OPERATING AND REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

OPERATING AND REPORTABLE SEGMENTS

In accordance with ASC Topic 280, Segment Reporting (“ASC 280”), and based on the nature of the Company's services, the Company has two operating and reportable segments: Infusion/Home Health Services and Pharmacy Services.

The Infusion/Home Health 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 requires 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-injectible therapies. Home health services include 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 Pharmacy Services operating and reportable segment consists of our traditional and specialty pharmacy mail operations, community pharmacies and integrated PBM services, which includes discount cash card programs. These segment operations are designed to offer customers and patients cost-effective delivery of traditional and specialty pharmacy products and services. The services also include care management programs customized to each patient's care plan in coordination with the patient's physician.

The Company's chief operating decision maker evaluates segment performance and allocates resources based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as net income (loss) adjusted for net interest expense, loss on extinguishment of debt, income tax expense, depreciation, amortization of intangibles and stock-based compensation expense and prior to the allocation of certain corporate expenses. Segment Adjusted EBITDA excludes acquisition, integration, severance and other employee costs; restructuring expense, write-off of receivables related to the CAP contract and legal settlement expense. 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,
	2011			2010			2009
Results of Operations:
Revenue:
Infusion/Home Health Services - product revenue	$	372,616		$	311,932		$	143,399
Infusion/Home Health Services - service revenue	78,391			65,283			4,821
Total Infusion/Home Health Services revenue	451,007			377,215			148,220
Pharmacy Services - product revenue	1,250,333			1,196,063			1,119,220
Pharmacy Services - service revenue	116,686			65,345			62,085
Total Pharmacy Services revenue	1,367,019			1,261,408			1,181,305
Total revenue	$	1,818,026		$	1,638,623		$	1,329,525
Adjusted EBITDA by Segment before corporate overhead:
Infusion/Home Health Services	$	45,352		$	43,460		$	10,642
Pharmacy Services	58,020			40,727			45,755
Total Segment Adjusted EBITDA	103,372			84,187			56,397
Corporate overhead	(29,906		)	(35,006		)	(30,705		)
Interest expense, net	(28,306		)	(27,647		)	(1,920		)
Loss on extinguishment of debt	—			(9,561		)	—
Income tax (expense) benefit	(1,323		)	(47,728		)	40,553
Depreciation	(10,687		)	(8,556		)	(5,033		)
Amortization of intangibles	(5,189		)	(3,773		)	—
Stock-based compensation expense	(4,466		)	(3,320		)	(3,419		)
Acquisition, integration, severance and other employee costs (1)	(1,938		)	(7,608		)	(1,774		)
Restructuring expense	(8,885		)	(3,495		)	—
Legal settlement	(4,800		)	(3,893		)	—
Bad debt expense related to contract termination	—			(2,742		)	—
Net (loss) income:	$	7,872		$	(69,142	)	$	54,099
(1) Current year costs primarily related to officer severance. Prior year costs primarily related to the acquisitions of CHS and DS Pharmacy.
Supplemental Operating Data
Capital Expenditures:
Infusion/Home Health Services	$	4,162		$	3,772		$	343
Pharmacy Services	1,592			4,833			3,501
Corporate unallocated	3,690			2,245			1,895
Total	$	9,444		$	10,850		$	5,739
Depreciation Expense:
Infusion/Home Health Services	$	5,292		$	3,464		$	1,185
Pharmacy Services	4,094			4,014			2,852
Corporate unallocated	1,301			1,078			996
Total	$	10,687		$	8,556		$	5,033

Total Assets
Infusion/Home Health Services	$	420,172	$	413,067	$	35,744
Pharmacy Services	234,315		225,546		200,337
Corporate unallocated	22,615		25,373		51,139
Total	$	677,102	$	663,986	$	287,220
Goodwill
Infusion/Home Health Services	$	299,643	$	299,643	$	—
Pharmacy Services	24,498		24,498		24,498
Total	$	324,141	$	324,141	$	24,498