OPERATING AND REPORTABLE SEGMENTS

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

As a result of the Company entering into the Asset Purchase Agreement on February 1, 2012 with respect to the sale of its traditional and specialty pharmacy mail operations and community retail pharmacy stores, the Company reevaluated its operating and reportable segments in accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting (“ASC 280”). Based on its review, the Company changed its operating and reportable segments from “Infusion/Home Health Services” and “Pharmacy Services” to its new operating and reportable segments: “Infusion Services", "Home Health Services” and “PBM Services”. These three new operating and reportable segments reflect how the Company's chief operating decision maker reviews the Company's results in terms of allocating resources and assessing performance. Prior period disclosures reflect the change in reportable segments.

The Infusion Services operating and reportable segment provides services consisting of home infusion therapy, respiratory therapy and the provision of durable medical equipment, products and services. Infusion services include the dispensing and administering of infusion-based drugs, which typically require additional nursing and clinical management services, equipment to administer the correct dosage and patient training designed to improve patient outcomes. Home infusion services also include the dispensing of self-injectable therapies.

The Home Health Services operating and reportable segment provides services including the provision of skilled nursing services and therapy visits, private duty nursing services, hospice services, rehabilitation services and medical social services to patients primarily in their home.

The PBM Services operating and reportable segment consists of integrated pharmacy benefit management ("PBM") services, which primarily consists of discount cash card programs. The discount cash card programs provide a cost effective alternative for individuals who may be uninsured, underinsured or may have restrictive coverage that disallows reimbursement for certain medications. Under these discount programs, individuals who present a discount card at one of the Company's participating network pharmacies or who order medications through one of the Company's participating mail service pharmacies receive prescription medications at a discounted price compared to the retail or "cash" price. In addition, in the Company's capacity as a pharmacy benefit manager, it has fully funded prescription benefit programs where the Company reimburses its network pharmacies and third party payors in turn reimburse the Company based on Medi-Span reported pricing for those claims fulfilled for their plan participants.

The Company's chief operating decision maker evaluates segment performance and allocates resources based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as income (loss) from continuing operations, net of income taxes adjusted for net interest expense, income tax expense (benefit), depreciation, amortization of intangibles and stock-based compensation expense and prior to the allocation of certain corporate expenses. Segment Adjusted EBITDA excludes acquisition, integration, and transitional expenses; restructuring expense; and other expenses related to the Company's strategic assessment. Segment Adjusted EBITDA is a measure of earnings that management monitors as an important indicator of operating and financial performance. The accounting policies of the operating and reportable segments are consistent with those described in the Company's summary of significant accounting policies.

Segment Reporting Information

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Results of Operations:
Revenue:
Infusion Services - product revenue	$	123,361		$	87,869		$	338,721		$	265,368
Infusion Services - service revenue	2,575			2,376			7,242			6,455
Total Infusion Services revenue	125,936			90,245			345,963			271,823
Home Health Services - service revenue	17,299			17,548			50,870			52,429
PBM Services - service revenue	27,130			26,036			85,066			71,989
Total revenue	$	170,365		$	133,829		$	481,899		$	396,241
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services	$	9,931		$	7,557		$	25,740		$	25,181
Home Health Services	1,402			1,663			3,557			4,456
PBM Services	6,905			7,961			19,367			20,848
Total Segment Adjusted EBITDA	18,238			17,181			48,664			50,485
Corporate overhead	(6,625		)	(5,442		)	(19,665		)	(17,454		)
Interest expense, net	(6,497		)	(6,528		)	(19,705		)	(19,375		)
Income tax benefit	2,506			1,862			2,644			2,406
Depreciation	(2,134		)	(1,784		)	(6,115		)	(4,764		)
Amortization of intangibles	(1,087		)	(858		)	(2,844		)	(2,496		)
Stock-based compensation expense	(1,687		)	(1,731		)	(4,398		)	(3,983		)
Acquisition, integration and transitional expense	(2,881		)	(1,284		)	(4,562		)	(1,284		)
Restructuring expense	(438		)	(1,750		)	(940		)	(6,524		)
Loss from continuing operations, net of income taxes	$	(605	)	$	(334	)	$	(6,921	)	$	(2,989	)
Supplemental Operating Data
							September 30, 2012			December 31,  2011
Total Assets
Infusion Services							$	427,437		$	353,999
Home Health Services							68,270			64,672
PBM Services							40,982			40,418
Corporate unallocated, including cash and cash equivalents							101,501			24,348
Assets from discontinued operations							—			59,005
Assets associated with discontinued operations, not sold							18,630			134,660
Total							$	656,820		$	677,102