Amedisys Inc. (Nasdaq: AMED) is answering more questions about its potential merger with Option Care Health (Nasdaq: OPCH), which was first announced earlier this month.
The company submitted these responses as part of a 425 SEC filing, which it added to its site for stakeholders, employees and the public to view on Thursday.
A number of the responses were directed at questions Amedisys received the most emails about, according to the company.
One of the responses addressed why the deal with Option Care was being referred to as a “combination.”
According to Amedisys’ SEC filing, the deal represents the combination of both companies on a stock-for-stock basis. Once the deal has closed, Option Care stockholders will own 64.5% of the shares of the combined entity, and Amedisys stockholders will own 35.5% of the shares. The transaction is slated to close in the second half of 2023.
The company also touched on its plan for what the combined leadership team will look like.
“The combined company will be led by the best talent from both teams to allow us to take advantage of the complementary services and culture of the two companies and their expertise and strengths,” Amedisys wrote in the SEC filing.
The Amedisys and Option Care merger will allow the combined companies to offer home health care, hospice care, palliative care, high-acuity care and infusion services. As a combined entity, this also creates more payer diversification, and the transaction presents the opportunity for co-location across footprints.
For now, Amedisys’ leaders will stay in their current roles. Option Care CEO John C. Rademacher and CFO Mike Shapiro will lead the combined company in their current roles.
But Amedisys President and CEO Richard Ashworth will serve in a special advisor role under Rademacher. Scott Ginn, the acting COO and CFO at Amedisys, will remain a part of the leadership team going forward.
In the filing, Amedisys also commented on the future of the company, as well as Contessa Health’s branding.
“Option Care Health recognizes the value and equity of the Amedisys name and brand that we’ve established over the past 41 years and that was part of what attracted them to want to combine with us,” Amedisys wrote. “The same is true regarding the Contessa name and brand.”
Contessa brings high-acuity care into the home and partners with health systems and health plans. Amedisys acquired the company for $250 million in 2021. It has since been a key focus of Amedisys over the years.
Additionally, Amedisys will keep operating in its “legacy” locations, including Baton Rouge and Nashville, where its corporate offices are located.
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