Profile: Omnicare Inc (OCR)
26 May 2015
Omnicare, Inc. (Omnicare), incorporated on January 15, 1981, is a healthcare services company. The Company specializes in the management of complex pharmaceutical care. The Company operates through two business segments, Long-Term Care Group (LTC) and Specialty Care Group (SCG), each serving a different customer population but sharing a common objective: advancing health outcomes at the lowest possible cost. Through LTC, Omnicare provides pharmaceuticals and related pharmacy and ancillary services to long-term care facilities as well as chronic care facilities and other settings. SCG provides specialty pharmacy and commercialization services for the biopharmaceutical industry. Omnicare leverages its specialized clinical capabilities and technology solutions across both primary businesses. Omnicare services customers across the United States. In 2013, the Company's end-of-life hospice pharmacy business (Hospice) as well as certain retail operations (Retail) qualified for discontinued operations treatment. The results from operations for all periods presented have been revised to reflect the results of these businesses as discontinued operations, including related expenses.
Long-Term Care Group
Omnicare operates the institutional pharmacy business in the United States. LTC's customers consist of skilled nursing facilities (SNFs), assisted living facilities (ALFs), independent living communities, hospitals, correctional facilities, and other healthcare service providers. In light of a customer mix that is penetrated in the senior market, the Company has high insight into geriatric pharmaceutical care. As of December 31, 2013, LTC provided its pharmacy services in the United States in 47 states and the District of Columbia. LTC comprised approximately 77% of the Company’s total net sales during the year ended December 31, 2013, and dispensed approximately 112.5 million prescriptions. In addition to pharmaceutical distribution, the Company provides value to its customers through its extensive clinical services, its customer-facing technology offerings and the speed at which it transition residents of its customers' facilities to lower-cost generic pharmaceuticals. With respect to the Company’s clinical services, it provides pharmacy consulting, including monthly patient drug therapy evaluations, assist in compliance with state and federal regulations and provide proprietary clinical and health management programs. LTC also provides a suite of technology solutions based largely on its Omniview web-based platform that is intended to improve the efficiency of its customers' operations through such tools as the electronic ordering of prescription refills, proof-of-delivery tracking, and real-time validation of Medicare Part D coverage, among others. LTC also provides a number of other products and services, including intravenous medications and nutrition products (infusion therapy products and services), respiratory therapy services, and clinical care planning. The Company also provides pharmaceutical case management services for retirees, employees and dependents who have drug benefits under corporate-sponsored healthcare programs.
The Company purchase, repackage and dispense prescription and non-prescription medication in accordance with physician orders and deliver such prescriptions to long-term care facilities for administration to individual residents (by the facilities’ nursing staff for SNFs). It service long-term care facilities typically within a radius of approximately 150 miles of its pharmacy locations and maintain a 24-hour, seven-day per week, on-call pharmacist service for emergency dispensing and delivery, and for consultation with the facility's staff or attending physician. The Company’s pharmacy infrastructure is based on a hub-and-spoke network composed of 116 spoke pharmacies intended to handle new prescription orders and 32 hub pharmacies that use proprietary automation to support spoke pharmacies with refill prescriptions (in addition to filling new prescription orders in their respective local markets). The use of automation within its pharmacies leverages its size and improves its dispensing accuracy. In conjunction with the Company’s drug distribution system, its computerized record keeping/documentation system is designed to result in greater efficiency in nursing time, improved control and reduced waste in client facilities, and lower error rates in both dispensing and administration.
The Omnicare Geriatric Pharmaceutical Care Guidelines, supplementing the various clinical services Omnicare provides, the Company offers client facilities and their attending physicians a guide to pharmaceutical treatment of the elderly called the Omnicare Geriatric Pharmaceutical Care Guidelines (Omnicare Guidelines). It believes the Omnicare Guidelines is the first drug formulary ranking drugs by disease state according to their clinical effectiveness independent of their cost, specifically designed for the elderly. The Omnicare Guidelines ranks drugs used for specific diseases as preferred, acceptable or unacceptable based solely on their disease-specific clinical effectiveness. The Omnicare Guidelines takes into account such factors as pharmacology, safety and toxicity, efficacy, drug administration, quality of life and other considerations specific to the frail elderly population. The Omnicare Guidelines is also integrated into its primary customer-facing technology platform, Omniview.
Omniview, the primary component of its customer-facing technology suite, Omniview, provides the Company’s long term care facility customers with an innovative technological platform to improve efficiencies within their operations. The Company’s technologies allow web-based access to electronic medical records, automated pharmacy billing, on-line medication refills and returns processing, census tracking, pre-admission medication assessment and access to the Omnicare Guidelines. The Company’s MyOmniview web-portal is designed to address patients' and family member needs by allowing access to the patients' health records, billing information and pharmaceutical information. It also offer OmniviewDr as the physician-facing part of Omniview's technology portal, providing prescribers the ability to view patient health records, approve prescription refill requests, and view a comprehensive document library, among other time-saving and patient care-enhancing features.
Specialty Care Group
SCG touches a broad spectrum of the healthcare continuum, serving the needs of biopharmaceutical manufacturers, physicians, nurses, caregivers and patients. The Company’s SCG services are centered on the specialty pharmaceutical market and revolve around four platforms: brand support services, supply chain solutions, patient support services and specialty pharmacy. By integrating these services across SCG's platforms, it is able to provide its manufacturer clients one end-to-end solution for all of their needs. The Company’s brand support services, supply chain solutions and patient support services are integrated; fee-for-service platforms which focus on helping the drug manufacturer to market, distribute and obtain reimbursement for their products. In its specialty pharmacy platform, The Company provide dispensing of specialized pharmaceuticals that are high cost, have complex reimbursement and supply chain challenges, have limited patient populations and are not available through normal retail channels. These specialized drugs deal with specific categories of drugs and disease states, such as rheumatoid arthritis, multiple sclerosis, oncology and growth hormones. SCG accounted for approximately 23% of the Company’s total net sales during as of December 31, 2013.
The Company competes with PharMerica Corporation.
201 E 4th St
CINCINNATI OH 45202-4248
Company Web Links
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