OPERATING AND REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2012

OPERATING AND REPORTABLE SEGMENTS [Abstract]

Segment Reporting Disclosure [Text Block]

OPERATING AND REPORTABLE SEGMENTS

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 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 card programs. The discount 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 receive prescription medications at a discounted price compared to the retail 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 and integration expenses; restructuring and other 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)

	Years Ended December 31,
	2012			2011				2010
Results of Operations:
Revenue:
Infusion Services - product revenue	$	471,506		$	365,526			$	306,688
Infusion Services - service revenue	10,080			8,756			1,000	9,019
Total Infusion Services revenue	481,586			374,282				315,707
Home Health Services - service revenue	69,190			69,635				56,264
PBM Services - service revenue	111,861			110,589				58,736
Total revenue	$	662,637		$	554,506			$	430,707
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services	$	36,764		$	35,128			$	37,853
Home Health Services	5,401			5,954				4,839
PBM Services	25,659			30,122				18,549
Total Segment Adjusted EBITDA	67,824			71,204				61,241
Corporate overhead	(26,755		)	(23,308		)		(29,830		)
Interest expense, net	(26,067		)	(25,542		)		(23,560		)
Loss on extinguishment of debt	—			—				(2,954		)
Income tax benefit (expense)	4,439			(435		)		(48,700		)
Depreciation	(8,513		)	(6,591		)		(5,379		)
Amortization of intangibles	(3,957		)	(3,376		)		(2,522		)
Stock-based compensation expense	(6,122		)	(4,467		)		(3,320		)
Acquisition and integration expenses	(4,046		)	—				(5,924		)
Restructuring and other expenses	(5,143		)	(7,909		)		(3,985		)
Bad debt expense related to contract termination	—			—				(2,742		)
Net loss from continuing operations, net of income taxes	$	(8,340	)	$	(424	)		$	(67,675	)
Supplemental Operating Data
Capital Expenditures:
Infusion Services	$	6,685		$	4,826			$	2,967
Home Health Services	171			170				276
PBM Services	—			—				—
Corporate unallocated	4,130			2,857				3,487
Total	$	10,986		$	7,853			$	6,730
Depreciation Expense:
Infusion Services	$	4,347		$	5,242			$	3,156
Home Health Services	111			48				64
PBM Services	—			—				—
Corporate unallocated	4,055			1,301				2,159
Total	$	8,513		$	6,591			$	5,379

Total Assets
Infusion Services	$	438,623	$	353,999	$	322,577
Home Health Services	62,403		64,672		92,821
PBM Services	36,354		40,418		26,118
Corporate unallocated	95,813		24,348		19,581
Assets from discontinued operations	—		59,005		73,022
Assets associated with discontinued operations, not sold	9,183		134,660		129,869
Total	$	642,376	$	677,102	$	663,988
Goodwill
Infusion Services	$	304,282	$	265,859	$	265,859
Home Health Services	33,784		33,784		33,784
PBM Services	12,744		12,744		12,744
Total	$	350,810	$	312,387	$	312,387