About Omnicell

Omnicell, Inc. (Omnicell) provides medication management solutions and adherence tools for healthcare systems and pharmacies, which are sold in its principal market, the healthcare industry. The company’s market is primarily located in the United States and Europe. Omnicell focuses on helping its customers to define and deliver a medication management strategy that is designed to equip and empower pharmacists and nurses to focus on patient care rather than administrative tasks, and to drive improved clinical, operational, and financial outcomes across all care settings. The company is doing this with an industry-leading medication management infrastructure which includes robotics, smart devices, intelligent software, and expert services. This comprehensive set of solutions provides the critical foundation for customers to realize the industry vision of the Autonomous Pharmacy, a vision defined by pharmacy leaders for improving operational efficiencies and ultimately targeting zero-error medication management. Business Strategy The company focuses on delivering solutions to its customers realize the industry vision of the Autonomous Pharmacy and drive positive medication management outcomes with outstanding customer experience through a mature channel in four market categories: Point of Care, Central Pharmacy and IV Compounding, Specialty Pharmacy and 340B Program, and Retail, Institutional, and Payer. Products and Services The company’s products and services span the evolving continuum of care, including inpatient, outpatient, and retail settings. The company provides a range of point of care medication and supply dispensing systems, including automated systems. The company also offers advanced automation solutions including robotics designed to automate work, streamline workflows, and reduce human error. Across these settings, the company provides central pharmacy automation solutions for both medication dispensing and IV compounding. The company also provides patient engagement solutions to help improve adherence to prescriptions. With certain automation and technology-enabled service offerings, the company provides expert services designed to help optimize utilization through subscription agreements, inclusive of expert personnel to operate the equipment. The company’s offerings include: Point of Care The company’s point of care automation solutions are designed to improve clinician workflows in patient care areas of the healthcare system, such as nursing units, patient wards, operating rooms, and emergency departments. Automated dispensing systems are an essential part of medication management because they are designed to safeguard medications, including controlled substances, and provide automation to track inventory. The company strives to continually innovate the company’s automated dispensing systems by designing features that are intended to help its customers close gaps in safety and enable clinicians to spend less time managing medications and more time caring for patients. The company’s XT Series automated dispensing systems for medications and supplies, which are used in nursing units and other clinical areas of the hospital, are designed to support workflows specific to each area of the hospital, with various software and hardware options. The company’s Point of Care Service combines market-leading automation with expert services in an effort to improve solution adoption and optimization, enhance data-driven performance, and drive nursing and pharmacy efficiency. For the operating room, the company also offers specialized automated dispensing systems. The company’s interoperability solutions enable integration of its automated dispensing systems with key electronic health record systems to streamline workflow and increase accuracy. Central Pharmacy and IV Compounding The company’s Central Pharmacy Dispensing Service offers a comprehensive service that is meant to help optimize medication dispensing, which combines advanced central pharmacy robotics, dispensing optimization tools, and remote and onsite experts to operate its equipment. The company’s Central Pharmacy Dispensing Service is designed to assist the customer in their goals of enhanced patient safety and dispensing accuracy, reduced medication waste and expirations, and optimized pharmacy labor and workflows. The company’s IV Compounding Service offers a comprehensive service that is intended to help optimize IV robotic compounding operations, which combines advanced IV robotics, clinical data that may be used to support extended expiration dates and reduce medication waste, and remote and onsite experts to operate the IV robotic equipment. The company’s IV Compounding Service is designed to assist customers in their goals of enhanced patient safety, reduced medication expense from outsourcing facilities and operating room medication waste, and improved supply chain control. Specialty Pharmacy and 340B The company’s Specialty Pharmacy Services offering includes a comprehensive set of technology, services, and expertise to provide a fully managed in-house specialty pharmacy delivered through a value-based commercial model. This solution is intended for health systems, federally qualified health centers, and provider groups to support on-site management of specialty pharmacy services, including payer contracting, staffing, assistance with licensing, 340B Program administration, and to assist with obtaining access to specialty medication and limited distribution drugs. This offering is designed to increase specialty growth and improve cost savings, improve access to limited distribution drugs, and increase physician utilization for targeted disease states. Inventory Optimization The company’s Inventory Optimization Service offers a comprehensive service that includes advanced software, robust benchmarking, predictive and prescriptive analytics, and clinical experts meant to help identify and execute on inventory optimization opportunities. The company’s Inventory Optimization Service is designed to provide greater medication inventory visibility as well as reduce medication waste and expirations, stockouts and shortages. Patient Engagement, Clinical and Financial Solutions The company’s EnlivenHealth brand offers a portfolio of products that are designed to digitally enable pharmacies with connected patient engagement, clinical, and financial workflows that are intended to result in an elevated patient-pharmacy experience, exceptional patient care, and enhanced financial performance. The company’s patient engagement solutions are designed to better educate, inform, and enrich patients’ lives with its personalized interactive voice response, outbound communications, and mobile app offerings. The company also enables digital delivery of medication information (medication guides, vaccine information sheets, and drug monographs) in an effort to unlock patient preferences, staff efficiency, and environmental value. Additionally, the company’s clinical workflows help to enable pharmacies to accelerate health and wellness in their community through its targeted patient interventions, appointment scheduling, immunization, medication therapy management, medication synchronization, and Medicare plan comparison capabilities. Furthermore, the company’s financial workflows are designed to streamline payments, cashflow and claims for durable medical equipment, vaccination, clinical care, and specialty drugs through its medical billing and reconciliation solutions. By leveraging these digitally enabled services, the company strives to provide data-driven intelligence to optimize pharmacy operations continuously, driving operational and execution excellence, as well as patient adherence and outcomes. The company advocates for a world where pharmacy teams stand at the forefront of healthcare, seeking to empower them to practice at the top of their license, and aiding them with their commitment to patient care, collaboration, and continuous learning. Medication Adherence The company’s medication adherence solutions, which include its consumables and medication packaging systems, are used by institutional pharmacies serving long-term care and other sites outside the acute care hospital, as well as retail, community, and outpatient pharmacies, and is designed to improve pharmacy operations and patient adherence to prescriptions. The company’s single-dose automation solutions allow customers to fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions. The company’s fully automated and semi-automated filling equipment is designed specifically for institutional pharmacies with enough order volume to warrant automated packaging of medications. The company’s automated solutions interface with pharmacy information systems to obtain prescription information. For multi-medication prescriptions, the company offers software that guides users through the manual filling process to help streamline workflow with a goal of increased packaging accuracy. In addition, the company offers a wide range of medication blister card packaging and packaging supplies designed to enhance medication adherence in a variety of non-acute care settings. Professional, Technical, and Customer Success Services As the complexity of the introduction and implementation of new innovations increases for its health system customers, the company also offers Professional Services, such as technology installation, program management, customer education and training, and change management services. The company views its customers as partners in the pursuit of better health outcomes for patients and improved satisfaction for the clinicians who serve them. The company finds that every engagement is an opportunity for it to help its customers reach their clinical and business objectives while it works with its customers to accelerate the recognition of value for their initiatives. After Omnicell solutions are implemented, the company’s Customer Success team provides support through remote and onsite experts who help customers fully adopt and optimize utilization of its solutions. The company’s technical services include post-installation technical support with phone and web-based support through its U.S.-based technical support centers, on-site service, parts, and access to software upgrades. Product support is available through fixed-period service contracts and on a time-and-materials basis. On-site service is provided by the company’s field service team. Retail Pharmacy and Hospital Automation Outside the United States Additional products sold outside the United States include robotic dispensing systems used in hospitals and retail pharmacies for handling the stocking and retrieval of boxed medications. For management of medical supplies, a specialized cabinet that uses radio frequency identification is also available, which is designed to improve the accuracy of inventory management. Advancing the company’s Solutions Advanced Services include services, such as Central Pharmacy Dispensing Service, IV Compounding Service, Point of Care Service, EnlivenHealth solutions, Specialty Pharmacy Services, 340B solutions, Inventory Optimization Service, and other software solutions and licensing support. Because thousands of facilities utilize the company’s solutions, it can provide actionable insights to help customers better understand their medication usage and improve pharmacy supply chain management. The company offers specialized services and analytics software designed to help healthcare facilities improve their bottom line and patient care by harnessing data from automation and other systems. Sales and Distribution The company sells its products and services primarily in the United States. Approximately 88% of the company’s revenue was generated in this market for the year ended December 31, 2023. The company’s sales force is organized by geographic region in the United States and Canada, with account management executives dedicated to its customers in the top 300 U.S. health systems and health system executives focused on generating new business. The company’s sales in the United States and Canada are primarily made direct to end-user customers with the exception of some distribution of medication adherence consumables in parts of Canada. Outside of the United States and Canada, the company has direct sales employees in the United Kingdom, France, Germany, the United Arab Emirates, Belgium, and Australia. For other geographies, the company generally sells through distributors and resellers. The company’s combined direct, corporate sales support, and international distribution sales teams consisted of approximately 450 staff members as of December 31, 2023. Nearly all of the company’s direct sales team members have hospital capital equipment, services, or clinical systems experience. The sales cycle for the company’s automation systems, from the initial sales meeting to completion of installation, can take in excess of 12 to 24 months. The company contracts with Group Purchasing Organizations (GPOs), each of which functions as a purchasing agent on behalf of member hospitals and other healthcare providers. Pursuant to the terms of GPO agreements, each member contracts directly with the company and can purchase its product at pre-negotiated contract terms and pricing. The company’s most significant GPO contracts include Vizient, Inc., Premier Inc., and HealthTrust Purchasing Group. The company also has a Federal Supply Schedule contract with the Department of Veterans Affairs (the GSA Contract), allowing the Department of Veterans Affairs, the Department of Defense, and other federal government customers to purchase its products. Some of its contracts with these organizations are terminable at the convenience of either party. The accounts receivable balances are with individual members of the GPOs and federal agencies that purchase under the GSA Contract, and therefore no significant concentration of credit risk exists. During its fiscal year ended December 31, 2023, sales to members of the ten largest GPOs and federal agencies that purchase under the GSA Contract accounted for approximately 64% of its total consolidated revenues. The company offers multi-year, non-cancelable lease payment terms to assist healthcare organizations in purchasing its systems by reducing their cash flow requirements in a lease structure. The company sells a portion of its multi-year lease receivables to third-party leasing finance companies. The company’s clinical and technical consulting team supports its sales force by working with its customers to identify potential solutions intended to help them achieve their desired outcomes. The company’s Professional Services team assists customers with the technology installations of its solutions, including configuring its systems to address the specific needs of each individual customer. After the solutions are implemented, the company’s Customer Success team provides remote and onsite experts who help its customers fully adopt and optimize utilization of its solutions in an effort to achieve their desired clinical and business outcomes. The company offers telephone and web-based technical support through its the U.S.-based technical support centers. The company’s support centers are staffed 24 hours a day, 365 days a year. The company has found that a majority of its customers’ service issues can be addressed by its support engineers either by phone or with remote diagnostic tools. In addition, the company’s customers can enable access to allow it to remotely monitor system performance of certain products. Where applicable, this suite of support tools is designed to proactively monitor certain system status and can alert service personnel to potential problems to preempt system failure. In addition, the company’s international team handles direct sales, installation, and service for healthcare facilities in the United Kingdom, France, and Germany, and for non-acute customers in Australia. Sales, installation, and service to healthcare facilities is handled through distribution partners in other parts of Europe, Asia, Australia, the Middle East, South Africa, and South America. The company’s products are available in a variety of languages including Traditional Chinese, Simplified Chinese, Japanese, Korean, French, Swedish, Dutch, Spanish, and German. Intellectual Property and Proprietary Technology The company’s issued patents expire on various dates between 2024 and 2041. Government Regulation The company is subject to various laws and regulations related to privacy, data protection, and information security. In the United States, these include federal health information privacy laws (such as the Health Information Portability and Accountability Act of 1996), various state and federal security breach notification laws, consumer protection laws, and state laws addressing privacy and security. Internationally, various foreign jurisdictions in which the company operates have established, or are developing, their own data privacy and security legal frameworks with which the company or its customers must comply, including for example, the European Union’s General Data Protection Regulation (together, the GDPR). The manufacture and sale of most of the company’s medication management solutions are not directly regulated by the FDA or the DEA. However, the pharmacy, dispensing, and compounding activities of other persons (its customers) that use its current medication management solutions may be subject to regulation by those agencies and by state boards of pharmacy. With respect to its products and solutions, the company manufactures and develops specifications for products classified as Class I and Class II medical devices, which are subject to FDA regulation and require compliance with the FDA Quality System Regulation, as well as medical device reporting. The company also offers a sterile disposable product that required FDA 510(k) review and clearance prior to marketing and distribution. The company also provides services and solutions to independent and health system specialty pharmacies that may require it to observe U.S. Department of Health and Human Services regulations for credentialing of providers (pharmacists). These services and solutions may also be subject to DEA regulations concerning the management, storing, dispensing, and disposal of, and accounting for, controlled substances. The healthcare fraud and abuse laws and regulations that may impact its or its customers’ operations include but are not limited to: the federal Anti-Kickback Statute, the civil False Claims Act (FCA), the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Federal Civil Monetary Penalties Law, the Centers for Medicare and Medicaid Services (CMS) Medicare Communications and Marketing Guidelines (MCMG), the federal Stark Law (Stark Law), and the Physician Payments Sunshine Act. Furthermore, the company’s operations are impacted by trade regulations in many countries that govern the import of raw materials and finished products, and the company is also subject to laws and regulations that seek to prevent corruption and bribery in the marketplace (including the U.S. Foreign Corrupt Practices Act and the United Kingdom Bribery Act), as well as laws and regulations pertaining to healthcare fraud, waste, and abuse, including state and federal anti-kickback and false claims laws in the United States. Compliance with the laws and regulations applicable to the company’s global operations is costly and requires sufficient resources to actively maintain various governance, risk, and compliance systems in several areas to enable the company to keep abreast of the constantly evolving legal and regulatory landscape both in the United States and abroad. These areas include, without limitation, FDCA and FDA, Controlled Substances Act and DEA regulations, state board of pharmacy regulations, and laws and regulations regarding quality, privacy, information governance and security, and environmental, health and safety. History The company was founded in 1992. It was incorporated in California in 1992 under the name of Omnicell Technologies, Inc. and reincorporated in Delaware in 2001 as Omnicell, Inc.