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

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John Rademacher: Yes. Look, Lisa, we continue to work upstream with biopharma and have a pretty robust pipeline of new products that are moving through the clinical trial phase and moving that forward, things in short bowel syndrome, things in continued areas of neurological disorders, et cetera. And look, we’ve got strong relationships with some of the launches of products like and others as those moved into the marketplace. Our goal is, we always look to have one to three new launches on a yearly basis, and the team is working efficiently and effectively in order to do that. And so, we feel — we’ve always got to be focused around that regeneration of the product portfolio as new products emerge as others hit the end of their life cycle through the process.

And I think the team feels really good about the relationships that we’ve built about the access to some of those products, whether it will be limited distribution products or others. And I think you’ll see a continued, as we have historically a launch of anywhere between one and three new products as we go through 2023.

Lisa Gill: And then, John, just secondly, when we first started talking a couple of years ago about the competitive landscape, it was — we think the hospitals are going to try to regain some of this market share, COVID push people to places like Option Care. And then we hear about some of your other competitors having issues around staffing, et cetera, and you being in a much better position. Can you maybe just help us square away how to think about the current competitive marketplace and how you’re thinking about that for 2023 and beyond. You made in your comments that you were able to have reasonable rate increases with managed care. We’ve talked to managed care, they’re really happy with the services from Option Care and keeping people out of the higher cost settings. So any comments that you can get around how to think about the competitive landscape going forward would be really helpful.

John Rademacher: Yeah. Look, I mean, Mike, I guess seemed to be paranoid and quite frankly, it is extremely competitive from that. And we know that we’ve got to win every single patient in that process. However, when you look at the platform that we’ve created, when you think of the consistency of the quality of care that we’re able to deliver and our access to the clinical resources that are necessary to make that transition of care and then be able to serve those patients. We feel like we’re in a really strong position to continue to deepen those partnerships with our referral sources and be a partner of choice as they’re helping to decide how to transition patients on to care. Look, we’re always going to have that tension with the hospital outpatient departments as they’re trying to add value into their infrastructure, and they’re looking at ways to maintain the relationships where they can.

Our ability to have that flexibility and that ease of doing business with the clinical resources is a big part of where we win. The depth of the relationships and the investments that we make in embedding nurses into hospitals to help with that transition of care and do the training and education of the patients as they’re getting ready to be discharged, again, helps support the overall desire of everyone on the care team to deliver the highest quality care at the most appropriate cost. So we feel like we’re well positioned. Again, we talked before about our commercial team and their focus around reach and frequency of making certain that we have a clear understanding of segmentation in the marketplace that we’re calling on the right call point that we’re investing and developing those relationships.

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