OPERATING AND REPORTABLE SEGMENTS

6 Months Ended

Jun. 30, 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-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, severance and other employee costs; 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 June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Results of Operations:
Revenue:
Infusion Services - product revenue	$	108,557		$	87,717		$	215,360		$	177,499
Infusion Services - service revenue	2,416			2,136			4,667			4,079
Total Infusion Services revenue	110,973			89,853			220,027			181,578
Home Health Services - service revenue	16,860			17,673			33,571			34,881
PBM Services - service revenue	28,068			24,049			57,936			45,953
Total revenue	$	155,901		$	131,575		$	311,534		$	262,412
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services	$	8,026		$	8,340		$	15,809		$	17,624
Home Health Services	1,075			1,787			2,155			2,793
PBM Services	6,364			6,764			12,462			12,887
Total Segment Adjusted EBITDA	15,465			16,891			30,426			33,304
Corporate overhead	(6,458		)	(5,362		)	(13,040		)	(12,012		)
Interest expense, net	(6,790		)	(6,235		)	(13,359		)	(12,847		)
Income tax (expense) benefit	(364		)	127			138			544
Depreciation	(2,050		)	(1,647		)	(3,981		)	(2,980		)
Amortization of intangibles	(878		)	(819		)	(1,757		)	(1,638		)
Stock-based compensation expense	(1,745		)	(1,120		)	(2,711		)	(2,252		)
Acquisition, integration, severance and other employee costs	(1,271		)	—			(1,530		)	—
Restructuring expense	(202		)	(3,475		)	(502		)	(4,774		)
Loss from continuing operations, net of income taxes	$	(4,293	)	$	(1,640	)	$	(6,316	)	$	(2,655	)
Supplemental Operating Data
							June 30, 2012			December 31,  2011
Total Assets
Infusion Services							$	366,198		$	353,999
Home Health Services							66,557			64,672
PBM Services							39,756			40,418
Corporate unallocated, including cash and cash equivalents							169,996			22,615
Assets from discontinued operations							—			59,005
Assets associated with discontinued operations, not sold							32,411			136,393
Total							$	674,918		$	677,102