Owens & Minor, Inc. (OMI): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the new financial reality for Owens & Minor, Inc. (OMI) now that they've executed a clean pivot to a pure-play home-based care model, shedding the Products & Healthcare Services segment for $375 million. The core engine is now the Patient Direct business, which they project will generate $2.76B to $2.82B in net revenue for 2025. Honestly, this isn't just a tweak; it's a full-scale re-engineering of their value chain. To see exactly how they plan to capture this fragmented home healthcare market-from their key partnerships with Medicare Advantage plans to managing the associated $138 million to $142 million in projected interest expense-you need to look closely at the building blocks below.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Owens & Minor, Inc. relies on to move products and services from the manufacturer to the point of care, especially after the strategic shift to a pure-play home-based care platform.

The most significant recent partnership event involves the divestiture of the Products & Healthcare Services (P&HS) segment, which fundamentally reshapes the remaining Key Partners structure.

The remaining business model continues to rely heavily on established relationships across the healthcare ecosystem, which are subject to extensive federal and state laws regarding billing and reimbursement.

• National and regional commercial payors (e.g., Medicare Advantage)
• Government healthcare programs (Medicare, Medicaid)

For the distribution and supply side, Owens & Minor, Inc. partners with suppliers, often through annual negotiations for manufacturer programs designed to drive sales growth and operational efficiencies.

• Suppliers of durable medical equipment and supplies
• Affiliated brands mentioned in the ecosystem: Apria®, Byram®, HALYARD

Strategic agreements remain crucial for market access and service delivery, especially as the company focuses on its Patient Direct stakeholders. Technology partnerships also underpin operations, such as the collaboration with Google Cloud to enhance the QSight® inventory management system.

• New nationwide preferred provider partnership agreements

Finance: review Q4 2025 revenue impact from P&HS divestiture by next Tuesday.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Key Activities

You're looking at the core actions Owens & Minor, Inc. (OMI) is taking right now to reshape its business into a pure-play home-based care platform. This isn't just about moving boxes; it's about strategic pruning and focused investment, especially after the major portfolio shift announced in late 2025.

Direct-to-patient delivery and logistics management

This activity centers on the Patient Direct segment, which is now the unified focus for capital deployment and strategy. The company is leveraging its scale to serve patients with chronic conditions directly in their homes. For the third quarter of 2025, revenue from continuing operations, which primarily represents this segment, was reported at $697.3 million. The Patient Direct segment showed 6% revenue growth compared to the first quarter of 2024, and its Adjusted EBITDA in Q2 2025 was $96.6 million, up from $91.1 million in Q2 2024. This segment is also bolstered by a new nationwide preferred provider partnership agreement with Optum.

The scope of the logistics operation is vast, as Owens & Minor, Inc. distributes nearly 360,000 medical products across the continuum of care. The company is also focused on specific therapy categories that drive this direct-to-patient service:

• Managing diabetes supplies.
• Managing sleep therapy devices and addressing sleep apnea.
• Providing home medical equipment (HME), wound care, and urology products.

Revenue cycle management for complex claims processing

For the Patient Direct business, managing the financial side of care delivery is crucial. This involves the processes and technology used to handle insurance claims and patient payments, which is a key area for investment to support the pure-play home-based care model. While specific revenue cycle management financial metrics for 2025 aren't broken out separately, the overall segment performance shows operational execution, with Patient Direct achieving a mid-teen expansion in EBITDA in Q1 2025.

Strategic divestiture of the P&HS segment

This was a defining activity of late 2025, designed to simplify the business model and allow for a more appropriate valuation as a leader in home-based care. Owens & Minor, Inc. entered a definitive agreement to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity.

The P&HS segment's operating income declined by 90% in Q1 2025 to $1.15 million, with margins collapsing to 0.06% of revenue, contrasting sharply with the Patient Direct segment's 14.5% margin in the same period. The transaction was expected to close near the end of 2025.

Investing in technology and distribution automation

The strategy post-divestiture is to focus investments on technology and automation to improve patient experience, scale the business, and reduce the cost to serve. The company is making substantial capital commitments to this end for the full year 2025.

• Gross capital expenditures projected for 2025: $205-$215 million.
• Net capital expenditures projected for 2025: $135-$145 million.

Initial rollouts of these advancements in 2025 included two new distribution centers. One site in West Virginia features advanced automation and robotics technology for inventory management and order fulfillment, which was operational as of the announcement. A second site in South Dakota was set to integrate the latest augmented reality (AR) system for order picking in spring 2025. Furthermore, Owens & Minor, Inc. uses technology-based services like QSightSM, its end-to-end perpetual inventory management system, to provide clients total inventory control and transparency.

Managing chronic condition therapy categories (e.g., sleep, diabetes)

This is a core operational focus within the Patient Direct segment, capitalizing on aging demographics and reimbursement shifts in the home healthcare market. The company's ability to manage these specific categories is key to driving the Patient Direct segment's growth. The Patient Direct segment delivered Adjusted EBITDA of $98 million in Q1 2025. The overall 2025 financial outlook for continuing operations is a revenue range of $2.76 billion to $2.82 billion, with Adjusted EBITDA targeted between $376 million and $382 million.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Key Resources

You're looking at the core assets Owens & Minor, Inc. (OMI) relies on to execute its business strategy, especially as it pivots toward a focused Patient Direct model. These are the tangible and intangible things the company owns or controls that are essential for delivering its value proposition.

The foundation of the Patient Direct segment rests heavily on established, acquired brands. You see the legacy of significant past investments here:

• The Apria® brand was integrated via an acquisition completed on March 29, 2022, for approximately $1.7 billion, net of $144 million of cash acquired.
• The Byram® brand was purchased in 2017 for a total consideration of $367 million, net of cash acquired.
• Both Apria and Byram joined the new Optum Preferred DME Network as of September 15, 2025.
• The HALYARD brand is also listed as an affiliated brand.

The scale of the workforce is a critical resource, especially for a direct-to-patient service model. While the general figure is over 20,000 teammates globally, the year-end 2024 count gives you a firmer baseline:

This human capital supports the nationwide distribution and logistics network, which is currently undergoing modernization. While the company is actively engaged in the sale process of its Products & Healthcare Services (P&HS) segment, the Patient Direct segment relies on this infrastructure. For instance, recent investments in the P&HS distribution capabilities included new state-of-the-art facilities opening in 2025:

• A new distribution center in West Virginia, which is 350,000 square-foot and has 50 truck docks, built to accommodate 40 more.
• This West Virginia facility offers a 30% improvement in capacity efficiency over traditional warehouses.
• The company has 25 facilities spread across West Virginia and beyond.

The specialized home medical equipment and supply inventory is managed through this network, supporting therapy categories like Diabetes and Sleep Supplies within the Patient Direct segment. The company is also focused on disciplined capital deployment, with a stated expectation for capital for gross expenditures in 2025:

Capital for gross expenditures in 2025 is projected to be in the range of $205-$215 million. [cite: User Provided Data]

For context on recent spending on continuing operations, the Net capital expenditures from continuing operations (Net Capex) year-to-date as of September 30, 2025, was $99,481 thousand.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Value Propositions

You're looking at the core value Owens & Minor, Inc. (OMI) is delivering now that they've committed to being a pure-play home-based care company following the sale of their Products & Healthcare Services segment. This focus is designed to create a cleaner investment thesis and better serve patients with chronic conditions at home.

Comprehensive home-based care for chronic conditions

Owens & Minor, Inc. (OMI) is centering its value proposition on supporting patients with chronic conditions directly in their homes. This focus is supported by the financial structure of the company as of late 2025, with continuing operations-primarily the Patient Direct segment-projected to generate full-year 2025 revenue between $2.76 billion and $2.82 billion.

The Patient Direct segment is specifically targeting high-growth therapy categories within home health. For example, in the first quarter of 2025, this segment saw strong performance led by diabetes and sleep supplies.

• Patient Direct Q1 2025 Revenue: $674 million.
• Patient Direct Q1 2025 Adjusted EBITDA: nearly $98 million.
• The segment delivered mid-single-digit top-line growth in Q1 2025.

Direct delivery of essential medical supplies to the patient's home

A key value is the reliable, direct-to-patient delivery of essential medical equipment and supplies. This capability is crucial for managing conditions that require ongoing support, such as diabetes management and sleep apnea therapy.

The company's commitment to this direct model is reflected in its financial segmentation; in the first quarter of 2025, the Patient Direct segment accounted for 25.6% of total revenue, up from 24.4% in 2024, showing the increasing weight of this direct-to-patient value stream.

Simplified patient experience for complex therapy management

Owens & Minor, Inc. (OMI) aims to make managing complex therapies easier for the patient. This involves streamlining ordering processes and ensuring consistent access to necessary supplies. The company is focusing investments on technology and automation to improve the patient experience.

The focus on operational improvements is expected to translate directly into profitability for the core business. For the full year 2025, the Patient Direct focus is expected to yield an Adjusted EBITDA between $376 million and $382 million.

The value proposition includes supporting specific patient needs:

• Consistent access to disposable medical supplies.
• Easy ordering processes.
• Reliable delivery services.

Scale and reliability in the fragmented home healthcare market

The scale of Owens & Minor, Inc. (OMI)'s Patient Direct platform provides reliability in a fragmented market. The company is a significant player, serving customers across a wide geographical footprint. This scale is a foundation for leading in the evolving home-based care market.

The company serves customers in 46 states through its Patient Direct business within the United States. This nationwide reach is a tangible asset supporting their reliability claim. Furthermore, the CEO referenced a recently announced nationwide preferred provider partnership agreement as an example of this growth focus.

Operational excellence through supply chain efficiency

Operational excellence is driven by leveraging technology to optimize the supply chain, which in turn helps reduce the cost to serve patients. A key element here is the partnership with Google Cloud to enhance QSight, a cloud-based clinical inventory management system.

This technology is designed to improve real-time visibility and predictive capabilities within their complex supply chains. Historically, Owens & Minor, Inc. (OMI) has been recognized for this capability, having been placed as No. 1 in Gartner's Top 25 Healthcare Supply Chain organizations based on criteria including network visibility and dynamic supply. This commitment to efficiency is defintely key to their future margin performance.

For Q2 2025, the adjusted operating margin for continuing operations increased to 8.34% from 7.99% in Q2 2024 (non-GAAP), showing tangible progress in operational discipline.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Customer Relationships

You're looking at a company that has made a massive strategic pivot, so the customer relationships are now almost entirely centered on the home-based care patient, which they call the Patient Direct platform. This is where the sticky, long-term value is now concentrated, especially as they finalize the sale of their Products & Healthcare Services segment.

Direct, high-touch patient support and education

The high-touch element comes through specialized digital tools designed for chronic care management. For instance, the ByramConnect digital health platform, powered by the Welldoc App, is a key relationship driver. This isn't just a portal; it's an FDA-cleared class II software as a medical device (SaMD) intended for use by both adult patients with type 1 or type 2 diabetes and their care teams. The platform integrates data from connected sources like fitness trackers, continuous glucose monitors (CGMs), and blood pressure monitors, giving care teams a holistic view. This level of integration is what keeps the relationship strong.

Dedicated account management for institutional providers

While the primary focus has shifted, the legacy of serving institutional providers remains relevant in the context of their continuing operations and recent strategic moves. Before the full divestiture, their institutional relationships were supported by solutions like QSight®, a cloud-based clinical inventory management system. This system was being enhanced through a partnership with Google Cloud's Vertex AI to help hospitals and health systems optimize the management of thousands of medical-grade supplies. This shows a history of dedicated, complex service delivery to large entities, even if the current focus is elsewhere.

Automated reorder and resupply programs for chronic care

For patients managing long-term conditions, automation is crucial for adherence and convenience. The Patient Direct segment, which includes brands like Byram, is built around delivering disposable medical supplies directly to patients and home health agencies. This requires robust, automated resupply logistics, which is a core competency they are doubling down on. The strategic acquisition of Rotech was specifically intended to strengthen offerings in areas like respiratory, sleep apnea, diabetes, and wound care, all of which rely heavily on consistent, automated resupply.

Patient-centric digital engagement platforms

The digital platforms are designed to deliver actionable insights directly to the patient and their provider. The ByramConnect platform offers reporting & insights with actionable data based on the patient's unique patterns. Clinical studies on the app showed tangible results for diabetes patients, including reduced A1C, lower blood pressure, and lower body weight. This focus on measurable outcomes is central to the patient-centric relationship model. It's about helping members achieve concrete goals, not just shipping supplies.

Long-term, defintely sticky relationships due to chronic needs

The very nature of serving patients with chronic conditions creates inherent stickiness. These aren't one-time purchases; they are ongoing needs for supplies and support. The Patient Direct segment's performance reflects this focus, showing mid-single-digit top-line growth in 2024 and a mid-teen expansion in EBITDA for Q1 2025. You can see the financial commitment to this segment, as it accounted for 25.6% of total revenue in Q1 2025, an increase from 24.4% in 2024. The full-year 2025 revenue projection for these continuing operations is set between $2.76 billion and $2.82 billion. However, you should note the risk: management disclosed the potential loss of a significant customer contract in 2026, which highlights the competitive pressure even in these sticky relationships.

Here's a quick look at the financial commitment to the core customer relationship segment as of the latest reporting:

The company is clearly unifying its capital deployment and execution around this platform. Finance: draft 13-week cash view by Friday.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Channels

You're looking at how Owens & Minor, Inc. (OMI) gets its core Patient Direct value proposition to the end user as of late 2025, following its strategic pivot away from the Products & Healthcare Services (P&HS) segment.

The Channels block for Owens & Minor, Inc. (OMI) is now almost entirely focused on the Patient Direct segment, which is projected to generate between $2.76 billion and $2.82 billion in revenue for the full year 2025. This segment has scaled significantly since its foundation, growing from approximately $450 million in annual revenue in 2017.

The primary channels for reaching patients and securing service delivery involve a mix of direct logistics and strong institutional partnerships.

Direct-to-patient home delivery network

The home delivery network is the physical manifestation of the Patient Direct strategy, utilizing the footprint established through acquisitions like Apria. This channel is designed to deliver disposable medical supplies directly to patients managing chronic conditions at home. The segment's operational strength is supported by investments in advanced distribution centers, such as the one in West Virginia, which opened in 2025 with advanced automation and robotics technology. The segment's projected Adjusted EBITDA for 2025 is between $376 million and $382 million.

Online and phone-based patient ordering systems

Digital and telephonic ordering capabilities are critical for managing the volume of home-based care. For instance, the Byram brand within the Patient Direct segment achieved record collections in the first quarter of 2025 due to enhanced revenue cycle efforts, which implies effective utilization of these ordering systems. The segment's overall Q2 2025 revenue from continuing operations was $681.9 million.

Referral networks from physicians and hospital systems

Securing referrals is a major upstream channel for the Patient Direct business. A key element here is the new national provider agreement with Optum Health, which Owens & Minor, Inc. (OMI) is actively scaling. This agreement provides a preferred position within the Optum closed network for the Apria and Byram brands. The company's strategy involves leveraging this network to capture patient volume.

Field-based clinical and sales support teams

The sales and clinical support teams are the human interface for driving and maintaining these referral channels. The Patient Direct segment deploys a significant field force to engage potential referral sources.

• The company has 450 forward-facing salespeople marketing directly to over 100,000 potential referral sources within the Optum network alone.
• Owens & Minor, Inc. (OMI) is a Fortune 500 company powered by more than 20,000 teammates worldwide.
• The addition of sales staff contributed to double-digit growth in several smaller Patient Direct categories during 2024.

Here's a quick look at the scale of the core channel segment as of the 2025 projections:

If onboarding for new patients takes 14+ days, churn risk rises, which is a near-term operational risk for this direct channel.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Customer Segments

Owens & Minor, Inc. is actively reshaping its customer base to focus almost entirely on the Patient Direct segment, which serves home-based care needs, following the definitive agreement to sell the Products & Healthcare Services (P&HS) segment.

The continuing operations, which represent the core Patient Direct business, are heavily oriented toward individuals managing long-term health needs. This segment has shown increasing importance to the overall revenue profile.

Patients with chronic conditions are the primary end-users served by the Patient Direct platform, which includes brands like Apria and Byram.

• Sleep therapy saw revenue growth in the high single-digit rate in Q1 2025 after the sleep journey initiative.
• Wound/Ostomy/Urology (WOU) categories delivered double-digit growth in Q1 2025.
• The business is focused on chronic conditions such as diabetes and sleep apnea.
• Oxygen therapy growth stabilized in Q1 2025, with expectations for further recovery throughout 2025.

Commercial payors and Medicare Advantage plans represent a critical layer of the Patient Direct customer base, as they are the entities responsible for reimbursement for the home medical equipment (HME) and services provided to beneficiaries.

The company is leveraging its scale to secure favorable arrangements, evidenced by a recently announced nationwide preferred provider partnership agreement with Optum. The Patient Direct segment's Adjusted EBITDA for Q1 2025 was $98 million, reflecting margin expansion to 14.5%. The full-year 2025 Adjusted EBITDA guidance for continuing operations is $376 million to $382 million.

Home Health Agencies and institutional providers were historically served by the P&HS segment, which primarily served hospitals and clinics. With the sale of P&HS, the focus shifts. Home Health Agencies are now more likely viewed as referral sources or partners within the home-based care ecosystem.

• The planned acquisition of Rotech, Inc. (announced July 2024, expected to close in the first half of 2025) is intended to strengthen Patient Direct product offerings across respiratory, sleep apnea, diabetes, and wound care, expanding access to the durable medical equipment market.
• The overall home healthcare market, which Owens & Minor, Inc. is targeting, is valued at $459 billion in 2025.

Government programs, specifically Medicare and Medicaid beneficiaries, form a significant portion of the patient population utilizing HME and chronic condition management services. The company is focused on navigating potential changes in government policy, including tariffs. Restricted cash as of September 30, 2024, included amounts held in escrow related to the Centers for Medicare & Medicaid Services (CMS) Bundled Payments for Care Improvement (BPCI) initiatives.

Finance: review 2026 leverage target of below 3x by year-end, tied to divestiture proceeds.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Owens & Minor, Inc. (OMI) business as they aggressively pivot to a pure-play Patient Direct model following the P&HS segment divestiture. The cost structure reflects significant one-time transition expenses alongside the ongoing operational costs of the remaining business.

The core operating costs for the continuing operations, which primarily represent the Patient Direct segment, show the baseline expense profile. We can map the key components using the nine months ended September 30, 2025, figures, which gives a good year-to-date view.

The interest expense component is definitely a focus area given the debt load, which stood at $2.1 billion as of September 30, 2025, partly due to transaction expenses. While the actual nine-month net interest expense was $79,252 thousand, you were tracking the projection for the pre-divestiture structure, which was estimated to be in the range of $138 million to $142 million annually.

The transition away from the Products & Healthcare Services (P&HS) segment introduces specific, non-recurring costs that heavily impacted the GAAP results, especially in Q2 2025.

• Transaction breakage fee of $80 million paid in Q2 2025 related to the terminated Rotech acquisition.
• This $80,000 thousand fee was recognized in Q2 2025 and is included in the nine-month figures for continuing operations.
• Transaction financing fees, net, for the nine months ended September 30, 2025, totaled $18,288 thousand.

Stranded costs are the ongoing overhead expenses from the divested P&HS segment that Owens & Minor, Inc. (OMI) must absorb temporarily until they are fully eliminated or absorbed by the leaner structure. These costs are a direct drag on the pure-play focus.

Here's what we know about those stranded costs:

• Year-to-date stranded costs through September 30, 2025, totaled $25 million.
• The stranded cost for the third quarter alone was $11 million.
• Management continues to believe the annualized run-rate for these stranded costs will be approximately $40 million.

To give you a snapshot of the immediate impact of the P&HS classification on the income statement for Q3 2025, the Loss from discontinued operations, net of tax, was a significant $(144,669 thousand), which is separate from the ongoing operating costs of the Patient Direct business.

Owens & Minor, Inc. (OMI) - Canvas Business Model: Revenue Streams

The revenue streams for Owens & Minor, Inc. (OMI) are now sharply focused on the continuing operations of the Patient Direct segment, following the announced divestiture of the Products & Healthcare Services segment. This focus means revenue generation is centered on supporting home-based care for patients with chronic conditions.

The financial expectations for this pure-play Patient Direct business for the full 2025 fiscal year are clearly defined by management guidance.

• Net revenue from continuing operations (Patient Direct) is guided to be between $2.76B to $2.82B for 2025.
• Adjusted EBITDA for continuing operations is projected to fall in the range of $376M to $382M for 2025.

Year-to-date performance as of the third quarter of 2025 shows the segment is tracking toward these goals, with revenue reaching nearly $2.1 billion, representing a 3.4% increase from the prior year period. Year-to-date adjusted EBITDA was $285 million, up 6.3% from $268 million last year.

The core of the revenue collection process involves reimbursement arrangements with various third-party payors. This is where the majority of the top-line dollars are realized.

The sources of payment for the services and products provided by the Patient Direct segment are segmented by the entity responsible for the payment.

• Reimbursement from Commercial Payors constitutes the majority of the revenue base.
• Revenue is also collected via reimbursement from Medicare and Medicaid programs.
• Direct sales contribute revenue through the delivery of home medical equipment and disposable supplies to patients and home health agencies.

Growth in specific product categories supports this revenue, with management noting strong year-over-year growth in sleep therapy, ostomy, and urology categories in the third quarter of 2025.