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

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John Rademacher: Yeah. And with that, Matt, the only other thing I would add is, look, we deploy enhancements to the technology on a regular basis as we do new releases of the different aspects of our platform. Team has done a tremendous amount of work to look for opportunities to take repetitive process automation into our infrastructure to take a look and say, how do we streamline those processes, where can we have our team members working at the highest level of their attitude or the highest level of their licensure. And wherever we can to take waste and cost out of the process through technology, deployment and automation with repetitive tasks that are kind of lower in that process. Certainly, in the areas of revenue cycle management and some of the patient administration, there are areas in which we continue to push on there.

And as Mike said, the technology that we’ve deployed within the four walls of the pharmacy allows us to become more efficient in the way that we are looking to compound dispense and distribute the products to the patient. So all in all, look, we’re going to push on every single lever. I think as we’ve talked about before, I mean, we fight for every basis point of cost improvement wherever we can. And we believe that there’s still opportunity for us to innovate around our policy procedures and the technology to make certain that we are utilizing our team members as efficient and effective as possible.

Matthew Larew: Okay. Thank you.

John Rademacher: Thanks, Matt.

Operator: Thank you. Our next question comes from the line of Lisa Gill with JPMorgan. Your line is open.

Lisa Gill: Thanks very much. Good morning. I just want to go back to your comments around revenue for 2023. Mike, I appreciated the 2% headwind that you talked about. So continue to look at it on a same-store basis of 7% to 13% growth. I understand that chronic is growing faster. But are there any new drugs or new therapies that you’re looking to when we think about that revenue driver for 2023? And then secondly, as we think about acute versus chronic, are you giving similar guidance to what we’ve seen historically, which is kind of single-digit growth for acute and double-digit growth for chronic? Is there any changes around that trajectory as we think about ’23?

Michael Shapiro: Yeah, Lisa. Good morning. I’ll start and maybe let John provide some color — commentary. The other thing in our revenue base, we’re actually looking at about 1 point of ASP headwinds. We’ve seen some price compression in some of the antibiotics as well as the chronic inflammatories in infliximab categories, where, again, I think it underscores the fact that our revenue base is quite dynamic with dozens of therapy categories, dozens of ASPs and other dynamics. We don’t break it out in too granular of a manner. But we did want to highlight that, look, there is a couple of therapies that are being disrupted through other therapies. And I didn’t include it in my prepared remarks. But overall, we’re probably going to see about a full point of ASP headwind.

And again, as we talked about the longer-term trajectory of a high-single digit enterprise, we’ve never really banked on any ASP tailwinds or headwinds because, again, there’s always a lot of moves. And so, we always try to anchor that just around high single-digit volume growth. Maybe I’ll let John talk about some of the emerging therapies.

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