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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	May 07, 2018
Document Entity Information [Abstract]
Entity Registrant Name	BioScrip, Inc.
Entity Central Index Key	0001014739
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		127,951,915

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 30,352	$ 39,457
Restricted cash	4,950	4,950
Receivables, less allowance for doubtful accounts of $37,912 as of December 31, 2017	88,185	85,522
Inventory	41,549	38,044
Deferred taxes	1,066	1,098
Prepaid expenses and other current assets	9,848	18,620
Total current assets	175,950	187,691
Property and equipment, net	24,971	26,973
Goodwill	367,198	367,198
Intangible assets, net	16,681	19,114
Other non-current assets	2,082	2,116
Total assets	586,882	603,092
Current liabilities
Current portion of long-term debt	1,055	1,722
Accounts payable	68,835	65,963
Amounts due to plan sponsors	3,652	4,621
Accrued interest	2,219	6,706
Accrued expenses and other current liabilities	27,933	26,118
Total current liabilities	103,694	105,130
Long-term debt, net of current portion	480,382	478,866
Other non-current liabilities	18,282	21,769
Total liabilities	602,358	605,765
Stockholders’ deficit
Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	0	0
Common stock, $.0001 par value; 250,000,000 shares authorized; 127,793,785 and 127,634,012 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	13	13
Treasury stock, 96,467 and 5,106 shares outstanding, at cost, as of March 31, 2018 and December 31, 2017	(354)	(16)
Additional paid-in capital	622,657	624,762
Accumulated deficit	(722,528)	(709,511)
Total stockholders’ deficit	(100,212)	(84,752)
Total liabilities and stockholders’ deficit	586,882	603,092
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized; 21,643 and 21,645 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively; and $2,998 and $2,916 liquidation preference as of March 31, 2018 and December 31, 2017, respectively
Current liabilities
Convertible preferred stock	2,923	2,827
Series C convertible preferred stock, $.0001 par value; 625,000 shares authorized; 614,177 shares issued and outstanding as of March 31, 2018 and December 31, 2017; and $86,952 and $84,555 liquidation preference as of March 31, 2018 and December 31, 2017, respectively
Current liabilities
Convertible preferred stock	$ 81,813	$ 79,252

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts		$ 37,912
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares, issued (in shares)	127,793,785	127,634,012
Common stock, shares, outstanding (in shares)	127,793,785	127,634,012
Treasury stock, at cost (in shares)	96,467	5,106
Series A Preferred Stock
Convertible preferred stock series, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible preferred stock series, shares authorized (in shares)	825,000	825,000
Convertible preferred stock series, shares issued (in shares)	21,643	21,645
Convertible preferred stock series, shares outstanding (in shares)	21,643	21,645
Convertible preferred stock series, liquidation preference	$ 2,998	$ 2,916
Series C Preferred Stock
Convertible preferred stock series, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible preferred stock series, shares authorized (in shares)	625,000	625,000
Convertible preferred stock series, shares issued (in shares)	614,177	614,177
Convertible preferred stock series, shares outstanding (in shares)	614,177	614,177
Convertible preferred stock series, liquidation preference	$ 86,952	$ 84,555

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net revenue	$ 168,584	$ 217,810
Cost of revenue (excluding depreciation expense)	113,536	152,936
Gross profit	55,048	64,874
Other operating expenses	39,299	44,319
Bad debt expense	0	7,042
General and administrative expenses	10,669	9,266
Restructuring, acquisition, integration, and other expenses, net	1,882	3,223
Change in fair value of equity linked liabilities	(3,439)	0
Depreciation and amortization expense	6,486	7,165
Interest expense	13,395	12,659
Gain on dispositions	(305)	0
Loss from continuing operations, before income taxes	(12,939)	(18,800)
Income tax expense	48	619
Loss from continuing operations, net of income taxes	(12,987)	(19,419)
Loss from discontinued operations, net of income taxes	(30)	(299)
Net loss	(13,017)	(19,718)
Accrued dividends on preferred stock	(2,481)	(2,214)
Deemed dividends on preferred stock	(176)	(174)
Loss attributable to common stockholders	$ (15,674)	$ (22,106)
Loss per common share:
Loss from continuing operations, basic and diluted (in dollars per share)	$ (0.12)	$ (0.18)
Loss from discontinued operations, basic and diluted (in dollars per share)	0.00	0.00
Loss per common share, basic and diluted (in dollars per share)	$ (0.12)	$ (0.18)
Weighted average common shares outstanding, basic and diluted (in shares)	127,772	118,783

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (13,017)	$ (19,718)
Less: Loss from discontinued operations, net of income taxes	(30)	(299)
Loss from continuing operations, net of income taxes	(12,987)	(19,419)
Adjustments to reconcile net loss from continuing operations, net of income taxes to net cash used in operating activities:
Depreciation and amortization	6,486	7,165
Amortization of deferred financing costs and debt discount	2,023	1,318
Change in fair value of equity linked liabilities	(3,439)	0
Change in deferred income tax	31	619
Compensation under stock-based compensation plans	556	521
Gain on dispositions	(305)	0
Changes in assets and liabilities:
Receivables	(2,663)	2,210
Inventory	(3,505)	5,616
Prepaid expenses and other assets	8,807	3,601
Accounts payable	2,872	(10,936)
Amounts due to plan sponsors	(969)	645
Accrued interest	(4,487)	(1,157)
Accrued expenses and other liabilities	2,418	(917)
Net cash used in operating activities from continuing operations	(5,162)	(10,734)
Net cash used in operating activities from discontinued operations	(30)	(299)
Net cash used in operating activities	(5,192)	(11,033)
Cash flows from investing activities:
Purchases of property and equipment	(2,646)	(1,684)
Net cash used in investing activities	(2,646)	(1,684)
Cash flows from financing activities:
Proceeds from priming credit agreement, net	0	23,060
Proceeds from private issuances, net	0	5,052
Borrowings on revolving credit facility	0	563
Repayments on revolving credit facility	0	(1,000)
Principal payments of long-term debt	0	(3,137)
Repayments of capital leases	(967)	(238)
Net activity from exercises of employee stock awards	(300)	(51)
Net cash (used in) provided by financing activities	(1,267)	24,249
Net change in cash and cash equivalents	(9,105)	11,532
Cash, cash equivalents, and restricted cash - beginning of period	44,407	9,569
Cash, cash equivalents, and restricted cash - end of period	35,302	21,101
DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	15,883	12,548
Cash (refunded) paid during the period for income taxes	$ (82)	$ 125

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

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 its wholly-owned subsidiaries (the “Company”) for the year ended December 31, 2017 (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”). 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 (the “Exchange Act”). 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 months ended March 31, 2018 require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes and are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018.

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 consolidation.

Reclassifications

Prior period financial statement amounts have been reclassified to conform to current period presentation.

Immaterial Error Correction

During the fourth quarter of 2017, the Company determined that certain prior period balances contained errors, predominantly due to a failure to appropriately account for and resolve transactions specific to suspense and clearing accounts. Management evaluated the materiality of the errors quantitatively and qualitatively, and concluded that they were not material to the financial statements of any period presented, but has elected to correct them in the accompanying prior period consolidated financial statements.

The following tables set forth the effect these corrections had on the Company’s March 31, 2017 statement of operations:



	Three Months Ended March 31, 2017
	Previously Reported			Corrections			Revised
Net revenue	$	217,810		$	—		$	217,810
Gross profit	65,584			(710		)	64,874
Total Operating Expenses	71,212			(197		)	71,015
Interest expense	12,744			(85		)	12,659
Loss from continuing operations, net of income taxes	(18,991		)	(428		)	(19,419		)
Loss from discontinued operations, net of income taxes	(437		)	138			(299		)
Net loss	$	(19,428	)	$	(290	)	$	(19,718	)

Certain amounts disclosed in the accompanying notes to the financial statements have been revised to reflect the corrections.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents and Restricted Cash

Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Restricted cash consists of cash balances held by financial institutions as collateral for letters of credit. These balances are reclassified to cash and cash equivalents when the underlying obligation is satisfied, or in accordance with the governing agreement. As of March 31, 2018, the Company had a restricted cash balance, in a money market account, of approximately $5.0 million to cash collateralize outstanding letters of credit.

Collectability of Accounts Receivable

The following table sets forth the aging of our net accounts receivable (net of allowance for contractual adjustments and implicit price concessions as of March 31, 2018, and net of allowance for contractual adjustments, prior to allowance for doubtful accounts, as of March 31, 2017), aged based on date of service and categorized based on the three primary overall types of accounts receivable characteristics (in thousands):



	March 31, 2018						December 31, 2017
	0 - 180 days		Over 180 days		Total		0 - 180 days		Over 180 days		Total
Government	$	18,367	$	1,604	$	19,971	$	20,602	$	10,082	$	30,684
Commercial	61,561		2,019		63,580		63,767		18,779		82,546
Patient	3,819		815		4,634		2,577		7,627		10,204
Gross accounts receivable	$	83,747	$	4,438	88,185		$	86,946	$	36,488	123,434
Allowance for doubtful accounts					—						(37,912		)
Net accounts receivable					$	88,185					$	85,522

Implementation of Topic 606 effectively eliminated the allowance for doubtful accounts as we provided implicit price concessions to payors, and patients with co-pays, deductibles, and co-insurance. Amounts presented reflect reductions from the amounts billed to reflect the estimated transaction price, net of estimated implicit price concessions and contractual adjustments.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09—Revenue from Contracts with Customers (Topic 606). The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The FASB delayed the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company did not elect early adoption and applied the modified retrospective approach upon adoption which results in application of the new guidance only to contracts that are not completed at the adoption date and does not require adjustment of prior reporting periods. Assessment of the new guidance did not result in an opening retained earnings adjustment, but did result in the adjustment of accounts receivable as the allowance for doubtful accounts was eliminated upon implementation. Pursuant to the requirements of Topic 606, the transaction price to be recognized as revenue is estimated based upon the amount of cash ultimately expected to be collected. Therefore, amounts expected to be written off are reflected in the amount of revenue recognized upon fulfillment of the performance obligation. The new standard resulted in the recognition of amounts previously reported as bad debt expense as a reduction to revenue upon implementation; see Note 3 - Revenue.

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-11—Earnings Per Share (Topic 260), Distinguishing Liabilities From Equity (Topic 480), and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. ASU 2017-11 eliminates the requirement that a down round feature precludes equity classification when assessing whether an instrument is indexed to an entity’s own stock. A freestanding equity-linked financial instrument no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The effective date for ASU 2017-11 is for annual or any interim periods beginning after December 15, 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09—Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 modifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The effective date for ASU 2017-09 is for annual or any interim periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018. The adoption of this standard did not materially impact the Company’s consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18—Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The effective date for ASU 2016-18 is for annual or any interim periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018. The adoption of this standard did not materially impact the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15—Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for eight specific cash flow issues with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The effective date for ASU 2016-15 is for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this ASU effective January 1, 2018. The adoption of this standard did not materially impact the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02—Leases (Topic 842), requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard may be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements.

REVENUE

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Adoption of ASC Topic 606, "Revenue from Contracts with Customers"

On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with accounting standards in effect for those periods.

Infusion Revenues

The Company generates revenue principally through the provision of infusion services to provide clinical management services and the delivery of cost effective prescription medications. Prescription drugs are dispensed either through a pharmacy participating in the Company’s pharmacy network or a pharmacy owned by the Company. Fee-for-service agreements include pharmacy agreements, under which we dispense prescription medications through the Company’s pharmacy facilities.

The Company provides a variety of therapies to patients. For infusion-related therapies, the Company frequently provides multiple deliverables of drugs and related nursing services. After applying the criteria from Topic 606, the Company concluded that multiple performance obligations exist in its contracts with its customers. Revenue is allocated to each performance obligation based on relative standalone price, determined based on reimbursement rates established in the third party payor contracts. Drug revenue is recognized at the time the drug is shipped, and nursing revenue is recognized on the date of service.

Revenue Recognition

ASC 606 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled in exchange for those goods or services. ASC 606 requires application of a five-step model to determine when to recognize revenue and at what amount. The revenue standard applies to all contracts with customers and revenues are to be recognized when control of the promised goods or services is transferred to the Company’s patients in an amount that reflects consideration expected to be received in exchange for those goods or services.

The following table presents our revenues at amounts initially recognized for each associated payor class during the first quarter of 2018 (in millions). Sales and usage-based taxes are excluded from revenues.



	Three Months Ended March 31, 2018
Commercial	$	140,541
Government	26,542
Patient	1,501
Total Revenue	$	168,584

Absent implementation of Topic 606, the Company would have reported revenue of $174.0 million, gross profit of $60.5 million, bad debt expense of $5.5 million, and allowance for doubtful accounts of $41.2 million for the three months ended March 31, 2018.

Contract Assets and Liabilities

In accordance with Topic 606, contract assets are to be recognized when an entity has the right to receive consideration in exchange for goods or service that have been transferred to a customer when that right is conditional on something other than the passage of time. The Company does not recognize contract assets as the right to receive consideration is unconditional in accordance with the passage of time criteria. Also in accordance with Topic 606, contract liabilities are to be recognized when an entity is obligated to transfer goods or services for which revenue has already been received. The Company does not receive revenue prior to the transfer of goods or services and, therefore, will not recognize contract liabilities

Significant Judgments

The Company determines implicit price concessions based on historical collection experience using a portfolio approach. The Company determines the transaction price based on gross charges for services provided, reduced by contractual adjustments based on contractual agreements and historical experience. Pursuant to the requirements of Topic 606, the transaction price to be recognized as revenue is estimated based upon the amount of cash ultimately expected to be collected. Therefore, amounts expected to be written off are reflected in the amount of revenue recognized upon fulfillment of the performance obligation.

The Company elected a practical expedient to expense sales commissions when incurred as the amortization period associated therewith is generally one year or less and the total paid is representative of less than 1.0% of total revenue. These costs are recorded in operating expenses.

The Company elected the practical expedient to continue to expense costs associated with obtaining and fulfilling its contracts. These costs are recorded in operating expenses.

LOSS PER SHARE

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Loss Per Share

LOSS PER SHARE

The Company presents basic and diluted loss per share for its common stock, par value $0.0001 per share (“Common Stock”). Basic loss per share is calculated by dividing the net loss attributable to common stockholders of the Company by the weighted average number of shares of Common Stock outstanding during the period. Diluted loss per share is determined by adjusting the profit or loss attributable to stockholders and the weighted average number of shares of Common Stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, unvested restricted stocks, stock appreciation rights, warrants and Series A and Series C Preferred Stock (as defined below). Potential Common Stock equivalents that have been issued by the Company related to outstanding stock options, unvested restricted stock and warrants are determined using the treasury stock method, while potential common shares related to Series A and Series C Preferred Stock are determined using the “if converted” method.

The Company's Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”), and Series C Convertible Preferred Stock, par value $0.0001 per share (the “Series C Preferred Stock” and, together with the Series A Preferred Stock, the “Preferred Stock”), is considered a participating security, which means the security may participate in undistributed earnings with Common Stock. The holders of the Preferred Stock would be entitled to share in dividends, on an as-converted basis, if the holders of Common Stock were to receive dividends. The Company is required to use the two-class method when computing loss per share when it has a security that qualifies as a participating security. The two-class method is an earnings allocation formula that determines loss per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net earnings to allocate to common stockholders, earnings are allocated to both common and participating securities based on their respective weighted-average shares outstanding during the period. Diluted loss per share for the Company’s Common Stock is computed using the more dilutive of the two-class method or the if-converted method.

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



	Three Months Ended March 31,
	2018			2017
Numerator:
Loss from continuing operations, net of income taxes	$	(12,987	)	$	(19,419	)
Income (loss) from discontinued operations, net of income taxes	(30		)	(299		)
Net loss	$	(13,017	)	$	(19,718	)
Accrued dividends on preferred stock	(2,481		)	(2,214		)
Deemed dividend on preferred stock	(176		)	(174		)
Loss attributable to common stockholders	$	(15,674	)	$	(22,106	)

Denominator - Basic and Diluted:
Weighted average common shares outstanding	127,772			118,783

Loss per Common Share:
Loss from continuing operations, basic and diluted	$	(0.12	)	$	(0.18	)
Loss from discontinued operations, basic and diluted	—			—
Loss per common share, basic and diluted	$	(0.12	)	$	(0.18	)

The loss attributable to common stockholders is used as the basis of determining whether the inclusion of common stock equivalents would be anti-dilutive. Accordingly, the computation of diluted shares for the three months ended March 31, 2018 and 2017 excludes the effect of 18.8 million and 19.4 million shares, respectively, issued in connection with the PIPE Transaction and the Rights Offering, the 2017 Warrants (see Note 5 - Stockholders’ Deficit), stock options and restricted stock awards, as their inclusion would be anti-dilutive to loss attributable to common stockholders.

STOCKHOLDERS' DEFICIT

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Stockholders' Deficit

STOCKHOLDERS’ DEFICIT

Carrying Value of Series A Preferred Stock

As of March 31, 2018, the following values were accreted pursuant to the terms of the Exchange Agreement, dated as of June 10, 2016, among the Company and the signatories thereto and recorded as a reduction of additional paid in capital in Stockholders’ Deficit and a deemed dividend on the Unaudited Consolidated Statements of Operations. In addition, dividends were accrued at 11.5% from the date of issuance to March 31, 2018. The following table sets forth the activity recorded during the three months ended March 31, 2018 related to the Series A Preferred Stock (in thousands):



Series A Preferred Stock carrying value at December 31, 2017	$	2,827
Accretion of discount related to issuance costs	13
Dividends recorded through March 31, 2018¹	83
Series A Preferred Stock carrying value March 31, 2018	$	2,923

¹Dividends recorded reflect the increase in the Liquidation Preference associated with unpaid dividends.

Carrying Value of Series C Preferred Stock

As of March 31, 2018, the following values were accreted pursuant to the terms of the Exchange Agreement, dated as of June 16, 2016, among the Company and the signatories thereto and recorded as a reduction of additional paid in capital in Stockholders’ Deficit and a deemed dividend on the Unaudited Consolidated Statements of Operations. In addition, dividends were accrued at 11.5% from the date of issuance to March 31, 2018. The following table sets forth the activity recorded during the three months ended March 31, 2018 related to the Series C Preferred Stock (in thousands):



Series C Preferred Stock carrying value at December 31, 2017	$	79,252
Accretion of discount related to issuance costs	163
Dividends recorded through March 31, 2018¹	2,398
Series C Preferred Stock carrying value March 31, 2018	$	81,813

¹Dividends recorded reflect the increase in the Liquidation Preference associated with unpaid dividends.

As of March 31, 2018, the Liquidation Preference of the Series A Preferred Stock and Series C Preferred Stock was $3.0 million and $87.0 million, respectively.

First Quarter 2017 Private Placement

On March 1, 2017, the Company entered into a Stock Purchase Agreement (the “First Quarter Stock Purchase Agreement”) with Venor Capital Master Fund Ltd., Map 139 Segregated Portfolio of LMA SPC, Venor Special Situations Fund II LP and Trevithick LP (the “First Quarter Stockholders”). Pursuant to the First Quarter Stock Purchase Agreement, the Company sold an aggregate of 3.3 million shares of its common stock (the “First Quarter Shares”) for aggregate gross proceeds of approximately $5.1 million in a private placement transaction (the “First Quarter 2017 Private Placement”). The purchase price for each Share was $1.5366, which was negotiated between the Company and the First Quarter Stockholders based on the volume-weighted average price of the Company's common stock on the NASDAQ Global Market on March 1, 2017.

Proceeds from the First Quarter 2017 Private Placement were used for working capital and general corporate purposes.

2017 Warrants

In connection with the Second Lien Note Facility (as defined below), the Company issued warrants (the “2017 Warrants”) to the purchasers of the Second Lien Notes (as defined below) pursuant to a Warrant Purchase Agreement dated as of June 29, 2017 (the “Warrant Purchase Agreement”). The 2017 Warrants entitle the purchasers of the Warrants to purchase shares of Common Stock, representing at the time of any exercise of the 2017 Warrants an equivalent number of shares equal to 4.99% of the Common Stock of the Company on a fully diluted basis, subject to the terms of the Warrant Agreement governing the 2017 Warrants, dated as of June 29, 2017 (the “Warrant Agreement”); provided, however, the 2017 Warrants may not be converted to the extent that, after giving effect to such conversion, the holders of the 2017 Warrants would beneficially own, in the aggregate, in excess of (i) 19.99% of the shares of Common Stock outstanding as of June 29, 2017 (the “Closing Date”) minus (ii) the shares of Common Stock that were sold pursuant to the Second Quarter 2017 Private Placement (as defined below) (the “Conversion Cap”). The Conversion Cap will not apply to the 2017 Warrants if the Company obtains the approval of its stockholders for the removal of the Conversion Cap, which the Company is required to take certain steps to attempt to obtain, subject to the terms of the Warrant Agreement.

The 2017 Warrants have a 10 year term and an initial exercise price of $2.00 per share, and may be exercised by payment of the exercise price in cash or surrender of shares of Common Stock into which the 2017 Warrants are being converted in an aggregate amount sufficient to pay the exercise price. The exercise price and the number of shares that may be acquired upon exercise of the 2017 Warrants is subject to adjustment in certain situations, including price based anti-dilution protection whereby, subject to certain exceptions, if the Company later issues Common Stock or certain Common Stock Equivalents (as defined in the Warrant Agreement) at a price less than either the then-current market price per share or exercise price of the 2017 Warrants, then the exercise price will be decreased and the percentage of shares of Common Stock issuable upon exercise of the 2017 Warrants will remain the same, giving effect to such issuance. Additionally, the 2017 Warrants have standard anti-dilution protections if the Company effects a stock split, subdivision, reclassification or combination of its Common Stock or fixes a record date for the making of a dividend or distribution to stockholders of cash or certain assets. Upon the occurrence of certain business combinations the 2017 Warrants will be converted into the right to acquire shares of stock or other securities or property (including cash) of the successor entity. The 2017 Warrants are reflected as a liability in other non-current liabilities on the balance sheet and are adjusted to fair value at the end of each reporting period through an adjustment to earnings. The fair value of the 2017 Warrants, subsequent to a remeasurement adjustment of $3.4 million, is $17.1 million at March 31, 2018 in the Statement of Operations.

Second Quarter 2017 Private Placement

On June 29, 2017, the Company entered into a Stock Purchase Agreement (the “Second Quarter Stock Purchase Agreement”) with a fund managed by Ares Management L.P. (“Ares” or the “Second Quarter Stock Purchaser”). Pursuant to the terms of the Second Quarter Stock Purchase Agreement, the Company issued and sold to the Second Quarter Stock Purchaser in a private placement (the “Second Quarter 2017 Private Placement”) 6,359,350 shares of Common Stock (the “Second Quarter Shares”) at a price of $2.50 per share, for proceeds of approximately $15.9 million, net of $0.2 million in associated costs.

Second Quarter 2017 Registration Rights Agreement

In connection with the 2017 Warrants and the Second Quarter 2017 Private Placement, the Company entered into a Registration Rights Agreement (the “Second Quarter 2017 Registration Rights Agreement”) with the holders of the 2017 Warrants and the Second Quarter Stock Purchaser. Pursuant to the Second Quarter 2017 Registration Rights Agreement, subject to certain exceptions, the Company is required, upon the request of the Second Quarter Stock Purchaser and holders of the 2017 Warrants, to register the resale of the Second Quarter Shares and the shares of Common Stock issuable upon exercise of the 2017 Warrants. Pursuant to the terms of the Second Quarter 2017 Registration Rights Agreement, these registration rights will not become effective until twelve months after the Closing Date, and the costs incurred in connection with such registrations will be borne by the Company.

RESTRUCTURING, ACQUISITION, INTERGRATION, AND OTHER EXPENSES, NET

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring, Acquisition, Integration, and Other Expenses, Net

RESTRUCTURING, ACQUISITION, INTEGRATION, AND OTHER EXPENSES, NET

Restructuring, acquisition, integration and other expenses include non-operating costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed branches/offices.

Restructuring, acquisition, integration, and other expenses, net in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2018 and 2017 consisted of the following (in thousands):



	Three Months Ended March 31,
	2018		2017
Restructuring and other expenses	$	1,879	$	3,206
Acquisition and integration expense	3		17
Total restructuring, acquisition, integration, and other expense, net	$	1,882	$	3,223

DEBT

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Debt

DEBT

As of March 31, 2018 and December 31, 2017, the Company’s debt consisted of the following (in thousands):



	March 31, 2018			December 31, 2017
First Lien Note Facility, net of unamortized discount	198,481			198,324
Second Lien Note Facility, net of unamortized discount	87,038			85,694
2021 Notes, net of unamortized discount	197,547			197,363
Capital leases	1,689			2,863
Less: Deferred financing costs	(3,318		)	(3,656		)
Total Debt	481,437			480,588
Less: Current portion	(1,055		)	(1,722		)
Long-term debt, net of current portion	$	480,382		$	478,866

Debt Facilities

The Company was previously obligated under (i) a senior secured first-lien revolving credit facility in an aggregate principal amount of $75.0 million (the “Revolving Credit Facility”), (ii) a senior secured first-lien term loan B in an aggregate principal amount of $250.0 million (the “Term Loan B Facility”) and (iii) a senior secured first-lien delayed draw term loan B in an aggregate principal amount of $150.0 million (the “Delayed Draw Term Loan Facility” and, together with the Revolving Credit Facility and the Term Loan B Facility, the “Senior Credit Facilities”) with SunTrust Bank (“SunTrust”), Jefferies Finance LLC and Morgan Stanley Senior Funding, Inc., originally entered on July 31, 2013 and amended from time to time.

On January 6, 2017, the Company entered into a credit agreement (the “Priming Credit Agreement” and, together with the Senior Credit Facilities, the “Prior Credit Agreements”) with certain existing lenders under the Senior Credit Facilities and SunTrust, as administrative agent for itself and the lenders. The Priming Credit Agreement provided an aggregate borrowing commitment of $25.0 million, which was fully drawn at closing.

On June 29, 2017 (the “Closing Date”), the Company entered into (i) a first lien note purchase agreement (the “First Lien Note Facility”), among the Company, which is the issuer under the agreement, the financial institutions and note purchasers from time to time party to the agreement (the “First Lien Note Purchasers”), and Wells Fargo Bank, National Association, in its capacity as collateral agent for itself and the First Lien Note Purchasers (the “First Lien Collateral Agent”), pursuant to which the Company issued first lien senior secured notes in an aggregate principal amount of $200.0 million (the “First Lien Notes”); and (ii) a second lien note purchase agreement (the “Second Lien Note Facility” and, together with the First Lien Note Facility, the “Notes Facilities”) among the Company, which is the issuer under the agreement, the financial institutions and note purchasers from time to time party to the agreement (the “Second Lien Note Purchasers”), and Wells Fargo Bank, National Association, in its capacity as collateral agent for itself and the Second Lien Note Purchasers (the “Second Lien Collateral Agent” and, together with the First Lien Collateral Agent, the “Collateral Agent”), pursuant to which the Company (a) issued second lien senior secured notes in an aggregate initial principal amount of $100.0 million (the “Initial Second Lien Notes”) and (b) has the ability to draw upon the Second Lien Note Facility and issue second lien delayed draw senior secured notes in an aggregate initial principal amount of $10.0 million for a period of 18 months after the Closing Date, subject to certain terms and conditions (the “Second Lien Delayed Draw Notes” and, together with the Initial Second Lien Notes, the “Second Lien Notes”; the Second Lien Notes, together with the First Lien Notes, the “Notes”). Funds managed by Ares are acting as lead purchasers for the Notes Facilities.

The Company used the proceeds of the sale of the First Lien Notes and the Initial Second Lien Notes to repay in full all amounts outstanding under the Prior Credit Agreements and extinguished the liability. Each of the Prior Credit Agreements was terminated following such repayment. The Company used the remaining proceeds of $15.9 million, net of $0.2 million in issuance costs, from the Notes Facilities and the Second Quarter 2017 Private Placement for working capital and general corporate purposes.

The First Lien Notes accrue interest, payable monthly in arrears, at a floating rate or rates equal to, at the option of the Company, (i) the base rate (defined as the highest of the Federal Funds Rate plus 0.5% per annum, the Prime Rate as published by The Wall Street Journal and the one-month London Interbank Offered Rate (“LIBOR”) (subject to a 1.0% floor) plus 1.0%), or (ii) the one-month LIBOR rate (subject to a 1.0% floor), plus a margin of 6.0% if the base rate is selected or 7.0% if the LIBOR Option is selected. The First Lien Notes mature on August 15, 2020, provided that if the Company’s existing 8.875% Senior Notes due 2021 (the “2021 Notes”) are refinanced prior to August 15, 2020, then the scheduled maturity date of the First Lien Notes shall be June 30, 2022.

The First Lien Notes will amortize in equal quarterly installments equal to 0.625% of the aggregate principal amount of the First Lien Note Facility, commencing on September 30, 2019, and on the last day of each third month thereafter, with the balance payable at maturity. The First Lien Notes are pre-payable at the Company’s option at specified premiums to the principal amount that will decline over the term of the First Lien Note Facility. If the First Lien Notes are prepaid prior to the second anniversary of the Closing Date, the Company will be required to pay a make-whole premium based on the present value (using a discount rate based on the specified treasury rate plus 50 basis points) of all remaining interest payments on the First Lien Notes being prepaid prior to the second anniversary of the Closing Date, plus 4.0% of the principal amount of First Lien Notes being prepaid. On or after the second anniversary of the Closing Date, the prepayment premium is 4.0%, which declines to 2.0% on or after the third anniversary of the Closing Date, and declines to 0.0% on or after the fourth anniversary of the Closing Date. At any time, the Company may pre-pay up to $50.0 million in aggregate principal amount of the First Lien Notes from internally generated cash without incurring any make-whole or prepayment premium. The occurrence of certain events of default may increase the applicable rate of interest by 2.0% and could result in the acceleration of the Company’s obligations under the First Lien Note Facility prior to stated maturity and an obligation of the Company to pay the full amount of its obligations under the First Lien Note Facility.

The First Lien Note Facility contains customary events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material indebtedness and events constituting a change of control. In addition, the obligations under the First Lien Note Facility are guaranteed by joint and several guarantees from the Company’s subsidiaries.

In connection with the First Lien Note Facility, the Company, its subsidiaries and the First Lien Collateral Agent entered into a First Lien Guaranty and Security Agreement, dated as of June 29, 2017 (the “First Lien Guaranty and Security Agreement”). Pursuant to the First Lien Guaranty and Security Agreement, the obligations under the First Lien Notes are secured by first priority liens on, and security interests in, substantially all of the assets of the Company and its subsidiaries.

The Second Lien Notes accrue interest, payable monthly in arrears, at a floating rate or rates equal to, at the option of the Company, (i) one-month LIBOR (subject to a 1.25% floor) plus 9.25% per annum in cash, (ii) one-month LIBOR (subject to a 1.25% floor) plus 11.25% per annum, which amount will be capitalized on each interest payment date, or (iii) one-month LIBOR (subject to a 1.25% floor) plus 10.25% per annum, of which one-half LIBOR plus 4.625% per annum will be payable in cash and one-half LIBOR plus 5.625% per annum will be capitalized on each interest payment date, provided that, in each case, if any permitted refinancing indebtedness with which the 2021 Notes are refinanced requires or permits the payment of cash interest, all of the interest on the Second Lien Notes shall be paid in cash. The Second Lien Notes mature on August 15, 2020, provided that if the 2021 Notes are refinanced prior to August 15, 2020, then the scheduled maturity date of the Second Lien Notes shall be June 30, 2022.

In connection with the Second Lien Note Facility, the Company also issued the 2017 Warrants to the purchasers of the Second Lien Notes pursuant to the Warrant Purchase Agreement. The 2017 Warrants entitle the purchasers of the 2017 Warrants to purchase shares of Common Stock, representing at the time of any exercise of the 2017 Warrants an equivalent number of shares equal to 4.99% of the Common Stock of the Company on a fully diluted basis, subject to the terms of the Warrant Agreement. The 2017 Warrants, considered a derivative and subject to remeasurement at each reporting period, are reflected in other non-current liabilities in the unaudited consolidated balance sheet. The 2017 Warrants, subsequent to a remeasurement adjustment of $(3.4) million, are carried at a fair value of $17.1 million at March 31, 2018.

The Second Lien Notes are not subject to scheduled amortization installments. The Second Lien Notes are pre-payable at the Company’s option at specified premiums to the principal amount that will decline over the term of the Second Lien Note Facility. If the Second Lien Notes are prepaid prior to the third anniversary of the Closing Date, the Company will need to pay a make-whole premium based on the present value (using a discount rate based on the specified treasury rate plus 50 basis points) of all remaining interest payments on the Second Lien Notes being prepaid prior to the third anniversary of the Closing Date, plus 4.0% of the principal amount of Second Lien Notes being prepaid. On or after the third anniversary of the Closing Date, the prepayment premium is 4.0%, which declines to 2.0% on or after the fourth anniversary of the Closing Date, and declines to 0.0% on or after the fifth anniversary of the Closing Date. The occurrence of certain events of default may increase the applicable rate of interest by 2.0% and could result in the acceleration of the Company’s obligations under the Second Lien Note Facility prior to stated maturity and an obligation of the Company to pay the full amount of its obligations under the Second Lien Note Facility.

The Second Lien Note Facility contains customary events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material indebtedness and events constituting a change of control. In addition, the obligations under the Second Lien Note Facility are guaranteed by joint and several guarantees from the Company’s subsidiaries.

In connection with the Second Lien Note Facility, the Company, its subsidiaries and the Second Lien Collateral Agent entered into a Second Lien Guaranty and Security Agreement, dated as of June 29, 2017 (the “Second Lien Guaranty and Security Agreement”). Pursuant to the Second Lien Guaranty and Security Agreement, the obligations under the Second Lien Notes are secured by second priority liens on, and security interests in, substantially all of the assets of the Company and its subsidies.

In connection with the First Lien Note Facility and the Second Lien Note Facility, the Company, the First Lien Collateral Agent and the Second Lien Collateral Agent, entered into an intercreditor agreement containing customary provisions to, among other things, subordinate the lien priority of the liens granted under the Second Lien Note Facility to the liens granted under the First Lien Note Facility.

2021 Notes

On February 11, 2014, the Company issued $200.0 million aggregate principal amount of the 2021 Notes. The 2021 Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed by all existing and future subsidiaries of the Company.

Interest on the 2021 Notes accrues at a fixed rate of 8.875% per annum and is payable in cash semi-annually on February 15 and August 15 of each year. The debt discount of $5.0 million at issuance is being amortized as interest expense through maturity which will result in the accretion over time of the outstanding debt balance to the principal amount. The 2021 Notes are the Company’s senior unsecured obligations and rank equally in right of payment with all of its other existing and future senior unsecured indebtedness and senior in right of payment to all of its existing and future subordinated indebtedness.

The 2021 Notes are guaranteed on a full, joint and several basis by each of the Company’s existing and future domestic restricted subsidiaries that is a borrower under any of the Company’s credit facilities or that guarantees any of the Company’s debt or that of any of its restricted subsidiaries, in each case incurred under the Company’s credit facilities. As of March 31, 2018, the Company does not have any independent assets or operations, and as a result, its direct and indirect subsidiaries (other than minor subsidiaries), each being 100% owned by the Company, are fully and unconditionally, jointly and severally, providing guarantees on a senior unsecured basis to the 2021 Notes.

Fair Value of Financial Instruments

The following details the carrying value and the fair value of our financial instruments (in thousands):



Financial Instrument	Carrying Value as of March 31, 2018		Markets for Identical Item (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
First Lien Note Facility	$	198,481	$	—	$	—	$	202,713
Second Lien Note Facility	87,038		—		—		101,855
2017 Warrants	17,056		—		17,056		—
2021 Notes	197,547		—		186,682		—
Total	$	500,122	$	—	$	203,738	$	304,568

The fair value hierarchy for disclosure of fair value measurements is as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Quoted prices, other than quoted prices included in Level 1, which are observable for the assets or liabilities, either directly or indirectly.

Level 3: Inputs that are unobservable for the assets or liabilities.

Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable, and capital leases. The carrying value of these financial assets and liabilities approximates fair value due to their short maturities.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is a party to various legal, regulatory and governmental proceedings incidental to its business. Based on current knowledge, management does not believe that loss contingencies arising from pending legal, regulatory and governmental matters, including the matters described herein, will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in pending legal, regulatory and governmental matters, some of which are beyond the Company’s control, and the indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period. With respect to all legal, regulatory and governmental proceedings, the Company considers the likelihood of a negative outcome. If the Company determines the likelihood of a negative outcome with respect to any such matter is probable and the amount of the loss can be reasonably estimated, the Company records an accrual for the estimated loss for the expected outcome of the matter. If the likelihood of a negative outcome with respect to material matters is reasonably possible and the Company is able to determine an estimate of the possible loss or a range of loss, whether in excess of a related accrued liability or where there is no accrued liability, the Company discloses the estimate of the possible loss or range of loss. However, the Company is unable to estimate a possible loss or range of loss in some instances based on the significant uncertainties involved in, and/or the preliminary nature of, certain legal, regulatory and governmental matters. Breach of Contract Litigation in the Delaware Court of Chancery On November 3, 2015, Walgreen Co. and various affiliates (“Walgreens”) filed a lawsuit in the Delaware Court of Chancery against the Company and certain of its subsidiaries (collectively, the “Defendants”). The complaint alleges that the Company breached certain non-compete provisions contained in the Community Pharmacy and Mail Business Purchase Agreement dated as of February 1, 2012, by and among Walgreens and certain subsidiaries and the Company and certain subsidiaries. The complaint seeks both money damages and injunctive relief. On December 7, 2015, the Defendants filed a motion to dismiss the case. Walgreens filed an answering brief on January 11, 2016, and the Defendants filed a reply on January 25, 2016. On March 11, 2016, the Court held oral argument on the Company’s motion to dismiss and granted the motion, holding that Walgreens’ breach of contract claims for money damages must be resolved in accordance with the 2012 Purchase Agreement’s alternative dispute resolution procedure. On March 15, 2016, Walgreens informed the Court that it would not be pursuing any claims for injunctive relief in the Court at that time, but instead would engage in the required alternative dispute resolution procedure. Walgreens requested that the Court keep the case open pending the results of that process. On March 16, 2016, the Court stayed the lawsuit and removed the trial from its calendar, but did not grant Walgreens any other relief or enjoin the Company from taking any action. On December 8, 2016, the parties submitted the dispute to an arbitrator. On December 28, 2016, the arbitrator rendered its decision, finding that the Company had not violated the non-compete, except for certain limited sales of oral oncology, HIV and transplant pharmaceuticals, constituting approximately 3 percent of the total sales that Walgreens claimed were made in violation of the agreement. The arbitrator also concluded that Walgreens was not entitled to recover its lost profits or lost revenues as a result of any such sales. Despite that ruling, the arbitrator awarded Walgreens $5.8 million in damages, or approximately 20 percent of the total amount requested. On January 13, 2017, the Company filed a motion to vacate the arbitration award. On February 10, 2017, Walgreens opposed the Company’s motion and filed a motion to confirm the arbitration award and for other relief. On July 19, 2017, the Court confirmed the arbitration award and denied Walgreens’ request for injunctive relief. Following that decision, the parties entered into a global settlement of all disputes related to the non-compete provisions and the lawsuit was dismissed. The Company paid the settlement amount in August 2017. Derivative Lawsuit in the Delaware Court of Chancery On May 7, 2015, a derivative complaint was filed in the Delaware Court of Chancery (the “Derivative Complaint”) by the Park Employees’ & Retirement Board Employees’ Annuity & Benefit Fund of Chicago (the “Derivative Plaintiff”). The Derivative Complaint names as defendants certain current and former directors of the Company, consisting of Richard M. Smith, Myron Holubiak, Charlotte Collins, Samuel Frieder, David Hubers, Richard Robbins, Stuart Samuels and Gordon Woodward (collectively, the “Director Defendants”), certain current and former officers of the Company, consisting of Kimberlee Seah, Hai Tran and Patricia Bogusz (collectively the “Officer Defendants”), Kohlberg & Co., L.L.C., Kohlberg Management V, L.L.C., Kohlberg Investors V, L.P., Kohlberg Partners V, L.P., Kohlberg TE Investors V, L.P., KOCO Investors V, L.P., and Jefferies LLC. The Company is also named as a nominal defendant in the Derivative Complaint. The Derivative Complaint was filed in the Delaware Court of Chancery as Park Employees and Retirement Board Employees’ Annuity and Benefit Fund of Chicago v. Richard M. Smith, Myron Z. Holubiak, Charlotte W. Collins, Samuel P. Frieder, David R. Huber, Richard L. Robbins, Stuart A. Samuels, Gordon H. Woodward, Kimberlee C. Seah, Hai V.Tran, Patricia Bogusz, Kohlberg & Co., L.L.C., Kohlberg Management V, L.L.C., Kohlberg Investors V, L.P., Kohlberg Partners V, L.P., Kohlberg TE Investors V, L.P., KOCO Investors V, L.P., Jefferies LLC and BioScrip, Inc., C.A. No. 11000-VCG (Del. Ch. Ct., May 7, 2015). The Derivative Complaint alleged generally that certain defendants breached their fiduciary duties with respect to the Company’s public disclosures, oversight of Company operations, secondary stock offerings and stock sales. The Derivative Complaint also contended that certain defendants aided and abetted those alleged breaches. The damages sought were not quantified but included, among other things, claims for money damages, restitution, disgorgement, equitable relief, reasonable attorneys’ fees, costs and expenses, and interest. The Derivative Complaint incorporated the same factual allegations from In re BioScrip, Inc., Securities Litigation. On April 18, 2017, the Court granted the defendants’ motion to dismiss, and on November 27, 2017 the Delaware Supreme Court affirmed the dismissal. Additional demands and lawsuits related to the same facts and circumstances, however, could be pursued in the future. In that event, there is no assurance that any defenses will be successful or that insurance will be available or adequate to fund any settlement, judgment or litigation costs associated with this action. Certain of the defendants may also seek indemnification from the Company pursuant to certain indemnification agreements, for which there may be no insurance coverage. While no assurance can be given as to the ultimate outcome of this matter, the Company believes that the final resolution of this action is not likely to have a material adverse effect on results of operations, financial position, liquidity or capital resources. On December 18, 2017, a commercial payor of the Company sent a letter that claimed an alleged breach of the Company’s obligation under its provider contracts. No legal proceeding has been filed. The Company is not able to estimate the amount of any possible loss. The Company believes this claim is without merit and intends to vigorously defend against this claim if any such legal proceeding is commenced. Government Regulation Various federal and state laws and regulations affecting the healthcare industry impact or may in the future impact the Company’s current and planned operations, including, without limitation, federal and state laws and regulations prohibiting kickbacks in connection with healthcare services prohibiting certain conduct deemed to be anti-competitive (antitrust laws) and restricting drug distribution. Other laws and regulations that may affect our business include, but are not limited to, consumer protection, insurance, licensure, and privacy. 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 financial statements. From time to time, the Company responds to investigatory subpoenas and requests for information from governmental agencies and private parties. 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 existing laws and regulations material to the operation of its business. Such laws and regulations are often uncertain in their application to our business practices as they evolve and are subject to rapid change. As controversies continue to arise in the healthcare industry, federal and state regulation and enforcement priorities in this area can be expected to increase, the impact of which cannot be predicted. There can be no assurance that the Company will not be subject to scrutiny or challenge under one or more regulations 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 Consolidated Financial Statements. A violation of the federal Anti-Kickback Statute, for example, may result in criminal penalties, substantial civil monetary 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.

CONCENTRATION OF RISK	3 Months Ended
CONCENTRATION OF RISK	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Concentration of Risk	CONCENTRATION OF RISK Customer and Credit Concentration Risk The Company provides trade credit to its customers in the normal course of business. No commercial payors accounted for more than 10.0% of revenue during the three months ended March 31, 2018. One commercial payor, United Healthcare, accounted for approximately 22.8% of revenue during the three months ended March 31, 2017. In addition, Medicare accounted for approximately 8.4% and 6.9% of revenue during the three months ended March 31, 2018 and 2017, respectively.

INCOME TAXES

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s federal and state income tax provision from continuing operations for the three months ended March 31, 2018 and 2017 is summarized in the following table (in thousands):



	Three Months Ended March 31,
	2018		2017
Current
Federal	$	—	$	—
State	17		—
Total current	17		—
Deferred
Federal	—		495
State	31		124
Total deferred	31		619
Total income tax expense	$	48	$	619

The Company’s reconciliation of the statutory rate from continuing operations to the effective income tax rate for the three months ended March 31, 2018 and 2017 is summarized as follows (in thousands):



	Three Months Ended March 31,
	2018			2017
Tax benefit at statutory rate	$	(2,729	)	$	(6,445	)
State tax expense, net of federal taxes	48			36
Alternative minimum tax receivable	—			—
Valuation allowance changes affecting income tax provision	3,419			6,976
Non-deductible transaction costs and other	(690		)	52
Income tax expense	$	48		$	619

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 or US Federal Tax Reform (the “Reform”). The enactment included broad tax changes that are applicable to Bioscrip, Inc. Most notably, the Reform has established the U.S. corporate tax rate decrease from a high of 35% to a flat 21% income tax rate effective January 1, 2018. As a result, the Company has revalued its ending net deferred tax assets as of December 31, 2017. At March 31, 2018, the Company had Federal net operating loss (“NOL”) carry forwards of approximately $415.5 million, of which $12.2 million, is subject to an annual limitation, which will begin expiring in 2026 and later. The Company also has a carryforward of approximately $11.5 million related to the interest expense limitation, which is not subject to an expiration period. The Company has post-apportioned state NOL carry forwards of approximately $454.7 million, the majority of which will begin expiring in 2018 and later.

STOCK-BASED COMPENSATION	3 Months Ended
STOCK-BASED COMPENSATION	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION BioScrip Equity Incentive Plans Under the Company’s Amended and Restated 2008 Equity Incentive Plan (the “2008 Plan”), the Company may issue, among other things, incentive stock options, non-qualified stock options, stock appreciation rights (“SARs”), restricted stock grants, restricted stock units, performance shares and performance units to key employees and directors. While SARs are authorized under the 2008 Plan, they may also be issued outside of the plan. The 2008 Plan is administered by the Company’s Management Development and Compensation Committee (the “Compensation Committee”), a standing committee of the Board of Directors. On November 30, 2016, at a special meeting, the stockholders approved (i) an amendment to the Company’s Second Amended and Restated Certificate of Incorporation to increase the number of shares of Common Stock that the Company is authorized to issue from 125 million shares to 250 million shares (the “Charter Amendment”); (ii) an amendment to the 2008 Plan to (a) increase the number of shares of Common Stock in the aggregate that may be subject to awards by 5,250,000 shares, from 9,355,000 to 14,605,000 shares and (b) increase the annual grant caps under the Company’s 2008 Plan from 500,000 Options, 500,000 Stock Appreciation Rights and 350,000 Stock Grants and Restricted Stock Units that are intended to comply with the requirements of Section 162(m) of the Code to a cap of no more than a total of 3,000,000 Options, Stock Appreciation Rights, Stock Grants and Restricted Stock Units that are intended to comply with the requirements of Section 162(m) of the Code combined; and (iii) if necessary, an adjournment of the Stockholders’ Meeting if there were insufficient votes in favor of the Charter Amendment. As of March 31, 2018, 5,470,536 shares remain available for grant under the 2008 Plan. Stock Options The Company recognized compensation expense related to stock options of $0.3 million during both the three months ended March 31, 2018 and 2017, respectively. Restricted Stock The Company recognized $0.2 million of compensation expense related to restricted stock awards during both the three months ended March 31, 2018 and 2017, respectively. Stock Appreciation Rights and Market Based Cash Awards The Company recognized nominal amounts of compensation expense related to stock appreciation rights and market based cash awards during the three months ended March 31, 2018 and 2017, respectively. The Company recognized nominal compensation expense related to market based cash awards during the three months ended March 31, 2018 and 2017. Employee Stock Purchase Plan On May 7, 2013, the Company’s stockholders approved the BioScrip, Inc. Employee Stock Purchase Plan (the “ESPP”). The ESPP is administered by the Compensation Committee. The ESPP provides all eligible employees, as defined under the ESPP, the opportunity to purchase up to a maximum number of shares of Common Stock of the Company as determined by the Compensation Committee. Participants in the ESPP may acquire the Common Stock at a cost of 85% of the lower of the fair market value on the first or last day of the quarterly offering period. The Company filed a Registration Statement on Form S-8 to register 750,000 shares of Common Stock, par value $0.0001 per share, for issuance under the ESPP. As of March 31, 2018, 7,884 shares remained available for grant under the ESPP. Since inception, the ESPP’s third-party service provider has purchased 742,116 shares on the open market and delivered these shares to the Company’s employees pursuant to the ESPP. The Company incurred nominal expense during the three months ended March 31, 2018 and 2017, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2018
Accounting Policies [Abstract]
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 its wholly-owned subsidiaries (the “Company”) for the year ended December 31, 2017 (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”). 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 (the “Exchange Act”). 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 months ended March 31, 2018 require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes and are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018.
Consolidation	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 consolidation.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Restricted cash consists of cash balances held by financial institutions as collateral for letters of credit. These balances are reclassified to cash and cash equivalents when the underlying obligation is satisfied, or in accordance with the governing agreement.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09—Revenue from Contracts with Customers (Topic 606). The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The FASB delayed the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company did not elect early adoption and applied the modified retrospective approach upon adoption which results in application of the new guidance only to contracts that are not completed at the adoption date and does not require adjustment of prior reporting periods. Assessment of the new guidance did not result in an opening retained earnings adjustment, but did result in the adjustment of accounts receivable as the allowance for doubtful accounts was eliminated upon implementation. Pursuant to the requirements of Topic 606, the transaction price to be recognized as revenue is estimated based upon the amount of cash ultimately expected to be collected. Therefore, amounts expected to be written off are reflected in the amount of revenue recognized upon fulfillment of the performance obligation. The new standard resulted in the recognition of amounts previously reported as bad debt expense as a reduction to revenue upon implementation; see Note 3 - Revenue. In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-11—Earnings Per Share (Topic 260), Distinguishing Liabilities From Equity (Topic 480), and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. ASU 2017-11 eliminates the requirement that a down round feature precludes equity classification when assessing whether an instrument is indexed to an entity’s own stock. A freestanding equity-linked financial instrument no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The effective date for ASU 2017-11 is for annual or any interim periods beginning after December 15, 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09—Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 modifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The effective date for ASU 2017-09 is for annual or any interim periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018. The adoption of this standard did not materially impact the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18—Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The effective date for ASU 2016-18 is for annual or any interim periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018. The adoption of this standard did not materially impact the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15—Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for eight specific cash flow issues with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The effective date for ASU 2016-15 is for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this ASU effective January 1, 2018. The adoption of this standard did not materially impact the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02—Leases (Topic 842), requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard may be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements. Adoption of ASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with accounting standards in effect for those periods.
Revenue Recognition	Infusion Revenues The Company generates revenue principally through the provision of infusion services to provide clinical management services and the delivery of cost effective prescription medications. Prescription drugs are dispensed either through a pharmacy participating in the Company’s pharmacy network or a pharmacy owned by the Company. Fee-for-service agreements include pharmacy agreements, under which we dispense prescription medications through the Company’s pharmacy facilities. The Company provides a variety of therapies to patients. For infusion-related therapies, the Company frequently provides multiple deliverables of drugs and related nursing services. After applying the criteria from Topic 606, the Company concluded that multiple performance obligations exist in its contracts with its customers. Revenue is allocated to each performance obligation based on relative standalone price, determined based on reimbursement rates established in the third party payor contracts. Drug revenue is recognized at the time the drug is shipped, and nursing revenue is recognized on the date of service. Revenue Recognition ASC 606 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled in exchange for those goods or services. ASC 606 requires application of a five-step model to determine when to recognize revenue and at what amount. The revenue standard applies to all contracts with customers and revenues are to be recognized when control of the promised goods or services is transferred to the Company’s patients in an amount that reflects consideration expected to be received in exchange for those goods or services.

BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Effect of Error Corrections

The following tables set forth the effect these corrections had on the Company’s March 31, 2017 statement of operations:



	Three Months Ended March 31, 2017
	Previously Reported			Corrections			Revised
Net revenue	$	217,810		$	—		$	217,810
Gross profit	65,584			(710		)	64,874
Total Operating Expenses	71,212			(197		)	71,015
Interest expense	12,744			(85		)	12,659
Loss from continuing operations, net of income taxes	(18,991		)	(428		)	(19,419		)
Loss from discontinued operations, net of income taxes	(437		)	138			(299		)
Net loss	$	(19,428	)	$	(290	)	$	(19,718	)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of Accounts Receivable Aging



	March 31, 2018						December 31, 2017
	0 - 180 days		Over 180 days		Total		0 - 180 days		Over 180 days		Total
Government	$	18,367	$	1,604	$	19,971	$	20,602	$	10,082	$	30,684
Commercial	61,561		2,019		63,580		63,767		18,779		82,546
Patient	3,819		815		4,634		2,577		7,627		10,204
Gross accounts receivable	$	83,747	$	4,438	88,185		$	86,946	$	36,488	123,434
Allowance for doubtful accounts					—						(37,912		)
Net accounts receivable					$	88,185					$	85,522

REVENUE (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue by Payor



	Three Months Ended March 31, 2018
Commercial	$	140,541
Government	26,542
Patient	1,501
Total Revenue	$	168,584

LOSS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Loss Per Share

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



	Three Months Ended March 31,
	2018			2017
Numerator:
Loss from continuing operations, net of income taxes	$	(12,987	)	$	(19,419	)
Income (loss) from discontinued operations, net of income taxes	(30		)	(299		)
Net loss	$	(13,017	)	$	(19,718	)
Accrued dividends on preferred stock	(2,481		)	(2,214		)
Deemed dividend on preferred stock	(176		)	(174		)
Loss attributable to common stockholders	$	(15,674	)	$	(22,106	)

Denominator - Basic and Diluted:
Weighted average common shares outstanding	127,772			118,783

Loss per Common Share:
Loss from continuing operations, basic and diluted	$	(0.12	)	$	(0.18	)
Loss from discontinued operations, basic and diluted	—			—
Loss per common share, basic and diluted	$	(0.12	)	$	(0.18	)

STOCKHOLDERS' DEFICIT (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Carrying value and activity of Preferred Shares

The following table sets forth the activity recorded during the three months ended March 31, 2018 related to the Series A Preferred Stock (in thousands):



Series A Preferred Stock carrying value at December 31, 2017	$	2,827
Accretion of discount related to issuance costs	13
Dividends recorded through March 31, 2018¹	83
Series A Preferred Stock carrying value March 31, 2018	$	2,923

¹Dividends recorded reflect the increase in the Liquidation Preference associated with unpaid dividends.

The following table sets forth the activity recorded during the three months ended March 31, 2018 related to the Series C Preferred Stock (in thousands):



Series C Preferred Stock carrying value at December 31, 2017	$	79,252
Accretion of discount related to issuance costs	163
Dividends recorded through March 31, 2018¹	2,398
Series C Preferred Stock carrying value March 31, 2018	$	81,813

¹Dividends recorded reflect the increase in the Liquidation Preference associated with unpaid dividends.

RESTRUCTURING, ACQUISITION, INTERGRATION, AND OTHER EXPENSES, NET (Tables)

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Schedule of Restructuring, Acquisition, Integration, and Other Expenses, Net



	Three Months Ended March 31,
	2018		2017
Restructuring and other expenses	$	1,879	$	3,206
Acquisition and integration expense	3		17
Total restructuring, acquisition, integration, and other expense, net	$	1,882	$	3,223

DEBT (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Summary of Long-term Debt

As of March 31, 2018 and December 31, 2017, the Company’s debt consisted of the following (in thousands):



	March 31, 2018			December 31, 2017
First Lien Note Facility, net of unamortized discount	198,481			198,324
Second Lien Note Facility, net of unamortized discount	87,038			85,694
2021 Notes, net of unamortized discount	197,547			197,363
Capital leases	1,689			2,863
Less: Deferred financing costs	(3,318		)	(3,656		)
Total Debt	481,437			480,588
Less: Current portion	(1,055		)	(1,722		)
Long-term debt, net of current portion	$	480,382		$	478,866

Schedule of Carrying and Estimated Fair Values of Financial Instruments

The following details the carrying value and the fair value of our financial instruments (in thousands):



Financial Instrument	Carrying Value as of March 31, 2018		Markets for Identical Item (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
First Lien Note Facility	$	198,481	$	—	$	—	$	202,713
Second Lien Note Facility	87,038		—		—		101,855
2017 Warrants	17,056		—		17,056		—
2021 Notes	197,547		—		186,682		—
Total	$	500,122	$	—	$	203,738	$	304,568

INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Federal and State Income Tax Provision (Benefit)

The Company’s federal and state income tax provision from continuing operations for the three months ended March 31, 2018 and 2017 is summarized in the following table (in thousands):



	Three Months Ended March 31,
	2018		2017
Current
Federal	$	—	$	—
State	17		—
Total current	17		—
Deferred
Federal	—		495
State	31		124
Total deferred	31		619
Total income tax expense	$	48	$	619

Reconciliation of the Income Tax Rate



	Three Months Ended March 31,
	2018			2017
Tax benefit at statutory rate	$	(2,729	)	$	(6,445	)
State tax expense, net of federal taxes	48			36
Alternative minimum tax receivable	—			—
Valuation allowance changes affecting income tax provision	3,419			6,976
Non-deductible transaction costs and other	(690		)	52
Income tax expense	$	48		$	619

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenue	$ 168,584	$ 217,810
Gross profit	55,048	64,874
Loss from continuing operations, net of income taxes	(12,987)	(19,419)
Loss from discontinued operations, net of income taxes	(30)	(299)
Net loss	$ (13,017)	(19,718)
Accounting for Suspense and Clearing Accounts
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenue		217,810
Gross profit		64,874
Total Operating Expenses		71,015
Interest expense		12,659
Loss from continuing operations, net of income taxes		(19,419)
Loss from discontinued operations, net of income taxes		(299)
Net loss		(19,718)
Accounting for Suspense and Clearing Accounts \| Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenue		217,810
Gross profit		65,584
Total Operating Expenses		71,212
Interest expense		12,744
Loss from continuing operations, net of income taxes		(18,991)
Loss from discontinued operations, net of income taxes		(437)
Net loss		(19,428)
Accounting for Suspense and Clearing Accounts \| Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenue		0
Gross profit		(710)
Total Operating Expenses		(197)
Interest expense		(85)
Loss from continuing operations, net of income taxes		(428)
Loss from discontinued operations, net of income taxes		138
Net loss		$ (290)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Restricted cash	$ 4,950	$ 4,950

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable Aging (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 88,185	$ 123,434
Allowance for doubtful accounts	0	(37,912)
Net accounts receivable	88,185	85,522
Government
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	19,971	30,684
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	63,580	82,546
Patient
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	4,634	10,204
Receivables 0 to 180 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	83,747	86,946
Receivables 0 to 180 Days Past Due \| Government
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	18,367	20,602
Receivables 0 to 180 Days Past Due \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	61,561	63,767
Receivables 0 to 180 Days Past Due \| Patient
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	3,819	2,577
Receivables Over 180 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	4,438	36,488
Receivables Over 180 Days Past Due \| Government
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	1,604	10,082
Receivables Over 180 Days Past Due \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	2,019	18,779
Receivables Over 180 Days Past Due \| Patient
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 815	$ 7,627

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total Revenue	$ 168,584
Gross profit	55,048	$ 64,874
Bad debt expense	0	$ 7,042
Allowance for doubtful accounts	0		$ 37,912
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Total Revenue	174,000
Gross profit	60,500
Bad debt expense	5,500
Allowance for doubtful accounts	41,200
Commercial
Disaggregation of Revenue [Line Items]
Total Revenue	140,541
Government
Disaggregation of Revenue [Line Items]
Total Revenue	26,542
Patient
Disaggregation of Revenue [Line Items]
Total Revenue	$ 1,501
Referral Bonuses \| Total Revenue
Disaggregation of Revenue [Line Items]
Percentage of concentration risk, less than	1.00%

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Earnings Per Share [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001		$ 0.0001
Numerator:
Loss from continuing operations, net of income taxes	$ (12,987)	$ (19,419)
Loss from discontinued operations, net of income taxes	(30)	(299)
Net loss	(13,017)	(19,718)
Accrued dividends on preferred stock	(2,481)	(2,214)
Deemed dividends on preferred stock	(176)	(174)
Loss attributable to common stockholders	$ (15,674)	$ (22,106)
Denominator - Basic and Diluted:
Weighted average number of common shares outstanding, basic and diluted (in shares)	127,772	118,783
Loss per Common Share:
Loss from continuing operations, basic and diluted (in dollars per share)	$ (0.12)	$ (0.18)
Loss from discontinued operations, basic and diluted (in dollars per share)	0.00	0.00
Loss per common share, basic and diluted (in dollars per share)	$ (0.12)	$ (0.18)
Antidilutive securities excluded from computation of earnings per share (in shares)	18,800	19,400
Series A Preferred Stock
Class of Stock [Line Items]
Convertible preferred stock series, par value (in dollars per share)	$ 0.0001		0.0001
Series C Preferred Stock
Class of Stock [Line Items]
Convertible preferred stock series, par value (in dollars per share)	$ 0.0001		$ 0.0001

STOCKHOLDERS' DEFICIT - Carrying Value of Preferred Stock Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Series A Preferred Stock
Class of Warrant or Right [Line Items]
Dividend accrual rate	11.50%
Convertible preferred stock series, liquidation preference	$ 2,998	$ 2,916
Series C Preferred Stock
Class of Warrant or Right [Line Items]
Dividend accrual rate	11.50%
Convertible preferred stock series, liquidation preference	$ 86,952	$ 84,555

STOCKHOLDERS' DEFICIT - Activity Related to Series A and C Preferred Stock (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Series A Preferred Stock
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning Balance	$ 2,827
Accretion of discount related to issuance costs	13
Dividends recorded	83
Ending Balance	2,923
Series C Preferred Stock
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning Balance	79,252
Accretion of discount related to issuance costs	163
Dividends recorded	2,398
Ending Balance	$ 81,813

STOCKHOLDERS' DEFICIT - First Quarter 2017 Private Placement (Details) - Private Placement - Common Stock - USD ($) $ / shares in Units, $ in Millions	Jun. 29, 2017	Mar. 01, 2017
Class of Stock [Line Items]
Stock issued (in shares)	6,359,350	3,300,000.0
Net proceeds from issuance of equity, net of issuance costs	$ 15.9	$ 5.1
Stock offering price (in dollars per share)	$ 2.50	$ 1.5366

STOCKHOLDERS' DEFICIT - 2017 Warrants (Details) - Common Stock - 2017 Warrants - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Jun. 29, 2017	Mar. 31, 2018
Class of Warrant or Right [Line Items]
Warrant exercise threshold	4.99%
Warrant holder outstanding common stock ownership limitation	19.99%
Term of warrants	10 years
Exercise price of warrants (in dollars per share)	$ 2.00
Remeasurement adjustment		$ (3.4)
Warrants, fair value		$ 17.1

STOCKHOLDERS' DEFICIT - Second Quarter 2017 Private Placement (Details) - Private Placement - Common Stock - USD ($) $ / shares in Units, $ in Millions	Jun. 29, 2017	Mar. 01, 2017
Class of Stock [Line Items]
Stock issued (in shares)	6,359,350	3,300,000.0
Stock offering price (in dollars per share)	$ 2.50	$ 1.5366
Net proceeds from issuance of equity, net of issuance costs	$ 15.9	$ 5.1
Associated costs with private placement	$ 0.2

RESTRUCTURING, ACQUISITION, INTERGRATION, AND OTHER EXPENSES, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring and other expenses	$ 1,879	$ 3,206
Acquisition and integration expense	3	17
Total restructuring, acquisition, integration, and other expense, net	$ 1,882	$ 3,223

DEBT - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Less: Deferred financing costs	$ (3,318)	$ (3,656)
Total Debt	481,437	480,588
Less: Current portion	(1,055)	(1,722)
Long-term debt, net of current portion	480,382	478,866
First Lien Note Facility, net of unamortized discount
Debt Instrument [Line Items]
Long-term debt	198,481	198,324
Second Lien Note Facility, net of unamortized discount
Debt Instrument [Line Items]
Long-term debt	87,038	85,694
2021 Notes
Debt Instrument [Line Items]
Long-term debt	197,547	197,363
Capital leases
Debt Instrument [Line Items]
Capital leases	$ 1,689	$ 2,863

DEBT - Additional Information (Details) - USD ($)			3 Months Ended	12 Months Ended
DEBT - Additional Information (Details) - USD ($)	Jun. 29, 2017	Mar. 01, 2017	Mar. 31, 2018	Dec. 31, 2017	Jan. 06, 2017	Feb. 11, 2014	Jul. 31, 2013
Common Stock \| 2017 Warrants
Debt Instrument [Line Items]
Warrant exercise threshold	4.99%
Remeasurement adjustment			$ (3,400,000)
Warrants classified within equity at fair value			$ 17,100,000
Private Placement \| Common Stock
Debt Instrument [Line Items]
Net proceeds from issuance of equity, net of issuance costs	$ 15,900,000	$ 5,100,000
Associated costs with private placement	200,000
Term Loan B Facility \| Senior Secured Debt
Debt Instrument [Line Items]
Face amount of debt instruments							$ 250,000,000.0
Delayed Draw Term Loan Facility \| Senior Secured Debt
Debt Instrument [Line Items]
Face amount of debt instruments							150,000,000.0
Priming Credit Agreement \| Line of Credit
Debt Instrument [Line Items]
Face amount of debt instruments					$ 25,000,000
First Lien Notes \| Senior Secured Debt
Debt Instrument [Line Items]
Face amount of debt instruments	200,000,000
Amortization installment percentage of principal			0.625%
Early repayment premium base rate			5.00%
Principal prepayment limit			$ 50,000,000
Default penalty interest rate increase			2.00%
First Lien Notes \| Senior Secured Debt \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			6.00%
First Lien Notes \| Senior Secured Debt \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			7.00%
First Lien Notes \| Senior Secured Debt \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
First Lien Notes \| Senior Secured Debt \| Redemption Period One
Debt Instrument [Line Items]
Early repayment premium rate			4.00%
First Lien Notes \| Senior Secured Debt \| Redemption Period Two
Debt Instrument [Line Items]
Early repayment premium rate			2.00%
First Lien Notes \| Senior Secured Debt \| Redemption Period Three
Debt Instrument [Line Items]
Early repayment premium rate			0.00%
Second Lien Notes \| Senior Secured Debt
Debt Instrument [Line Items]
Face amount of debt instruments	100,000,000
Early repayment premium base rate			5.00%
Default penalty interest rate increase				2.00%
Second Lien Notes \| Senior Secured Debt \| Option One
Debt Instrument [Line Items]
Basis spread on variable rate			9.25%
Second Lien Notes \| Senior Secured Debt \| Option Two
Debt Instrument [Line Items]
Basis spread on variable rate			11.25%
Second Lien Notes \| Senior Secured Debt \| Option Three
Debt Instrument [Line Items]
Basis spread on variable rate			10.25%
Second Lien Notes \| Senior Secured Debt \| Option Three, Half Cash
Debt Instrument [Line Items]
Basis spread on variable rate			4.625%
Second Lien Notes \| Senior Secured Debt \| Option Three, Half Capitalized Interest
Debt Instrument [Line Items]
Basis spread on variable rate			5.625%
Second Lien Notes \| Senior Secured Debt \| Redemption Period One
Debt Instrument [Line Items]
Early repayment premium rate				4.00%
Second Lien Notes \| Senior Secured Debt \| Redemption Period Two
Debt Instrument [Line Items]
Early repayment premium rate				2.00%
Second Lien Notes \| Senior Secured Debt \| Redemption Period Three
Debt Instrument [Line Items]
Early repayment premium rate				0.00%
Second Lien Delayed Draw Notes \| Senior Secured Debt
Debt Instrument [Line Items]
Additional debt allowed under debt agreements	$ 10,000,000
Period after closing of ability to issue new debt	18 months
Senior Unsecured 8.875% Notes
Debt Instrument [Line Items]
Face amount of debt instruments						$ 200,000,000.0
Stated rate on debt			8.875%			8.875%
Debt discount						$ 5,000,000
Revolving Credit Facility \| Revolving Credit Facility \| Senior Secured Debt
Debt Instrument [Line Items]
Face amount of debt instruments							$ 75,000,000.0
Minimum \| First Lien Notes \| Senior Secured Debt \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Minimum \| First Lien Notes \| Senior Secured Debt \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Minimum \| Second Lien Notes \| Senior Secured Debt \| Option One \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%

DEBT - Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total, carrying value	$ 500,122
First Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, carrying value	198,481	$ 198,324
Second Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, carrying value	87,038	85,694
2021 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, carrying value	197,547	$ 197,363
Markets for Identical Item (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants, fair value	0
Total, fair value	0
Markets for Identical Item (Level 1) \| First Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	0
Markets for Identical Item (Level 1) \| Second Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	0
Markets for Identical Item (Level 1) \| 2021 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants, fair value	17,056
Total, fair value	203,738
Significant Other Observable Inputs (Level 2) \| First Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	0
Significant Other Observable Inputs (Level 2) \| Second Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	0
Significant Other Observable Inputs (Level 2) \| 2021 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	186,682
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants, fair value	0
Total, fair value	304,568
Significant Unobservable Inputs (Level 3) \| First Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	202,713
Significant Unobservable Inputs (Level 3) \| Second Lien Note Facility, net of unamortized discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	101,855
Significant Unobservable Inputs (Level 3) \| 2021 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	0
2017 Warrants \| Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants, carrying value	17,056
Warrants, fair value	$ 17,100

COMMITMENTS AND CONTINGENCIES (Details) - Settled Litigation - Pharmacy Services Assets Sale - Walgreens $ in Millions	Dec. 28, 2016 USD ($)
Loss Contingencies
Percent of total sales claimed in violation of agreement	3.00%
Damages awarded	$ 5.8
Percent awarded of total sought	20.00%

CONCENTRATION OF RISK (Details) - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
United Healthcare
Concentration Risk [Line Items]
Percentage of concentration risk		22.80%
Medicare
Concentration Risk [Line Items]
Percentage of concentration risk	8.40%	6.90%

INCOME TAXES - Schedule of Federal and State Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Federal	$ 0	$ 0
State	17	0
Total current	17	0
Federal	0	495
State	31	124
Total deferred	31	619
Total income tax expense	$ 48	$ 619

INCOME TAXES - Reconciliation of the Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Tax benefit at statutory rate	$ (2,729)	$ (6,445)
State tax expense, net of federal taxes	48	36
Alternative minimum tax receivable	0	0
Valuation allowance changes affecting income tax provision	3,419	6,976
Non-deductible transaction costs and other	(690)	52
Total income tax expense	$ 48	$ 619

INCOME TAXES - Additional Information (Details) $ in Millions	Mar. 31, 2018 USD ($)
Operating Loss Carryforwards [Line Items]
Carryforward not subject to expiration	$ 11.5
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	415.5
Net operating loss carryforwards subject to annual limitation	12.2
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 454.7

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended
	Nov. 30, 2016	May 07, 2013	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Nov. 29, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Par value of common stock (in dollars per share)			$ 0.0001		$ 0.0001
Equity Option
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based compensation expense			$ 0.3	$ 0.3
Restricted Stock
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based compensation expense			$ 0.2	$ 0.2
Employee Stock
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)		750,000
Number of shares available for grant (in shares)			7,884
Purchase price of common stock, percent		85.00%
Par value of common stock (in dollars per share)		$ 0.0001
Shares purchased on the open market for award (in shares)			742,116
Charter Amendment
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)	250,000,000					125,000,000
2008 Plan
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)	3,000,000
Number of shares available for grant (in shares)			5,470,536
2008 Plan \| Equity Option
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)						500,000
2008 Plan \| Stock Appreciation Rights (SARs)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)						500,000
2008 Plan \| Restricted Stock
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)						350,000
2008 Plan \| Common Stock
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized (in shares)	14,605,000					9,355,000
Adjustment to number of shares authorized (in shares)	5,250,000