Option Care ‘out hustles’ competition

BANNOCKBURN, Ill. – Option Care Health’s revenue growth accelerated during the second quarter, despite a lingering hangover from a massive cyberattack that struck the broad health care continuum in February, said company execs. 

“The team has made significant progress in managing through and recovering from these challenges,” said CEO John Rademacher on a call to discuss financial results for the second quarter of 2024. “Building upon the momentum exiting the first quarter, the top line continues to perform well.” 

Option Care reported revenue of $1.2 billion for the second quarter, an increase of 14.8% year over year. 

In particular, the company has “re-established” connectivity with Change Healthcare and established new relationships with other service providers, Rademacher said, allowing the company’s revenue cycle operations to recover “substantially.” 

“Having said that, we still have some receivables to be posted, and patient-pay collections have been delayed,” he said. “This continues to be an area of focus, and we expect there to be some modest inefficiencies in the third quarter as we complete our recovery.” 

Option Care’s cash flow has also recovered, with the company reporting nearly $196 million from operations during the quarter, positioning it to re-engage on capitol deployment efforts, including the repurchase of approximately $78 million in stock during the second quarter, and assess future acquisition targets. 

“I think there are a number of assets that we find intriguing that we think represent both strategic and economic value,” said Mike Shapiro, CFO. “As we like to say, this is a small neighborhood. We know everybody that lives on the street and we're not waiting for a process. We're very proactive in having those corporate development discussions.” 

Option Care expects the home infusion market to grow in the mid-single-digit range and the company is focused on beating that with growth in the high-single-digit range, despite unknown factors, including physician prescribing patterns.  

“We’re going to try to take every advantage that we have,” Shapiro said. “Our expectations of our commercial team are that we’re out hustling the competition and that we’re going to continue to be the partner of choice for referral sources, for payers, etc.” 

• Option Care detailed how it handled the Change Healthcare cyberattack.