- Earnings call transcript Q3 2022

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Operator

Good day and thank you for standing by. Welcome to the Option Care Health Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to conference like speaker to now Shapiro. Mike would hand over the our I ahead. go Please please Shapiro, Mike ahead. go

Michael Shapiro

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

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

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

John Rademacher

and year-over-year while our and XX% repositioning market in a significantly in solutions we revenue by the EBITDA real growth The Mike the we and therapies Thanks industry. revenue a environment. nearly platform. quarter, a mid-teens key the result portfolio. growth in growth resilience patient including XX% are and of Growing care everyone. market of the In operator team ensure partners standard growth dynamic across third inflationary delivering third setting demonstrates by the our for natural chronic and during solid to help in acute escalating conditions mid-single-digit referral quarter, reflect to is earnings results more with of challenging very period responded to execution team disaster, quarter some Overall, significant pressure of continued the The a strong quite progress our we in pleased earnings. the made good are disruption, and strength of morning the participants, providing the

We progress focus on the onboarding therapeutic streamlining have referral made a process across of continue key with we to number sources and areas.

the team accelerate quarter health Our Health dynamics given Option to for across in our the specific rely to Care therapies care. sources us of to opportunities for collaborations and acute favorable ensure systems efficient enable in with responded growth market us key the markets country acute transactions referrals on to

technology-enabled on our in streams cost significant the strength at the asset. a was this level believe Although our near-term, market national operations and resilience we network of

the needs the and emergency. utilize I our our storm to incredible of path ensure partner ability the to workload the patients and local dynamically they wrenching, Florida in partners our the team across team the medicines had hospital and The recognize and supplies help enterprise devastation and to of and to our in referral help shift to prepared and the was unimaginable Florida across Our to markets, in to patients also southwest access and respond like as of sources of brought to rose of heart Ian. reaffirm would throughout were the their our supported our Hurricane choice. capacity challenge to the all work as our position state

across most the facility in in sources patients our Myers through our partnership the state. work and in help communities to continue with with We efforts referral the to recovery Fort affected and

results minutes. in a impact always, few Mike the As financial will

heightened see We pressure areas. pressures do pay key of not business several clinical across have inflationary cost and services. continue in in categories, transportation, We fact, to the near including we subsiding and pressures supplies, medical term, variety labor, in several a seen

environment services on focus with most have payers. for in offset negotiated the improved pressure. instances, we some continue to efficiencies and reimbursement inflationary the we to relentlessly always, therapies As operational impacted And by

together value work We we these the ways continue their ensure cost and appropriately bring through can to our closely and reimbursed pressures to for members. work fairly are team market help discuss plan we highlight health with dedicated to to our access we partners being

M&A we acquired in regional based in quarter, Rochester late Rochester, leader the the Home On third a front, Minnesota. in infusion Infusion, home

returns. health we consistently seek Upper to a the we thrilled we emerged strategically Option have in to As are the growing with welcome represents mentioned, Health infusion assets we sustainable as Midwest well-positioned key actively and relationships believe rapidly systems, will that complementary and leader are leading has them Care family. financial with Rochester

Respiratory the divest it that the operation resides of a an Therapy operated a optimizing it that to capital on also we oriented and organization service business capital-intensive to different Respiratory is the and base. and of assets portfolio believe October, organization logical strategically ensure to BioScrip This enterprise both with We We entered call operation core our in in line Northeast. was focused Therapy the evaluate And market. are we into is different points. part continue our an to more agreement we within

continue invest We in growth organic our to strategy.

country members we prescriber XXX year our outcomes are a as digital we digitally, share overarching improves clinical patient count the through new mobile beginning and we engagement exchanging and the self-service ambulatory total through a across provide. our of opened multifaceted enhance and XX two-way patient a trends part and ripen. strategy can to communication, pilot the forward see that through enablement took labor significant been through app and and environment functions improve identifying the to infusion is to as has care to interoperability. This capturing and capture QX, other this the centers to technology increasing across technology team is This step with over through analysis, plan as care part and of taking our it approach our began care data well multi-year expanded analytics Our country. have infusion have secure great of fruits chairs Also, we touchpoints, insights of the

growth work. new our open expand XX further a utilization of live where Again, increasing to centers conveniently are as us resources. facilities is total penetration. patients infusion our and occur enables We to effectively approximately and of and of clinical year, are Currently, nursing focused better close capacity this of treat track in and key XX% effectively one we more our serve strategy, further events center centers to patients our to they utilize on a our it increasing on and

by across Care variety remain tightening a outlined, and be the on year productive up slightly for an Michael our into the fourth to our for Finally, the the focused future. is year. strong, as measures, to adjusted increasing continuing while the EBITDA shaping we quarter expected XXXX extremely of heading of midpoint Overall, guidance we're Health finishing for invest Option results year

like initiatives ESG bring to have our Mike And detail. would that, the and that I Investor call, other in the more over highlights bit over with enhanced review your our results Relations website outlined turn to current turning that a we to page to attention efforts dedicated ESG to include Before Mike? I'll a call underway. the

Michael Shapiro

continued Thanks in John. solid was Revenue mid-single-digit XX.X% chronic mentioned, portfolio. growth we portfolio in acute John the the quarter growth as growth in mid-teens and as well the of saw balanced

affect first basis. impact margins. of year, as the year continued double-digit on quarterly a billion and previously XXX revenue Our and inflationary quarterly margin continue therapies $XX unprecedented $XX that mixed chronic result for we cost sustained million in million team towards our I'd basis cost of of estimated categories. $X fact, to see number across to a of pressures emerging growth Gross exceeded over as declined has to time a net revenue a XX.X% driven points impact continue pressures

range a $XX SG&A. are but SG&A respect discussed. a XX.X% has point. a pressures Despite we percent full additional technology. over is the lesser the in impacting more and year absorbed came currently extent in grew remain X.X% and adjusted at market investments and near-term on pressures quarter, the was million With strategy a as despite ability over $XX to cost enabled at prior EBITDA remains that of estimate, in margins management While to spending, and seeing primarily $XX.X EBITDA high in in our EBITDA around impact inflationary given drive This extent a million Again, an intact. level by the cost efficient just the to adjusted we to has grew to also efforts Adjusted more backdrop little great proactive of also conviction markets margins margins quarter functions. the labor challenges, impacted X.X%. platform a to a X% resulted the over gross margin, which over We million and vigilant many our staffing the about in enabled declined EBITDA by model labor a our time to expand efficiencies, and of inflationary a revenue I scalability

believe in Rochester only ratio this quarter. our strong. structure As mantra Rochester EBITDA news excited our the remarks share if time drove and at billion quarter the regarding first account of the Upper for the counts Infusion the it investing to cash operations is our has well-positioned morning. revenue add all the quite hits to debt strategic you very acquisition moves net than flow from the Home cash a operations in was capital X.X bank an Cash Infusion, balances We're been incredibly well. the I complements million flow of times $XX know, we Midwest, more which announced to on increase wanted of a very We $X.XX our the adjusted never to Home quarter that John's is and in despite to stronger. exited in in and regarding

focused I ensure As our $XX.X low anticipate EBITDA two will that in comment And adjusted and ongoing not reiterate platform. important it's divestiture, those the at multiple. in do capital John's QX this awash from be portfolio disclosing on Therapy of But we double-digit transaction we're to that invested we million we remain Respiratory have roughly on for the adjusted quarter specifics assets think near-term. disclosed, transactions in a impact entire on we the right closing to EBITDA while paid the the effectively

third on to of tightening we based generate full the financial midpoint EBITDA results, slightly the expectations we the adjusted to EBITDA for for expected revenue million and to expect X.X the year, $XXX raising are billion now and million. of $XXX billion our results of $X.XX Finally, year for adjusted quarter our

will the despite we've relative our our unforeseen inflationary think to midpoint $XX that highlighting expect flow from I to generate revised of $XXX range to by the than it's raised operations the $XXX and least million entering continued initial year. guidance our million million Reflecting pressures, year. more cash earning of $X.XX range of a for at we continue that billion We expectations, worth on

with And that, finishing So, open for overall, productive year delivering we anticipate the the strong call the we'll and team. another Care Option Operator? year from Q&A. Health

Operator

Certainly. Matt, Our question from [Operator Larew come first William of Matt is will open. Instructions] line Blair. your

Matthew Larew

how comments the the XXXX? them be Mike, morning. pockets a that's for just about sense better, a as perhaps challenge get and But on we you across to the a expected. of of things the good should and seeing we bit are I inflation worse getting areas just Maybe if or board. -- want they're Hey, into think than think the duration where to might maybe kicking about then how to roll start

Michael Shapiro

mentioned, good last Great the multifaceted morning. a of inflationary repeatedly couple you. front. from we've is Yes, as on Matt and the it over course, to the quarters, battle look, Thanks hear

around, and for oil across the multifaceted teams our as has are we've of on as categories well think our shipping labor nursing to operations, reimbursing organizations, candid that and impact clinical to that both pharmacies pharmacy the compounding on plastics therapies, driving some the articulate. our tried of miles we're and been thousands a supplies we're basis on procuring. from daily I clinical a as Crude obviously, logistics leaving larger medical our we've that and the

our a cetera. last So, any gas, think as has et versus services, and as disproportionately than broad deteriorated. of one electrical QX fleet category building there's I they're whether of it's lot infusion pumps, well maintaining don't year, We've XX,XXX, management, more natural of utilities, facility business up seen that now double-digits

nothing, would an been there's So, say I thousand the analogy, it's where death epiphany, it's just there's by pardon cuts.

rally point. -- frankly position terms we're heading, next as at in mentioned, not this on provide But thoughts drive these costs year again, to we soon, as any more a and don't see that's I more In wholeheartedly we of John see obviously, our And, don't subsiding where we to them productivity. agree, this to become and see transitory. internally anytime frankly, cry efficient

Matthew Larew

other that been a volumes the topline hospital trend lower low volumes again, and it providers maybe Okay, got obviously, cited. there's from little And helpful. in the was bit then lower where or referral bucked strong the space

maybe if market sensing benefiting that just us better? strength some maybe markets, little a give from leaving you're some understand So, taking help us a share, topline sense the acute bit of the maybe in just competitors, to

John Rademacher

Yes, Look, I dynamics. overall, really be for Matt, bit shift in those was that feel it's little John, systems health to those and good there of well-positioned partner the disruption some think we're especially morning. in we of where a competitive like markets and choice of

I capacity using and think and acumen to We operate of efficiently constraints pretty quarter, as business we a adjusting could. of -- on as that to up the we our is and that's that. capacity try additional patients. And team rhythm went the to always effectively. say, our building where operational there we part around better we're take through Needless the ability found on were there's some

I'd market those that strain the markets So, I I also we're some across based look, of and of in convert in think over to that said, we around we did dynamic, we volumes had as to system, to move think network of I as just the because on referral it the to of we do things which my the strength. saw, added But can some structure say some to put on part balancing cost technology. some prepared are adjusting as and remarks, able better workload the our that contributed

is of were system they're our the it, quarter that was and team as of standpoint, I we caused health of shift, have our frequency transitioning and commercial there some and is always partners, were focus we that on all-in-all that by third that -- the in think So, to certain some pleased the is recognize even for the though there market well, support we a from make of around strains about some think And looking reach dynamics. got the executed some share prescriber we the those patients that relationships because workload help shifted service. and

Matthew Larew

you. All right. Thank

Michael Shapiro

Thanks Matt.

John Rademacher

Matt. Thanks

Operator

Our next Lisa. question of moment will JPMorgan. come from Lisa Gill One

Lisa Gill

Good morning.

morning. Okay, just great. Good Thanks to much. back. go want I very

around areas, you hurricane repositioning You and inflationary pressures. the made a comment said three

to the quantify the about Is to talked You've inflationary hurricane pressures. or from impact way in there profit? the whether quarter it's the revenue a operating

John Rademacher

certain our happens that during I of through there what call think is there supplies, again, advance, is prepare Lisa, great patients -- disruption coast. the that just of that to know, and -- we Many period, in team. the the Yes, moved our have from medicines you of get certainly them we have I to don't out A away was the do to lot emergency. will make want have them work

seen in going delivery quantify. care I'd we scrambled don't to in like that to all really that. too hard say any were I we so within we've were and for our really in patients videos able general, you've serve and it's make television, Mike, just us that that impact long-lasting that certain modest through The impacts And got it's around color we if to you'd the Florida, well-positioned add? on additional as the to to have model But know, some area. Southwest

Michael Shapiro

know John. Hey, only I we're maniacal Yes, making where and as the but supplies is are, do sure third John we the the therapies. patients Ian say hit about Lisa, later have that, look quarter, they mentioned, in would the thing our

ahead, to tried were and September, the compounding pharmacies make inefficiency and say we we there that in sure we and to so week, Fort third have some Myers some in And shifting Tampa, wanted later spike was and fourth in production. we compound as I'd

of in else. some the our resiliency care put disruption to speaks always referrals was which in that there everything and But model. costs, going think to were I patient above

Lisa Gill

types important Home Great. to there understand other pay you you Infusion, Is this of and going to about what it, Is that And us quick Rochester understand functionality acute to multiple for talked follow-up, acquisition? any help low chronic? incremental Any maybe a that between would can break there new just you're you us services double-digit then talked be EBITDA you around provides? to details but think down for business about get? that you way

Michael Shapiro

excited about Yes, it. really we're

quite As look Rochester sure other perspective, Minnesota. we've they be strategically going competing a an they fit a in very as to infusion mentioned from against strong M&A unique, very that economically within It's area. is thoughtful, to we folks Rochester, we're looking assets well have as sustained. make at it's as we're not presence just it's, that metropolitan at

-- well where as our and operational their what us two we relatively combining admittedly a really management relationships Minnesota, operator have efforts. one it's you well-positioned Iowa, complementary notable on procurement. geographic broad our Upper in systems for the centric area, system exceptional We health infrastructure, they in they're within in pretty as or see that area. there's relationship that way with As Midwest, very which focused an technology that across see commercial area, casting know, -- to extend shadow area, as Wisconsin, highly But health is they footprint finite our are strategically a to with that

John Rademacher

really business, presence their to well Care that their market marketplace, they And home of really just was when a care had the certainly I as cultural Option national between relationships aspects the to other the relationship, us strong I'd communities, I standard and depth think as the our patients. of putting chronic. only mix traveling everything with the have book back the with The of is is relationship many and some that is referral in discharged a service the of depth I ability of they to you think, alignment really and the acute and the Yes, service do our network Lisa those developing they that within look, that it the you center fit model really their the with network is add as, think was intriguing, that deep Health with patient of community. as in of a for well -- providers when in But thing they're that there local that health well. sources fits in

Lisa Gill

Great. on another solid quarter. Thanks for the and comments, congratulations

John Rademacher

Lisa. Thanks

Michael Shapiro

you. Thank

Operator

next our David Truist. And will question from of come MacDonald

line is Your open, David.

David MacDonald

Couple guys. morning, Good questions. Yes.

being suite, market? percentage visits come new that you I is nursing can also the mean, the about infusion thinking that a And a new that importance of percent guys the are is then side, that new as importance how market. XX% us work and around amongst you and the how of mentioned guys that, through eventually you what on Alzheimer's coming sense ambulatory the give just of leverageable something out, I'm come something You patients about talk can about of to products on? If just the area. with manufacturers reimbursement potentially, to we'll products as payers setting think

Michael Shapiro

typically take nursing track good In our centers. to about, as four one, on around we're Hey, let XX% in I'll We year the we about quarter, John our talked the Look, then these to, earlier an in additional traction the new mentioned, third center. some the visits Mike. XX% quarter, saw the John second XX being We're opened It's open answer energized really expanded opening morning, that's your and footprint. penetrate question. easy we patients front. as we're opening in I'll Dave. we chronic -- these skewed we and to Admittedly, Obviously, have can is it are a conversations are centers. convenient we greater aesthetically as more more we're the convenient imagine, we towards pleasing that lifestyles on conditions of is, our ensuring of extent. who facilities have and more more upfront, that And to ambulatory, with their those can you engage that part more patients key. is them

to So, Again, with patients the are answer can newer we service. alternative is, short we're chronic offer if especially coming traction, our convenient. especially considerably seeing that's that of an them on more some

satisfaction patient our the to higher is high mentioned, centers, opposed as we home. our not as in if As

going we forward. were expect but and traction that So, seeing we would really to excited, continue

John Rademacher

serve limited always new and David, around being that product this in your focus patients conversations drugs allows the ability certainly being distribution portfolio, to, for as to some or a work our as introduce it's and And have strategy, products to well biopharma, to broadly the point, just that access products. overarching marketing whether and at expand -- as part it's for looking Yes, expand really have look we're to of as existing a we that the platform as marketplace. ways on us in through looking they're we of we the additional more biopharma channel the partner, to to

this really that. So, platform allows

has expansion the in which that going one that been deep said, in factor. we're we so Mike As have markets, convenience

and with especially in those conditions have they're For to extremely very doing many their care, a to to out their work, to daily is of the receive convenient place of they're activities communities, important. chronic that we patients out -- going efficient living, are move think and is, and

products those a that and that manufacturers, like for we us to We ifs and investments on the Dave. it there their to that on a Alzheimer's we're biopharma or that there are also making for we're cohort, help to looking infrastructure interesting states, to payment, that some approved, really a well-positioned and on to will building, is if if partner lot for take some new of on support path position operating, will patient if, journey. disease -- other that those choice But who of we're us are patient prescribers, for make a able continue as feel base. the there's of that whether be horizon, the gets well, it's are facilities the look, solution

David MacDonald

Okay, competitor to enough give is acute this markets? of sense two? two I into terms you kind think some it of in want a kind get around if you you know you I moving And edges? questions. expect was or Can markets? to mean, impact the more opportunities you about just point just share the on of some a of side. this level continue that see As the know, it quick us pick other don't in potentially Or of the If would some these but and guys, just detail, exit? to competitors to a mid-single-digit up growth? contributed of of

John Rademacher

would partners takes Look, margin to both not as Yes, It's, we've it I see been to as and the years be benefit. characterize that us is the that going as be, been mean, is it breadth we've make on business to sure clear system and our chronic we've But it's, well, dependable the us course investment. day a that responsive I if hundreds very very as And strategy several thousands We easy. platform. have the resilient of been over acute winning forward. investing as clear health to of mean, we that on our times turn strategy open, that expect to not for I of portfolios. focus we've also been acute a

one one And so, or about the was I characterize quarter, that Every inflation over did, a or relative would again, we competitive is performance solid it But how feel and perspective. was from market. with metropolitan look, you in forward, others. it sails. market single-digit really And it's term. portfolio is it But every challenging dependability think wind others. mid-single-digits. out we're environment to going And -- our that think see and across gives the like, a a area two a not no low I market as we this we tracking -- the our we've good open been which our two from really there's I just But there it's where feel us and availability labor competitive is us medium it's

So, by encouraged execution. the near-term really

John Rademacher

that And Can then how about what you guys, kind but TouchPoint. -- not that sharing the in payers? may just be of just data potential and the question helpful, and that on terms capture, of only for terms one just last payers with of benefit relationships your guys, with in you talk

John Rademacher

and we're have and around Look, look, to out. excited that the we always progress focused Dave, we've, really plan laid development fact in roadmap Yes, we've about we had this the and, that our point data. gotten

As it. overall more. capturing of what the digital plan as care the serve, our is an we're patients going just strategy value, of we The And enable see that on every important have the really privilege that think we to digitizing then as TouchPoint when and it part interaction about even you tool and to is have, we organization of put that that into can to certain and forward. make in and to, for to with payers with or able biopharma us able as partners, or clinical that prescribers, interrogate clinical driving then superior we data we're with share utilize, with data opportunities that improve the whether outcomes, structured us for to identify protocols we to be to set identified it move that being

a direct patients process. to and serving to longitudinal much opportunity through collect communication to allows us have two-way basis, more clinicians our us to us relationship we're that the between with greater patient have so our intimate allows it allows much It this that data secure on have And a base. a and

stage. when we determinants a about health, of components, other you one the suite, social with But about insight, So, infusion it's a or given patient. of think have in of we that the early Look, fact have you capturing whether think privileged all spend amount our about we're the excited given the really we of it. time that the that depth relationship, home of

this will bring us enhance potential set excited next the data collecting We phase the already to rich for we're that that and about really this are today. platform

David MacDonald

very much, Thanks guys. Okay.

John Rademacher

Thanks Dave.

Operator

open. And our next question line will come from Kieran your Ryan And of Deutsche Kieran is Bank.

Kieran Ryan

Pito. going? it How's Kieran on is for This

John Rademacher

Hey Kieran

Kieran Ryan

on seems a kind XQ. as implied XQ I what to up years revenues, the thoughts far last to the just as step First, done XQ a over wanted of basis, versus you've from little the get on your couple white it sequential

of So, I talk you was be just could wondering about revenues drive kind to what sequentially. would if flattish

Michael Shapiro

we've recognizing think some is I of and we provided a Kieran, challenges. prudent, think that the reasonable range, obviously,

in solid see there's QX we're would of the the quarter, underlying think implications this think business. message with business. to QX historically a year to guidance don't third around a you say this still the in I any imply of I step-up, think deceleration performance our Again, I which trying

our anything, more continue quarter to or in fourth performance expectation see, is into the traction quarter. the the I think third So, quarter a third modest, given some it look of we'll little -- going productive if topline the might into

Kieran Ryan

Okay.

XQ And pressures. inflation these I expansion the to isn't seeing is, bps worse huge, about talked revenue not it. sequentially cost to talk of like slightly maybe to or? guess rolling XQ. get from XQ and from It XX they're you're But would necessarily then. can there if Then anything growth you a there the revenues, XQ? got be supposed driving Okay, since other then margin flat, about sounds of is off up, so few you what like

Michael Shapiro

to QX, just the to I there's just as subside. in obviously implied on to into you look containment, I continuing think imply, based on back from expecting EBITDA pressures no, that we're modest anticipating are And a we're drive additional with the and would, in profitability terms -- comes cost no revenue, and There's to on that think productivity real ranges, QX. correlate fact that margin don't I our quarter. going items some and, our our focus comparability, we it of productivity as really to expansion focus you, the given inflationary again, fourth QX I

Kieran Ryan

much. so you Thank Okay.

Michael Shapiro

Kieran. Thanks,

Operator

Joanna of from America. Gajuk Bank of question And our will next come

line open. open. Your line Joanna, is your is

Joanna Gajuk

sure of morning. just are it's bit little you? hear name. So -- a pause, how me, I Hi, Hi. couldn't quite my I wasn't if Yes. Good

great. so Okay,

So thanks the for taking question.

couple a items here. So I guess

can problems But there? on little together we labor bit I in staff easing than So sounds just before. you commentary lumping kind have I on? an you around a of any the inflationary talk particular, And Because were acceleration pressures, anything, take expecting far, about about So so I So mean, there. the mentioned first, labor? that. particular? place to you're improvement in up like you guess, not and seeing and as staffing talking in are following what patients like, higher difficulties a everything any getting in guess, or any

lot? Thank a commentary you. a hear to want just So

John Rademacher

done in an we range And make time recruiting results John. the -- as we and pressures of we through certain of process, question, that the we've liked your Yes, there, really market strong, it's is the has through to tough as areas in that the different, fill underway team. to a a job are recruiting, remain pharmacy little efforts, labor continue there, see really a the got area. all To we that our adequate is constrained say it's that work lot look, job that. Joanna, spin the go -- time to technician, in operate, nursing the per that we and team infinity think good with would some for in the the did. have, structure our in especially diem our across of certainly I network I and categories that part us more Look, gives that, part flexibility, time, and acquisitions we a our full that with nursing in out bit utilizing nursing model

So, really to are the able well, we flex the in demand meet marketplace. to

Given some felt that were we look, market run don't near the just we term there heavy. disruption, challenges because, some of

operate when As certain operations models an them, ramp around to be pretty our and got environment. we're you've efficiently and within was, where staffing organization, demand perspective, that takes bring when ability them to to making train onboard of certified, in in the we a to us market especially they disruption. some people for to you The up that matching policies procedures, capacity and your to are our certain able there time, operate was and bit make

little there. of bit lag a there's So,

are certain focus the going we making efficiency to and have that overall think place, doing the resources the that in everything focused done labor fantastic be is productivity members can concern to right but And see midterm, that also other over we just persistent. their around to pressures, we we're look, don't I of around the of has I so, that wages an team than responding we anything a think job have. And and team and

Joanna Gajuk

mentioned Great, you're other with right. you thank payers, follow-up, guess you. And getting I your traction also the

So going same us of -- any way your acceleration the to in forward? in pricing in the kind for any

John Rademacher

members, that on manage. we're characterize an money, There fair door, given, one's knocking Yes. have said saying, can per think to that standpoint, and, been the XXX for and, and circumstances were we community with relationships, this of some very way relationships give a has, we that their contracts as the our modernize no on where before, we and strong equitable we but Look, pressures we've the that I you be to diem, feeling have been X,XXX want able able access across, the to provide payer delivering. I being value access more on it a payer team our market reimbursed to for we making and REITs the hey, would certain reimbursement our and nursing have

of focus a take carte want on say it's and that's been we organization, have having I to that the price is price we something to the them just it market take that that have or, don't to to ability an that. So But conversations. blanche, constructive

the clinical there that we diem, we different us members. that's be we been think think partnership their at in across the they're look high opportunity, drug, each business. per way and -- And, to dimensions, We that care, are, with to willingness and little the afford reimbursed support we in those costs, other, in able realize the to explained, that conjunction starting an there get conversations a a that but of we've need rate. to that, all in least more to have folks underwrite order there's rates, With nursing those I at I have multiple times, bit a quality and continue balanced three And to increasing help that modernize is in some working are areas.

try pragmatic a overall a economics rate, And disciplined situations we the formal those so, looking we have always practical very at take the way. to approach, contracts, we'll and conversations need very a and to finding and in and take where we're, those of

Joanna Gajuk

to and don't close we you're we Not about, the understand next And point. want so to consideration, pricing. next it when to be year, year. comes and But headwinds any other about staffing we I this thinking tailwind? Just as off, it think not for should providing guidance

Michael Shapiro

to with Joanna, obviously thoughts, call. February, a the into Yes, in we'll position a not We're late going when quite share as variables any in just assessing obviously we fourth do you back look, mentioned, that come few we're quarter next year.

this So anything it's not a position at unpack in point. to

Joanna Gajuk

Okay. can of has, plants share don't last of in you around, going kind their know any that and their forward? I I how and Thank whether And just Walgreens it, one, around understand. guess in the the stake I you views I company one guess view investment potential terms you. the

Michael Shapiro

in we imagine, their in Yes, that's as refer and stake, Obviously, Joanna, position team not you stake. we're not the position remaining intentions regarding their to anything share over to John a can I'd are you there. on a their

Joanna Gajuk

Thank you.

Operator

question And moment. Sachs. next our come One of from will Goldman open. your Perse line Jamie, is Jamie

Jamie Perse

follow-up morning, good guys. on side. Hey, wanted first, I the acute to

just quarter comments the some pretty and just whether any but if a on think there's I shares I'm and ahead there's quarter. gains still us. across timing the or, might of of or there acute, saw gains late operation closings the be facility closings impact period, share you sure, of the any in comments down are wind

Michael Shapiro

directly and mid-single-digits see see down midyear folks morning, as around to where Again, of some consolidating. closed dynamic. quarter. pharmacies. see it's I'd Jamie. is the seen they've entering Look, as caution I link every others. We We some Yes, to quite folks, Good every market we've the We by Mike. mentioned, repositioning solely repositioning

there's And market because there's disproportionately of in every we're so, no a position, where single multiple benefiting market operate. again, providers that we because

we being not of with saw but on to health the just moves willing be really try them. quarter. service, focus or little folks it's the elusive, longer and patients receive collaborative a second a number look, moves able the transitioning provider patients late new and again, our notice on early as support so to And they throughout We some saw whether that where making bit reliable as quarter. coming systems, no is is to And

try make wouldn't a out to one month map of directly to I or it moves participants it another. couple from just So or other in

Jamie Perse

you bit little utilization that third trends, Okay. comment vacations seen challenges the healthcare. some Thank this with a in you. or saw various across might any healthcare historical And seen you in we've you across referrals, new line for patient calling it or have chronic then if seasonality subdued the seasonality are just quarter, on was Can year? out more

John Rademacher

that question the Partner we to capture tea the our look, focusing as a able admissions side, a It’s be and of Jamie. hospital speaks [ph] that. think, that we frequency is last around I kind start Yes, to of acute you lower. the was little really leaves see John. around your reaching to I'll are again, do, certain to that with bit on utilization do Look, team, in the Choice making demand marketplace and as

probably where And so call you historical I patient patients, than service as trends, kind trying that. with had utilization little trends say in to on similar continue the to I'd process. payers say us, I'd And saw, significant a board but it, guess, on across expectations, referral that it's said. everyone's the say bit been we new But from the on I that standpoint, think quantity changes think it chronic from either just lower coming subdued, the see in I'd through through the let's alignment was naive our seeing with providers as the direction, understand we'll across I the trend think process. of I not we're what's patients the is we're around of has going seeing

Jamie Perse

that and one, portfolio, then I asset. year you others Okay. exclusivity quick lots the of size Great. last STELARA within can for coming next And

think too on size, in and XXXX? about potentially color to not impact much how any in but XXXX, probably Just

Michael Shapiro

Yes, Jamie, it's Mike.

of which inflammatory we category, big. broad is break out As have chronic don't is revenue, it's you XX% is that our that specific is even our not therapy but largest therapies. know, therapy, What around we therapies said immunoglobulin meaningful,

therapies, further, And including that look, across it's indications when a and number you number like and STELARA, of Renflexis. [Indiscernible], so a unpack Inflectra, things of Remicade

So therapies. broad of I about, we talked say, portfolio would we've as ourselves the pride on

to risk a but disproportionate for great our going wouldn't with We STELARA, characterize forward. revenue I have as a it relationship Janssen

Jamie Perse

the Okay. Thanks. Appreciate all color.

Michael Shapiro

Thanks, Jamie.

Operator

our And moment. next will Petusky Barrington of come from one question Research. And Michael

Your open, line is Mike.

Michael Petusky

comment probably quick I wondering mean, site flu do Thanks. COVID COVID cuts country, for my potential spikes flu possible winter on saying you guys a a heavy spikes I'm positive you that's or think real how guess the Even just for see some reemergence you? morning. shifts? or guys forecasters just Good we COVID is of can you if care possibly, I instinct way. of in parts of cuts couple questions with heavy that are COVID in

John Rademacher

Yes.

immunocompromised I care the a infusion be to home benefits those in a given some are think for receive want on don't community for other suite, in or that in contagious to ability their influenza us certainly dedicated setting and the had service patients to or diseases that.

we've look, both with home. our in infusion as our into So, expansion reach of well done ability what well suites, we're I positioned as the think to dedicated

as of or system, setting. It's community of And impacts home we the through see to in quantify, with standpoint. just so a healthcare in we an feel hard positive of supports felt something think isolated that, that again, changes is that opposed there care to are that some we the delivery but setting, some aspects in through COVID we today, the I normally say, the

Michael Petusky

about Social Security And there deduction, inflation is with payers. commercial and Yes. maybe benefits structure longer-term Thanks. tax Thanks. government been possibly And the it. there chance positive reimbursement side any expanding more just and -- federal that I'm persisting the government, renegotiations other just federal inflation. near some there on due or guys could in Got have this one standard a wondering, have talked result you either side? rational from federal stories conversations to out the term

You

John Rademacher

around of access midterms. work think around to working, I Infusion get we're unfortunately, the be Yes. I Home answer right to support national now. home There's lot there's patient just bipartisan that There's can with with independently the act wait to of priorities get the the and a doing everything common happening quarter-by-quarter. Look, with it's Act. both a lot association of in we preserving behind give -- Congress It’s a and that scenes see what lot And to infusion Washington happens fix. to legislative of is that a kind

Washington, sing the Medicare of exists always we're and now the mountain look, guess, current from that for get as of many disadvantage hard pulling infusion top guess and from to hope to, reimbursement try hazard and priority common lot to understand that would to beneficiaries, that right a prevail, just structure. but will given a to the there's things are continue it's But it's really one on the sense So highest different going I home and the people praises perspective. that

Michael Petusky

follow-up. So just quick a

don't any policy, of like don't is you the sort kind So you feel move of this to sort some way any rational to in inflation fair? reimbursement needle of closer persisting that

John Rademacher

trying I don't inflationary really are of as do, recognition beneficiaries therapy, site utilize that where be that if total cost care care receiving home think the to does conversation those today. Medicare we've or to of the merits the for what are patients to that's and access trying fair. what I infusion would of they be anything been opposed first, the fact deficit to alternate of reduced a mean, I merits been do I think we've There to has support of think that. the

So CMS of for inflation of the care a services. is certainly misunderstanding an aspect value of place that. there's and home within just as virtues around But the fundamental infusion being a

Michael Petusky

much. so you Thank you. Got

John Rademacher

Yes.

welcome. You're

Operator

would I to closing to showing am I John turn conference for And Rademacher no now the further like remarks. questions.

John Rademacher

morning third interest you your Yes. this for Care Health. our attending Option call in quarter and Thank for

are and are and strength we care As executing be confident and Take very a team. platform the you the our productive had of quarter and we well. strategy we the in third heard,

Operator

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

now may disconnect. You

Option Care Health (OPCH) 27 Oct 222022 Q3 Earnings call transcript