Amedisys Reveals Option Care Health Merger Details

Amedisys Inc. (Nasdaq: AMED) is answering additional questions about its potential merger with Option Care Health (Nasdaq: OPCH), which was first announced earlier this month.

The company filed these responses as part of its 425 SEC filing and added them to its site on Thursday for viewing by interested parties, employees and the public.

The company said it received many responses to questions about the emails Amedisys received the most.

One of the responses referred to why the contract with Option Care is called a “combination”.

The transaction represents a stock-by-stock combination of the two companies, according to Amedisys’ SEC filings. Upon completion of the transaction, OptionCare shareholders will own 64.5% of the combined company’s shares and Amedisys shareholders will own 35.5% of the shares. The transaction is expected to close in the second half of 2023.

The company also touched on its plans for what the combined management team will look like.

“The combined company will be led by the best talent from both teams and will be able to leverage the complementary services, cultures, expertise and strengths of both companies,” Amedisys said in its SEC filing. .

The merger of Amedisys and OptionCare will enable the combined companies to provide home care, hospice care, palliative care, critical care and IV services. This will drive further diversification of payers as a consolidated entity and the deal will create colocation opportunities across multiple locations.

For now, the Amedisys leader will remain in his current role. Option Care CEO John C. Rademacher and his CFO Mike Shapiro will lead the combined company in their current roles.

However, Amedisys President and CEO Richard Ashworth will assume a role of special advisor to Mr. Radmacher. His acting COO and CFO of Amedisys, Scott Ginn, will remain a member of the management team going forward.

In the filing, Amedisys commented not only on Contessa Health’s branding, but also on the company’s future.

“Option Care Health recognizes the value and legitimacy of the Amedisys name and brand that we have established over the past 41 years, which was part of the appeal of wanting to partner with us.” writes Amedisis. “The same goes for the Contessa name and brand.”

Contessa brings emergency care to the home and partners with health systems and plans. Amedisys will buy the company in 2021 for $250 million. Since then, Amedisys has been a major focus of Amedisys over the years.

In addition, Amedisys will continue to operate in “traditional” locations such as Baton Rouge and Nashville, where it is headquartered.

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