In 1994, ALS Pharmacy, Inc. formed a joint venture with a Lexington, Kentucky based owner and operator of skilled nursing facilities. The joint venture formed Quality Pharmacy and Ancillary Services (“QPAS”) to provide comprehensive pharmacy services to eight skilled nursing facilities with 850 licensed beds located in Indiana and Illinois.
ALS Pharmacy, Inc. was responsible for the set-up, operation and financial management of the new Pharmacy. The Pharmacy became profitable after ninety days of operations. In 1995, the first full year of operations, the pharmacy had revenues of $2.7 million and net profit of $650,000.
ALS Pharmacy, Inc. arranged the sale of the pharmacy in January 1996 to Omnicare, a national pharmacy company, for $4,012,000 ($4,720 per bed). At the time, the per bed purchase price was the highest paid in Omnicare’s history. The period from start-up through sale was less than two years.