Diplomat Pharmacy (DPLO) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 08, 2019
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2019
Entity File Number	001-36677
Entity Registrant Name	DIPLOMAT PHARMACY, INC.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-2063100
Entity Address, Address Line One	4100 S. Saginaw Street
Entity Address, City or Town	Flint
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48507
City Area Code	888
Local Phone Number	720-4450
Title of 12(b) Security	Common Stock
Trading Symbol	DPLO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		75,973,963
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001610092
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and equivalents	$ 8,420	$ 9,485
Receivables, net	338,321	326,602
Inventories	181,401	210,573
Prepaid expenses and other current assets	14,035	9,596
Total current assets	542,177	556,256
Property and equipment	54,462	55,929
Accumulated depreciation	(26,258)	(21,404)
Property and equipment, net	28,204	34,525
Capitalized software for internal use, net	28,899	30,506
Operating lease right-of-use assets	26,863
Goodwill	371,569	609,592
Definite-lived intangible assets, net	155,798	240,810
Assets held for sale	3,642
Other noncurrent assets	5,451	4,670
Total assets	1,162,603	1,476,359
Current liabilities:
Accounts payable	368,410	308,084
Rebates payable to PBM customers	23,459	23,264
Borrowings on revolving line of credit	105,000	176,300
Current portion of long-term debt	443,324	11,500
Current portion of operating lease liabilities	4,566
Accrued expenses:
Compensation and benefits	13,481	13,348
Contingent consideration	5,523	5,075
Other	27,779	21,014
Total current liabilities	991,542	558,585
Long-term debt, less current portion		438,369
Noncurrent operating lease liabilities	23,538
Deferred income taxes	1,459	2,781
Contingent consideration	4,948	1,820
Derivative liability	10,084	4,292
Deferred gain		5,175
Other		253
Total liabilities	1,031,571	1,011,275
Shareholders' equity:
Preferred stock (10,000,000 shares authorized; none issued and outstanding)
Common stock (no par value; 590,000,000 shares authorized; 75,973,963 and 74,474,677 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively)	641,557	629,411
Additional paid-in capital	55,529	50,544
Accumulated deficit	(555,970)	(210,579)
Accumulated other comprehensive loss	(10,084)	(4,292)
Total shareholders' equity	131,032	465,084
Total liabilities and shareholders' equity	$ 1,162,603	$ 1,476,359

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common shares, par value (in dollars per share)	$ 0	$ 0
Common shares, authorized shares	590,000,000	590,000,000
Common shares, issued shares	75,973,963	74,474,677
Common shares, outstanding shares	75,973,963	74,474,677

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Comprehensive (Loss) Income
Net sales	$ 1,301,197	$ 1,373,334	$ 3,845,629	$ 4,131,896
Cost of sales	(1,237,812)	(1,279,976)	(3,630,297)	(3,849,743)
Gross profit	63,385	93,358	215,332	282,153
Selling, general and administrative expenses	(74,993)	(83,419)	(238,677)	(255,705)
Goodwill impairments	(122,076)		(244,967)
Impairments of definite-lived intangible assets	(34,173)		(52,152)
(Loss) income from operations	(167,857)	9,939	(320,464)	26,448
Other (expense) income:
Interest expense	(11,659)	(10,179)	(32,044)	(30,998)
Impairment of non-consolidated entities		(286)		(329)
Other	149	574	431	1,385
Total other expense	(11,510)	(9,891)	(31,613)	(29,942)
(Loss) income before income taxes	(179,367)	48	(352,077)	(3,494)
Income tax benefit (expense)	2,087	121	1,034	(750)
Net (loss) income	(177,280)	169	(351,043)	(4,244)
Other comprehensive (loss) income, net of tax	(307)	918	(5,792)	(44)
Total comprehensive (loss) income	$ (177,587)	$ 1,087	$ (356,835)	$ (4,288)
(Loss) income per common share, basic and diluted	$ (2.35)	$ 0	$ (4.69)	$ (0.06)
Basic (in shares)	75,509,088	74,386,386	74,904,776	74,181,869
Diluted (in shares)	75,509,088	74,741,511	74,904,776	74,181,869

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (351,043)	$ (4,244)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	58,518	72,547
Goodwill impairments	244,967
Impairments of definite-lived intangible assets	52,152
Insurance proceeds received on settlement of claim	(14,100)
Payment on settlement of claim	14,100
Share-based compensation expense	12,632	15,771
Net provision for doubtful accounts	9,090	5,862
Write-off of debt issuance costs	731
Amortization of debt issuance costs	3,101	3,703
Write-down on assets held for sale to net realizable value	1,654
Changes in fair value of contingent consideration	49	2,419
Contingent consideration payments	(1,298)	(3,181)
Deferred income tax benefit	(1,322)	(2,034)
Impairment of non-consolidated entities		329
Other	(7)	(43)
Changes in operating assets and liabilities, net of business acquisition
Accounts receivable	(13,871)	(31,090)
Inventories	29,668	36,717
Accounts payable	57,759	(73,227)
Rebates payable	195	1,209
Other assets and liabilities	5,070	8,469
Net cash provided by operating activities	108,045	33,207
Cash flows from investing activities:
Expenditures for property and equipment	(3,961)	(7,880)
Expenditures for capitalized software for internal use	(14,050)	(8,736)
Payments to acquire businesses, net of cash acquired	(7,048)	(1,139)
Other	22	46
Net cash used in investing activities	(25,037)	(17,709)
Cash flows from financing activities:
Net payments on revolving line of credit	(71,300)	(10,000)
Payments on long term debt	(8,625)	(82,625)
Payments of debt issuance costs	(2,471)	(821)
Proceeds from issuance of stock upon stock option exercises	600	3,999
Contingent consideration payments	(2,277)	(2,088)
Net cash used in financing activities	(84,073)	(91,535)
Net decrease in cash and equivalents	(1,065)	(76,037)
Cash and equivalents at beginning of period	9,485	84,251
Cash and equivalents at end of period	8,420	8,214
Supplemental disclosures of cash flow information:
Cash paid for interest	28,212	27,707
Cash paid for income taxes	2,354	$ 2,142
Noncash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,101

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	InTouch Pharmacy LLCCommon Stock	InTouch Pharmacy LLC	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2017			$ 619,235	$ 38,450	$ 91,816		$ 749,501
Balance (in shares) at Dec. 31, 2017			73,871,424
Changes in Shareholders' Equity
Net loss					(450)		(450)
Stock issued upon stock option exercises			$ 2,461	(552)			1,909
Stock issued upon stock option exercises (in shares)			200,677
Share-based compensation				3,161			3,161
Stock issued upon vesting of restricted stock units			$ 157	(157)
Stock issued upon vesting of restricted stock units (in shares)			10,705
Balance at Mar. 31, 2018			$ 621,853	40,902	91,240		753,995
Balance (in shares) at Mar. 31, 2018			74,082,806
Balance at Dec. 31, 2017			$ 619,235	38,450	91,816		749,501
Balance (in shares) at Dec. 31, 2017			73,871,424
Changes in Shareholders' Equity
Net loss							(4,244)
Other comprehensive (loss) income, net of tax							(44)
Balance at Sep. 30, 2018			$ 629,283	48,172	87,445	$ (44)	764,856
Balance (in shares) at Sep. 30, 2018			74,448,430
Changes in Shareholders' Equity
Cumulative effect adjustment | ASU 2014-09					(126)		(126)
Balance at Mar. 31, 2018			$ 621,853	40,902	91,240		753,995
Balance (in shares) at Mar. 31, 2018			74,082,806
Changes in Shareholders' Equity
Net loss					(3,964)		(3,964)
Stock issued upon stock option exercises			$ 1,831	(389)			1,442
Stock issued upon stock option exercises (in shares)			129,722
Share-based compensation				6,961			6,961
Stock issued upon vesting of restricted stock units			$ 1,109	(1,109)
Stock issued upon vesting of restricted stock units (in shares)			47,683
Restricted stock award activity			$ 561	(561)
Restricted stock award activity (in shares)			21,924
Other comprehensive (loss) income, net of tax						(962)	(962)
Balance at Jun. 30, 2018			$ 625,354	45,804	87,276	(962)	757,472
Balance (in shares) at Jun. 30, 2018			74,282,135
Changes in Shareholders' Equity
Net loss					169		169
Stock issued upon stock option exercises			$ 896	(248)			648
Stock issued upon stock option exercises (in shares)			41,420
Share-based compensation				5,649			5,649
Stock issued upon vesting of restricted stock units			$ 3,033	(3,033)
Stock issued upon vesting of restricted stock units (in shares)			124,875
Other comprehensive (loss) income, net of tax						918	918
Balance at Sep. 30, 2018			$ 629,283	48,172	87,445	(44)	764,856
Balance (in shares) at Sep. 30, 2018			74,448,430
Balance at Dec. 31, 2018			$ 629,411	50,544	(210,579)	(4,292)	$ 465,084
Balance (in shares) at Dec. 31, 2018			74,474,677				74,474,677
Changes in Shareholders' Equity
Net loss					(14,301)		$ (14,301)
Share-based compensation				3,572			3,572
Stock issued upon vesting of restricted stock units			$ 4,766	(4,766)
Stock issued upon vesting of restricted stock units (in shares)			244,948
Restricted stock award activity			$ 37	(37)
Restricted stock award activity (in shares)			(5,929)
Other comprehensive (loss) income, net of tax						(2,127)	(2,127)
Balance at Mar. 31, 2019			$ 634,214	49,313	(219,228)	(6,419)	457,880
Balance (in shares) at Mar. 31, 2019			74,713,696
Balance at Dec. 31, 2018			$ 629,411	50,544	(210,579)	(4,292)	$ 465,084
Balance (in shares) at Dec. 31, 2018			74,474,677				74,474,677
Changes in Shareholders' Equity
Net loss							$ (351,043)
Other comprehensive (loss) income, net of tax							(5,792)
Balance at Sep. 30, 2019			$ 641,557	55,529	(555,970)	(10,084)	$ 131,032
Balance (in shares) at Sep. 30, 2019			75,973,963				75,973,963
Changes in Shareholders' Equity
Cumulative effect adjustment | ASU 2016-02					5,652		$ 5,652
Balance at Mar. 31, 2019			$ 634,214	49,313	(219,228)	(6,419)	457,880
Balance (in shares) at Mar. 31, 2019			74,713,696
Changes in Shareholders' Equity
Net loss					(159,462)		(159,462)
Stock issued upon stock option exercises			$ 148	(30)			118
Stock issued upon stock option exercises (in shares)			27,313
Share-based compensation				4,283			4,283
Stock issued upon vesting of restricted stock units			$ 1,544	(1,544)
Stock issued upon vesting of restricted stock units (in shares)			65,988
Restricted stock award activity			$ 425	(425)
Restricted stock award activity (in shares)			186,969
Other comprehensive (loss) income, net of tax						(3,358)	(3,358)
Balance at Jun. 30, 2019			$ 636,331	51,597	(378,690)	(9,777)	299,461
Balance (in shares) at Jun. 30, 2019			74,993,966
Changes in Shareholders' Equity
Net loss					(177,280)		(177,280)
Stock issued upon stock option exercises			$ 582	(100)			482
Stock issued upon stock option exercises (in shares)			104,653
Share-based compensation				4,777			4,777
Stock issued upon vesting of restricted stock units			$ 745	(745)
Stock issued upon vesting of restricted stock units (in shares)			38,913
Other comprehensive (loss) income, net of tax						(307)	(307)
Balance at Sep. 30, 2019			$ 641,557	$ 55,529	$ (555,970)	$ (10,084)	$ 131,032
Balance (in shares) at Sep. 30, 2019			75,973,963				75,973,963
Changes in Shareholders' Equity
Issuance of stock upon full contingent consideration payout	$ 3,899	$ 3,899
Issuance of stock upon full contingent consideration payout (in shares)	836,431

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2019
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION ​ Description of Business ​ Diplomat Pharmacy, Inc. and its consolidated subsidiaries (the “Company”) is the largest independent provider of specialty pharmacy and infusion services in the United States of America (“U.S.”). The Company is focused on improving the lives of patients with complex chronic diseases while also delivering unique solutions for manufacturers, hospitals, payors and providers. The Company’s patient-centric approach positions it at the center of the healthcare continuum for the treatment of complex chronic disease states, including oncology, specialty infusion therapies, immunology, hepatitis, multiple sclerosis and many other serious or long-term conditions. The Company operates in two reportable segments - Specialty and Pharmacy Benefit Management (“PBM”). The Specialty segment offers a broad range of innovative solutions to address the dispensing, delivery, dosing and reimbursement of clinically intensive, high-cost specialty drugs and a wide range of applications. The PBM segment provides services designed to help customers reduce the cost and manage the complexity of their prescription drug programs. The Company dispenses to patients in all U.S. states and territories through its advanced distribution centers and manages centralized clinical call centers to deliver localized services on a national scale. ​ Basis of Presentation ​ Liquidity and Going Concern ​ Beginning in latter half of 2018, the Company began experiencing operating results below expectations and deteriorating forecasts for future revenue growth. Competitive challenges in its core specialty pharmacy business, impact of continued customer contract losses in the PBM business, and uncertainties and challenges facing the health care industry continue to create increasing headwinds for the Company’s operating results. ​ The continued availability of funding under our credit agreement is contingent on compliance with, among other things, certain financial debt covenants consisting of a total net leverage ratio and interest coverage ratio. Effective August 2019, the Company amended the terms of its credit facility, in particular these specific ratios, which made these debt covenants less restrictive for the period September 30, 2019 through December 31, 2020, but thereafter returns to the originally agreed upon ratios. The Company has been monitoring and evaluating the impact of these changes and originally expected to be in compliance with the amended covenants but it has determined, given recent operating results and deteriorated forecasts, that it is probable that the Company will be in violation of these covenants at December 31, 2019. If we were to violate our covenants, our lenders would have the right to terminate funding of our credit facility, accelerate our indebtedness (under the revolving credit facility and term loans), or foreclose on our assets. While we believe that we would be able to obtain waivers for any such breach of covenants to prevent an acceleration of the outstanding indebtedness, the Company cannot conclude with certainty that it will have the ability to restructure its credit agreement, obtain necessary waivers or negotiate less restrictive debt covenants with its lenders. If the covenant violations are not waived and our access to the credit facility is terminated or the indebtedness thereunder is accelerated, the Company may be unable to repay the obligations due under the credit agreement which would have a material adverse impact on the Company’s liquidity and business. Accordingly, management’s assessment indicates, due to these conditions, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern within one year after the date that these consolidated financial statements were filed. ​ The Company’s operations are funded primarily through cash generated from operations, cash and equivalents on hand, and available borrowings under its revolving credit facility. As of September 30, 2019, the Company had $8.4 million in cash and equivalents, $105 million in borrowings under its revolving credit facility and $456 million outstanding under its term loans. At September 30, 2019, the Company had $95 million of available borrowing capacity under its revolving line of credit. For the nine months ended September 30, 2019, the Company generated $108 million of cash from operations. The Company is reviewing strategic alternatives related to its future business operations which include, but are not limited to, a sale or merger of the Company, pursuing value enhancing initiatives or undertaking structural changes as a standalone company, or the sale or disposition of certain of the Company’s business or assets. Additionally, the Company plans to work with its lenders to amend the credit agreement and continue to pursue cost-cutting initiatives. However, given many of the mitigating plans are reliant on third parties and therefore outside the Company’s control, it is not considered probable that any of these alternatives will be effectively implemented in the near term. Therefore, these plans do not mitigate the substantial doubt raised surrounding the Company’s ability to continue as a going concern. ​ Unaudited Condensed Consolidated Financial Statements ​ The condensed consolidated balance sheet as of September 30, 2019, and the condensed consolidated statements of comprehensive loss, changes in shareholders’ equity and cash flows for the three and nine months ended September 30, 2019 and 2018 are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations, cash flows and changes in shareholders’ equity for the periods presented. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or for any future annual or interim period. The consolidated balance sheet at December 31, 2018 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2019
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	2. NEW ACCOUNTING STANDARDS ​ Adoption of New Accounting Standard ​ Leases ​ The Company adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) ​ The Company adopted Topic 842 as of January 1, 2019 using the optional transition method, which allowed entities to apply the new guidance at the adoption date and record a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, and not to restate the comparative periods presented. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the standard resulted in the recognition of net operating lease right-of-use assets of approximately $28,400 and operating lease liabilities of approximately $29,300 on the condensed consolidated balance sheet as of January 1, 2019 primarily related to its real estate operating leases. The operating lease right-of-use assets includes the impact of deferred rent. The Company does not have any finance leases. ​ Also, upon adoption, the Company recorded a cumulative-effect adjustment, after tax, of $5,652 (a valuation allowance was established against the full amount of the net deferred taxes of $1,387) to increase retained earnings for the amount of a previously deferred gain on a sale-leaseback transaction that closed in 2018. Such gain recorded on the sale-leaseback transaction would have been fully recognized under Topic 842. ​ The Company elected to apply the package of practical expedients upon transition, which includes no reassessment of whether existing contracts are or contain leases and allowed for the lease classification for existing leases to be retained. The Company did not elect the practical expedient to use hindsight, and accordingly the initial lease term did not differ under the new standard versus prior accounting practice. After transition, in certain instances, the cost of renewal options will be recognized earlier in the term of the lease than under the previous lease accounting rules. The operating lease agreements include lease and non-lease components for which the Company elected the practical expedient to not separate non-lease components from the lease components but instead to combine them and account for them as a single lease component and will continue to do so for its real estate operating leases. The Company has selected as its accounting policy to keep leases with a term of twelve months or less off the balance sheet and recognize these lease payments on a straight-line basis over the lease term. ​ The Company has recorded operating lease right-of-use assets and operating lease liabilities in its condensed consolidated balance sheet at September 30, 2019. The lessors’ rate implicit in the operating leases was not available to the Company and was not determinable from the terms of the lease. Therefore, the Company used its incremental borrowing rate to determine the present value of the future lease payments. The incremental borrowing rates were not observable and therefore, the rates were estimated primarily using a methodology dependent on the Company’s financial condition, creditworthiness, and availability of certain observable data. In particular, the Company considered its actual cost of borrowing for collateralized loans and its credit rating, along with the corporate bond yield curve in estimating its incremental borrowing rates. These estimated incremental borrowing rates were applied to future lease payments to determine the present value of the operating lease liability for each lease. ​ The new standard did not have a significant impact on the timing or measurement of lease expense in the condensed consolidated statements of comprehensive (loss) income and had no impact on the condensed consolidated statements of cash flows for the nine months ended September 30, 2019. As noted above, the comparative prior period information for the nine months ended September 30, 2018 has not been adjusted and continues to be reported under the Company’s historical lease recognition policies under ASC Topic 840, Leases. ​ The disclosure requirements of Topic 842 are included within Note 14, Leases. ​ Accounting Standards Issued But Not Yet Adopted ​ Credit Losses ​ In September 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ​

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	​ 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Principles of Consolidation ​ The condensed consolidated financial statements include the accounts of Diplomat Pharmacy, Inc., and its wholly owned subsidiaries. ​ All intercompany transactions and balances have been eliminated in consolidation. ​ Use of Estimates ​ The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates. ​ Receivables, net ​ Receivables, net consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ Trade receivables, net of allowances of $(31,344) and $(25,342), respectively ​ $ 329,141 ​ $ 299,407 ​ Rebate receivables ​ 6,450 ​ 22,375 ​ Other receivables ​ 2,730 ​ 4,820 ​ ​ ​ $ 338,321 ​ $ 326,602 ​ ​ Trade receivables are stated at the invoiced amount. Trade receivables primarily include amounts due from clients, third-party pharmacy benefit managers and insurance providers and are based on contracted prices. Trade receivables are unsecured and require no collateral. Trade receivable terms vary by payor, but generally are due within 30 days after the sale of the product or performance of the service. ​ Rebate receivables are amounts due from pharmaceutical manufacturers related to drug purchases by participants of the various pharmacy benefit plans that the Company manages, a portion of which, depending on contract terms, are paid back to the Company’s customers. The Company estimates these rebates at period-end based on its contractual arrangements with its manufacturers and such rebates are recorded as a reduction of cost of sales. ​ Inventories ​ Inventories consist of prescription and over-the-counter medications and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Prescription medications are returnable to the Company’s vendors and fully refundable before nine months of expiration, and any remaining expired medication is relieved from inventory on a quarterly basis.

ACQUISITION OF INTOUCH PHARMACY

ACQUISITION OF INTOUCH PHARMACY LLC	9 Months Ended
	Sep. 30, 2019
ACQUISITION OF INTOUCH PHARMACY LLC
ACQUISITION OF INTOUCH PHARMACY LLC	4. ACQUISITION OF INTOUCH PHARMACY LLC ​ On July 22, 2019, the Company acquired all of the outstanding equity interests of InTouch Pharmacy LLC (“InTouch”), a national specialty home infusion pharmacy based in Atlanta, Georgia with two additional locations in Tennessee and South Carolina. The Company accounted for the acquisition using the acquisition method. The results of operations of InTouch are included in the condensed consolidated financial statements from the acquisition date. ​ The assets acquired and liabilities assumed in the InTouch acquisition, including identifiable intangible assets, were based on their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired was recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, specifically related to identifiable intangible assets. These estimates are preliminary and subject to change primarily due to the fair values of the acquired identifiable intangibles assets of $6,660 and the contingent consideration arrangement of $7,102 are provisional pending receipt of the final valuations for those assets and information to finalize the opening working capital adjustments is not yet available. The following table summarizes the consideration transferred to acquire InTouch: ​ ​ ​ ​ ​ Cash ​ $ 7,491 Restricted common stock (836,431 shares) ​ ​ 3,899 Contingent consideration at fair value ​ ​ 7,102 ​ ​ $ 18,492 ​ The fair value of the 836,431 restricted common shares issued as part of the consideration paid at closing, in accordance with the purchase agreement, was determined using a per share closing price of the Company’s common stock on the acquisition date ($5.18) and multiplied by 90 percent to account for the restricted nature of the shares. ​ The purchase price includes a contingent consideration arrangement that requires the Company to pay the former owners additional cash payouts of up to $8,000 if certain gross profit targets, as defined in the arrangement, are met in each of the next three years. The Company recorded an estimated liability equal to the fair value of the contingent consideration obligation of $7,102 as of the acquisition date. The estimated fair value of the contingent consideration obligation was determined using a probability weighted discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurements. ​ The Company incurred acquisition related costs of $174 which were charged to Selling, general and administrative expenses during the three months ended September 30, 2019. ​ The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date: ​ ​ ​ ​ ​ Cash ​ $ 443 Receivables ​ ​ 6,939 Inventories ​ ​ 496 Other current assets ​ ​ 40 Definite-lived intangibles assets ​ ​ 6,660 Other noncurrent assets ​ ​ 24 Accounts payable ​ ​ (2,567) Accrued expenses - compensation and benefits ​ ​ (625) Total identifiable net assets ​ ​ 11,410 Goodwill ​ ​ 7,082 ​ ​ $ 18,492 ​ The estimated fair value of the definite-lived intangible assets that were acquired and their respective useful lives are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Useful ​ ​ ​ ​ Life Amount Patient relationships 8 years ​ $ 4,400 Non-compete employment agreements 5 years ​ 260 Trade names and trademarks 5 years ​ 2,000 ​ ​ ​ ​ $ 6,660 ​ The estimated fair value of the accounts receivable acquired is $6,939, with the gross contractual amount being $7,695 . The Company expects $756 to be uncollectible. ​ The unaudited pro forma operating results have not been presented since the effect of the InTouch acquisition was not significant to the condensed consolidated financial statements.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2019
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS ​ The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy was established, which prioritizes the inputs used in measuring fair value as follows: ​ Level 1: ​ Level 2: ​ Level 3: ​ An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs. ​ Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques: ​ A. Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. ​ B. Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). ​ C. Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models). ​ The following table presents the placement in the fair value hierarchy of liabilities that are measured and disclosed at fair value on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset / ​ ​ Valuation ​ ​ Valuation ​ ​ ​ (Liability) Level 2 Level 3 Technique September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration $ (10,471) $ — ​ $ (10,471) C Interest rate swaps (Note 8) ​ ​ (10,084) ​ ​ (10,084) ​ ​ — A ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration $ (6,895) $ — ​ $ (6,895) C Interest rate swaps (Note 8) ​ ​ (4,292) ​ ​ (4,292) ​ ​ — A ​ The following table sets forth the change in contingent consideration (Level 3 measurements) for the nine months ended September 30, 2019: ​ ​ ​ ​ ​ ​ ​ Contingent ​ Consideration Balance at January 1, 2019 ​ $ (6,895) InTouch Acquisition ​ ​ (7,102) Change in fair value ​ ​ (49) Payments ​ 3,575 Balance at September 30, 2019 ​ $ (10,471) ​ The carrying amount of the Company’s debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing.

GOODWILL AND DEFINITE-LIVED INT

GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2019
GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS
GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS	6. GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS ​ Goodwill ​ Goodwill is not amortized but it is reviewed for impairment annually in the fourth quarter of each year using data as of December 31 of that year, or more frequently if facts or circumstances indicate that the carrying value of a reporting unit’s goodwill may not be recoverable. The Company has three reporting units – Diplomat Specialty Pharmacy (“DSP”) and Diplomat Specialty Infusion Group (“DSIG”), which are within the Specialty segment, and PBM. The following table sets forth the changes in the carrying amount of goodwill and accumulated impairment losses, by segment, for the nine months ended September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Specialty PBM (a) Total Balance at January 1, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill ​ $ 386,436 ​ $ 448,122 $ 834,558 Accumulated impairment losses ​ ​ (45,776) ​ ​ (179,190) ​ ​ (224,966) ​ 340,660 ​ ​ 268,932 ​ 609,592 Goodwill acquired with InTouch acquisition ​ ​ 7,082 ​ ​ — ​ ​ 7,082 Impairment losses (second quarter) ​ ​ (68,218) ​ ​ (54,673) ​ ​ (122,891) Impairment losses (third quarter) — ​ ​ (122,076) ​ (122,076) Other ​ ​ — ​ ​ (138) ​ ​ (138) Balance at September 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill ​ ​ 393,518 ​ ​ 447,984 ​ ​ 841,502 Accumulated impairment losses ​ ​ (113,994) ​ ​ (355,939) ​ ​ (469,933) ​ ​ $ 279,524 ​ $ 92,045 $ 371,569 ​ (a) The goodwill in the PBM segment was recorded as a result of two separately acquired entities (i) Pharmaceutical Technologies, Inc. d/b/a National Pharmaceutical Services, acquired in November 27, 2017, and (ii) LDI Holding Company, LLC, acquired December 20, 2017. ​ The Company determined, due to lower than expected second quarter of 2019 results and the resulting negative impact on future forecasts, that there was an indication of impairment for the Specialty and PBM segments and, as a result, tested goodwill, at the reporting unit level, in the interim period at June 30, 2019. The impairment test consists of comparing the reporting unit’s fair value to its carrying value. Based on the interim impairment test as of June 30, 2019, the Company determined that the fair value of DSP reporting unit and PBM reporting unit were less than their respective carrying value. As a result, in the second quarter of 2019, the Company recorded total goodwill impairment charges of $122,891 and impairments to definite-lived intangible assets of $17,979. ​ For the DSP reporting unit, as of and for the second quarter of 2019, the Company experienced lower than expected results, which had impacted the outlook for the remainder of 2019 and into 2020. The lowered outlook for the DSP reporting unit included slower than anticipated brand to generic conversions and delays in the release of generic versions of certain drugs which tend to provide higher margin contribution. Additionally, anticipated cost savings were running behind forecast primarily due to delays in the implementation of ScriptMed, our new specialty operating platform, which we deliberately slowed to minimize any disruptive impact of the transition to providers and patients. While the previous outlook assumed additional investment in the Company’s payor sales team which would have resulted in new business opportunities that would offset anticipated negative impacts to volume, the Company saw limited impacts from this investment on 2019 results through June 30, 2019. Lastly, while it was believed the business environment would stabilize, the Company continued to see volumes in the DSP reporting unit business being negatively impacted by member channel management and increased competition from larger, vertically-integrated peers and a reimbursement environment in specialty pharmacy that was driving continued downward pressure on margins. As such, these conditions resulted in downward revisions of the forecasts on current and future projected earnings and cash flows from the DSP reporting unit. During the second quarter of 2019, the Company recorded a goodwill impairment in the Specialty segment of $68,218, which was allocated to the DSP reporting unit. The impairment charge is not deductible for income tax purposes. ​ Also, in the second quarter of 2019, the PBM business experienced lower than expected results driven by continued business losses and lower earned rebates due to drug mix and slightly lower rebate retention. These lower than expected results, and a reduced outlook in 2020 and beyond, resulted in downward revisions of the forecasts on current and future projected earnings and cash flows of the PBM reporting unit. During the second quarter of 2019, the Company recorded a goodwill impairment charge of $54,673 in the PBM segment which is not deductible for income tax purposes. ​ In the third quarter of 2019, the Company determined, due to downward revisions on future forecasts, there was an additional indication of impairment for the PBM segment and, as a result, tested goodwill, at the reporting unit level, in the interim period at September 30, 2019. During the third quarter of 2019, the Company recorded a goodwill impairment charge in the PBM segment of $122,076. The impairment charge resulted primarily from lower than anticipated success rate in converting potential sales opportunities into new customer contracts during the third quarter and into the fourth quarter for the upcoming 2020 calendar year contracts and continued customer contract losses impacting 2020 forecasts occurring in the third quarter beyond those anticipated at the time of our second quarter impairment assessment. An additional factor driving the impairment charge was our inability to meet certain contractual membership level requirements, which was communicated in August 2019 from one of our PBM aggregators, that resulted in a rebate penalty impacting the full year of 2019. ​ The estimated fair value for each of the reporting units was determined using the income approach. Fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. Internal forecasts are used to estimate future cash flows and include an estimate of long-term growth rates based on management’s most recent views of the long-term outlook for each reporting unit. Such projections contain management’s best estimates of growth rates in revenue and costs, and future expected changes in operating margins and cash expenditures, which are based on factors including the best estimates of economic and market conditions over the projected period. The projection of estimated operating results and cash flows are discounted using a weighted average cost of capital that reflects current market conditions appropriate to each reporting unit. The discount rate is sensitive to changes in interest rates and other market rates in place at the time the assessment is performed. The discount rates used in the valuations of the reporting units as of June 30, 2019 were 10.5% for the DSP reporting unit and 11.75% for the PBM reporting unit, and 13.5% for the PBM reporting unit as of September 30, 2019. The discount rate was increased to 13.5% for the PBM reporting unit due to the increased risk in the Company’s ability to forecast future sales volumes. ​ Also, the Company in connection with the goodwill impairment analyses performed as of June 30, 2019 and September 30, 2019 assessed whether the carrying amounts of the reporting units long-lived assets may not be recoverable and therefore may be impaired. To assess the recoverability at the DSP reporting unit and PBM segment asset group level, the undiscounted cash flows of the DSP and PBM businesses were analyzed over a range of potential remaining useful lives. As a result, the Company determined that certain trade names and trademarks, certain customer and physician relationships in the DSP and PBM reporting units and certain non-compete employment agreements in its DSP reporting unit were not recoverable and were impaired. During the second quarter of 2019, the Company recorded an impairment charge of $16,772 to fully impair the remaining intangible assets in the DSP reporting unit and an impairment charge of $1,207 to further impair those intangible assets at the PBM reporting unit. During the third quarter of 2019, the Company recorded an additional impairment charge of $34,173 to further impair certain trade names and trademarks, and customer relationship intangibles in the PBM reporting unit. Refer to the additional discussion below. ​ Definite-lived intangible assets ​ Definite-lived intangible assets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Gross ​ ​ ​ Net ​ Amortization Carrying Accumulated Carrying ​ Period Remaining Amount Amortization Amount Customer relationships ​ 9.3 ​ $ 52,000 ​ $ — $ 52,000 Patient relationships ​ 5.3 ​ ​ 174,500 ​ ​ (81,535) ​ ​ 92,965 Trade names and trademarks 2.7 29,620 ​ ​ (25,171) ​ 4,449 Non-compete employment agreements 1.3 51,659 ​ ​ (45,275) ​ 6,384 Total definite-lived intangible assets ​ ​ ​ $ 307,779 ​ $ (151,981) $ 155,798 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2018 ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Gross ​ ​ ​ Net ​ ​ Amortization Carrying Accumulated Carrying ​ Period Remaining Amount Amortization Amount Customer relationships ​ 9.8 ​ $ 100,200 ​ $ (1,238) $ 98,962 Patient relationships ​ 5.9 ​ ​ 170,100 ​ ​ (67,964) ​ ​ 102,136 Trade names and trademarks ​ 1.8 ​ 30,650 ​ ​ (20,270) ​ 10,380 Non-compete employment agreements ​ 1.6 ​ 61,389 ​ ​ (44,100) ​ 17,289 Physician relationships ​ 4.8 ​ ​ 21,700 ​ ​ (9,657) ​ ​ 12,043 Total definite-lived intangible assets ​ ​ ​ $ 384,039 ​ $ (143,229) $ 240,810 ​ As disclosed above, certain intangible assets, consisting of certain trade names and trademarks, certain customer and physician relationships, and certain non-compete employment agreements, were impaired in the second and third quarter of 2019. The Company performed a valuation to determine the fair values of these intangible assets and as a result, the Company recorded non-cash impairment charges of $34,173 and $52,152 in the three and nine months ended September 30, 2019, respectively. In conjunction with the valuations performed, management also reviewed the useful lives of the trade names and trademarks, and customer relationships. As a result of the review, no significant changes were necessary to the remaining estimated useful lives. ​ The Company recorded amortization expense on the definite-lived intangible assets of $11,962 and $17,190 for the three months ended September 30, 2019 and 2018, respectively, and $39,520 and $51,360 for the nine months ended September 30, 2019 and 2018, respectively.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2019
DEBT
DEBT	7. DEBT ​ Total outstanding debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ Short-term debt, borrowings on revolving line of credit ​ $ 105,000 ​ $ 176,300 ​ Term loan notes: ​ ​ ​ ​ ​ ​ Term Loan A ​ $ 136,875 ​ $ 142,500 ​ Term Loan B ​ 319,000 ​ 322,000 ​ Total ​ 455,875 ​ 464,500 ​ Unamortized debt issuance costs ​ (12,551) ​ (14,631) ​ Total term loan notes ​ ​ 443,324 ​ ​ 449,869 ​ Less: current portion ​ ​ 443,324 ​ ​ 11,500 ​ Long-term debt, less current portion ​ $ — ​ $ 438,369 ​ ​ The Company has a credit agreement with JP Morgan Chase Bank, N.A., and Capital One, N.A. that provides for a revolving line of credit and a $150,000 Term Loan A and $400,000 Term Loan B (“credit facility”). The credit agreement also provides for issuances of letters of credit of up to $10,000 and swingline loans up to $20,000. On July 19, 2019, the Company agreed to a first amendment to the credit facility, effective August 6, 2019, which permanently reduced the commitment on its revolving line of credit from $250,000 to $200,000. In addition, the first amendment modified the financial debt covenants for the total net leverage ratio and the interest coverage ratio for the period September 30, 2019 through December 31, 2020. The first amendment makes these financial debt covenants less restrictive during the stated period and thereafter returns to the originally agreed upon ratios. The revolving line of credit and Term Loan A mature on December 20, 2022 and Term Loan B matures on December 20, 2024. ​ Interest on the revolving line of credit and Term Loan A is accrued at a rate equal to (i) the monthly LIBOR plus an applicable margin or (ii) a base rate that is the highest of the U.S. prime rate, federal funds rate (plus ½ of 1 percent) and LIBOR (plus 1 percent), at the Company’s option. The applicable margin is adjusted quarterly based on the Company’s leverage ratio. At September 30, 2019, the applicable margin was 2.50 percent for LIBOR loans and 1.50 percent for base rate loans. Interest on the Term Loan B is accrued similarly to Term Loan A, except the applicable margin is fixed at 4.50 percent for LIBOR loans and 3.50 percent for base rate loans. The Company’s Term Loan A and Term Loan B interest rates were 4.55 percent and 6.55 percent, respectively, at September 30, 2019 and 4.78 percent and 7.03 percent, respectively, at December 31, 2018. The interest rate on the revolving line of credit was 4.55 percent and 5.19 percent at September 30, 2019 and December 31, 2018, respectively. The Company is charged a monthly unused commitment fee ranging from 0.3 percent to 0.4 percent on the average unused daily balance on its $200,000 revolving line of credit. ​ The Company had weighted average borrowings on its revolving line of credit of $137,521 and $163,380 and maximum borrowings on its revolving line of credit of $196,300 and $231,200 during the nine months ended September 30, 2019 and 2018, respectively. The Company had $95,000 and $73,700 available to borrow on its revolving line of credit at September 30, 2019 and December 31, 2018, respectively. The revolving line of credit-related unamortized debt issuance costs were $4,964 and $4,246 as of September 30, 2019 and December 31, 2018, respectively. In July 2019, the Company incurred $2,346 in debt issuance costs with the first amendment and wrote-off $731 in debt issuance costs, due to the permanent reduction in the borrowing commitment under the credit facility, to interest expense. Such debt issuance costs, are classified within “Other noncurrent assets” in the condensed consolidated balance sheets. ​ The Term Loan A and Term Loan B requires quarterly principal payments of $1,875 and $1,000, plus accrued interest, respectively. During the nine months ended September 30, 2018, the Company made a voluntary prepayment of $74,000 on the Term Loan B. ​ The credit facility is collateralized by substantially all of the Company’s assets. The credit facility contains covenants that requires the Company, among other things, to provide financial and other information reporting, and to provide notice upon certain events. These covenants also place restrictions on the Company’s ability to incur additional indebtedness, pay dividends or make other distributions, redeem or repurchase capital stock, make investments and loans, and enter into certain transactions, including selling assets, engaging in mergers or acquisitions, or engaging in transactions with affiliates. The Company was in compliance with all such covenants as of September 30, 2019. Although the Company was in compliance with its financial debt covenants at September 30, 2019, it was in compliance due to the modification of the financial debt covenants that became effective in August 2019. As disclosed in Note 1, “Description of Business and Basis of Presentation, Liquidity and Going Concern,” management believes it is probable that the Company will be in violation of the less restrictive covenants at December 31, 2019. Therefore, the Company has classified the outstanding balance under Term Loan A and Term Loan B as of September 30, 2019 as current in the condensed consolidated balance sheet.

INTEREST RATE SWAPS

INTEREST RATE SWAPS	9 Months Ended
	Sep. 30, 2019
INTEREST RATE SWAPS
INTEREST RATE SWAPS	8. INTEREST RATE SWAPS ​ The Company enters into interest rate swap contracts to hedge variable interest rate risk related to certain variable rate borrowings. These interest rate swap contracts are designated as cash flow hedges for the purposes of hedge accounting treatment and any unrealized gains or losses that result from changes in the fair value of the interest rate swap contracts are reported in “Accumulated other comprehensive loss” as a component of shareholders’ equity. The Company measures hedge effectiveness on a quarterly basis. The Company does not use derivative financial instruments for speculative purposes. ​ In 2018, the Company entered into two pay-fixed and receive-floating interest rate swaps, which were effective on March 29, 2019 and terminate on March 31, 2022. The combined notional amount of the interest rate swaps was $286.1 million and $290.6 million at September 30, 2019 and December 31, 2018, respectively. At September 30, 2019 and December 31, 2018, the fair value of the interest rate swaps (derivative liability) was $10,084 and $4,292, respectively (a valuation allowance was established against the full amount of the net deferred tax benefit of $2,582 and $1,099, respectively). During the three months ended September 30, 2019 and 2018, the Company recognized other comprehensive (loss) income of $(307) and $918, respectively, and during the nine months ended September 30, 2019 and 2018, the Company recognized other comprehensive loss of $(5,792) and $(44), respectively.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2019
REVENUE
REVENUE	9. REVENUE ​ The following table disaggregates net sales by therapeutic categories for the Specialty segment and by product and service distribution channels for the PBM segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2019 2018 2019 2018 ​ Specialty Segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oncology ​ $ 718,859 ​ $ 701,206 ​ $ 2,123,574 ​ $ 2,094,394 ​ Specialty infusion ​ 209,767 ​ 178,890 ​ 580,254 ​ 525,857 ​ Immunology ​ 135,740 ​ 135,397 ​ 412,268 ​ 413,948 ​ Other ​ 179,082 ​ 196,805 ​ 511,486 ​ 564,824 ​ Total Specialty segment ​ ​ 1,243,448 ​ ​ 1,212,298 ​ ​ 3,627,582 ​ ​ 3,599,023 ​ PBM Segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail networks ​ ​ 48,604 ​ ​ 126,082 ​ ​ 173,800 ​ ​ 417,370 ​ Specialty pharmacy ​ ​ 23,156 ​ ​ 22,470 ​ ​ 57,323 ​ ​ 67,784 ​ Mail order ​ ​ 7,976 ​ ​ 16,019 ​ ​ 30,758 ​ ​ 50,029 ​ Other ​ ​ 2,764 ​ ​ 5,362 ​ ​ 8,849 ​ ​ 14,965 ​ Total PBM segment ​ ​ 82,500 ​ ​ 169,933 ​ ​ 270,730 ​ ​ 550,148 ​ Inter-segment eliminations ​ ​ (24,751) ​ ​ (8,897) ​ ​ (52,683) ​ ​ (17,275) ​ Total net sales ​ $ 1,301,197 ​ $ 1,373,334 ​ $ 3,845,629 ​ $ 4,131,896 ​ ​ Rebates retained, which represents the difference between the manufacturers’ rebates earned and rebates incurred to customers, approximated (5.5%) and 22.1% of total gross profit for the three months ended September 30, 2019 and 2018, respectively and 5.9% and 17.2% of total gross profit for the nine months ended September 30, 2019 and 2018, respectively. ​ Rebates retained was negatively impacted for the three and nine months ended September 30, 2019. In the third quarter of 2019, manufacturers’ rebates earned, recorded in Cost of sales, includes an approximate $9,000 adjustment due to the Company’s inability to meet certain contractual membership level requirements in 2019, as included in the PBM aggregator’s contract, necessary to maintain contractual rebate rates. The Company had met the membership requirements for this standard contract for the years 2017 and 2018. At the end of the second quarter of 2019, the Company was in negotiations with the aggregator, as required by the contract, regarding contract renewals (including the potential for adjustments to rebate pricing in the future and retroactively to January 1, 2019). In late August 2019, negotiations concluded with the aggregator assessing a rebate penalty of approximately $9,000 of which approximately $6,000 related to the six months ended June 30, 2019. The aggregator began withholding from monthly rebate payments in September and October of 2019 to recover the penalty amount. ​ Additionally, as of September 30, 2019, the Company recorded against Net sales, the recognition of an accrual for litigation of $3,900 relating to a rebate dispute with a terminated customer.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2019
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	10. SHARE-BASED COMPENSATION ​ Stock Options ​ A summary of the Company’s stock option activity as of and for the nine months ended September 30, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ Number ​ Exercise ​ Contractual ​ Intrinsic ​ of Options Price Life Value ​ ​ ​ ​ ​ ​ ​ (Years) ​ ​ ​ Outstanding at January 1, 2019 ​ 5,186,025 ​ $ 18.42 ​ 8.0 ​ $ 2,910 Granted 453,808 ​ 5.19 ​ ​ ​ ​ ​ Exercised ​ (131,966) ​ ​ 4.54 ​ ​ ​ ​ ​ Expired/cancelled (1,732,525) ​ 17.40 ​ ​ ​ ​ ​ Outstanding at September 30, 2019 3,775,342 ​ $ 17.57 ​ 7.6 ​ $ 26 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 30, 2019 1,670,724 ​ $ 21.25 ​ 7.1 ​ $ 0 ​ The Company recorded share-based compensation expense associated with stock options of $946 and $2,073 for the three months ended September 30, 2019 and 2018, respectively and $3,588 and $6,225 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, the total compensation cost related to nonvested options not yet recognized was $7,985 which will be recognized over a weighted average period of 1.8 years, assuming all employees complete their respective service periods for vesting of the options. ​ The Company granted annual awards of 366,330 options under its 2014 Omnibus Incentive Plan (the “2014 Plan”) and an inducement award of 87,478 options to purchase common stock to key employees during the nine months ended September 30, 2019, which options become exercisable in installments of 33.3 percent, per year, beginning on the first anniversary of the grant date. These options have a maximum term of ten years. ​ Options to purchase 453,808 shares of common stock were granted during the nine months ended September 30, 2019 and have a weighted average grant date fair value of $2.53 per option. The grant date fair values of these stock option awards were estimated using the Black Scholes-Merton option pricing model using the assumptions set forth in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise price ​ ​ $4.81 - $5.94 ​ ​ ​ ​ ​ Expected volatility ​ 49.12% - 49.47% ​ ​ ​ ​ ​ Expected dividend yield ​ 0% ​ ​ ​ ​ ​ Risk-free rate for expected term ​ ​ 1.95% - 2.38% ​ ​ ​ ​ ​ Expected life (in years) ​ ​ 6.00 ​ ​ ​ ​ ​ ​ Estimating grant date fair values for employee stock options requires management to make assumptions regarding expected volatility of the value of those underlying shares, the risk-free rate over the expected life of the stock options and the date on which share-based payments will be settled. Expected volatility is based on a weighted average of the Company’s historic volatility and an implied volatility for a group of industry-relevant healthcare companies as of the measurement date. Risk-free rate is determined based upon U.S. Treasury rates over the estimated expected option lives. Expected dividend yield is zero as the Company does not anticipate that any dividends will be declared during the expected term of the options. The expected term of options granted is calculated using the simplified method (the midpoint between the end of the vesting period and the end of the maximum term). Forfeitures are accounted for when they occur. ​ Restricted Stock Units (“RSU” or “RSUs”) ​ A summary of the Company’s RSU activity as of and for the nine months ended September 30, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ Number ​ Grant Date ​ of RSUs Fair Value Nonvested at January 1,2019 1,869,029 ​ $ 21.67 Granted 5,908,924 ​ 5.30 Vested and issued ​ (349,849) ​ ​ 20.17 Cancelled /expired (1,124,650) ​ 19.13 Nonvested at September 30, 2019 6,303,454 ​ $ 6.78 ​ Performance Based RSUs (shares reflected at maximum earn-out potential) ​ The Company granted an award of 1,498,500 performance-based RSUs as a sign-on inducement award to an executive during the second quarter of 2018. The award will be earned or forfeited based upon the Company’s performance relative to specified cumulative Adjusted EBITDA and revenue goals for the years ending December 31, 2018 and 2019 and the executive’s completion of the service condition. In January 2019, the performance goals were measurable and determinable, therefore, a grant date for accounting purposes was established. During the second quarter of 2019, these performance-based RSUs were modified by (1) adjusting the performance goals so that earning or forfeiture will be based upon the Company’s actual 2018 performance and projected 2019 performance, and (2) including a new performance goal that provides for full vesting at the maximum amount in the event the Company’s stock price increases by a specified percentage over a specified period of time during the 2019 fiscal year as a result of corporate actions taken during the 2019 performance year. The Company accounted for this modification pursuant to ASC Topic 718, “Compensation – Stock Compensation”, as a Type III (Improbable to Probable) modification and changed its estimate of the number of shares that will be earned from 0 percent to 30 percent. ​ During the second quarter of 2019, the Company granted annual awards of 1,835,000 performance-based RSUs under the 2014 Plan and 172,838 performance-based RSUs as an inducement award to key employees. These awards will be earned or forfeited based upon the Company’s performance relative to specified cumulative Adjusted EBITDA and revenue goals, as applicable, for the years ending December 31, 2019 and/or 2020, as applicable, and the completion of the service condition. The Company is currently accounting for these performance-based RSUs under the current estimate that 28.7 percent of the award shares will be earned. The Company recorded share-based compensation expense associated with performance-based RSUs of $1,080 and $1,034 for the three months ended September 30, 2019 and 2018, respectively, and $2,154 and $1,886 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, the total compensation expense related to nonvested performance-based RSUs not yet recognized, assuming 29.8 percent of the shares will be earned, was $2,947, which will be recognized over a weighted average remaining term of 1.2 years, assuming all employees also complete their respective service periods for vesting of the RSUs. ​ Service Based RSUs ​ The Company granted 2,159,377 service-based RSUs under its 2014 Plan and 243,209 service-based RSUs as inducement awards to key employees during the nine months ended September 30, 2019. The value of an RSU is determined by the market value of the Company’s common stock at the date of grant. This value is recorded as compensation expense on a straight-line basis over the vesting period, which ranges from one year to three years from grant date. ​ The Company recorded share-based compensation expense associated with service-based RSUs of $2,460 and $2,404 for the three months ended September 30, 2019 and 2018, respectively, and $6,258 and $7,245 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, the total compensation cost related to nonvested RSUs not yet recognized was $20,762, which will be recognized over a weighted average remaining term of 2.1 years, assuming all employees complete their respective service periods for vesting of the service-based RSUs. ​ Restricted Stock Awards (“RSA” or RSAs”) ​ A summary of the Company’s RSA activity as of and for the nine months ended September 30, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted ​ ​ of Shares ​ Average ​ ​ Subject to ​ Grant Date ​ Restriction Fair Value Nonvested at January 1, 2019 43,355 ​ $ 20.91 Granted ​ 186,969 ​ ​ 4.51 Vested (20,829) ​ 22.20 Forfeited (5,929) ​ 21.63 Nonvested at September 30, 2019 ​ 203,566 ​ ​ 5.69 ​ Under the 2014 Plan, the Company issued 186,969 RSAs to non-employee directors. The value of a RSA is determined by the market value of the Company’s common stock at the date of grant. The value of a RSA is recorded as share-based compensation expense on a straight-line basis over the vesting period, which is typically one year. ​ The Company recorded share-based compensation expense associated with RSAs of $291 and $138 for the three months ended September 30, 2019 and 2018, respectively, and $632 and $415 for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, the total compensation cost related to nonvested RSAs not yet recognized was $568 which will be recognized over a weighted average remaining term of 0.7 years, assuming the non-employee directors complete their service period for vesting of the RSAs.

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2019
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE	11. LOSS PER COMMON SHARE ​ Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon exercise of outstanding service-based stock options; exercise of outstanding performance-based stock options for which all performance conditions were satisfied; and satisfaction of all contingent consideration performance conditions; and RSAs and RSUs, if such inclusions would be dilutive. The potentially dilutive common shares are determined for inclusion in diluted income per common share using the treasury stock method. For periods of net loss, basic and diluted per common share information are the same. ​ The following table sets forth the computation of basic and diluted loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2019 2018 2019 2018 ​ Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income ​ $ (177,280) ​ $ 169 ​ $ (351,043) ​ $ (4,244) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding, basic ​ ​ 75,509,088 ​ ​ 74,386,386 ​ ​ 74,904,776 ​ ​ 74,181,869 ​ Weighted average dilutive effect of stock options, RSAs and RSUs ​ ​ — ​ ​ 355,125 ​ ​ — ​ ​ — ​ Weighted average common shares outstanding, diluted ​ ​ 75,509,088 ​ ​ 74,741,511 ​ ​ 74,904,776 ​ ​ 74,181,869 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) income per common share, basic and diluted ​ $ (2.35) ​ $ 0.00 ​ $ (4.69) ​ $ (0.06) ​ ​ The Company had a net loss for the three months ended September 30, 2019 and nine months ended September 30, 2019 and 2018. As a result, basic and diluted loss per common share were the same as any potentially dilutive securities would be anti-dilutive. In the absence of a net loss, the weighted average dilutive effect of stock options, RSUs and RSAs would have been 235,830 for the three months ended September 30, 2019 and 399,746 and 383,742 for the nine months ended September 30, 2019 and 2018, respectively. ​ The weighted average effect of certain common stock equivalents including stock options, RSUs and RSAs were excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive, are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2019 2018 2019 2018 Service-based and earned performance-based stock options 3,634,546 3,907,277 3,556,237 3,983,767 Unearned performance-based stock options 574,138 574,138 574,138 ​ 574,138 Weighted average service-based RSUs 663,653 285,386 804,761 ​ 367,970 Weighted average performance based RSUs — 2,267,384 — ​ 1,015,331 Weighted average RSAs — 21,924 17,726 9,717 Total 4,872,337 7,056,109 4,952,862 5,950,923 ​

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2019
INCOME TAXES
INCOME TAXES	12. INCOME TAXES ​ The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2019 2018 ​ 2019 2018 ​ Income tax benefit (expense) at U.S. statutory rate $ 37,656 ​ $ (10) ​ $ 73,925 ​ $ 734 ​ Tax effect from: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ​ (29,438) ​ — ​ (61,861) ​ — ​ Share-based compensation ​ ​ (906) ​ ​ (86) ​ ​ (2,298) ​ ​ 456 ​ State income taxes, net of federal benefit ​ ​ (206) ​ ​ 8 ​ ​ (754) ​ ​ (755) ​ State income taxes, valuation allowance ​ ​ 1,575 ​ ​ — ​ ​ 1,637 ​ ​ — ​ Non-deductible employee compensation in excess of $1,000 ​ ​ (12) ​ ​ 183 ​ ​ (173) ​ ​ (975) ​ Non-deductible goodwill impairment ​ ​ (6,568) ​ ​ — ​ ​ (9,214) ​ ​ — ​ Other ​ ​ (14) ​ ​ 26 ​ ​ (228) ​ ​ (210) ​ Income tax benefit (expense) ​ $ 2,087 ​ $ 121 ​ $ 1,034 ​ $ (750) ​ ​ In determining the requirement for a valuation allowance against its deferred tax assets, the Company considers its historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset, along with other available positive and negative evidence. Due primarily to the parent company, along with several of its subsidiaries, being in a three-year cumulative loss from continuing operations position at September 30, 2019, the Company has determined it more likely than not its consolidated deferred tax asset and a substantial portion of separate entities’ deferred tax assets established for state loss carryforwards, will not be realized as a benefit in the future. Accordingly, the Company has increased its valuation allowance against these net deferred tax assets by $60,224 at September 30, 2019.

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION	9 Months Ended
	Sep. 30, 2019
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION	13. RELATED PARTY TRANSACTION ​ In December 2018, the Company signed a definitive agreement with ReactiveCore, Inc. (“ReactiveCore”) pursuant to which ReactiveCore provides information technology services to the Company over a period of three years, which commenced on January 1, 2019. Kenneth Klepper, a director of the Company’s Board of Directors (the “Board”), is the co-founder, chairman and chief executive officer of ReactiveCore. Prior to the signing of this agreement, the Board reviewed and approved this transaction in accordance with the Company’s related persons transaction policy. ​ The Company will pay base fees to ReactiveCore of approximately $2,400 over the term of the agreement and will pay additional fees for the provision of additional services. In the first quarter of 2019, the Company incurred a three-year licensing fee of $1,946 for the term of the agreement. Implementation fees of $819 were incurred for the three and nine months ended September 30, 2019. All amounts incurred in connection with this agreement have been recorded in capitalized software for internal use, net in the condensed consolidated balance sheet at September 30, 2019. ​ ​

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
LEASES
LEASES	14. LEASES ​ The Company leases many of its pharmacy locations, office facilities, distribution centers, and certain office equipment through noncancelable operating lease contracts. Such noncancelable operating lease contracts convey the right to control such property for a period of time in exchange for consideration. The operating leases have initial terms ranging from three to twelve years and generally have options to extend for one or two five-year periods. Additionally, most frequently, the lease contracts include a provision for early termination after a specified time period along with payment of a termination fee. Beginning in 2019, the lease term, for accounting purposes, will include renewal option periods when it is reasonably certain that the option to extend the lease will be exercised based on the facts and circumstances at lease commencement. The lease agreements, most often, provide for rental payments that increase over the lease term based on a fixed percentage or specified amount. Additionally, the Company, in most cases, is required to pay real estate taxes, insurance costs and other occupancy costs such as common area maintenance that vary over the lease term. ​ Rent expense was $2,265 and $6,291 for the three and nine months ended September 30, 2018. The components of lease expense in the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2019, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2019 ​ 2019 Operating lease cost $ 1,775 $ 5,082 Variable lease cost ​ ​ 218 ​ 1,409 Short-term lease cost ​ ​ 107 ​ 348 Total $ 2,100 ​ $ 6,839 ​ Maturities of lease liabilities for each of the next five years and thereafter, including reconciliation to the lease liabilities, were as follows: ​ ​ ​ ​ ​ 2019 (excluding the nine months ended September 30, 2019) $ 1,663 2020 ​ ​ 6,218 2021 ​ ​ 5,387 2022 ​ 4,612 2023 ​ 3,499 Thereafter ​ 14,933 Total future lease payments ​ 36,312 Less: imputed interest costs (a) ​ (8,208) Lease liabilities $ 28,104 (a) Computed using the estimated incremental borrowing rate for each lease ​ Other information related to the Company's leases as of and for the nine months ended September 30, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ Operating cash flows for operating leases ​ $ 3,552 Weighted average remaining lease term (in years) ​ 7.34 ​ Weighted average discount rate ​ 6.76 % ​

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
CONTINGENCIES
CONTINGENCIES	​ 15. CONTINGENCIES ​ On November 10, 2016, a putative class action complaint was filed in the U.S. District Court for the Eastern District of Michigan against Diplomat Pharmacy, Inc. and certain former officers of the Company. Following the appointment of lead plaintiffs and lead counsel, an amended complaint was filed on April 11, 2017. The amended complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with public filings made between February 29, 2016 and November 3, 2016 (the “potential class period”). The plaintiffs sought to represent a class of shareholders who purchased stock in the potential class period. The complaint seeks unspecified monetary damages and other relief. The Company filed a motion to dismiss the amended complaint on May 26, 2017. The court issued orders denying the Company’s motion to dismiss on January 19, 2018 and the Company’s motion for reconsideration of its motion to dismiss on August 9, 2018. The parties reached an agreement-in-principle on April 22, 2019 to resolve the litigation for a payment of $14,100 which was fully covered by the Company’s insurance policies. The court approved the settlement on August 20, 2019. The settlement, as a result of coverage provided, did not have a material impact on the Company’s results of operations, financial condition or cash flows. The settlement was subsequently paid during the quarter ended September 30, 2019. ​ On February 24, 2019 and March 6, 2019, in the U.S. District Court for the Central District of California and on March 12, 2019 in the U.S. District Court for the Northern District of Illinois, putative class action complaints were filed against Diplomat Pharmacy, Inc. and certain current and former officers of the Company. The complaints alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with public filings made between February 26, 2018 and February 21, 2019 (the “potential class period”). The plaintiffs each sought to represent a class of shareholders who purchased stock in the potential class period. The complaints sought unspecified monetary damages and other relief. The cases were subsequently transferred and consolidated into a single proceeding in the Northern District of Illinois. The court appointed a lead plaintiff and lead counsel on July 19, 2019, and the lead plaintiff has sought leave until December 6, 2019 to file an amended complaint. The Company believes the complaints and allegations to be without merit and intends to vigorously defend itself against the action. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on its results of operations, financial condition or cash flows. ​ The Company’s business of providing specialized pharmacy services and other related services may subject it to litigation and liability for damages in the ordinary course of business. Nevertheless, the Company believes there are no other legal proceedings, the outcome of which, if determined adversely to the Company, would individually or in the aggregate be reasonably expected to have a material adverse effect on its business, financial position, cash flows, or results of operations.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2019
SEGMENT REPORTING
SEGMENT REPORTING	16. SEGMENT REPORTING ​ The Company reports in two reportable segments: Specialty and PBM. The Specialty segment offers a broad range of innovative solutions to address the dispensing, delivery, dosing and reimbursement of clinically intensive, high-cost specialty drugs and a wide range of applications and the PBM segment provides services designed to help the Company’s customers reduce the cost and manage the complexity of their prescription drug programs. The chief operating decision maker evaluates segment performance principally upon net sales and gross profit. Net sales, cost of sales and gross profit information by segment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ Net Sales ​ Cost of Sales ​ Gross Profit ​ 2019 2018 2019 2018 2019 2018 Specialty ​ $ 1,243,448 ​ $ 1,212,298 ​ $ (1,178,918) ​ $ (1,145,288) ​ $ 64,530 ​ $ 67,010 PBM ​ 82,500 ​ 169,933 ​ (83,645) ​ (143,585) ​ (1,145) ​ 26,348 Inter-segment eliminations ​ ​ (24,751) ​ ​ (8,897) ​ ​ 24,751 ​ ​ 8,897 ​ ​ — ​ ​ — ​ ​ $ 1,301,197 ​ $ 1,373,334 ​ $ (1,237,812) ​ $ (1,279,976) ​ $ 63,385 ​ $ 93,358 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ Net Sales ​ Cost of Sales ​ Gross Profit ​ 2019 2018 2019 2018 2019 2018 Specialty ​ $ 3,627,582 ​ $ 3,599,023 ​ $ (3,432,506) ​ $ (3,386,653) ​ $ 195,076 ​ $ 212,370 PBM ​ 270,730 ​ 550,148 ​ (250,474) ​ (480,365) ​ 20,256 ​ 69,783 Inter-segment eliminations ​ ​ (52,683) ​ ​ (17,275) ​ ​ 52,683 ​ ​ 17,275 ​ ​ — ​ ​ — ​ ​ $ 3,845,629 ​ $ 4,131,896 ​ $ (3,630,297) ​ $ (3,849,743) ​ $ 215,332 ​ $ 282,153 ​ Total assets by segment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2019 ​ 2018 Specialty ​ $ 968,956 ​ $ 1,045,174 PBM ​ 193,647 ​ 431,185 ​ ​ $ 1,162,603 ​ $ 1,476,359 ​

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation ​ The condensed consolidated financial statements include the accounts of Diplomat Pharmacy, Inc., and its wholly owned subsidiaries. ​ All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates ​ The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates.
Receivables, net	Receivables, net ​ Receivables, net consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ Trade receivables, net of allowances of $(31,344) and $(25,342), respectively ​ $ 329,141 ​ $ 299,407 ​ Rebate receivables ​ 6,450 ​ 22,375 ​ Other receivables ​ 2,730 ​ 4,820 ​ ​ ​ $ 338,321 ​ $ 326,602 ​ ​ Trade receivables are stated at the invoiced amount. Trade receivables primarily include amounts due from clients, third-party pharmacy benefit managers and insurance providers and are based on contracted prices. Trade receivables are unsecured and require no collateral. Trade receivable terms vary by payor, but generally are due within 30 days after the sale of the product or performance of the service. ​ Rebate receivables are amounts due from pharmaceutical manufacturers related to drug purchases by participants of the various pharmacy benefit plans that the Company manages, a portion of which, depending on contract terms, are paid back to the Company’s customers. The Company estimates these rebates at period-end based on its contractual arrangements with its manufacturers and such rebates are recorded as a reduction of cost of sales.
Inventories	Inventories ​ Inventories consist of prescription and over-the-counter medications and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Prescription medications are returnable to the Company’s vendors and fully refundable before nine months of expiration, and any remaining expired medication is relieved from inventory on a quarterly basis.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of receivables, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ Trade receivables, net of allowances of $(31,344) and $(25,342), respectively ​ $ 329,141 ​ $ 299,407 ​ Rebate receivables ​ 6,450 ​ 22,375 ​ Other receivables ​ 2,730 ​ 4,820 ​ ​ ​ $ 338,321 ​ $ 326,602 ​

ACQUISITION OF INTOUCH PHARMA_2

ACQUISITION OF INTOUCH PHARMACY LLC (Tables)	9 Months Ended
	Sep. 30, 2019
ACQUISITION OF INTOUCH PHARMACY LLC
Schedule of consideration transferred to acquire InTouch	​ ​ ​ ​ ​ Cash ​ $ 7,491 Restricted common stock (836,431 shares) ​ ​ 3,899 Contingent consideration at fair value ​ ​ 7,102 ​ ​ $ 18,492
Schedule of estimated fair values of the assets acquired and liabilities assumed	​ ​ ​ ​ ​ Cash ​ $ 443 Receivables ​ ​ 6,939 Inventories ​ ​ 496 Other current assets ​ ​ 40 Definite-lived intangibles assets ​ ​ 6,660 Other noncurrent assets ​ ​ 24 Accounts payable ​ ​ (2,567) Accrued expenses - compensation and benefits ​ ​ (625) Total identifiable net assets ​ ​ 11,410 Goodwill ​ ​ 7,082 ​ ​ $ 18,492
Schedule of estimated fair value of the definite-lived intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ Useful ​ ​ ​ ​ Life Amount Patient relationships 8 years ​ $ 4,400 Non-compete employment agreements 5 years ​ 260 Trade names and trademarks 5 years ​ 2,000 ​ ​ ​ ​ $ 6,660

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
FAIR VALUE MEASUREMENTS
Schedule of liabilities measured and disclosed at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset / ​ ​ Valuation ​ ​ Valuation ​ ​ ​ (Liability) Level 2 Level 3 Technique September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration $ (10,471) $ — ​ $ (10,471) C Interest rate swaps (Note 8) ​ ​ (10,084) ​ ​ (10,084) ​ ​ — A ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration $ (6,895) $ — ​ $ (6,895) C Interest rate swaps (Note 8) ​ ​ (4,292) ​ ​ (4,292) ​ ​ — A ​
Schedule of change in contingent consideration Level 3 measurements	​ ​ ​ ​ ​ ​ ​ Contingent ​ Consideration Balance at January 1, 2019 ​ $ (6,895) InTouch Acquisition ​ ​ (7,102) Change in fair value ​ ​ (49) Payments ​ 3,575 Balance at September 30, 2019 ​ $ (10,471) ​

GOODWILL AND DEFINITE-LIVED I_2

GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2019
GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS
Schedule of changes in goodwill by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Specialty PBM (a) Total Balance at January 1, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill ​ $ 386,436 ​ $ 448,122 $ 834,558 Accumulated impairment losses ​ ​ (45,776) ​ ​ (179,190) ​ ​ (224,966) ​ 340,660 ​ ​ 268,932 ​ 609,592 Goodwill acquired with InTouch acquisition ​ ​ 7,082 ​ ​ — ​ ​ 7,082 Impairment losses (second quarter) ​ ​ (68,218) ​ ​ (54,673) ​ ​ (122,891) Impairment losses (third quarter) — ​ ​ (122,076) ​ (122,076) Other ​ ​ — ​ ​ (138) ​ ​ (138) Balance at September 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill ​ ​ 393,518 ​ ​ 447,984 ​ ​ 841,502 Accumulated impairment losses ​ ​ (113,994) ​ ​ (355,939) ​ ​ (469,933) ​ ​ $ 279,524 ​ $ 92,045 $ 371,569 ​ (a) The goodwill in the PBM segment was recorded as a result of two separately acquired entities (i) Pharmaceutical Technologies, Inc. d/b/a National Pharmaceutical Services, acquired in November 27, 2017, and (ii) LDI Holding Company, LLC, acquired December 20, 2017.
Schedule of definite-lived intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Gross ​ ​ ​ Net ​ Amortization Carrying Accumulated Carrying ​ Period Remaining Amount Amortization Amount Customer relationships ​ 9.3 ​ $ 52,000 ​ $ — $ 52,000 Patient relationships ​ 5.3 ​ ​ 174,500 ​ ​ (81,535) ​ ​ 92,965 Trade names and trademarks 2.7 29,620 ​ ​ (25,171) ​ 4,449 Non-compete employment agreements 1.3 51,659 ​ ​ (45,275) ​ 6,384 Total definite-lived intangible assets ​ ​ ​ $ 307,779 ​ $ (151,981) $ 155,798 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2018 ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Gross ​ ​ ​ Net ​ ​ Amortization Carrying Accumulated Carrying ​ Period Remaining Amount Amortization Amount Customer relationships ​ 9.8 ​ $ 100,200 ​ $ (1,238) $ 98,962 Patient relationships ​ 5.9 ​ ​ 170,100 ​ ​ (67,964) ​ ​ 102,136 Trade names and trademarks ​ 1.8 ​ 30,650 ​ ​ (20,270) ​ 10,380 Non-compete employment agreements ​ 1.6 ​ 61,389 ​ ​ (44,100) ​ 17,289 Physician relationships ​ 4.8 ​ ​ 21,700 ​ ​ (9,657) ​ ​ 12,043 Total definite-lived intangible assets ​ ​ ​ $ 384,039 ​ $ (143,229) $ 240,810

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2019
DEBT
Schedule of outstanding debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ Short-term debt, borrowings on revolving line of credit ​ $ 105,000 ​ $ 176,300 ​ Term loan notes: ​ ​ ​ ​ ​ ​ Term Loan A ​ $ 136,875 ​ $ 142,500 ​ Term Loan B ​ 319,000 ​ 322,000 ​ Total ​ 455,875 ​ 464,500 ​ Unamortized debt issuance costs ​ (12,551) ​ (14,631) ​ Total term loan notes ​ ​ 443,324 ​ ​ 449,869 ​ Less: current portion ​ ​ 443,324 ​ ​ 11,500 ​ Long-term debt, less current portion ​ $ — ​ $ 438,369 ​

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2019
REVENUE
Schedule of disaggregation of net sales by therapeutic categories for the Specialty segment and by product and service distribution channels for the PBM segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2019 2018 2019 2018 ​ Specialty Segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oncology ​ $ 718,859 ​ $ 701,206 ​ $ 2,123,574 ​ $ 2,094,394 ​ Specialty infusion ​ 209,767 ​ 178,890 ​ 580,254 ​ 525,857 ​ Immunology ​ 135,740 ​ 135,397 ​ 412,268 ​ 413,948 ​ Other ​ 179,082 ​ 196,805 ​ 511,486 ​ 564,824 ​ Total Specialty segment ​ ​ 1,243,448 ​ ​ 1,212,298 ​ ​ 3,627,582 ​ ​ 3,599,023 ​ PBM Segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail networks ​ ​ 48,604 ​ ​ 126,082 ​ ​ 173,800 ​ ​ 417,370 ​ Specialty pharmacy ​ ​ 23,156 ​ ​ 22,470 ​ ​ 57,323 ​ ​ 67,784 ​ Mail order ​ ​ 7,976 ​ ​ 16,019 ​ ​ 30,758 ​ ​ 50,029 ​ Other ​ ​ 2,764 ​ ​ 5,362 ​ ​ 8,849 ​ ​ 14,965 ​ Total PBM segment ​ ​ 82,500 ​ ​ 169,933 ​ ​ 270,730 ​ ​ 550,148 ​ Inter-segment eliminations ​ ​ (24,751) ​ ​ (8,897) ​ ​ (52,683) ​ ​ (17,275) ​ Total net sales ​ $ 1,301,197 ​ $ 1,373,334 ​ $ 3,845,629 ​ $ 4,131,896 ​

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2019
SHARE-BASED COMPENSATION
Summary of entity's stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ Number ​ Exercise ​ Contractual ​ Intrinsic ​ of Options Price Life Value ​ ​ ​ ​ ​ ​ ​ (Years) ​ ​ ​ Outstanding at January 1, 2019 ​ 5,186,025 ​ $ 18.42 ​ 8.0 ​ $ 2,910 Granted 453,808 ​ 5.19 ​ ​ ​ ​ ​ Exercised ​ (131,966) ​ ​ 4.54 ​ ​ ​ ​ ​ Expired/cancelled (1,732,525) ​ 17.40 ​ ​ ​ ​ ​ Outstanding at September 30, 2019 3,775,342 ​ $ 17.57 ​ 7.6 ​ $ 26 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 30, 2019 1,670,724 ​ $ 21.25 ​ 7.1 ​ $ 0 ​
Schedule of assumptions used to determine the valuation of granted options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise price ​ ​ $4.81 - $5.94 ​ ​ ​ ​ ​ Expected volatility ​ 49.12% - 49.47% ​ ​ ​ ​ ​ Expected dividend yield ​ 0% ​ ​ ​ ​ ​ Risk-free rate for expected term ​ ​ 1.95% - 2.38% ​ ​ ​ ​ ​ Expected life (in years) ​ ​ 6.00 ​ ​ ​ ​ ​
Summary of restricted stock units activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ Number ​ Grant Date ​ of RSUs Fair Value Nonvested at January 1,2019 1,869,029 ​ $ 21.67 Granted 5,908,924 ​ 5.30 Vested and issued ​ (349,849) ​ ​ 20.17 Cancelled /expired (1,124,650) ​ 19.13 Nonvested at September 30, 2019 6,303,454 ​ $ 6.78
Summary of restricted stock awards activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted ​ ​ of Shares ​ Average ​ ​ Subject to ​ Grant Date ​ Restriction Fair Value Nonvested at January 1, 2019 43,355 ​ $ 20.91 Granted ​ 186,969 ​ ​ 4.51 Vested (20,829) ​ 22.20 Forfeited (5,929) ​ 21.63 Nonvested at September 30, 2019 ​ 203,566 ​ ​ 5.69

LOSS PER COMMON SHARE (Tables)

LOSS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
LOSS PER COMMON SHARE
Schedule of the calculation for basic and diluted income per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2019 2018 2019 2018 ​ Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income ​ $ (177,280) ​ $ 169 ​ $ (351,043) ​ $ (4,244) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding, basic ​ ​ 75,509,088 ​ ​ 74,386,386 ​ ​ 74,904,776 ​ ​ 74,181,869 ​ Weighted average dilutive effect of stock options, RSAs and RSUs ​ ​ — ​ ​ 355,125 ​ ​ — ​ ​ — ​ Weighted average common shares outstanding, diluted ​ ​ 75,509,088 ​ ​ 74,741,511 ​ ​ 74,904,776 ​ ​ 74,181,869 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) income per common share, basic and diluted ​ $ (2.35) ​ $ 0.00 ​ $ (4.69) ​ $ (0.06) ​
Schedule of weighted average effect of shares were excluded from the computation of weighted average diluted shares outstanding	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2019 2018 2019 2018 Service-based and earned performance-based stock options 3,634,546 3,907,277 3,556,237 3,983,767 Unearned performance-based stock options 574,138 574,138 574,138 ​ 574,138 Weighted average service-based RSUs 663,653 285,386 804,761 ​ 367,970 Weighted average performance based RSUs — 2,267,384 — ​ 1,015,331 Weighted average RSAs — 21,924 17,726 9,717 Total 4,872,337 7,056,109 4,952,862 5,950,923

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2019
INCOME TAXES
Schedule of reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax benefit (expense)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2019 2018 ​ 2019 2018 ​ Income tax benefit (expense) at U.S. statutory rate $ 37,656 ​ $ (10) ​ $ 73,925 ​ $ 734 ​ Tax effect from: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ​ (29,438) ​ — ​ (61,861) ​ — ​ Share-based compensation ​ ​ (906) ​ ​ (86) ​ ​ (2,298) ​ ​ 456 ​ State income taxes, net of federal benefit ​ ​ (206) ​ ​ 8 ​ ​ (754) ​ ​ (755) ​ State income taxes, valuation allowance ​ ​ 1,575 ​ ​ — ​ ​ 1,637 ​ ​ — ​ Non-deductible employee compensation in excess of $1,000 ​ ​ (12) ​ ​ 183 ​ ​ (173) ​ ​ (975) ​ Non-deductible goodwill impairment ​ ​ (6,568) ​ ​ — ​ ​ (9,214) ​ ​ — ​ Other ​ ​ (14) ​ ​ 26 ​ ​ (228) ​ ​ (210) ​ Income tax benefit (expense) ​ $ 2,087 ​ $ 121 ​ $ 1,034 ​ $ (750) ​

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
LEASES
Operating lease expense information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2019 ​ 2019 Operating lease cost $ 1,775 $ 5,082 Variable lease cost ​ ​ 218 ​ 1,409 Short-term lease cost ​ ​ 107 ​ 348 Total $ 2,100 ​ $ 6,839
Maturity of lease liabilities	​ ​ ​ ​ ​ 2019 (excluding the nine months ended September 30, 2019) $ 1,663 2020 ​ ​ 6,218 2021 ​ ​ 5,387 2022 ​ 4,612 2023 ​ 3,499 Thereafter ​ 14,933 Total future lease payments ​ 36,312 Less: imputed interest costs (a) ​ (8,208) Lease liabilities $ 28,104 (a) Computed using the estimated incremental borrowing rate for each lease ​
Schedule of Other information	​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ Operating cash flows for operating leases ​ $ 3,552 Weighted average remaining lease term (in years) ​ 7.34 ​ Weighted average discount rate ​ 6.76 %

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2019
SEGMENT REPORTING
Schedule of information by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ Net Sales ​ Cost of Sales ​ Gross Profit ​ 2019 2018 2019 2018 2019 2018 Specialty ​ $ 1,243,448 ​ $ 1,212,298 ​ $ (1,178,918) ​ $ (1,145,288) ​ $ 64,530 ​ $ 67,010 PBM ​ 82,500 ​ 169,933 ​ (83,645) ​ (143,585) ​ (1,145) ​ 26,348 Inter-segment eliminations ​ ​ (24,751) ​ ​ (8,897) ​ ​ 24,751 ​ ​ 8,897 ​ ​ — ​ ​ — ​ ​ $ 1,301,197 ​ $ 1,373,334 ​ $ (1,237,812) ​ $ (1,279,976) ​ $ 63,385 ​ $ 93,358 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ Net Sales ​ Cost of Sales ​ Gross Profit ​ 2019 2018 2019 2018 2019 2018 Specialty ​ $ 3,627,582 ​ $ 3,599,023 ​ $ (3,432,506) ​ $ (3,386,653) ​ $ 195,076 ​ $ 212,370 PBM ​ 270,730 ​ 550,148 ​ (250,474) ​ (480,365) ​ 20,256 ​ 69,783 Inter-segment eliminations ​ ​ (52,683) ​ ​ (17,275) ​ ​ 52,683 ​ ​ 17,275 ​ ​ — ​ ​ — ​ ​ $ 3,845,629 ​ $ 4,131,896 ​ $ (3,630,297) ​ $ (3,849,743) ​ $ 215,332 ​ $ 282,153 ​ Total assets by segment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2019 ​ 2018 Specialty ​ $ 968,956 ​ $ 1,045,174 PBM ​ 193,647 ​ 431,185 ​ ​ $ 1,162,603 ​ $ 1,476,359

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Number of reportable segments | segment	2
Cash and equivalents	$ 8,420	$ 8,214	$ 9,485	$ 84,251
Outstanding under term loans	455,875		$ 464,500
Net cash provided by operating activities	108,045	$ 33,207
Revolving line of credit
Borrowings under line of credit	105,000
Available borrowing capacity	95,000
Term Loan
Outstanding under term loans	$ 456,000

NEW ACCOUNTING STANDARDS - Adop

NEW ACCOUNTING STANDARDS - Adoption of New Accounting Standards (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Sep. 30, 2019
Adoption of New Accounting Standards
Operating lease right-of-use assets		$ 26,863
Net lease liabilities		$ 28,104
Lease, Practical Expedients, Package [true false]		true
Lease, Practical Expedient, Use of Hindsight [true false]		false
ASU 2016-02
Adoption of New Accounting Standards
Operating lease right-of-use assets	$ 28,400
Net lease liabilities	29,300
Cumulative-effect adjustment, after tax	5,652
Net deferred taxes	$ 1,387

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Receivables
Receivables, net	$ 338,321	$ 326,602
Trade receivables terms after sale of product or performance of service	30 days
Inventories
Maximum period before expiration within which Inventory is returnable and fully refundable	9 months
Trade receivables
Receivables
Receivables, net	$ 329,141	299,407
Allowance for trade receivables	(31,344)	(25,342)
Rebate receivables
Receivables
Receivables, net	6,450	22,375
Other receivables
Receivables
Receivables, net	$ 2,730	$ 4,820

ACQUISITION OF INTOUCH PHARMA_3

ACQUISITION OF INTOUCH PHARMACY LLC - Consideration Transferred (Details) - InTouch Pharmacy LLC $ in Thousands	Jul. 22, 2019USD ($)
Business Acquisition [Line Items]
Cash	$ 7,491
Restricted common stock (836,431 shares)	3,899
Contingent consideration at fair value	7,102
Total	$ 18,492

ACQUISITION OF INTOUCH PHARMA_4

ACQUISITION OF INTOUCH PHARMACY LLC - Asset and Liabilities Recognized (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jul. 22, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 371,569		$ 609,592
InTouch Pharmacy LLC
Business Acquisition [Line Items]
Cash		$ 443
Receivables		6,939
Inventories		496
Other current assets		40
Definite-lived intangibles assets		6,660
Other noncurrent assets		24
Accounts payable		(2,567)
Accrued expenses - compensation and benefits		(625)
Total identifiable net assets		11,410
Goodwill		7,082
Net Asset Acquired		$ 18,492

ACQUISITION OF INTOUCH PHARMA_5

ACQUISITION OF INTOUCH PHARMACY LLC - Definite-lived Intangible Assets (Details) - InTouch Pharmacy LLC $ in Thousands	Jul. 22, 2019USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 6,660
Patient relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 4,400
Useful Life	8 years
Non-compete employment agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 260
Useful Life	5 years
Trade names and trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 2,000
Useful Life	5 years

ACQUISITION OF INTOUCH PHARMA_6

ACQUISITION OF INTOUCH PHARMACY LLC - Narrative (Details) - InTouch Pharmacy LLC - USD ($) $ / shares in Units, $ in Thousands	Jul. 22, 2019	Sep. 30, 2019	Sep. 30, 2019
Business Acquisition [Line Items]
Definite-lived intangible assets	$ 6,660
Contingent consideration at fair value	$ 7,102
Restricted common shares issued	836,431
Issue price of common stock (In Dollar per share)	$ 5.18
Percentage of share price accounted for consideration	90.00%
Contingent consideration	$ 7,102
Acquisition Related Cost		$ 174
Accounts receivable	6,939
Gross Accounts Receivable	7,695
Uncollectable Accounts Receivable	756
Contingent consideration
Business Acquisition [Line Items]
Contingent consideration at fair value	7,102		$ 7,102
Maximum
Business Acquisition [Line Items]
Contingent consideration	$ 8,000

FAIR VALUE MEASUREMENTS - Recur

FAIR VALUE MEASUREMENTS - Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Contingent consideration
FAIR VALUE MEASUREMENTS
Asset (Liability)	$ (10,471)	$ (6,895)
Interest rate swaps
FAIR VALUE MEASUREMENTS
Asset (Liability)	(10,084)	(4,292)
Level 2 | Interest rate swaps
FAIR VALUE MEASUREMENTS
Asset (Liability)	(10,084)	(4,292)
Level 3 | Contingent consideration
FAIR VALUE MEASUREMENTS
Asset (Liability)	$ (10,471)	$ (6,895)

FAIR VALUE MEASUREMENTS - Roll

FAIR VALUE MEASUREMENTS - Roll forward of Level 3 Measurements (Details) - USD ($) $ in Thousands	Jul. 22, 2019	Sep. 30, 2019
Contingent consideration
Level 3 measurements
Balance at beginning of the period		$ (6,895)
Change in fair value		(49)
Payments		3,575
Balance at end of the period		(10,471)
InTouch Pharmacy LLC
Level 3 measurements
InTouch Acquisition	$ (7,102)
InTouch Pharmacy LLC | Contingent consideration
Level 3 measurements
InTouch Acquisition	$ (7,102)	$ (7,102)

GOODWILL AND DEFINITE-LIVED I_3

GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS - Goodwill Rollforward by reporting segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Acquired Intangible Assets
Goodwill	$ 841,502		$ 841,502	$ 834,558
Accumulated impairment losses	(469,933)		(469,933)	(224,966)
Balance as of beginning of period			609,592
Impairment losses	(122,076)	$ (122,891)	(244,967)
Other			(138)
Balance as of end of period	371,569		371,569
InTouch Pharmacy LLC
Acquired Intangible Assets
Goodwill acquired during the period			7,082
PBM
Acquired Intangible Assets
Goodwill	447,984		447,984	448,122
Accumulated impairment losses	(355,939)		(355,939)	(179,190)
Balance as of beginning of period			268,932
Impairment losses	(122,076)	(54,673)
Other			(138)
Balance as of end of period	92,045		92,045
Specialty
Acquired Intangible Assets
Goodwill	393,518		393,518	386,436
Accumulated impairment losses	(113,994)		(113,994)	$ (45,776)
Balance as of beginning of period			340,660
Impairment losses		$ (68,218)
Balance as of end of period	$ 279,524		279,524
Specialty | InTouch Pharmacy LLC
Acquired Intangible Assets
Goodwill acquired during the period			$ 7,082

GOODWILL AND DEFINITE-LIVED I_4

GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS (Details) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2019	Sep. 30, 2019USD ($)item
Changes in the carrying amount of goodwill
Number of reporting units | item				3
Goodwill impairments	$ 122,076	$ 122,891		$ 244,967
Impairments of definite-lived intangible assets	34,173	17,979		$ 52,152
DSP
Changes in the carrying amount of goodwill
Goodwill impairments		16,772
Discount rate used in annual reporting unit valuations			10.50%
PBM
Changes in the carrying amount of goodwill
Goodwill impairments	34,173	1,207
Discount rate used in annual reporting unit valuations			11.75%	13.50%
PBM
Changes in the carrying amount of goodwill
Goodwill impairments	$ 122,076	54,673
Specialty
Changes in the carrying amount of goodwill
Goodwill impairments		$ 68,218

GOODWILL AND DEFINITE-LIVED I_5

GOODWILL AND DEFINITE-LIVED INTANGIBLE ASSETS - Definite-lived intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
DEFINITE-LIVED INTANGIBLE ASSETS
Gross Carrying Amount	$ 307,779			$ 307,779		$ 384,039
Accumulated Amortization	(151,981)			(151,981)		(143,229)
Net Carrying Amount	155,798			155,798		$ 240,810
Amortization expense	11,962		$ 17,190	39,520	$ 51,360
Impairment	34,173	$ 17,979		$ 52,152
Customer relationships
DEFINITE-LIVED INTANGIBLE ASSETS
Weighted Average Amortization Period (in years)				9 years 3 months 18 days		9 years 9 months 18 days
Gross Carrying Amount	52,000			$ 52,000		$ 100,200
Accumulated Amortization						(1,238)
Net Carrying Amount	52,000			$ 52,000		$ 98,962
Patient relationships
DEFINITE-LIVED INTANGIBLE ASSETS
Weighted Average Amortization Period (in years)				5 years 3 months 18 days		5 years 10 months 24 days
Gross Carrying Amount	174,500			$ 174,500		$ 170,100
Accumulated Amortization	(81,535)			(81,535)		(67,964)
Net Carrying Amount	92,965			$ 92,965		$ 102,136
Trade names and trademarks
DEFINITE-LIVED INTANGIBLE ASSETS
Weighted Average Amortization Period (in years)				2 years 8 months 12 days		1 year 9 months 18 days
Gross Carrying Amount	29,620			$ 29,620		$ 30,650
Accumulated Amortization	(25,171)			(25,171)		(20,270)
Net Carrying Amount	4,449			$ 4,449		$ 10,380
Non-compete employment agreements
DEFINITE-LIVED INTANGIBLE ASSETS
Weighted Average Amortization Period (in years)				1 year 3 months 18 days		1 year 7 months 6 days
Gross Carrying Amount	51,659			$ 51,659		$ 61,389
Accumulated Amortization	(45,275)			(45,275)		(44,100)
Net Carrying Amount	$ 6,384			$ 6,384		$ 17,289
Physician relationships
DEFINITE-LIVED INTANGIBLE ASSETS
Weighted Average Amortization Period (in years)						4 years 9 months 18 days
Gross Carrying Amount						$ 21,700
Accumulated Amortization						(9,657)
Net Carrying Amount						$ 12,043

DEBT - Outstanding debt (Detail

DEBT - Outstanding debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt
Short-term debt, borrowings on revolving line of credit	$ 105,000	$ 176,300
Long-term debt	455,875	464,500
Unamortized debt issuance costs	(12,551)	(14,631)
Total term loan notes	443,324	449,869
Less: current portion	443,324	11,500
Long-term debt, less current portion		438,369
Term Loan A
Debt
Long-term debt	136,875	142,500
Term Loan B
Debt
Long-term debt	319,000	322,000
Revolving line of credit
Debt
Short-term debt, borrowings on revolving line of credit	$ 105,000	$ 176,300

DEBT - Summary (Details)

DEBT - Summary (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Aug. 06, 2019	Aug. 05, 2019	Dec. 31, 2018
Debt
Unamortized debt issuance costs		$ 12,551		$ 12,551				$ 14,631
Amortization of debt issuance costs				3,101	$ 3,703
Write-off of debt issuance costs				731
Revolving line of credit
Debt
Maximum borrowing capacity		105,000		105,000
Amount of borrowings available under the credit agreement		95,000		95,000
Letters of credit
Debt
Maximum borrowing capacity		10,000		10,000
Swingline loans
Debt
Maximum borrowing capacity		20,000		$ 20,000
JPMorgan Chase Bank N.A. And Capital One National Association | Minimum
Debt
Monthly unused commitment fee (as a percent)				0.30%
JPMorgan Chase Bank N.A. And Capital One National Association | Maximum
Debt
Monthly unused commitment fee (as a percent)				0.40%
JPMorgan Chase Bank N.A. And Capital One National Association | Revolving line of credit
Debt
Amount of borrowing		$ 200,000		$ 200,000		$ 200,000	$ 250,000
Interest rate (as a percent)		4.55%		4.55%				5.19%
Weighted average borrowings		$ 137,521	$ 163,380
Maximum borrowings		196,300	$ 231,200	$ 196,300	231,200
Amount of borrowings available under the credit agreement		95,000		95,000				$ 73,700
JPMorgan Chase Bank N.A. And Capital One National Association | Revolving line of credit | Other noncurrent assets
Debt
Unamortized debt issuance costs		4,964		4,964				$ 4,246
Write-off of debt issuance costs	$ 731
Debt issuance costs	$ 2,346
JPMorgan Chase Bank N.A. And Capital One National Association | Term Loan A
Debt
Amount of borrowing		$ 150,000		$ 150,000
Interest rate (as a percent)		4.55%		4.55%				4.78%
Quarterly principal payments				$ 1,875
JPMorgan Chase Bank N.A. And Capital One National Association | Term Loan B
Debt
Amount of borrowing		$ 400,000		$ 400,000
Interest rate (as a percent)		6.55%		6.55%				7.03%
Quarterly principal payments				$ 1,000
Voluntary prepayment of debt					$ 74,000
JPMorgan Chase Bank N.A. And Capital One National Association | Term Loan B | LIBOR
Debt
Interest rate margin (as a percent)				4.50%
JPMorgan Chase Bank N.A. And Capital One National Association | Term Loan B | Base Rate
Debt
Interest rate margin (as a percent)				3.50%
JPMorgan Chase Bank N.A. And Capital One National Association | Revolving line of credit and Term loan A | LIBOR
Debt
Interest rate margin (as a percent)				2.50%
JPMorgan Chase Bank N.A. And Capital One National Association | Revolving line of credit and Term loan A | Base Rate
Debt
Interest rate margin (as a percent)				1.50%

INTEREST RATE SWAPS (Details)

INTEREST RATE SWAPS (Details) $ in Thousands	3 Months Ended					9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)item
Deferred tax benefit						$ (1,322)	$ (2,034)
Other comprehensive (loss) income, net of tax	$ (307)	$ (3,358)	$ (2,127)	$ 918	$ (962)	(5,792)	$ (44)
Interest rate swaps
Number of interest rate swap agreements | item								2
Notional amount	286,100					286,100		$ 290,600
Derivative liability	$ 10,084					10,084		4,292
Deferred tax benefit						$ (2,582)		$ (1,099)

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended	9 Months Ended
	Aug. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Revenue
Revenue		$ 1,301,197	$ 1,373,334		$ 3,845,629	$ 4,131,896
Manufacturer's rebates earned on total gross profit (in percent)		(5.50%)	22.10%		5.90%	17.20%
Rebate adjustments		$ 9,000
Rebate penalty	$ 9,000			$ 6,000
Accrual for litigation relating to rebate dispute with a terminated customer		3,900			$ 3,900
Inter-segment eliminations
Revenue
Revenue		(24,751)	$ (8,897)		(52,683)	$ (17,275)
Specialty
Revenue
Revenue		1,243,448	1,212,298		3,627,582	3,599,023
PBM
Revenue
Revenue		82,500	169,933		270,730	550,148
Oncology | Specialty
Revenue
Revenue		718,859	701,206		2,123,574	2,094,394
Specialty infusion | Specialty
Revenue
Revenue		209,767	178,890		580,254	525,857
Immunology | Specialty
Revenue
Revenue		135,740	135,397		412,268	413,948
Other | Specialty
Revenue
Revenue		179,082	196,805		511,486	564,824
Retail networks | PBM
Revenue
Revenue		48,604	126,082		173,800	417,370
Specialty pharmacy | PBM
Revenue
Revenue		23,156	22,470		57,323	67,784
Mail order | PBM
Revenue
Revenue		7,976	16,019		30,758	50,029
Other | PBM
Revenue
Revenue		$ 2,764	$ 5,362		$ 8,849	$ 14,965

SHARE-BASED COMPENSATION - Stoc

SHARE-BASED COMPENSATION - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Number of Options
Outstanding at beginning of period (in shares)			5,186,025
Granted (in shares)			453,808
Exercised (in shares)			(131,966)
Expired/cancelled (in shares)			(1,732,525)
Outstanding at end of period (in shares)	3,775,342		3,775,342		5,186,025
Exercisable at end of period (in shares)	1,670,724		1,670,724
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)			$ 18.42
Granted (in dollars per share)			5.19
Exercised (in dollars per share)			4.54
Expired/cancelled (in dollars per share)			17.40
Outstanding at end of period (in dollars per share)	$ 17.57		17.57		$ 18.42
Exercisable at end of period (in dollars per share)	$ 21.25		$ 21.25
Weighted Average Remaining Contractual Life
Outstanding (in years)			7 years 7 months 6 days		8 years
Exercisable (in years)			7 years 1 month 6 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 26		$ 26		$ 2,910
Exercisable at end of period	0		0
Additional disclosures
Allocated Share-based Compensation Expense	946	$ 2,073	3,588	$ 6,225
Total compensation cost related to non-vested options not yet recognized	$ 7,985		$ 7,985
Weighted average period to recognize compensation cost related to non-vested options not yet recognized			1 year 9 months 18 days

SHARE-BASED COMPENSATION - Rest

SHARE-BASED COMPENSATION - Restricted Stock Units and Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock Units
Number of Shares Subject to Restriction
Outstanding at the beginning of the period (in shares)					1,869,029
Granted (in shares)					5,908,924
Vested and issued (in shares)					(349,849)
Cancelled/expired (in shares)					(1,124,650)
Outstanding at the end of the period (in shares)	6,303,454				6,303,454
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)					$ 21.67
Granted (in dollars per share)					5.30
Vested and issued (in dollars per share)					20.17
Forfeited (in dollars per share)					19.13
Outstanding at the end of the period (in dollars per share)	$ 6.78				$ 6.78
Performance-based RSUs
Additional disclosures
Share-based compensation expense	$ 1,080		$ 1,034		$ 2,154	$ 1,886
Percentage of performance-based RSUs granted shares accounted will be earned					28.70%
Total compensation cost not yet recognized	$ 2,947				$ 2,947
Weighted average period to recognize compensation cost related to non-vested options not yet recognized					1 year 2 months 12 days
Performance-based RSUs | Scenario, Plan [Member]
Additional disclosures
Percentage of performance-based RSUs granted shares accounted will be earned					29.80%
Make-whole inducement award, performance-based RSUs | Key employees
Number of Shares Subject to Restriction
Granted (in shares)		172,838
Make-whole inducement award, service-based RSUs | Key employees
Number of Shares Subject to Restriction
Granted (in shares)					243,209
Sign-on inducement award, performance-based RSUs | Executive
Number of Shares Subject to Restriction
Granted (in shares)				1,498,500
Restricted Stock Awards
Number of Shares Subject to Restriction
Outstanding at the beginning of the period (in shares)					43,355
Granted (in shares)					186,969
Vested and issued (in shares)					(20,829)
Cancelled/expired (in shares)					(5,929)
Outstanding at the end of the period (in shares)	203,566				203,566
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)					$ 20.91
Granted (in dollars per share)					4.51
Vested and issued (in dollars per share)					22.20
Forfeited (in dollars per share)					21.63
Outstanding at the end of the period (in dollars per share)	$ 5.69				$ 5.69
Additional disclosures
Vesting period					1 year
Share-based compensation expense	$ 291		138		$ 632	415
Total compensation cost not yet recognized	568				$ 568
Weighted average period to recognize compensation cost related to non-vested options not yet recognized					8 months 12 days
Weighted average service-based RSUs
Additional disclosures
Share-based compensation expense	2,460		$ 2,404		$ 6,258	$ 7,245
Total compensation cost not yet recognized	$ 20,762				$ 20,762
Weighted average period to recognize compensation cost related to non-vested options not yet recognized					2 years 1 month 6 days
Minimum | Restricted Stock Units
Additional disclosures
Vesting period					1 year
Minimum | Performance-based RSUs
Additional disclosures
Percentage of performance-based RSUs granted shares accounted will be earned		0.00%
Maximum | Restricted Stock Units
Additional disclosures
Vesting period					3 years
Maximum | Performance-based RSUs
Additional disclosures
Percentage of performance-based RSUs granted shares accounted will be earned		30.00%
2014 Plan | Performance-based RSUs | Key employees
Number of Shares Subject to Restriction
Granted (in shares)		1,835,000
2014 Plan | Restricted Stock Awards | Non-employee director
Number of Shares Subject to Restriction
Granted (in shares)					186,969
2014 Plan | Weighted average service-based RSUs | Key employees
Number of Shares Subject to Restriction
Granted (in shares)					2,159,377

SHARE-BASED COMPENSATION - Info

SHARE-BASED COMPENSATION - Information and Valuation Assumptions (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Assumptions used to determine the valuation of granted options
Expected dividend yield (as a percent)	0.00%
Expected term (in years)	6 years
Key employees
Share-based compensation
Percentage of options exercisable in installments beginning on the first anniversary of the grant date	33.30%
Maximum term of stock option plan	10 years
2014 Plan | Key employees
Share-based compensation
Granted (in shares) | shares	366,330
Minimum
Assumptions used to determine the valuation of granted options
Exercise price | $ / shares	$ 4.81
Expected volatility (as a percent)	49.12%
Risk-free rate for expected term (as a percent)	1.95%
Maximum
Assumptions used to determine the valuation of granted options
Exercise price | $ / shares	$ 5.94
Expected volatility (as a percent)	49.47%
Risk-free rate for expected term (as a percent)	2.38%
Make-whole inducement award | Key employees
Share-based compensation
Granted (in shares) | shares	87,478
Stock Options
Share-based compensation
Granted (in shares) | shares	453,808
Weighted average grant-date fair value of options granted (in dollars per share) | $ / shares	$ 2.53

LOSS PER COMMON SHARE (Details)

LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net (loss) income	$ (177,280)	$ 169	$ (351,043)	$ (4,244)
Denominator:
Weighted average common shares outstanding, basic (in shares)	75,509,088	74,386,386	74,904,776	74,181,869
Weighted average dilutive effect of stock options, RSAs and RSUs		355,125
Weighted average common shares outstanding, diluted (in shares)	75,509,088	74,741,511	74,904,776	74,181,869
(Loss) income per common share, basic and diluted	$ (2.35)	$ 0	$ (4.69)	$ (0.06)
Scenario, Plan [Member]
Denominator:
Weighted average dilutive effect of stock options, RSAs and RSUs	235,830		399,746	383,742

LOSS PER COMMON SHARE - Shares

LOSS PER COMMON SHARE - Shares excluded from the computation of weighted average diluted shares outstanding (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Anti-dilutive securities excluded
Anti-dilutive securities excluded (in shares)	4,872,337	7,056,109	4,952,862	5,950,923
Service-based and earned performance-based stock options
Anti-dilutive securities excluded
Anti-dilutive securities excluded (in shares)	3,634,546	3,907,277	3,556,237	3,983,767
Unearned performance-based stock options
Anti-dilutive securities excluded
Anti-dilutive securities excluded (in shares)	574,138	574,138	574,138	574,138
Weighted average service-based RSUs
Anti-dilutive securities excluded
Anti-dilutive securities excluded (in shares)	663,653	285,386	804,761	367,970
Weighted average performance based RSUs
Anti-dilutive securities excluded
Anti-dilutive securities excluded (in shares)		2,267,384		1,015,331
Weighted average RSAs
Anti-dilutive securities excluded
Anti-dilutive securities excluded (in shares)		21,924	17,726	9,717

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of income taxes computed at the United States federal statutory tax rate to income tax benefit (expense)
Income tax benefit (expense) at U.S. statutory rate	$ 37,656	$ (10)	$ 73,925	$ 734
Valuation allowance	(29,438)		(61,861)
Share-based compensation	(906)	(86)	(2,298)	456
State income taxes, net of federal benefit	(206)	8	(754)	(755)
State income taxes, valuation allowance	1,575		1,637
Non-deductible employee compensation in excess of $1,000	(12)	183	(173)	(975)
Non-deductible goodwill impairment	(6,568)		(9,214)
Other	(14)	26	(228)	(210)
Income tax benefit (expense)	2,087	$ 121	1,034	$ (750)
Valuation allowance	$ 60,224		$ 60,224

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details) - ReactiveCore - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2018	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Jan. 01, 2019
RELATED PARTY TRANSACTION
Definitive agreement term	3 years
Base fee payable					$ 2,400
License fee			$ 1,946
Service fee		$ 819		$ 819

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating Leases
Rent expense		$ 2,265		$ 6,291
Components of lease expense
Operating lease cost	$ 1,775		$ 5,082
Variable lease cost	218		1,409
Short-term lease cost	107		348
Total	$ 2,100		$ 6,839
Minimum
Operating Leases
Initial term (in years)	3 years		3 years
Renewal term (in years)	5 years		5 years
Maximum
Operating Leases
Initial term (in years)	12 years		12 years
Renewal term (in years)	10 years		10 years

LEASES - Maturity of lease liab

LEASES - Maturity of lease liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Maturities of lease liabilities
2019 (excluding the nine months ended September 30, 2019)	$ 1,663
2020	6,218
2021	5,387
2022	4,612
2023	3,499
Thereafter	14,933
Total future lease payments	36,312
Less: imputed interest costs	(8,208)
Lease liabilities	$ 28,104

LEASES - Other Information (Det

LEASES - Other Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
LEASES
Operating cash flows for operating leases	$ 3,552
Weighted average remaining lease term (in years)	7 years 4 months 2 days
Weighted average discount rate	6.76%

CONTINGENCIES (Details)

CONTINGENCIES (Details) $ in Thousands	Apr. 22, 2019USD ($)
CONTINGENCIES
Payments to resolve the litigation	$ 14,100

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)
Segment reporting information
Number of reportable segments | segment			2
Net sales	$ 1,301,197	$ 1,373,334	$ 3,845,629	$ 4,131,896
Cost of Sales	(1,237,812)	(1,279,976)	(3,630,297)	(3,849,743)
Gross Profit	63,385	93,358	215,332	282,153
Inter-segment eliminations
Segment reporting information
Net sales	(24,751)	(8,897)	(52,683)	(17,275)
Cost of Sales	24,751	8,897	52,683	17,275
Specialty
Segment reporting information
Net sales	1,243,448	1,212,298	3,627,582	3,599,023
Specialty | Operating Segments
Segment reporting information
Net sales	1,243,448	1,212,298	3,627,582	3,599,023
Cost of Sales	(1,178,918)	(1,145,288)	(3,432,506)	(3,386,653)
Gross Profit	64,530	67,010	195,076	212,370
PBM
Segment reporting information
Net sales	82,500	169,933	270,730	550,148
PBM | Operating Segments
Segment reporting information
Net sales	82,500	169,933	270,730	550,148
Cost of Sales	(83,645)	(143,585)	(250,474)	(480,365)
Gross Profit	$ (1,145)	$ 26,348	$ 20,256	$ 69,783

SEGMENT REPORTING - Total Asset

SEGMENT REPORTING - Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Segment reporting information
Total assets	$ 1,162,603	$ 1,476,359
Specialty
Segment reporting information
Total assets	968,956	1,045,174
PBM
Segment reporting information
Total assets	$ 193,647	$ 431,185