View Filing Data

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 0	$ 0
Receivables, less allowance for doubtful accounts	212,849	193,722
Inventory	37,977	66,509
Prepaid expenses and other current assets	12,980	16,696
Total current assets	263,806	276,927
Property and equipment, net	28,906	23,919
Goodwill	324,141	324,141
Intangible assets, net	26,411	30,096
Deferred financing costs	4,303	5,062
Other non-current assets	3,294	3,841
Total assets	650,861	663,986
Current liabilities
Current portion of long-term debt	51,979	81,352
Accounts payable	75,222	80,814
Claims payable	3,524	3,037
Amounts due to plan sponsors	22,943	19,781
Accrued interest	11,569	5,766
Accrued expenses and other current liabilities	38,942	36,040
Total current liabilities	204,179	226,790
Long-term debt, net of current portion	226,946	225,117
Deferred taxes	9,338	9,140
Other non-current liabilities	3,969	2,838
Total liabilities	444,432	463,885
Stockholders' equity
Preferred stock	0	0
Common stock	6	6
Treasury stock	(10,489)	(10,496)
Additional paid-in capital	373,412	368,254
Accumulated deficit	(156,500)	(157,663)
Total stockholders' equity	206,429	200,101
Total liabilities and stockholders' equity	$ 650,861	$ 663,986

PARENTHETICAL DATA TO CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets
Allowance for doubtful accounts	$ 20,459	$ 16,421
Stockholders' equity
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	57,361,222	57,042,803
Common stock, shares outstanding	54,656,554	54,118,501
Treasury stock, shares at cost	2,651,336	2,642,398

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Income Statement [Abstract]
Product revenue	$ 406,954	$ 404,167	$ 1,200,004	$ 1,096,593
Service revenue	47,067	36,986	134,717	91,658
Revenue	454,021	441,153	1,334,721	1,188,251
Cost of product revenue	353,958	344,405	1,034,752	947,624
Cost of service revenue	22,999	21,364	69,423	52,802
Cost of revenue	376,957	365,769	1,104,175	1,000,426
Gross profit	77,064	75,384	230,546	187,825
Selling, general and administrative expenses	60,721	55,950	176,842	146,978
Bad debt expense	3,718	5,309	13,379	12,536
Acquisition and integration expenses	0	595	0	6,694
Restructuring expense	3,454	0	8,644	0
Amortization of intangibles	1,244	1,326	4,004	2,196
Legal settlement	0	0	4,800	0
Income from operations	7,927	12,204	22,877	19,421
Interest expense, net	7,063	8,122	21,503	19,515
Income (loss) before income taxes	864	4,082	1,374	(94)
Income tax expense	316	2,117	211	1,981
Net income (loss)	$ 548	$ 1,965	$ 1,163	$ (2,075)
Income (loss) per common share
Basic	$ 0.01	$ 0.04	$ 0.02	$ (0.04)
Diluted	$ 0.01	$ 0.04	$ 0.02	$ (0.04)
Weighted average common shares outstanding
Basic	54,607,000	53,425,000	54,348,000	49,232,000
Diluted	55,338,000	54,210,000	55,054,000	49,232,000

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net (loss) income	$ 1,163	$ (2,075)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	7,824	6,211
Amortization of intangibles	4,004	2,196
Amortization of deferred financing costs	775	1,272
Change in deferred income tax	198	1,197
Compensation under stock-based compensation plans	3,982	2,726
Loss on disposal of fixed assets	157	125
Changes in assets and liabilities, net of acquired business:
Receivables, net of bad debt expense	(19,127)	1,972
Inventory	28,545	(10,834)
Prepaid expenses and other assets	4,270	(6,618)
Accounts payable	(5,592)	7,100
Claims payable	487	530
Amounts due to plan sponsors	3,162	3,051
Accrued interest	5,803	13,194
Accrued expenses and other liabilities	3,892	(14,157)
Net cash provided by operating activities	39,543	5,890
Cash flows from investing activities:
Purchases of property and equipment, net	(6,499)	(6,747)
Cash consideration paid to CHS, net of cash acquired	0	(92,464)
Cash consideration paid to DS Pharmacy	0	(4,969)
Cash consideration paid for asset acquisitions	(463)	0
Net cash used in investing activities	(6,962)	(104,180)
Cash flows from financing activities:
Cash consideration paid for Option Health earn-out	0	(1,000)
Proceeds from new credit facility, net of fees paid to issuers	0	319,000
Borrowings on line of credit	1,294,569	300,310
Repayments on line of credit	(1,325,882)	(330,699)
Repayments of capital leases	(2,568)	(72)
Principal payments on CHS long-term debt, paid at closing	0	(128,952)
Principal payments on long-term debt	0	(1,250)
Repayment of note payable	0	(2,250)
Deferred and other financing costs	(22)	(8,680)
Net proceeds from exercise of employee stock compensation plans	1,460	2,990
Surrender of stock to satisfy minimum tax withholding	(138)	(128)
Net cash (used in) provided by financing activities	(32,581)	149,269
Net change in cash and cash equivalents	0	50,979
Cash and cash equivalents - end of period	0	0
Cash and cash equivalents - end of period	0	50,979
DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	15,031	5,038
Cash paid during the period for income taxes, net of refunds	(3,175)	1,803
Capital lease obligations incurred to acquire property and equipment	$ 5,930	$ 0

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2011
Notes to Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION These Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements, including the notes thereto, and other information included in the Annual Report on Form 10-K of BioScrip, Inc. and subsidiaries (the “Company”) for the year ended December 31, 2010 (the “Form 10-K”) filed with the U.S. Securities and Exchange Commission. These Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished in these Unaudited Consolidated Financial Statements reflects all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2011. The accounting policies followed for interim financial reporting are similar to those disclosed in Note 2 of the Audited Consolidated Financial Statements included in the Form 10-K. The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Certain prior period amounts have been reclassified to conform to the current year presentation. Such reclassifications have no material effect on the Company’s previously reported consolidated financial position, results of operations or cash flow. The Company has evaluated events that occurred during the period subsequent to the balance sheet date through the filing date of this Form 10-Q. There have been no subsequent events that require recognition or disclosure in the Unaudited Consolidated Financial Statements.

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2011
Notes to Financial Statements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”). ASU 2009-13 amends ASC Topic 605-25, Revenue Recognition—Multiple-Element Arrangements (“ASC 605”). The update replaces the concept of allocating revenue consideration among deliverables in a multi-element revenue arrangement according to fair value with an allocation based on selling price. ASU 2009-13 also establishes a hierarchy for determining the selling price of revenue deliverables sold in multiple element revenue arrangements. The selling price used for each deliverable will be based on vendor-specific objective evidence (“VSOE”), if available, third-party evidence if VSOE is not available, or management’s estimate of an element’s stand-alone selling price if neither VSOE nor third-party evidence is available. The amendments in this update also require that an allocation of selling price among deliverables be performed based upon each deliverable’s relative selling price to total revenue consideration, rather than on the residual method previously permitted. ASU 2009-13 is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. The Company adopted ASU 2009-13 on January 1, 2011. The adoption of this statement did not have a material effect on the Company’s Unaudited Consolidated Financial Statements. In July 2011, the FASB issued ASU 2011-07, Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities (“ASU 2011-07”). ASU 2011-07 requires certain health care entities to change the presentation in their statement of operations by reclassifying the provision for bad debts associated with patient service revenue from an operating expense to a deduction from patient service revenue. Additionally, those health care entities are required to provide enhanced disclosure about their policies for recognizing revenue and assessing bad debts. The amendments also require disclosures of patient service revenue (net of contractual allowances and discounts) as well as qualitative and quantitative information about changes in the allowance for doubtful accounts. ASU 2011-07 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2011, with early adoption permitted. The amendments to the presentation of the provision for bad debts related to patient service revenue in the statement of operations are required to be applied retrospectively to all prior periods presented. The disclosures required by the amendments in ASU 2011-07 should be provided for the period of adoption and subsequent reporting periods. The Company is currently evaluating the impact of adopting ASU 2011-07 on its Unaudited Consolidated Financial Statements. In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment (“ASU 2011-08”). ASU 2011-08 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2011-08 on its Unaudited Consolidated Financial Statements.

ACQUISITIONS	9 Months Ended
ACQUISITIONS	Sep. 30, 2011
Notes to Financial Statements [Abstract]
ACQUISITIONS	NOTE 4 – ACQUISITIONS On July 29, 2010, the Company acquired the prescription pharmacy business and assets of DS Pharmacy, Inc. (“DS Pharmacy”), a wholly-owned subsidiary of drugstore.com, inc. The acquisition provides the Company with an expanded presence in on-line pharmacy and a six year license of drugstore.com capabilities, trademarks and trade names. In connection with the acquisition, the Company and drugstore.com entered into a Transitional Services Agreement and a Services Agreement pursuant to which, for a period of six years following the closing of the acquisition, drugstore.com will provide the Company with marketing services. The agreements also allow drugstore.com customers to continue to order from the Company through the drugstore.com website. The Company paid $5.0 million in cash upon closing and will pay an additional earn-out in cash based on the results of operations during the twelve month period following the closing. The agreements state that the final earn-out payment will be made in the fourth quarter, 2011. As of September 30, 2011 and December 31, 2010, there was a liability of $3.3 million and $4.2 million, respectively, which represented the estimated fair value of the earn-out payment included in accrued expenses and other current liabilities on the Consolidated Balance Sheets.

RESTRUCTURING EXPENSE

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

RESTRUCTURING EXPENSE

NOTE 5 — RESTRUCTURING EXPENSE

In the fourth quarter of 2010, the Company commenced a strategic assessment of its business and operations. This assessment focused on expanding revenue opportunities and lowering corporate overhead, including workforce and benefit reductions and facility rationalization. As a result of the execution of the strategic assessment and related restructuring plan, the Company incurred restructuring expenses of approximately $3.5 million and $8.6 million during the three and nine months ended September 30, 2011, respectively. Restructuring expenses during the three months ended September 30, 2011 consisted of approximately $1.4 million of facility-related costs, $1.0 million of third-party consulting costs, $0.4 million of employee severance and other benefit-related costs related to workforce reductions and $0.7 million of other costs. Restructuring expenses during the nine months ended September 30, 2011 consisted of approximately $4.1 million of third-party consulting costs, $1.9 million of employee severance and other benefit-related costs related to workforce reductions, $1.6 million of facility-related costs and $1.0 million of other costs.

Since inception of the strategic assessment and related restructuring plan, the Company has incurred approximately $12.1 million in total expenses, $5.2 million of third-party consulting costs, $4.3 million of employee severance and other benefit-related costs related to workforce reductions, $1.6 million of facility-related costs and $1.0 million of other costs. The Company anticipates additional restructuring expenses during the remainder of 2011 as a result of the execution of the strategic assessment and related restructuring plan.

The restructuring costs are included in restructuring expense on the Unaudited Consolidated Statements of Operations. As of September 30, 2011, there is a restructuring accrual of $4.4 million included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. The restructuring accrual activity consists of the following (in thousands):

	Employee Severance			Consulting			Facility-Related		Other
	and Other Benefits			Costs			Costs		Costs			Total
Liability balance as of December 31, 2010	$	3,387		$	433		$	-	$	-		$	3,820
Expenses incurred		1,917			4,070			1,630		1,027			8,644
Cash payments		(2,549	)		(4,453	)		-		(1,027	)		(8,029	)
Liability balance as of September 30, 2011	$	2,755		$	50		$	1,630	$	-		$	4,435

DEBT

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

DEBT

NOTE 6 – DEBT

As of September 30, 2011, the Company’s long-term debt consisted of the following obligations (in thousands):

Revolving credit facility	$	49,923
10¼% senior unsecured notes		225,000
Capital leases		4,002
		278,925
Less: obligations maturing within one year		51,979
Long term debt - net of current portion	$	226,946

As of September 30, 2011, the carrying amount of the Company’s senior unsecured notes was $225.0 million, and the estimate of the fair value of the senior unsecured notes, based on current market rates for debt of the same risk and maturities, was $223.0 million.

As of September 30, 2011, borrowings under the Company’s senior secured revolving credit facility include debt having variable interest rates totaling $49.9 million. The Company believes the carrying value of the debt under the senior secured revolving credit facility approximates fair market value.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

EARNINGS PER SHARE

NOTE 7 – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted income per common share (in thousands, except for per share amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Numerator:
Net income (loss)	$	548	$	1,965	$	1,163	$	(2,075	)

Denominator - Basic:
Weighted average number of common shares outstanding		54,607		53,425		54,348		49,232

Basic income (loss) per common share	$	0.01	$	0.04	$	0.02	$	(0.04	)

Denominator - Diluted:
Weighted average number of common shares outstanding		54,607		53,425		54,348		49,232
Common share equivalents of outstanding stock options and restricted awards		731		785		706		-
Total diluted shares outstanding		55,338		54,210		55,054		49,232

Diluted income (loss) per common share	$	0.01	$	0.04	$	0.02	$	(0.04	)

The computation of basic and diluted shares for the three and nine months ended September 30, 2011 and 2010 includes the weighted average effect of the approximately 13.1 million shares issued and outstanding in connection with the acquisition of Critical Homecare Solutions, Inc. (“CHS”) on March 25, 2010. The computation of diluted shares for the three and nine months ended September 30, 2011 and 2010 excludes the effect of 3.4 million warrants having an exercise price of $10.00 issued in connection with the acquisition of CHS as their inclusion would be anti-dilutive. The computation of diluted shares for the three months ended September 30, 2011 and 2010 excludes the effect of 4.5 million and 4.9 million shares, respectively, of other common stock equivalents as their inclusion would be anti-dilutive. The computation of diluted shares for the nine months ended September 30, 2011 and 2010 excludes the effect of 4.6 million and 7.8 million shares, respectively, of other common stock equivalents as their inclusion would be anti-dilutive.

OPERATING AND REPORTABLE SEGMENTS

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

OPERATING AND REPORTABLE SEGMENTS

NOTE 9 – OPERATING AND REPORTABLE SEGMENTS

In accordance with ASC Topic 280, Segment Reporting (“ASC 280”), and based on the nature of the Company’s services, the Company has two operating and reportable segments: Infusion/Home Health Services and Pharmacy Services.

The Infusion/Home Health Services operating and reportable segment provides services consisting of home infusion therapy, respiratory therapy and the provision of durable medical equipment products and services. Infusion services include the dispensing and administering of infusion-based drugs, which typically requires additional nursing and clinical management services, equipment to administer the correct dosage and patient training designed to improve patient outcomes. Home infusion services also include the dispensing of self-injectible therapies. Home health services include the provision of skilled nursing services and therapy visits, private duty nursing services, hospice services, rehabilitation services and medical social services to patients primarily in their home.

The Pharmacy Services operating and reportable segment consists of our traditional and specialty pharmacy mail operations, community pharmacies and integrated pharmacy benefit management (“PBM”) services, which includes discount cash card programs. These segment operations are designed to offer customers and patients cost-effective delivery of traditional and specialty pharmacy products and services. The services also include care management programs customized to each patient’s care plan in coordination with the patient’s physician.

The Company’s chief operating decision maker evaluates segment performance and allocates resources based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as net income (loss) adjusted for net interest expense, income tax expense, depreciation, amortization of intangibles and stock-based compensation expense and prior to the allocation of certain corporate expenses. Segment Adjusted EBITDA excludes acquisition, integration, severance and other employee costs; restructuring expense, write-off of receivables related to the CAP contract and legal settlement expense. Segment Adjusted EBITDA is a measure of earnings that management monitors as an important indicator of operating and financial performance. The accounting policies of the operating and reportable segments are consistent with those described in the Company’s summary of significant accounting policies.

Segment Reporting Information

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Results of Operations:
Revenue:
Infusion/Home Health Services - product revenue	$	89,631		$	90,934		$	270,477		$	219,775
Infusion/Home Health Services - service revenue		19,921			20,915			58,884			44,850
Total Infusion/Home Health Services revenue		109,552			111,849			329,361			264,625

Pharmacy Services - product revenue		317,323			313,233			929,527			876,818
Pharmacy Services - service revenue		27,146			16,071			75,833			46,808
Total Pharmacy Services revenue		344,469			329,304			1,005,360			923,626

Total	$	454,021		$	441,153		$	1,334,721		$	1,188,251

Adjusted EBITDA by Segment before corporate overhead:
Infusion/Home Health Services	$	10,477		$	14,942		$	33,062		$	31,702
Pharmacy Services		15,354			10,731			43,149			31,120
Total Segment Adjusted EBITDA		25,831			25,673			76,211			62,822

Corporate overhead		(6,806	)		(7,602	)		(22,499	)		(23,646	)

Interest expense, net		(7,063	)		(8,122	)		(21,503	)		(19,515	)
Income tax expense		(316	)		(2,117	)		(211	)		(1,981	)
Depreciation		(3,088	)		(2,404	)		(7,824	)		(6,211	)
Amortization of intangibles		(1,244	)		(1,326	)		(4,004	)		(2,196	)
Stock-based compensation expense		(1,731	)		(1,097	)		(3,982	)		(2,726	)
Acquisition, integration, severance and other employee costs (1)		(1,581	)		(1,040	)		(1,581	)		(7,139	)
Restructuring expense		(3,454	)		-			(8,644	)		-
Legal settlement		-			-			(4,800	)		-
Bad debt expense related to contract termination		-			-			-			(1,483	)
Net income (loss)	$	548		$	1,965		$	1,163		$	(2,075	)

(1) Current year costs primarily related to officer severance. Prior year costs primarily related to the acquisitions of CHS and DS Pharmacy.


Supplemental Operating Data
Capital Expenditures:
Infusion/Home Health Services	$	1,049		$	977		$	3,014		$	2,229
Pharmacy Services		291			1,104			2,130			3,044
Corporate unallocated		347			324			1,355			1,474
Total	$	1,687		$	2,405		$	6,499		$	6,747
Depreciation Expense:
Infusion/Home Health Services	$	1,341		$	1,128		$	3,809		$	2,381
Pharmacy Services		1,075			954			3,059			3,019
Corporate unallocated		672			322			956			811
Total	$	3,088		$	2,404		$	7,824		$	6,211
Total Assets
Infusion/Home Health Services							$	410,333		$	415,412
Pharmacy Services								212,479			214,667
Corporate unallocated								28,049			113,802
Total							$	650,861		$	743,881
Goodwill
Infusion/Home Health Services							$	299,643		$	299,300
Pharmacy Services								24,498			24,498
Total							$	324,141		$	323,798

STOCK-BASED COMPENSATION PLANS	9 Months Ended
STOCK-BASED COMPENSATION PLANS	Sep. 30, 2011
Notes to Financial Statements [Abstract]
STOCK-BASED COMPENSATION PLANS	NOTE 10 – STOCK-BASED COMPENSATION PLANS BioScrip Equity Incentive Plans Under the Company’s Amended and Restated 2008 Equity Incentive Plan (as amended and restated, the “2008 Plan”), the Company may issue, among other things, incentive stock options (“ISOs”), non-qualified stock options (“NQSOs”), stock appreciation rights, restricted stock, performance shares and performance units to employees and directors. Under the 2008 Plan, 3,580,000 shares were originally authorized for issuance (subject to adjustment for grants made under the Company’s 2001 Incentive Stock Plan (the “2001 Plan”) after January 1, 2008, as well as for forfeitures, expirations or awards that under the 2001 Plan otherwise settled in cash after the adoption thereof). Upon the effective date of the 2008 Plan, the Company ceased making grants under the 2001 Plan. The 2008 Plan is administered by the Company’s Management Development and Compensation Committee (the “Compensation Committee”), a standing committee of the Board. On June 10, 2010, the Company’s stockholders approved an amendment to the 2008 Plan to increase the number of authorized shares of common stock available for issuance by 3,275,000 shares to 6,855,000 shares. As of September 30, 2011, there were 2,369,253 shares that remained available for grant under the 2008 Plan. BioScrip/CHS Equity Plan Effective upon closing of the acquisition of CHS, the CHS 2006 Equity Incentive Plan was adopted by the Company and renamed the “BioScrip/CHS 2006 Equity Incentive Plan” (as amended and restated, the “BioScrip/CHS Plan”). There were 13,000,000 shares of CHS common stock originally authorized for issuance under the CHS 2006 Equity Incentive Plan, which were converted into 3,106,315 shares of BioScrip common stock, and adjusted using the exchange ratio defined by the merger agreement. The Board of Directors further amended the BioScrip/CHS Plan to provide for it to have substantially the same terms and provisions as the 2008 Plan. Of the options authorized and outstanding under the BioScrip/CHS Plan on the date of the acquisition, 716,086 options were designated as “rollover” options. These rollover options were issued to the top five executives of CHS at the time of the acquisition, and otherwise remain subject to the term of the BioScrip/CHS Plan, as amended, and fully vested on the date of conversion. Under the terms of the BioScrip/CHS Plan, any shares of BioScrip common stock subject to rollover options that expire or otherwise terminate before all or any part of the shares subject to such options have been purchased as a result of the exercise of such options shall remain available for issuance under the BioScrip/CHS Plan. The remaining 2,390,229 shares are authorized for issuance under the BioScrip/CHS Plan. These shares may be used for awards under the BioScrip/CHS Plan, provided that awards using such available shares are not made after the date that awards or grants could have been made under the terms of the pre-existing plan, and are only made to individuals who were not employees or directors of BioScrip or an affiliate or subsidiary of BioScrip prior to such acquisition. As of September 30, 2011, there were 2,154,363 shares that remained available under the Bioscrip/CHS Plan. Annual Equity Grant On April 26, 2011, the Compensation Committee approved its annual grant of approximately 1.2 million NQSO awards, 0.1 million restricted stock awards and 0.1 million stock appreciation right (“SAR”) awards to key employees and to members of the board of directors consistent with the Compensation Committee’s historic grant practices. Stock Options The Company recognized compensation expense related to stock options of $1.6 million and $0.8 million during the three months ended September 30, 2011 and 2010, respectively, and $3.3 million and $2.3 million during the nine months ended September 30, 2011 and 2010, respectively. Compensation expense related to accelerated vesting for terminated employees was $0.8 million and $0.9 million during the three months and nine months ended September 30, 2011, respectively. Restricted Stock The Company recognized compensation expense related to restricted stock awards of $0.1 and $0.3 million during the three months ended September 30, 2011 and 2010, respectively, and $0.4 million during each of the nine months ended September 30, 2011 and 2010, respectively. Stock Appreciation Rights The Company recognized compensation expense related to stock appreciation rights awards of $0.1 million and $0.2 million during the three and nine months ended September 30, 2011, respectively. There was no compensation expense related to stock appreciation rights awards during the three or nine months ended September 30, 2010.

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2011
Notes to Financial Statements [Abstract]
INCOME TAXES	NOTE 11 – INCOME TAXES The Company uses an estimated annual effective tax rate in determining its interim provision for income taxes. The methodology employed is based on the Company’s expected annual income, statutory tax rates and tax strategies utilized in the various jurisdictions in which it operates. During the fourth quarter of 2010, the Company fully reserved its deferred tax assets as it concluded that it is more likely than not that its deferred tax assets would not be utilized. The Company continually assesses the necessity of maintaining a valuation allowance for its deferred tax assets. If the Company determines in a future period that it is more likely than not that the deferred tax assets will be utilized, the Company will reverse all or part of the valuation allowance. Income tax expense for the three months ended September 30, 2011 was $0.3 million on pre-tax net income of $0.9 million. As mentioned above, the Company maintains a valuation allowance against its deferred tax assets. The effective tax rate for 2011 was less than the statutory rate due to the Company’s valuation allowance that is maintained against its deferred tax assets. Amounts recorded as expense in the quarter also include the tax effect of the amortization of indefinite-lived goodwill and intangibles. The Company’s income tax expense was $2.1 million for the three months ended September 30, 2010. The effective tax rate for 2010 was greater than the statutory rate due to state income taxes and other permanent differences. Income tax expense for the nine months ended September 30, 2011 was $0.2 million on pre-tax net income of $1.4 million. The effective tax rate for 2011 was less than the statutory rate due to the Company’s valuation allowance that is maintained against its deferred tax assets. Amounts recorded as expense in the nine month period ended September 30, 2011 also include the tax effect of the amortization of indefinite-lived goodwill and intangible which was recorded on the basis of expected pre-tax income for the year ended December 31, 2011. The Company’s income tax expense was $2.0 million for the nine months ended September 30, 2010. The effective tax rate for 2010 was greater than the statutory rate due to certain non-deductible CHS acquisition related costs which were treated as a discrete item for tax purposes. The Company files income tax returns, including returns for its subsidiaries, with Federal, state and local jurisdictions. The Company's uncertain tax positions are related to tax years that remain subject to examination. As of September 30, 2011, U.S. tax returns for 2008 through 2010 remain subject to examination by Federal tax authorities. Tax returns for the years 2007 through 2010 remain subject to examination by state and local tax authorities for a majority of the Company's state and local filings.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2011
Notes to Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Product revenue consists principally of sales of prescription drugs, either through the Company’s network of community pharmacies, traditional and specialty pharmacy mail operations or home infusion therapy. Service revenue consists of skilled nursing services and therapy visits, private duty nursing services, hospice services, rehabilitation services and medical social services to patients primarily in their home. Service revenue also includes infusion nursing and management services and patient training to improve outcomes. In addition, service revenue includes integrated pharmacy benefit management services, which includes discount cash card programs. Finally, service revenue includes collecting and distributing results of patient studies of new drug introductions.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2011
Notes to Financial Statements [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 — COMMITMENTS AND CONTINGENCIES Legal Proceedings On June 30, 2009, Professional Home Care Services, Inc., or PHCS, one of the subsidiaries the Company acquired through its acquisition of CHS, was sued by Alexander Infusion, LLC, a New York-based home infusion company, in the Supreme Court of the State of New York. The complaint alleges principally breach of contract arising in connection with PHCS's failure to consummate an acquisition of Alexander Infusion after failing to satisfy the conditions to PHCS's obligation to close. Alexander Infusion has sued for $2.5 million in damages. The Company believes Alexander Infusion's claims to be without merit and intends to continue to defend against the allegations vigorously. Furthermore, under the merger agreement, subject to certain limits, the former CHS stockholders agreed to indemnify the Company in connection with any losses arising from claims made in respect of the acquisition agreement entered into between PHCS and Alexander Infusion. As of September 30, 2011, no liability or indemnification reimbursement has been accrued in the Unaudited Consolidated Financial Statements as a loss is not considered probable. Government Regulation Various Federal and state laws and regulations affecting the healthcare industry do or may impact the Company’s current and planned operations, including, without limitation, Federal and state laws prohibiting kickbacks in government health programs, Federal and state antitrust and drug distribution laws, and a wide variety of consumer protection, insurance and other state laws and regulations. While management believes the Company is in substantial compliance with all existing laws and regulations material to the operation of its business, such laws and regulations are subject to rapid change and often are uncertain in their application. As controversies continue to arise in the healthcare industry (for example, the efforts of Plan Sponsors and pharmacy benefit managers to limit formularies, alter drug choice and establish limited networks of participating pharmacies), Federal and state regulation and enforcement priorities in this area can be expected to increase, the impact of which on the Company cannot be predicted. From time to time, the Company responds to subpoenas and requests for information from governmental agencies. The Company cannot predict with certainty what the outcome of any of the foregoing might be. While the Company believes it is in substantial compliance with all laws, rules and regulations that affects its business and operations, there can be no assurance that the Company will not be subject to scrutiny or challenge under one or more existing laws or that any such challenge would not be successful. Any such challenge, whether or not successful, could have a material effect upon the Company’s Unaudited Consolidated Financial Statements. A violation of the Federal anti-kickback statute, for example, may result in substantial criminal penalties, as well as suspension or exclusion from the Medicare and Medicaid programs. Moreover, the costs and expenses associated with defending these actions, even where successful, can be significant. Further, there can be no assurance the Company will be able to obtain or maintain any of the regulatory approvals that may be required to operate its business, and the failure to do so could have a material effect on the Company’s Unaudited Consolidated Financial Statements. Legal Settlement Following responses to government subpoenas and discussions with the government, in May 2011, the Company was advised of a qui tam lawsuit filed under seal in federal court in Minnesota in 2006 and naming the Company as defendant. The complaint alleged violations of healthcare statutes and regulations by the Company and predecessor companies dating back to 2000. The Company has negotiated an agreement in principle to resolve all issues alleged in the complaint and the government’s investigation in exchange for a release and dismissal of those claims. The resolution is subject to definitive documents and court approval. The Company has to resolve by negotiation or litigation additional claims of the qui tam relator and counsel. During the quarter ended June 30, 2011, the Company recorded a legal settlement expense of $4.8 million in the accompanying Unaudited Consolidated Statements of Operations related to the settlement. As of September 30, 2011, there was a liability of $4.8 million included in accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets related to the settlement.

Document Information	9 Months Ended
Document Information	Sep. 30, 2011
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2011

Entity Information - USD ($)	9 Months Ended
Entity Information - USD ($)	Sep. 30, 2011	Nov. 03, 2011	Jun. 30, 2010
Entity Registrant Name	BioScrip, Inc.
Entity Central Index Key	0001014739
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 150,795,138
Entity Common Stock, Shares Outstanding		57,633,605
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3