OPERATING AND REPORTABLE SEGMENTS

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

OPERATING AND REPORTABLE SEGMENTS

As a result of the Company entering into a 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-injectible 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.

The Company's chief operating decision maker evaluates segment performance and allocates resources based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as loss from continuing operations, net of income taxes adjusted for net interest expense, income tax 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, severance and other employee costs; and restructuring 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)

	Three Months Ended March 31,
	2012			2011
Results of Operations:
Revenue:
Infusion Services - product revenue	$	106,803		$	89,782
Infusion Services - service revenue	2,250			1,943
Total Infusion Services revenue	109,053			91,725
Home Health Services - service revenue	16,711			17,208
PBM Services - service revenue	29,869			21,904
Total revenue	$	155,633		$	130,837
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services	$	7,783		$	9,284
Home Health Services	1,080			1,006
PBM Services	6,098			6,123
Total Segment Adjusted EBITDA	14,961			16,413
Corporate overhead	(6,582		)	(6,650		)
Interest expense, net	(6,569		)	(6,612		)
Income tax benefit	502			417
Depreciation	(1,931		)	(1,333		)
Amortization of intangibles	(879		)	(819		)
Stock-based compensation expense	(966		)	(1,132		)
Acquisition, integration, severance and other employee costs (1)	(259		)	—
Restructuring expense	(300		)	(1,299		)
Loss from continuing operations, net of income taxes	$	(2,023	)	$	(1,015	)
(1) Current year costs primarily related to legal and financial advisory fees associated with potential acquisitions.
Supplemental Operating Data
Total Assets
Infusion Services	$	355,657		$	353,999
Home Health Services	66,579			64,672
PBM Services	37,576			40,418
Corporate unallocated	20,785			22,615
Assets from discontinued operations	49,181			59,005
Assets associated with discontinued operations, not sold	144,258			136,393
Total	$	674,036		$	677,102