OPCH - Earnings call transcript Q2 2022 | Option Care Health, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Option Care Health 2022 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the call over to our speaker today, Mr. Shapiro. Mike ahead. Go

Michael Shapiro

Good morning.

with financial that reflect press statements you the expectations, statements our release risks related our note We discussion include expectations. statements including are please our and update law. actual to will the review industry results by and today's current future could subject forward-looking from Form to specific begin, to XX-K regarding any required We our SEC These uncertainties encourage filed well that the certain and as do in we those any materially market risks Before as conditions. not and that forward-looking forward-looking in cause performance assumptions today's differ duty as and information uncertainties. to except undertake to

call, we condition. financial talking non-GAAP performance financial use company's the will measures about During when and the

website. on the Chief release can Relations portion information morning's You additional Executive find our press that, these non-GAAP this John the Rademacher, Investor over in to With measures I'll posted Officer. on of call turn

John Rademacher

in several care our us alternate second their strong we strategy. number our on fronts reported environment, with to morning. of the Throughout good with execute realize financial and pleased the the the patients are results one very of and made increased progress delivered care plans second we and focused also Overall, extraordinary our have we team quarter, as quarter, we continues Mike, morning, lives. in serve who operating the dynamic everyone. Despite the changes of made Thanks, sites. providing a entrust In our the very quarter this to that our home purpose progress infusion we we of in or

minutes, As that and Mike and will EBITDA strong mid-teens in revenue growth, growth into cash translated few we delivered flow. teens a low outline

strong time, expanding we acquisition infrastructure and able in infusion centers country. difficult in growth of or and With same our growth, future to the opened strong growth country and across of dynamics delivering hospital the Chronic we closed portfolio. We a the quarter SPIN supply continued portfolio track our volume Nursing balanced growth the key early record results shortages support throughout second second products, discharge we solid portfolio respect challenges we basis, for having the markets yet invested therapy, new were Pharmacy growth navigate saw and in single-digit X which across including facilities at continue our and a to in Network vital Specialty at saw our daily of inflationary Despite EBITDA presents margins. quarter. in growth market to the EBITDA and And labor leverage very across our on continue our mid-teens low modest Acute nutrition our trends in the acute care referral on quarter,

partners care pharmacies. highly-connected our market to reliable by executing our portfolio and repositioning we other of the recent therapies. we ensure the we have about and collaboration in value demand market responsive frequency, commercial spoken I've are remain to participants, market reach and resulted care are and and coverage we we across that national well infrastructure to a of focus and some investments to for the efficient XX our disciplined sources acute we approach. management have ensure have broader into make market, The referral well more and help made support to through this network continue we seeing of Given positioned to our acute relative are channel before appropriate the confident are timely center

complex digitally-enabled across the services country. effective, increasingly pharmacy an created administration point-of-care have platform We for and

meet well as products network, are quite are the positioned beyond grow total comprehensive our the care. and portfolio their cost Chronic results that our of better of needs infusion move to reduce help event rounded whole the have members mid-teens in nursing payers Our chronic across the support immediate to therapies and and newer the the as we patient portfolio. continues well established to out balanced With help

As we previously, challenging discussed a continue continued to with operate have in pressures. labor market and cost we backdrop

inflationary to Our vital and ensure The in capacity teams members our members executing team the field drive pressures offsetting skills focus advanced ensure productivity very team provide those on our extraordinary we challenges, where are day to and necessary leveraging cost have well new primarily and technology present the but to helps to to have recruiting the we to possible, single and efficiencies. we right our the operating sectors right every continue care. existing that remain on recruiting therapies provide to staff The through care help patients. focused

of broad We anytime a of transportation, and variety pressures across to continue widespread pressures see those other packaging expect not we and fuel to supplies categories, array cost do a inputs, and medical subside soon. including and

I are more fall, unique, acquisition, at of now And infusion the on the clinical Health to we creating infusion nurses nursing as our skilled leading we earlier, X,XXX platform. as care our of organization welcome internal across services country. thrilled As to to infusion Infusion with well team of established Option to the acquisition have point Infinity than continue qualified to patients exceptional the mentioned Care Enterprise. last nursing a the organization provide broader Combined Nursing a we progress with SPIN make

our be forward. of in teams are we instrumental that those more ever While in we and Infinity early the going integrating SPIN strategy than confident organizations, innings growth are will the

centers through In to in investing we expect and expansion X nationwide. growth second quarter, more opened now infusion are new infusion future than centers for of XX the open our we Finally, XXXX.

investment expect this area our I it and an a the our capacity, be more centers expansion consistent labor provide center while enables Through expenses. reminder, in have with across efficiency growth XXX as collaborate now choice referral us to of increase sources drive ability a As patients, the continued our patient also country, year. to more strategy is current we infusion to investment for vital beyond site our clinical expanding than to

Our on focuses care access improving experience. geographies improving and disciplined patient the to therapies investment across and strategy

investment shadow, continue and our in cast centers infusion over you're to City broader Kansas past base or speak, into we referral Carson a so York geographies It's wider and care, a technology therapies, to rural high-quality years, the City, in City. sources. consistent, several Given New new whether of about providing more

growth delivered was EBITDA strong So us significant growth full care balances raise in making our tighten patient while and productive, to setting. continue on focused second and executing guidance. the our overall, allowing to quarter, post-acute revenue the we the We increased extraordinary into year our make future, quarter on progress we our and strategy providing and very investments solid cash in

our Mike detail. in the the incredible more we Mike? up Before results recognize do. patient the focus to the I hand it I families and into center go to to challenge highlight at turn the placing in a detail, that, call review and of and and And of over bit over results must they across our the Mike meet teams of the focus I'll every collaboration to to more rise their maintain with everything as country that

Michael Shapiro

that QX at margins modestly the despite quarter, articulated. headwinds better Overall, growth bottom very growth a John. EBITDA was leveraged solid revenue line cost the John that with into and double-digit Thanks, translated

expectations. strategic the health of we system due focus our critical care. the John consistent has margin relentless versus terms towards are stronger, continues margin translating gross our margin margin we leverage attribute acute the in well in and Gross allowed we tempered sheet fought as alluded which reporting cash the balance despite our profile, single our represented on our And deliver growth portfolio offset revenue navigate to chronic higher up Acute prior portfolio volumes. challenge. the of despite perform our grew new in our dollars cash this quite which as SG&A digits us on expected, record relative with and the And and EBITDA therapies in mix to higher shift most was and focus XX.X% due bit revenue was the of therapies. declined of portfolio year decline, we and expected relative Despite a gross higher partners, Additionally, as based growth. low been more flow, to the investments prior grew reported to first drove of to Chronic and than Nonetheless, performance never headwind. margin comps. by Revenue as pressures, the volumes gross and with to X% revenue are XX% growth inflationary our on into mixed levels to year Acute to cost our our lows we slower expand mix was to considerably quarter

cost not expect prior and which, focus cost EBITDA savings do and mitigate over to to anytime represented XX% soon. grew as to continue Adjusted $XX.X we million of subside the X.X% While on inflationary year we revenue. John of efficiency mentioned, pressures

pressures, the the of to expand Chronic cost and So and towards we scalability unprecedented margins continue despite platform. demonstrate shift profit mix the

$XXX despite cash paying X.Xx, net cash earlier increased million our and now our declined our approximately Additionally, $XX acquire we leverage our in We fully extraordinary quarter million to quarter in balances has upward year, operating we we discussed anticipate ratio as effective quarter million and journey rate to in this expected, all reversed started as ago. QX, net losses, utilizing in $XX XX.X% end over tax valuation where which X operations is migrated the has At the NOLs. given the by we years reserves SPIN. in on generated have from in flow tax as we of QX, the the to

to no full a $XXX at momentum is higher And the on generate we least we We revenue increasing and expect to are mentioned billion are the based believe on of now position our XXXX outlook to And we year Based exiting generate rate million. second quite $X.XX operations $XXX strong $X.XX quarter, to exposure, now capital accordingly. $XXX of maturities and the strong. our I we earlier, billion in with million. from flow As until modest adjusted going interest structure expect our million earnings, cash EBITDA for of forward.

through to anticipate a for with Q&A. productive we're the with and call halfway continue year the Operator? open year. momentum full overall, will we that, So the pleased And quite

Operator

Gill JPMorgan. Lisa from comes question of first our And Instructions]. [Operator

Lisa Gill

Congratulations quarter. on a great

with to really patterns. Just start want referral

you about So Acute talked versus Chronic.

the what environment about we like really, keeping had areas. important site to I seen networks really in in at continue moving this COVID maybe that of And you're to continue just impact of to any on ebb it's One, you're as today, site as any more you But you point. secondly, they've hate about John, And care, as what what benefit seeing patients this then talk and narrow in think X in COVID patterns? -- the has today? manage just we referral Can curious flow, care, even from to become about So towards in so Care. care change care? interest do seeing talk have site payers Option as see

John Rademacher

Lisa, yes, for and question. the Yes. thanks

patterns, focus or report, was, you direction it as right visiting those other discharges, putting prepared receiving do a the we you making out referral although really that we as seeing they of that choice very lot communities we truly with outlined, kind was forward not it focus on aspects partner a reach is strain, well surgeries shelf national localized. on of teams, that's so patterns. as organization, and models our we've that, a modest in of of in therapies And kind the patient or it little dealing around BA-X as as as certain bit sources look, of admissions We're moving frequency So is growth. and order for to doctors our are staffing in see are around is and elective others as still local got disruption of on of A and in the that. referral that hospital it called an

the we're with going to it's like partner and a our choppy the well infrastructure core And and little market continue a different be well operating we bit side. that strain, made to effectively of investments feel of as positioned that deal positioned the choice. expect XX feel but COVID from market we've variants we so pharmacies by efficiently, we remain into to are that that And

payer provide board. help only your question, of not productive that part or got we care certain kind on prepared we interest in also the make with as and New which the in align closely if around partners done consistently seeing care, infusion want of they're the narrowing, with really investments to remarks, networks A and think strategy quality to their to as care And that receive that well across a lot City, dovetail overall continue site and for they that initiatives City ahead. centers the second that into of we fact want community, making, making feel only balance choice the get in have us with of of And of setting part certain thinking that home efforts forward. we've the high-quality we looking and to across I and continues their well of as that, everything cost this in that member of the moving can of any of are high-quality with the working to or that a as Kansas as we're they the these the dedicated look, are moves York more into about partner the we're those And my on we qualifications of within thoughts support really in network we're but On into care around whether opening in part choice, is side given said that site as back design position to of not of conversations drives question, aligned the community network those really patients payers care in closer and about network of over the of right City, that narrowing Carson country nursing care site consistent, XX our making just strategic the the the that that we've it. the the national to that or initiatives. moves fit effectively. payers that Along year quarter, progress X -- are moving

Operator

from David, is will our come David MacDonald And open. And of Truist. question next your line

David MacDonald

start So I'm in just quick the questions. is per my conversations contracts potential curious, And acceleration that payers Mike, roll the the in escalators, terms talk million first inflationary just acknowledgment out forward to payer question. to about them of couple million environment? that is just with of a community of your when as number? you or Any still right then is $XX just conversations quarter, to renewals, around kind in $XX deceleration of

John Rademacher

that I'll John. some payer the on Yes. out there just community. start mean, there. with it's look, the recognition conversations I Dave, is of are of the pressures

have payer especially community, I of Certainly, dimensions. I And nursing that really rates and labor the that. think and the People diems so the highlighted we're perspective, of X before, negotiating well as we think we're X reimbursement some and look clinical pressures are explained across the for and in the of as of from always legs at publicized. then reimbursement dimensions we've it balance cost an of on across with our it's the been inputs looking drug all per those appropriate know that those our there we stool. are moving nursing. And clearly inflationary I the areas

us So we're move we I that door that of And going organization balanced but renewal cycles we're ahead. there's knowing pressures. got across contracting knocking to at as looking continue think the and an focused we're be some an the understand, inflationary that fully to that way no our as you that all to we're more we certain the as money, on working at telling of very And recognition to that dimensions. good of we're X as us on as look in want way one's it, give make those organization, we've they

Michael Shapiro

we say deviated the million thought to nothing inflationary a And thing say $XX Dave, about cost when estimate. we million a on or, would of the is million inflationary how call pressures, annualized pressures the only the I materially is about think $XX $XX we things $XX days of Again, on this I'd pressures quarter. the has estimated to connected of broad the as one from we million growing and -- slower. and margin to quarter first proud in speak. And drive cushions Part growing gross efficiencies the ago couch, leverage P&L, call. focus it on relentless is just X% dollars we the XX is for on of with our we're searching so to it's coins again, the continue SG&A it, between

So, inflationary But the no unprecedented so in energizing mentioned. cost it's for far, report team. across to expansion as is continuing modest what EBITDA make it's mistake, several categories, still John challenging margin to pressures,

David MacDonald

Okay.

to dig Just a bit little into further. wanted labor

answer leverage ambulatory is top of staff labor continuing And line, these were automating some up pressure And But right the suites? the saw the to this are can jobs opportunity secondly, you able to strength now? replace the quarter? all put an to the there guys actually maybe or demand in yes. talk assume also, that you infusion about I you from then some some Given maybe doing just is to people that through further the alleviate

John Rademacher

so Yes, start just capacity that the from operate the that we models way on and I'll perspective.

area, that what the to do nursing is community in order certain make well to of Infinity got that help move on the well said, that. you strong But collaborative the in centers certainly order as be there we basis the of a as nursing has staff may weekly the especially we've to worked SPIN that most into the day appropriately able ahead. we've extremely and for the basis with some were in on challenges As -- that. quarter market-by-market being on infusion part, expand Part Dave, with in and that. as investments and on to a the team to level, a on capacity, done Look, really

position members look, are. I really the day. we a that certain recruiting of single lot are So good about called And we we team feel we on spend time every out, our making

markets been aggressively in we to staff in which continue of staffing that we make as opportunity to have that in move capacity expand to have certain that are products for to we'll be adding as both us We to work have ahead. able necessary and grow, the and all the that well

in good all that. all, So feel about

Michael Shapiro

ahead. go Sorry,

David MacDonald

go ahead, Mike. No,

Michael Shapiro

point. John Go John. the made No. ahead,

David MacDonald

Okay.

competitor suggest Just is John, to time? then the And prepared create touched our think somewhat checks I your touch Acute? comments, opportunity this, And some there you an last a for over question, closures. but guys. in are potential Does on there in this non-trivial become pharmacy that

John Rademacher

Yes. our Look, change. the good ability there's certainly, reevaluate, to within that organizations reposition the market about it's support of what long-term the that a the feel tell -- we've to we is broadly continues pharmacy environment And infrastructure And to investments dynamic acute board. the made It's into our and really early and on as implications are. look, standpoint. kind therapies competitive across that,

as team. our for frequency clinical also based be choice of platform of demand quality fair to infrastructure, of in, or and our drive We and and markets our scalability more have the we've -- created, most all us within than capture move we're ability invested reach like that leverage those as our that the those well our we've expertise competitors the ahead. the of And of positioned partner the and just fair consistency on in many as commercial we to really, to for we that share and But feel the a well sources. share referral that,

Operator

And from of our JPMorgan. Matt come next question Larew will

Matthew Larew

the or organic. if and bad. Curious, between could for Infinity, break Matt M&A maybe centers Mike, growth that's us out the not William you firms, whether -- Switched from Blair. Okay. I new

be a I lot there's maybe so so that on maybe going previous would helpful. than more here, just think quarters,

Michael Shapiro

Matt. Absolutely,

have BioCure in first in admittedly did result, the So again, the quarter, we've year last quarter, the which was made. acquisitions one of the we smaller

view center growth, line and new so our how a So quarter. again, virtually second really point well that's From points Wasatch a that as care. of we X contributed simply about as Infinity of quarter, the of a over in have growth. about think did we XX% results it we little reported a perspective, because, the That not full the of full top as

that's that's gains part modestly in overall But So of the again, in I'd growth really quarter. -- center say just organic the was our strategy. up penetration our

XX% one in probably the in couple of heard talk about higher around events that around our You've a XX%. us centers. We're occurring of points nursing quarter. of XX%, were than how our It's

there. nice has So momentum events growing, but the crept well. obviously centers only Not bit a up penetration nursing our the as are in

Matthew Larew

this crossbars then expanding. And chronic on margins, obviously, last been as Okay. kind of the modestly still gross have been years has towards shift couple occurring, just of

of for curious, gas relative better the shift, out we year portfolio Just of could maybe periods? more referenced you future some think break year-over-year this pressures? You on that us travel, model basis, could packing a I inflationary just to so maybe and sort

Michael Shapiro

Yes.

talking defeatist sound gross darn I is basis the margin, prepared consistently, cost So Not because, pressure Acute, every to facing the care. to look, with this that about what to our will as line. as at remarks, -- inevitable direct and that you gross are In mix again, mentioned there we we in the we know, been administering as relative acceleration we've refer would to it point. we chronic fight be margin for rate

pharmacies, delivered at oversight the Again, directly leave the through labor our of well medical direct technician, administration pharmacy compounding all of pharmacies the therapy of the to of as or a are distribution. our and the therapies the FedEx transportation homes supplies, nursing for pharmacists that clinical the as all patient's So UPS, courier. the the

the rails some local competitive. to we're of make sure from keep perspective. that categories, has the no surprise, labor inflationary clinical hit to at an the Obviously, to, our level we continue the mentioned, have as And ears been John so harder

medical around which that materials, clinical inflationary costs. especially are pressure. packaging the we those transportation seen and a of labor seen plastics, medical petroleum-based have some inflationary lot has So transportation, pressure, Upward the supplies considerable

Matthew Larew

the And last Okay. then one.

of systems of I how patterns to offerings? versus internal much volumes that referral guess Lisa COVID some and You health to dynamics from health the own system referenced just relates alluded coming curious reengaging with that parts, more back, maybe around maybe their and mixed

John Rademacher

kind Yes, Matt, to we of it's continue referral at those patterns. John. Look, look we have --

have we We other or seen competition have on referral that. holding hospital that major in come in places. are mean, I has HOPDs strong not on patterns changes the systems where been

working well that team on choice, chronic make to transition around partner we aggressively is to can and patients. are that positioned certain everything of the smooth So a we make the and of aspects patient of administration doing out our the service registration care to efficient to it we're or the inpatient for

So competitive substantial, it's seen it's competitor, a competitive been. been be Whether competitor as always continue as anything it's it's we to dynamics ever a haven't in-kind competitive. but or and the hospital-owned

Operator

And question moment. Joanna of America. from One next Bank of Gajuk our comes

Joanna Gajuk

I remarks, something in repositioning you first, mentioned other prepared actually players. your a a you guess, follow-up mentioned of on

other the So we you site tell to of you down employees talking And at go going Are from referring to? Or footprint, there you let your changes in us to you're referring care of are some can what being these your of saw when repositioning you're some the actually about I this? you about refer guess, players? the talking else competitors? locations. something

John Rademacher

certain I've are our certain of and kind kind which ebbs Yes, the is kind that markets market dynamics are competition about the dynamic, competitors flows on Acute really, And there's on interesting several see could thinking from said retreating of Look, have -- of before. in We of we market area Joanna, John. they're market. longer-term as There's as what there therapies, by it's as that. always their in -- this goals be.

efficient choice the certain therapy provide a we As organization, of platform an a invested in of acute a a of and make or partner coming all whether are out of patient to that it's able facility sets are has that it's to network we've chronic that an whether highly-connected conditions. national pharmacies we across and services,

managers they're into focus in collaborate that the remains suite. planners, an hospitalists, that transition as effective investments the developing, to steadfast discharge closely thinking home with our about the or And we're safe out hospital case infusion ability of we're partnerships making, into patients so our of the and

positioned had from their is patients feel the that The as of partner and to our marketplace And solid. participate choice remains we in we've spend decisions kind as they're we on in we're focus so And are our around and of discipline that standpoint. that. like where that that making well demand how investment the are expectations to a thesis

Joanna Gajuk

guess guess, I a here Okay. also you I Mike, about players, been about my But and hospital And follow-up before I but hearing another, other and I was also question. -- parties. the up own like In I hospitals that hospitals. their home might they third help in about when offer business. setting talked also interested infusion be particular, mean, HOPDs, thinking systems using sounds like AmerisourceBergen to commented think about they a program it

you relationship there? some or this directly more seeing hospitals you where of have sort can to close about strengths bring more if sort structure just of also that is I talk some will kind know you're of don't coming Or to volume? So something kind of those

John Rademacher

dynamics in deploy and at helping looking that that health and the where different marketplace. align there their very at they're hospitals marketplace. they're in Yes, to have partnerships Joanna. overall care systems are Yes, look supporting as we with again, want and competitive hospital we they ecosystem. their as have Look, that as of capital just needs on continue the dynamics the their work around we which how part some support looking organizations pharmacies in closely the we competitive And process of at always that, to

organization, or where that where their ability we are X positioned we partner choice make say their state all circumstances today's given certain have As network and excellence seriously, catchment states associated have threats a transition the to still well over, high-quality and area A outside a of on do local have that consistent we provide in in that and patients other their infusion the City they rural help competitive we in take don't you in certain that centers an travel can ability they aspects, that. a that the receive service they given health to partnerships. look, there we work setting strong hospital-owned own take catchment is I have system think their with that but of and patient that that be of we a can still for we the of may they that live the be care pharmacies, geographies. national to given really able hard going can provide have, have lot When about hospitals to service to area with

getting always We're we we think made to we standpoint, and investments a that competitive that we clinical keeping believe We national network, that rail. from the outcomes dynamics. into the our the always we're our ear that think outside drive the making partnerships to a commercial position we've ways just us that patients that. in our developed team community of to support of that for as their be those and choice they're partner the with and the local decisions looking So

Joanna Gajuk

And I guess the my flow. cash question on

to outlook, the I just the like So NOS. expecting flow. want on operating cash you raised guess, flow X-part cash use and I sounds to, your you're question

the question, part start this one cash second is, taxes So year? cash flow. guess, And of are that, I paying to you raised you a expecting

of Is there pressure of we spend think expect smaller M&A? increased use them? should So should the so on this kind to on cash operators, the you're expecting more more we about flow? Or

Michael Shapiro

Joanna. Yes,

this a said around majority to be overwhelming NOLs cash update year. expect the used perspective, will cash material we year. don't we is XXXX, We'll what obviously thoughts of the but our a this taxpayer from So be

you we're market bit there modest but so carrying here if the our And a a a in converts thrilled. bank. as around know, tax cash the position could it counts the dynamic think, the EBITDA strategy. be we're And in cash prudent QX, note. mantra in, only is nothing of Look, cash higher we balances, very given And little is

to However, our is that it's best in And our cash, shareholders' that it's way think strategy. thinking M&A deploying through around value cash. deploying not capital, create the the shareholders for an the we

the is there because extent strategic we'll any generating the around think bar which we economic cash, can return lower look on And through simply to the excessive of at expectations we the to we're So that doesn't that avenues and cash shareholders. alternative our obviously opportunities. merits more

conviction remains value. this at strategy primary However, for the point, optimize that M&A to is our us

Operator

next our Street Markets. from of Brooks Lake question O'Neil comes Capital And

Unidentified Analyst

Charlie is O'Neil. Manting [ph] This Brooks on for

talk advantages value-based me. please how Care, paradigm? might to and where Just the care shift question Option might you for new see you one quick impact Could the about in

John Rademacher

the to Charlie, ability conversations our us community it's care in us us to part John. be to that something created as always discussions, and outcomes. has and The high-quality very provide patients been solution member favorable focused conversations for looked that makes continue well really longer-term is evolve sale. in high-quality we've constructive care that is that that have focus platform the to we which we for. path. the robust payer And with patient Look, that to a continue for positioned experience, in ability down around continue clinical that and an Those to receive those we to be of of appropriate allows very creating believe to part things be want continue to that setting think being the constructive experience around cost at us care, that

certain I well receiving. they're we're and only at think importantly, from to focus that patient more we to a that not outcomes sets to the organization standpoint define total is based, really the Each of quality the a but looking beginning And deliver, something at we're clearly hard on and looking within value that that, with of therapy experience care on, the delivery. is lot we're care looking make little organization a this prepared the it it's associated care that they're bit articulate at at outcomes differently as our doing overall but point. to cost can

Unidentified Analyst

That you there? helpful, was that's Okay. are it very for me. and Operator,

Operator

Yes.

question next Deutsche from Chickering of Our Pito Bank. come will

Philip Chickering

they your X-part number didn't the exited follow-up why two, it markets. this captured because scale? less enough for down question you for does to want point? multiples market they buyers, share And but have you've four, of how tuck-in infusion you Number this three, deals are payers home bring about in actually you why A think Number with leverage in? of are does more the have competitors give I forward? much one, Is still number at guess, some quantify who the this going can savings? do

Michael Shapiro

Only X parts, Pito. That's good.

John Rademacher

not guess around people let hazard so do me they start. why a we're do. going what to Yes, Look,

right? tell we've local. strength be is our at at and to a can I around we've choice along, all of is focus execution. Our the looked the What created care partner platform that strategy our Health our you local is of the ability level, and and

our made our use of and the to really that meet needs much the highly interconnected management is our our scale quality the referral marketplace technology local. something we meet create on our we it the of as is to investments and needs network, services the reliable staff, centers, sources we've that. that do of -- into the As care And and a meets still

going and Acute execution. again, And the to we and as the drive and of And time and be our across Chronic, so said, our as we're love that use steadfast growth leverage advantage. balance scale we time to strategy the -- our in a competitive ability to portfolio

invested care make have Care believe best we relationships forward, find to opportunity home our the by that our have that infusion suites. truly And resources in any serve push we in those them. receive Because positioned to a more the look the patient to continue to to commercial we'll to that serve markets, that in with to of opportunities we're again, available lot patients. continue deepen deeply a and Option and one in in relationships that to Health developing local we continue partner ways those that the ability or frequency, to that We certain at were identify well more reach within

this to early be. There's it's just can competitive. look, tell every though I overall, to is the one. around market in also reimport, On what single continue will multiple every competitors

available But team certain demand and repositioning puts feed a do. may so marketplace. come investments And we're we've our way us and deepening that that too incumbent we relationships to any on made, on early strong to is like we in that to our to position that opportunities the tell that and look, make and disciplined we it the in that us really we're it's like around the the any brought And think as we approach positioning capturing what us.

Michael Shapiro

is, that's Mike. But And valuation seeing we the if something we're talk M&A in. as market yet. and not of relative look, look, responsive? it's we're in Peter, any And kind We to And we opportunities, John's in we're in know, are -- be the participants call the but markets. the -- share that move to said, looking as reliable. being From days, our continues, Again, on confident perspective, disciplined as about momentum can ourselves we're to thoughtful in only back if value have an IMS. multiples it's shares, responsive afternoon, be comments, and and real-time the in And in metrics and not we Acute very be market partners The in those. on would mean, -- John seeing moves a going you again, these about we're going valuation thing that it's from add I how I we're we're Friday meaningful pride are all certain don't dependable referral side. not X:XX expectations. what look, comes focused to early seismic being at When estimates. strategic on we

Philip Chickering

in you And portfolio, in the are about at no broad or on are other impacts you're shortages looking at or And areas seeing I'm that seeing these gross there or talked enough. more chain, on I impacts all? Okay. in? revenue supply shortages just Nutrition. margin shortages, guess, script, impact you're the wondering? any your Fair worried then about

John Rademacher

publicized challenges existed aspects. around of support, plant with closures marketplace and Look, called have the certainly nutrition Yes. on I that in the out, some in we other what mean, it's well

our plant Look, spot on navigate patients have outages. executing they're work so make And through where team around got alignment. necessary census support as some our to that We've going for are of job nutrition the There's tremendous plans. as there's situations that therapy patient really, a are elements things certain the some and formulary has always of part And and that where trace we only our new other receive those team and products support looking take standpoint flow but electrolytes principal other or a from also not and tirelessly make be done under and to the all we nutritional constraints aspects. ebb can certain dietitians dedicated, or can repair to modest of we some closures constraints. chain around supply that patients existing of at that helping of expert our our

we And team the certain that kind we've and bushes make adept, our that need are in who that's making of that meet so just in demand sourcing the trade in a teams to got marketplace. certain dedicated products beating they field the relations the our that have can strategic the

margin? work mitigate want Mike, mean, on to around revenue to extremely hard, that. to try extremely we I or if impact So minimize, or I effectively adjust you the to and believe, --

Michael Shapiro

complex mean, I a Look, prescription. lot for Yes. are compounding therapies obviously, a and of therapies patient-specific orchestrating our

if also making input, that therapy or element, the clear a is that's orchestrated. right real as but parenteral don't NRL trace like the Pito, not it's critical, right only you infusion about one orchestration so again, derivative. electrolyte And infusion one PVC have the a of Nutrition, have we we that pump, set think All sure it's that,

so easy, it's makes And look, anything our but. look it team but

our far, certain on we've And top your the does on under that it's so techs and conductors an I it's line knock with this procurement margin. our medical manages plastics, pharmacy from relatively again, compound whether fared it say, impact chips, would perspective, nutritional and hood, infusion wood, have well. pumps But XX/X, and certain whether team thus a compounds

Operator

call showing I'm no this at Rademacher turn the to would remarks. John to further And I questions closing back like now time. for

John Rademacher

making morning our us in joining up, very are earnings sum the we our Thank our second team, the continued and strengthening strategic initiatives you performance this balance quarter the we progress it and of participating against for To with our of pleased Yes. are sheet. call.

of know achieve our to goals. to We and be we expect have that there will work us continue challenges ahead

care forward be look we execution, and continuous on are progress. making well. focused to we However, and Take

Operator

conference you concludes Thank participating. This call. today's for

may disconnect. You now

Option Care Health (OPCH) 27 Jul 222022 Q2 Earnings call transcript