combined company, including future financial and operating results; expected synergies; Option Care Health’s plans, objectives, expectations and intentions; and other statements relating to the merger that are not historical facts. Forward-looking statements are based on information currently available to BioScrip and Option Care and involve estimates, expectations and projections.
Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties (both known and unknown), and many factors could cause actual events or results to differ materially from those indicated by such forward-looking statements. With respect to the combination of BioScrip and Option Care, these factors could include, but are not limited to: (i) the impact the significant debt incurred in connection with the merger may have on Option Care Health’s ability to operate the combined business, (ii) risks relating to the integration of the BioScrip and Option Care operations, solutions and employees into the combined company and the possibility that the anticipated synergies and other benefits of the combination, including cost savings, will not be realized or will not be realized within the expected timeframe, (iii) Option Care Health’s status as a “controlled company ” within the meanings of Nasdaq, including Option Care Health’s reliance on exemptions from certain corporate governance standards and the significantly less influence that pre-merger holders now have on Option Care Health, and (iv) risks relating to the combined businesses and the industries in which the combined company operates.
These risks and uncertainties, as well as other risks and uncertainties, are more fully discussed in BioScrip’s definitive proxy statement filed with the SEC on June 26, 2019 and Option Care Health’s subsequent filings with the SEC. While the lists of risk factors presented here and in Option Care Health’s public filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Many of these risks, uncertainties and assumptions are beyond BioScrip’s and Option Care’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the parties on the date they are made, and neither BioScrip nor Option Care undertakes any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this communication.
About Option Care Health
At Option Care Health, Inc. (Option Care Health) (NASDAQ: BIOS), we are the largest independent home and alternate site infusion services provider in the United States. With over 6,000 teammates including 2,900 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and employees. To learn more, please visit our website at OptionCareHealth.com.
For Media Inquiries:
Rachel Bowen, PCI
For Investor Inquiries:
Mike Shapiro, Chief Financial Officer
Option Care Health
Option Care Enterprises, Inc., the nation’s leading provider of home and alternate site infusion therapy services, today celebrated the opening of its new state-of-the-art Care Management Center (CMC) in Atlanta. Attendees at the ribbon cutting and open house had the opportunity to tour the new center, which features the most up-to-date infusion technology and equipment in a welcoming and comfortable setting.
Serving patients who rely upon complex infusion therapies for anti-infectives, clinical nutrition support, immunoglobulin therapy and conditions such as chronic inflammatory disorders and bleeding disorders, the CMC will provide care to approximately 1,000 patients either in their home or at the Ambulatory Infusion Suite (AIS). The new center not only expands Option Care’s capacity to provide vital care services to more patients in the Atlanta area, its full-service pharmacy and sterile compounding room meet and surpass current regulatory standards.
The CMC provides convenient access to care and exceptional clinical support through its:
- Full-service infusion pharmacy and clinical management of patients, including the compounding and dispensing of drugs to ensure each patient receives the right drug in the right dose with appropriate monitoring and 24/7 phone support with clinicians available to answer questions for patients/caregivers and providers.
- Ambulatory Infusion Suite with three infusion chairs in private rooms where patients can receive their treatments administered by highly skilled nurses specifically trained in infusion therapy.
- Patient registration assistance, flexible scheduling options, including evenings and weekends, free on-site parking and easy access to facilities.
“This new Option Care CMC in Peachtree Corners gives patients another choice for therapy, whether they want to receive their infusion services in a new, state-of-the-art facility or in the comfort of their own homes. The design is not only aesthetically pleasing, but built to be the gold standard of sterile compounding facilities,” said Atlanta-based physician Anson Kwame Wurapa, M.D. who recently visited the CMC.
Many patients prefer receiving their infusions in the comfort of their own homes with the support of Option Care’s clinical care teams. However, home infusion may not be right for everyone due to a variety of factors, including personal preference to be away from home for their therapies, lack of a suitable home environment for treatment, co-morbidities that require being close to a full care team, and health insurance coverage limitations. The Option Care Atlanta CMC is equipped to help all infusion patients in the area whether they’re receiving treatment at home or in the AIS.
“This new CMC is the very best of everything Option Care offers to patients. We know these critical therapies make it possible for patients to enjoy vitality and quality of life and we’re thrilled to be able to deliver that to more patients in the Atlanta area,” said John Rademacher, Chief Executive Officer at Option Care. “This new CMC is a representation of our commitment to providing exceptional clinical care through the best clinicians and facilities available.”
The Atlanta CMC location will be equipped to deliver superior outcomes with Option Care’s state-of-the-art, technology-enabled, data-driven services and programs.
About Option Care
Option Care Enterprises, Inc. (Option Care) is the nation’s largest and most trusted provider of home and alternate treatment site infusion services. Holding accreditations from industry quality organizations ACHC, PCAB, ASHP and URAC,[*]Accreditation Commission for Health Care (ACHC), Pharmacy Compounding Accreditation Board (PCAB), American Society of Health-System Pharmacists (ASHP) and URAC the company draws on over 40 years of clinical care experience to offer patient-centered therapy management.
Option Care’s signature Infusion Therapy Plus services include the clinical management of infusion medicines, nursing support and care coordination. Option Care’s multidisciplinary team of more than 1,700 clinicians — including pharmacists, nurses and dietitians — are able to provide home infusion service coverage for nearly all patients across the United States needing treatment for complex and chronic conditions. Learn more at www.OptionCare.com.
For the past 40 years, Option Care has been dedicated to providing quality infusion therapy that makes a positive difference in each patient’s life. Prior to this, patients requiring nutrition support could only receive their infusions at a hospital. When two pharmacists in Chico, California heard about a 19-year-old man enduring 10 hours of nutrition therapy daily, they proposed delivering his treatment in the home, enabling him to lead a more normal life.
As we celebrate our 40th anniversary, we sat down with Michael Prime, one of Option Care’s founding pharmacists to discuss our history and how serving a single car accident patient, along with his partner, Mitchell Hoggard, launched one of the nation’s leading infusion companies.
OC: Tell me, in your own words, how you discovered the need for home infusion.
MP: There was a young man involved in an automobile accident and through the course of multiple surgeries, he lost most of his bowel, leaving him unable to absorb food orally. My partner was a pharmacist at a hospital in Red Bluff, just north of Chico. This young man was receiving TPN solution there; he required four liters a day, every day — it was a 10-hour infusion. This was just one of those things that (Hoggard) came to me saying that there was this man, sitting in our hospital, getting infusions daily and I think we can provide this in the home.
I didn’t know much about it at the time but thought to myself, why couldn’t we? I was ready to take on the challenge. Shortly afterwards, we spoke with the prescribing physician, getting him to agree that we could provide therapy to the patient once we had the proper license. So we began that long process — (Hoggard) stayed working at the hospital and I happened to own a retail store in downtown Chico — we contacted the insurance agency, found a space for a clean room with a hood to prepare the solution and began taking the work out of the hands of the hospital.
Once that was set up, the patient was released from the hospital and we began delivering solution to his home. Although he was already trained on how to self-infuse, we realized the importance of hiring registered nurses to help support the influx of patients that were being referred to us following this young man’s successful transition to home infusion.
OC: When you and Mr. Hoggard launched the company 40 years ago, did you have any idea that it would become what it is today?
MP: Well, it really was just us doing it; there was no marketing involved. Our infusion treatment in the home started to spread by word of mouth. In fact, the first physician referred another patient of his to our care as well. Eventually, other doctor’s in town began sending us IV antibiotic patients and I had to sell my half of the retail store so I could focus on Option Care full-time.
My partner was the visionary for Option Care. He was the type of person that envisioned what things should look like in the future, whereas I was the one responsible for taking care of the patients. So while I truly never envisioned it growing into what it is today, I believe he operated under the assumption that we could eventually service patients across the country.
OC: It seems like that happened rather quickly because the need for this type of service was so large. When did you finally realize you needed to begin expanding the number of employees at Option Care?
MP: At the beginning, I was not only mixing the therapies in our clean room, but I was traveling to each patient’s home to teach them how to infuse and use their equipment. We started by hiring two nurses who helped support patient care outside of what I could do myself. I was spending about half my time on the road to patient’s homes and delivering their therapy. Often times, staying the night with patients because we were training them or their caregivers on how to infuse the drug, use the pump or change a dressing, which they were nervous to be doing on their own in the beginning, was normal for us.
I loved being able to truly care for our patients. I was able to provide comfort in their ability to safely administer the drug and training on how to keep themselves or their loved one safe. I never wanted to see that change.
Of course, as you continue to grow, some things do need to change. We started being approached by other pharmacists in northern California who had heard about us through word of mouth or listened to us speak at pharmacy conventions. We developed a licensing agreement with them to begin doing business with us. We’d prepare the solution, assist with billing and licensing as well as train them on how to care for the patients like we do. It was at this time that our attorney advised us to begin franchising in order to protect ourselves. This began our nationwide expansion.
OC: Once you began franchising and you took on a more corporate role, how were you able to continue to focus on the quality of patient care?
MP: I became the Corporate Franchise Relations-guy, flying around the country to visit each pharmacy and ensuring they were doing things our way. Through those travels, I was able to serve as a founding member of the National Home Infusion Association (NHIA), helping to set the standards for the infusion industry. I eventually served as the president of the organization giving me the ability to update and progress industry standards into the future.
It took me quite a while to get used to serving in a corporate role, to be honest. I feel like I’m a small guy from Chico, a pharmacist and then all of a sudden I was serving in this corporate, franchise public relations role, which was a big shift for me.
OC: Can you tell me how Option Care got its name?
MP: When we started in 1979, we were operating as CliniCare until we began expanding and tried to license our name. That’s when we discovered the name had already been registered by another organization and we couldn’t use it. One of our marketing people came up with the idea of Outpatient Parental Therapy Intravenous On-going Nutrition with Care on the end – O.P.T.I.O.N. Care — as a way to explain exactly what we were as a company.
We eventually changed the name to lose the acronym and just became Option Care in the early 1990’s. With these changes, our logo transformed throughout the years as well.
OC: Since we started with nutrition therapy, I think it’s an interesting fact that we recently became a Gold sponsor of the Oley Foundation. Did you have any involvement with them?
MP: Oh wow, I remember when Oley first started! We had some patients who were actively involved with Oley in the past. I’m glad to hear that Option Care is still staying with its roots after all these years. We were never involved with them during my time at the company so I’m really glad to hear of your commitment to the Oley Foundation and their mission.
Click here to learn more about our nutrition support services and our partnership with the Oley Foundation.
Creates a Leading Independent Provider of Home and Alternate Site Infusion Services with Deep Clinical Expertise and Broad Therapy Portfolio
Enhanced Scale and Improved Financial Profile Expected to Enable Growth in Attractive and Growing Segment of U.S. Healthcare Market
BioScrip to Issue New Shares to Option Care’s Shareholder, Which Will Own Approximately 80% of Combined Company on Fully Diluted Basis
Combined Company Will Remain Focused on Delivering Favorable Outcomes for Patients, Payors and Providers
DENVER and BANNOCKBURN, Ill., March 15, 2019 — BioScrip, Inc. (NASDAQ: BIOS) (“BioScrip”) and Option Care Enterprises, Inc. (“Option Care”), the nation’s largest independent providers of home and alternate treatment site infusion therapy services, today announced that they have entered into a definitive merger agreement. The combination is expected to create a leading independent provider with the national reach, comprehensive therapy offering and financial capacity to succeed in the attractive and growing home and alternate site infusion services segment of the $100 billion U.S. infusion market.
Under the terms of the merger agreement, BioScrip will issue new shares to Option Care’s shareholder, which is owned by investment funds affiliated with Madison Dearborn Partners, LLC ( “MDP”) and Walgreens Boots Alliance, Inc. (NASDAQ: WBA) (“WBA”), in an all-stock transaction. Upon completion of the transaction, MDP funds and WBA will beneficially own approximately 80% of the combined publicly traded company on a fully diluted basis, with current BioScrip shareholders holding the remainder. The combined company’s common stock will continue to be listed on the Nasdaq Global Market. The transaction has been unanimously approved by the boards of directors of both BioScrip and Option Care.
The combined company will be led by Option Care Chief Executive Officer John Rademacher and Option Care Chief Financial Officer Mike Shapiro and will incorporate the best talent, processes and systems from both Option Care and BioScrip. It also will have a leading, independent clinical platform for delivering high-quality infusion therapy to more patients across the United States and providing superior outcomes for patients, payors and providers. BioScrip President and Chief Executive Officer Daniel E. Greenleaf will remain active in the combined company as a special advisor to its Board of Directors.
Daniel E. Greenleaf, President and Chief Executive Officer of BioScrip, commented, “This is a compelling and complementary fit of two leading players in the U.S. infusion market. Together, we will be able to provide a diverse set of life-improving and cost-effective services to more patients across the United States. Our expanded reach and broader array of offerings provide a key competitive advantage at a time when the demand for home and alternate site infusion services continues to grow. The BioScrip Board and I believe our shareholders will have the compelling opportunity to participate alongside Option Care’s experienced and seasoned shareholders in the long-term potential and value creation opportunities of the combined company.”
John Rademacher, Chief Executive Officer at Option Care, said, “This transaction brings together two organizations and thousands of employees dedicated to creating a best in class experience for our patients and their families. Our goal is to constantly improve the delivery of life-saving therapies and comprehensive care management to the patients we have the privilege of serving. At the center of both organizations is deep clinical expertise and a passion to deliver extraordinary care. We believe combining our unique assets and leading product portfolios will create a powerful, independent platform that will enable delivery of high-quality, cost effective solutions to providers across the country and help facilitate the introduction of innovative new therapies to the marketplace. As an independent provider, we will retain the unique ability to deliver high-quality infusion therapy in the patient-preferred and safer setting of the home or an alternate site to every commercial and governmental payor.
“I am honored to lead the combined company and work with BioScrip’s and Option Care’s talented and dedicated employees, who share a strong commitment to delivering exemplary care that makes a positive difference in people’s lives. I look forward to harnessing the strengths of both of our organizations and industry-leading teams to capitalize on the many growth opportunities this combination creates to drive long-term value for all stakeholders.”
Expected Benefits of the Transaction
- Improved, Cost-Effective Patient Care. Utilizing clinical monitoring and reporting, the combined company’s more than 2,900 skilled clinicians (pharmacists, pharmacy technicians, nurses and dieticians) will develop personalized care plans for patients and be able to provide ongoing quality care in support of complex therapy regimens. With a best-in-class platform that is national in scope, the combined company will also be positioned as the partner of choice for pharmaceutical manufacturers seeking innovative distribution channels and patient support models to access the market. Together, BioScrip and Option Care will cover 96% of the U.S. population, with facilities in 46 states and the ability to dispense and serve patients in all 50 states.
- Enhanced Scale and Therapy Offerings. The combined company will merge BioScrip’s and Option Care’s complementary portfolios and provide products that are currently only available to one of the two businesses, such as Option Care’s access to Cuvitru for the treatment of primary immunodeficiency and Nuzyra™ for the treatment of adults with acute bacterial skin and skin structure infections and community-acquired bacterial pneumonia. The combined company’s expanded geographic coverage, continued independence, leading quality offerings and comprehensive clinical expertise will position it to be a preferred partner for payors, providers, biopharma manufacturers and patients. Furthermore, its enhanced scale will enable it to capture scale efficiencies and create additional vectors of growth through new product and service introductions.
- Powerful Growth Engine in Attractive Industry. Home and alternate site infusion, which currently accounts for approximately 12% of the $100 billion total U.S. infusion market, is estimated to grow approximately 5-7% per year due to attractive market dynamics, including the shift to value-based care that improves clinical outcomes and delivers better results for payors and providers as well. The combined company will have the financial capacity and flexibility, scale and clinical offering diversity to drive organic growth in chronic and acute therapies along with generating growth through operational efficiencies, improved performance in revenue cycle management and innovative new therapy introductions. The combination of BioScrip and Option Care will create a diversified business across payors, therapies and geographies in which no existing payor will account for more than 11% of net revenue.
- Compelling Financial Benefits: The transaction is expected to drive meaningful operating and supply chain efficiencies, generating over $60 million in net synergies forecasted to realize full run-rate within 24 months of the transaction closing. These forecasted synergies and the combined company’s enhanced scale with pro-forma 2018 revenue of more than $2.6 billion are expected to enable top- and bottom-line growth. Additionally, BioScrip and Option Care have secured committed financing from Bank of America Merrill Lynch, funds affiliated with Ares Management Corporation, and Goldman Sachs Merchant Banking Division to refinance and simplify the combined company’s capital structure, which is expected to have no near-term maturities, no preferred equity and no financial maintenance covenant. The new capital structure is expected to provide the combined company with a materially lower pro-forma combined net leverage ratio, a lower cost of capital, significant additional liquidity and a path for continued de-leveraging. The combined company will pursue a balanced capital allocation strategy, continuing to invest in and enhance patient experiences, as well as its people and services to drive organic growth, while managing its debt profile and continuing to de-lever in a disciplined fashion.
Shareholders and Management Focused on Driving Value Creation
MDP, a leading private equity firm based in Chicago, has a long and successful history investing in health care companies and partnering with them to achieve growth and significant long-term value appreciation. MDP’s notable health care investments include Ikaria Inc., Sage Products, Sirona Dental Systems, Team Health and VWR International. Option Care, formerly Walgreens Infusion Services, has been an independent company since it was separated from WBA in 2015 in a joint investment partnership between MDP funds and WBA.
Timothy P. Sullivan, a Managing Director and Head of the MDP Health Care team and a Director of Option Care, said, “We believe this transaction provides significant shareholder value creation potential and we are excited to remain a major shareholder alongside Walgreens Boots Alliance in the combined company. John, Mike and the joint leadership team bring operational expertise and strong integration track records. Since separating from Walgreens, we have made significant investments in people, process, technology and facilities. This experience, combined with their commitment to patient-centric care, should drive meaningful and long-term shareholder value.”
Rademacher and Shapiro are seasoned health care professionals with significant operational expertise and public company experience. Rademacher has held various executive-level positions at leading public healthcare companies, including Cardinal Health where he served as President and General Manager for both the Ambulatory Care Division and the Nuclear and Pharmacy Services Divisions, and at Cigna Corporation where he served as President of CareAllies and Chief Operating Officer for the CIGNA Behavioral Health business. Shapiro served as the Senior Vice President and Chief Financial Officer for Catamaran Corporation, a publicly-traded pharmacy benefits manager, and led the successful process through which the company was sold to UnitedHealth Group. He also had a longstanding career with Baxter International, holding several financial positions across several businesses and corporate functions.
Rademacher has spearheaded Option Care’s Zenith 20/20 program, which changed the company’s operating model, implementing technology, operational design and facility upgrades throughout the organization. Under his leadership, Option Care has focused on providing high-quality care and improving delivery of services to patients, payors and manufacturers. The combined company, its employees and all stakeholders are expected to benefit from a leadership team focused on creating a culture that connects its clinical expertise and company success to patient outcomes.
In addition to Rademacher and Shapiro, the combined company’s leadership will draw from the experienced teams of both Option Care and BioScrip.
The transaction, which is expected to be completed in the second half of 2019, is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by BioScrip shareholders.
Conference Call, Webcast and Presentation
BioScrip and Option Care will host a conference call at 9:00 AM ET today, March 15, 2019, to discuss the transaction. The dial-in numbers for the call are (877) 423-9820 (U.S. Toll Free) or (201) 493-6749 (International). A live webcast of the conference call and associated presentation materials will be available under the “Investors” section of BioScrip’s web site at: www.bioscrip.com.
An online replay of the conference call will be available approximately two hours after completion of the conference call in the Investor Relations section of BioScrip’s web site at: www.bioscrip.com.
In connection with the transaction, Jefferies LLC and Moelis & Company LLC are acting as joint financial advisors to BioScrip, and Gibson, Dunn & Crutcher LLP is serving as legal advisor. Goldman Sachs & Co. LLC and BofA Merrill Lynch are acting as financial advisors and Kirkland & Ellis LLP is acting as legal advisor to Option Care.
FORWARD LOOKING STATEMENTS
This communication, in addition to historical information, contains “forward-looking statements ” (as defined in the Private Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of BioScrip and Option Care. All statements other than statements of historical facts are forward-looking statements. In addition, words such as “anticipate, ” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words, and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements.
Forward-looking statements relating to the proposed transaction include, but are not limited to: statements about the benefits of the proposed transaction between BioScrip and Option Care, including future financial and operating results; BioScrip’s and Option Cares plans, objectives, expectations and intentions; the expected timing of completion of the proposed transaction; and other statements relating to the acquisition that are not historical facts. Forward-looking statements are based on information currently available to BioScrip and Option Care and involve estimates, expectations and projections.
Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties (both known and unknown), and many factors could cause actual events or results to differ materially from those indicated by such forward-looking statements. With respect to the proposed transaction between BioScrip and Option Care, these factors could include, but are not limited to: the risk that BioScrip or Option Care may be unable to obtain governmental and regulatory approvals required for the transaction, or that required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could reduce the anticipated benefits from the proposed transaction or cause the parties to abandon the proposed transaction; the risk that a condition to closing of the transaction may not be satisfied; the length of time necessary to consummate the proposed transaction, which may be longer than anticipated for various reasons; the risk that the businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on transaction-related issues; the effect of future regulatory or legislative actions on the companies or the industries in which they operate; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; economic and foreign exchange rate volatility; and the other risks contained in BioScrip’s most recently filed Annual Report on Form 10-K.
Many of these risks, uncertainties and assumptions are beyond BioScrip’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the parties on the date they are made, and neither BioScrip nor Option Care undertakes any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this communication. Nothing in this communication is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per BioScrip share for the current or any future financial years or those of the combined company, will necessarily match or exceed the historical published earnings per BioScrip share, as applicable.
Neither BioScrip nor Option Care gives any assurance (1) that either BioScrip or Option Care will achieve its expectations, or (2) concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decrees, cost reductions, business strategies, earnings or revenue trends or future financial results. All subsequent written and oral forward-looking statements concerning BioScrip, Option Care, the proposed transaction, the combined company or other matters and attributable to BioScrip or Option Care or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
BioScrip, Inc. (“BioScrip” or the “Company”) will file with the Securities and Exchange Commission (“SEC”) a proxy statement in connection with the proposed transaction. The proxy statement will contain important information about the proposed transaction and related matters. INVESTORS AND SECURITY HOLDERS ARE URGED AND ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
The proxy statement and other relevant materials (when they become available) and any other documents filed by the Company with the SEC may be obtained free of charge at the SEC’s website, at www.sec.gov. In addition, security holders will be able to obtain free copies of the proxy statement and other relevant materials from the Company by contacting Investor Relations by mail at 1600 Broadway, Suite 700, Denver, CO 80202, Attn: Investor Relations, by telephone at (720) 697-5200, or by going to the Company’s Investor Relations page on its corporate web site at https://investors.bioscrip.com.
PARTICIPANTS IN THE SOLICITATION
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the matters discussed above. Information about the Company’s directors and executive officers is set forth in the Proxy Statement on Schedule 14A for the Company’s 2018 annual meeting of stockholders, which was filed with the SEC on April 4, 2018. This document can be obtained free of charge from the sources indicated above.
Information regarding the ownership of the Company’s directors and executive officers in the Company’s securities is included in the Company’s SEC filings on Forms 3, 4, and 5, which can be found through the SEC’s website at www.sec.gov. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the preliminary proxy statement and the definitive proxy statement and other relevant materials to be filed with the SEC when they become available.
About BioScrip, Inc.
BioScrip, Inc. is one of the largest independent national providers of infusion and home care management solutions, with approximately 2,100 teammates and nearly 70 service locations across the U.S. BioScrip partners with physicians, hospital systems, payors, pharmaceutical manufacturers and skilled nursing facilities to provide patients access to post-acute care services. BioScrip operates with a commitment to bring customer-focused pharmacy and related healthcare infusion therapy services into the home or alternate-site setting. By collaborating with the full spectrum of healthcare professionals and the patient, BioScrip provides cost-effective care that is driven by clinical excellence, customer service, and values that promote positive outcomes and an enhanced quality of life for those it serves.
About Option Care
Option Care Enterprises, Inc. (Option Care) is the nation’s leading and most trusted provider of home and alternate site infusion services. Holding accreditations from industry quality organizations ACHC, PCAB, ASHP and URAC,* the company draws on nearly 40 years of clinical care experience to offer patient-centered therapy management. Option Care’s signature infusion services include the clinical management of infusion medicines, nursing support and care coordination. Option Care’s multidisciplinary team of more than 1,800 clinicians “including pharmacists, nurses and dietitians” are able to provide infusion service coverage for nearly all patients across the United States needing treatment for complex and chronic conditions. Learn more at www.OptionCare.com.
DEERFIELD, Ill. — Option Care, a new, independent infusion services company previously known as Walgreens Infusion Services, today unveiled its new name and company branding. Option Care is majority owned by Madison Dearborn Partners (MDP), a leading private equity firm based in Chicago; and minority owned by Walgreen Co., a wholly owned subsidiary of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), and is positioned to capitalize on the $14 billion and growing alternate site infusion market.
Option Care, with its dedicated focus on the U.S. infusion market, benefits from the agility of being an independent company with additional investment and access to the expertise, capabilities and resources of MDP while having access to continued collaboration with Walgreens.
“Option Care allows people across the country to receive high quality medical services at home and in other patient-preferred, comfortable and cost-efficient settings,” said Paul Mastrapa, CEO of Option Care. “The infusion market is growing approximately ten percent per year, and Option Care is positioned to provide exceptional clinical care every step of the way. We’re a strategic health care partner that can continue to make emerging therapies readily accessible throughout the country, serving the rapidly increasing number of Americans who rely on these treatments.”
One of the nation’s largest providers of home and alternate site infusion services, Option Care has the ability to serve more than 90 percent of the U.S. population, with 92 infusion pharmacies and 110 alternate treatment sites in 40 states, and almost 5,000 employees.
New Name and Brand
The Option Care name is already well-known among patients and health care providers. In 2007, Walgreens acquired an independent infusion company called Option Care that had operated as a local and regional leader for more than 20 years.
The new Option Care builds upon the legacy of that established brand with a new energy and ambition for the future. The company’s new logo also was unveiled today — a bold and colorful symbol that celebrates the company’s clinical expertise and goal to be a connected part of the healthcare system. It includes a multi-colored segment design representing the range of Option Care’s service offerings, customer segments, and primary therapy areas, including nutrition, anti-infectives, heart failure, immune system disorders, bleeding disorders and many other conditions.
With industry respect and longstanding trusted and integrated partnerships with patients, caregivers, payers, pharmaceutical manufacturers and other healthcare providers, the new Option Care is poised to become the leading alternate site infusion provider by focusing on exceptional, innovative, patient-centric clinical care.
About Option Care
Option Care, formerly Walgreens Infusion Services, offers clinical care provided by specially trained infusion nurses and pharmacists who treat patients with a wide range of acute, chronic and rare conditions. As one of the nation’s largest providers of home and alternate treatment site infusion services, Option Care has 92 infusion pharmacies and 110 alternate treatment sites across the country. Learn more at www.OptionCare.com.
About Madison Dearborn Partners
Madison Dearborn Partners (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP’s formation in 1992, the firm has raised six funds with aggregate capital of over $18 billion and has completed approximately 125 investments. MDP invests in businesses across a broad spectrum of industries, including health care; basic industries; business and government services; consumer; financial and transaction services; and telecom, media and technology services. Its health care investments include Ikaria, Kaufman Hall, National Mentor Holdings, Sage Products, Sirona Dental, Team Health and VWR International. For more information, please visit http://www.mdcp.com/.
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Media Contact Information
Madison Dearborn Partners