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BioScrip to divest home health services business
February 3rd, 2014
ELMSFORD, N.Y. – BioScrip Inc. has agreed to sell its home health business, Deaconess HomeCare, to LHC Group Inc. for $60 million in cash.
The deal, announced Monday, continues BioScrip's strategy to zero in on its home infusion business.
"This transaction represents another milestone in our plans to position BioScrip as a leader in the home infusion industry," Rick Smith, president and chief executive officer of BioScrip, said in a statement. "As we have shifted our focus toward infusion services, we have carefully considered how best to foster continued growth and success at each of our operating segments, and we believe this transaction is a win for both Deaconess and the company as a whole. This transaction will enhance BioScrip's financial flexibility to further benefit from the scale we built through our three recent infusion acquisitions, which have collectively deepened our strong clinical capabilities and customer relationships and provided us with a solid foundation from which to grow."
The transaction is expected to close by the end of the first quarter, subject to customary closing conditions.
BioScrip currently provides its infusion and home care services from 108 locations across 29 states.
"We believe our infusion strategy is delivering results, and going forward we remain focused on building our reputation for clinical excellence and driving profitability by optimizing the value of our remaining assets and capitalizing on the solid fundamentals of our infusion service model," Smith added.
BioScrip exited the community pharmacy business in 2012 with the sale of its national community specialty pharmacy network of 30 pharmacy locations in 16 states and the District of Columbia, primarily serving HIV, oncology and transplant patients, to Walgreen Co.
Walgreens also picked up assets of BioScrip's centralized specialty pharmacy business and traditional mail-service pharmacy. The latter unit had dispensed prescriptions for drugstore.com, acquired by Walgreens in June 2011. BioScrip had acquired drugstore.com's pharmacy operation in July 2010.
BioScrip began shifting its focus toward infusion/home health services with its $375 million acquisition of Critical Homecare Solutions (CHS), a provider of home infusion and nursing products and services to patients suffering from chronic and acute medical conditions. The deal, finalized in March 2010, created one of the nation's largest home care providers.