BASIS OF PRESENTATION

We are a national provider of infusion solutions with nearly 70 service locations around the U.S. We partner with physicians, hospital systems, skilled nursing facilities, and healthcare payors to provide patients with access to post-acute care services. We are committed to bringing customer-focused healthcare infusion therapy services into the home or alternate site setting. By collaborating with the full spectrum of healthcare professionals and the patient, we aim to provide cost-effective care that is driven by clinical excellence, customer service and values that promote positive outcomes and an enhanced quality of life for those whom we serve.

We operate in one segment, Infusion Services, and accordingly, we do not present disaggregated segment information.

These Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements, including the notes thereto, and other information included in the Annual Report on Form 10-K of BioScrip, Inc. and its wholly-owned subsidiaries (the “Company”) for the year ended December 31, 2017 (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”). These Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The information furnished in these Unaudited Consolidated Financial Statements reflects all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Operating results for the interim periods presented require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes and are not necessarily indicative of the results that may be expected for the full year.

The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Prior period financial statement amounts have been reclassified to conform to current period presentation.

Immaterial Error Correction

During the fourth quarter of 2017, the Company determined that certain prior period balances contained errors, predominantly due to a failure to appropriately account for and resolve transactions specific to suspense and clearing accounts. Management evaluated the materiality of the errors quantitatively and qualitatively, and concluded that they were not material to the financial statements of any period presented, but has elected to correct them in the accompanying prior period consolidated financial statements.

The following tables set forth the effect these corrections had on the Company’s unaudited consolidated statements of operations for the three and nine months ended ended September 30, 2017:



	Three Months Ended September 30, 2017									Nine Months Ended September 30, 2017
	Previously Reported			Corrections			Revised			Previously Reported			Corrections			Revised
Net revenue	$	198,692		$	—		$	198,692		$	634,608		$	—		$	634,608
Gross profit	67,176			(613		)	66,563			201,070			(2,022		)	199,048
Total Operating Expenses	66,345			(144		)	66,201			221,128			(497		)	220,631
Interest expense	13,175			185			13,360			38,635			14			38,649
Loss from continuing operations, net of income taxes	(12,404		)	(654		)	(13,058		)	(60,090		)	(1,538		)	(61,628		)
Income (loss) from discontinued operations, net of income taxes	(113		)	179			66			(1,053		)	447			(606		)
Net loss	$	(12,517	)	$	(475	)	$	(12,992	)	$	(61,143	)	$	(1,091	)	$	(62,234	)

Certain amounts disclosed in the accompanying notes to the financial statements have been revised to reflect the corrections.