Option Care Health, Inc. (NASDAQ:OPCH) Q4 2022 Earnings Call Transcript

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So really appreciate the great work that the team is doing there and moving that ahead. We think that gives us an incredible platform as we’re thinking about clinical resources moving forward, certainly in the nursing area, but also as we’re looking to expand beyond that. And so, we’re continuing down that path. We are continuing to look to find adjacencies as we’re thinking more broadly about the post-acute space. Certainly, you saw in the — or heard in the commentary of the overview, the ambulatory infusion suites are incredibly beneficial to not only our operating efficiencies, but also our patient satisfaction scores. And so, we’re going to continue down that path. We love the strength of the balance sheet as we kind of outlined. We think that we have a lot of flexibility to continue down the path of looking at M&A as being late to drive value to shareholders, and we’re going to continue that path moving forward.

David MacDonald: Thanks, guys. Just last question on the ambulatory infusion suites. If you just kind of do the math around the higher assumed percentage on chronic that’s growing more quickly, any reason to not think that, that percentage should continue to grind 100 basis points or so higher per year? And then secondly, just any thoughts around suites that potentially have a few more chairs. Can you talk about the potential leverageability of that or not?

Michael Shapiro: Yeah. As you can pick up, Dave, we’re quite bullish on the infusion suite strategy. We’re in investment mode. The team has really refined our thinking around how we geo map to get maximum coverage and convenience. And what we found is, typically, these are three to four chairs. We do design them that if we had to expand and pass few more chairs in, we have that flexibility. And really, look, when we really started this as a strategy, we were in the high teens. And we’re, as John mentioned, approaching a quarter of all of our nursing events in these suites over a couple of years. And again, given that these are generally more tuned towards our chronic patient cohorts. And we’re — and given the growth profile of those therapies, we would absolutely expect that our penetration of our nursing events will continue to accrete higher, which, again, as John mentioned, helps us from patient access and satisfaction as well as helps us offset some of the inflationary headwinds.

David MacDonald: Okay. Thanks very much guys.

Michael Shapiro: Thanks, Dave.

Operator: Thank you. Our next question comes from the line of Matt Larew with William Blair. Your line is open.

Matthew Larew: Hey. Good morning. I wanted to follow-up on the contract labor utilization from last quarter related to some specific geographic market dynamics. Just how did that trend through the fourth quarter in terms of your contract rev utilization? How do you expect that to trend here in ’23? And then as you think about growing the clinician base in ’23, how do you expect that to balance between full-time and those on sort of the spin on Infinity platforms?

Michael Shapiro: Hey, Matt. It’s Mike. So look, in general, look, we — as we’ve outlined before, part of our labor strategy is to utilize contract labor. I would say, relative to others in health care services, our reliance on contract labor is not as concentrated. There are certain pockets and geographies where candidly it’s more efficient for us to lean on contract relationships. I think over time, our strategy has been to really build out our national platforms. And we track our nurse senses within our platform on a weekly basis. And our nursing roles have increased throughout 2022. And again, the per diem nature of the majority of that labor actually provides us with flexibility, and it’s one of our key recruiting attributes.

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