Option Care monitors ‘vigorous’ competition

BANNOCKBURN, Ill. – The trend of payers integrating with providers, including Elevance Health’s recent acquisition of Paragon Healthcare, a Texas-based infusion provider, is a shift that Option Care Health is keeping a close eye on, says CEO John Rademacher. 

“They're vigorous competitors and so we take that full view as we're approaching the marketplace,” he said on a recent call to discuss the company’s fourth quarter and full year earnings. “Our ability to be in network with those payers is something that we've worked very hard to make certain that we achieve, and we will continue to foster those relationships and be a partner of choice for the plans as they're trying to find place for their members to receive high quality care.” 

Finishing strong 

It was a “solid finish” for Option Care in 2023 – its fifth year reporting financial results post-merger with BioScrip – and executives say they are focused on “the road ahead.” 

“Reflecting back to 2019, when we completed the merger, we socialized the combined enterprise at the time as generating roughly $2.7 billion in revenue and roughly $200 million in pro forma adjusted EBITDA,” said Mike Shapiro, CFO. “Four years later, we've increased revenue by 50% to $4.3 billion and more than doubled adjusted EBITDA to $425 million. We've also driven dramatic improvements in our balance sheet. And while we're proud of how far we've come, we're equally excited about the road ahead.” 

Strengthening nursing platform 

In 2023, Option Care treated more than 270,000 unique patients and expanded its portfolio of therapies and its network of ambulatory infusion suites. It also launched Naven Health, a nationwide home infusion nursing network, which is critical to the company’s overall growth strategy, says CEO John Rademacher. 

“The ability to have access to highly qualified nurses to be able to oversee the infusions and oversee the care for our patients is something that enables us to continue to grow,” he said. “So, a lot of focus, not only internally on Option Care Health, around recruiting our team members every day of recruiting and creating a great place to work. But then also the investments that we're making in Naven will allow us to have that additional capacity and that additional growth driver for us as we move ahead.”