Second Half Margin Improvement
Q: What's driving margin improvement in the second half?
A: Margins are expected to increase to about 5.3%-5.4% EBITDA margin for the full year , up from 5.1% in the first half. This improvement is due to favorable calendar days, lower payroll taxes, strong volume growth—about 30% in pharmacy solutions and close to 10% in provider services—and operational initiatives focused on lean and automation. We also anticipate benefits from the hospice final rule in Q4.

Guidance Raise and EBITDA Growth
Q: How does the increased guidance reflect on EBITDA growth?
A: We raised our EBITDA guidance by $13 million , reflecting great momentum in the business. This growth is broad-based across both pharmacy and provider services, leveraging fixed costs and benefiting from operational efficiencies. We envision similar growth rates into 2025, potentially with upside from additional M&A.

Oncology Pipeline and Generics Impact
Q: How will upcoming oncology generics affect the business?
A: The oncology pipeline is robust, with over $90 billion of new brand oncology drug launches expected in the next seven years. Additionally, 11 big brand drugs are going generic over the next 6-7 years, starting with lenalidomide going generic in Q4. Generic conversions are beneficial and expected to positively impact our business.

Specialty Pharmacy Growth and LDD Launches
Q: What's driving growth in specialty pharmacy and LDD launches?
A: Growth is driven by brand growth through limited distribution drugs (LDDs), focus on high-value generics, and a large sales force. We have launched five LDD drugs so far this year and expect to win another 18 in the next 15 months, averaging one per month. These LDDs are accretive from day one.

Acquisition Pipeline and M&A Strategy
Q: Can you elaborate on the acquisition pipeline and strategy?
A: The acquisition pipeline is extremely full. We focus on highly accretive deals, typically at 4x pro forma EBITDA or less. Our strategy involves being judicious in selecting opportunities that augment growth while working towards a leverage target of 3x.

Haven Hospice Acquisition
Q: How does the Haven Hospice acquisition impact the business?
A: Acquiring Haven Hospice provides access to rare Florida Certificates of Need (CONs). By applying our operational best practices, we aim to grow this into a $15 million-plus EBITDA business over time. This will strengthen our presence in attractive markets.

Provider Segment Margin Sustainability
Q: Are the improved provider segment margins sustainable?
A: Yes, the 14% EBITDA margin in the provider segment is sustainable. This is supported by operational performance, volume growth, and a focus on quality and patient care.

Home Infusion Business Growth
Q: What's the outlook for the home infusion business?
A: With a presence in about 35 states, we have a strong national footprint. We're focusing on operational initiatives and investments, expecting home infusion to be a more meaningful driver in 2025 and beyond.

Cross-Selling and Integrated Care Opportunities
Q: How are you leveraging cross-selling within the provider division?
A: We're investing in resources to drive integrated care opportunities by building out a clinical nursing hub and an integrated care team. Our data is unified in one data lake, enabling coordinated care across services.

New Contracts and Market Share Gains
Q: What contributed to recent market share gains?
A: We continue to win significant new business, adding 35,000 to 40,000 new patients or beds from competitors this year. Our focus on service quality, a high-performing sales team, and technology enablement drives customer preference and growth.