BioScrip Reports Fourth Quarter and Full-Year 2016 Financial Results Q4 Consolidated Revenue of $240.1 Million, loss from continuing operations net of income taxes of ($5.2) million and Adjusted EBITDA of $9.5 Million DE

BioScrip Reports Fourth Quarter and

Full-Year 2016 Financial Results

Q4 Consolidated Revenue of $240.1 Million,

loss from continuing operations net of income taxes of ($5.2) million and Adjusted EBITDA of $9.5 Million

DENVER, CO, March 3, 2017 - BioScrip, Inc. (NASDAQ: BIOS)

("BioScrip" or the "Company") today announced its fourth quarter and full-year 2016 financial results.

For the fourth quarter, the Company reported revenue from continuing operations of $240.1 million, net loss from continuing operations

of ($5.2) million and diluted EPS of ($0.06) loss per share. For the full-year 2016, the Company reported revenue from continuing

operations of $935.6 million, net loss from continuing operations of ($34.4) million and diluted EPS of ($0.46) loss per share.

Fourth Quarter Highlights

"I am extremely pleased with the great results the BioScrip

team delivered during the quarter," said Daniel E. Greenleaf, President and Chief Executive Officer. "Our focus on

driving profitable growth, improving operating processes and realizing operating cost reductions and synergies generated both revenue

and Adjusted EBITDA results for the quarter ahead of our prior expectations. We are in the early stages of our 18 to 24 month turnaround

initiative, and through ongoing work the BioScrip team continues to uncover opportunities to drive transformational change and

unlock value throughout the organization. BioScrip remains on pace to realize at least $17.0 million of cumulative Home Solutions

cost synergies by the end of 2017 and we expect an incremental $23.0 million to $25.0 million in cost structure improvements during

the year, a portion of which partially offsets the negative impact of the Cures Act legislation."

Mr. Greenleaf added, "During the quarter our leadership

team launched the CORE initiative, a program focused on improving Core growth, Operational efficiencies, Revenue collections and

Employee effectiveness. Continued execution of the CORE initiative positions BioScrip for the sustainable growth of our higher-margin

core business and ongoing improvement of our operating processes, driving our future financial performance and creating value for

Mr. Greenleaf continued, "Additionally, we are working

diligently, both internally and externally, to mitigate the unfavorable impact of the Cures Act legislation on our business and

on the critically ill patients relying on home infusion therapies. These efforts include actively working with Congress and the

Centers for Medicare and Medicaid Services (CMS) to propose an amendment to the legislation to account for the infusion benefit

as well as the formation of Keep My Infusion Care at Home, a newly established coalition of patients, family members, caregivers,

healthcare providers and related industry organizations. For further information, please visit http://www.keepmyinfusioncareathome.org. We have made significant progress internally to offset the negative financial impact of the Cures Act and through the National

Home Infusion Association (NHIA) and lobbying efforts, we remain in ongoing discussions with the U.S. Congress on the benefits

of home infusion therapy and the impact of the Cures Act legislation."

The Company achieved $2.6 million in Home Solutions cost synergies

in the fourth quarter of 2016. In total, between fourth quarter 2016 realized synergies of $2.6 million and 2017 expected incremental

synergies of $14.4 million, the Company believes it is positioned to achieve the full $17.0 million in expected Home Solutions

Results of Operations

Fourth Quarter 2016 versus Prior Year Fourth Quarter 2015

Revenue from continuing operations for the fourth quarter of

2016 was $240.1 million, compared to $243.7 million in the fourth quarter of 2015, a decrease of $3.6 million or 1.5%. This revenue

decrease resulted from of the Company's previously announced shift in its revenue mix to a greater percentage of core revenue

and less lower-margin non-core revenue.

Consolidated gross profit for the fourth quarter of 2016 was

$74.7 million, or 31.1% of revenue, up 410 basis points as a percentage of revenue, compared to the prior year fourth quarter 2015

gross profit of $65.9 million, or 27.0% of revenue. The improvement in gross profit percentage was the result of the improved revenue

Consolidated Loss from continuing operations, net of income

taxes for the fourth quarter of 2016 was ($5.2) million, representing an improvement of $11.8 million versus the same period prior

year Consolidated Loss from continuing operations, net of income taxes of ($17.0) million. The year over year reduction in loss

was the result of improved operating results combined with lower restructuring costs.

Consolidated Adjusted EBITDA from continuing operations for

the fourth quarter of 2016 was $9.5 million, representing an increase of $0.5 million versus the same period prior year Consolidated

Adjusted EBITDA of $9.0 million. The increase in Consolidated Adjusted EBITDA was the result of improved operating results in 2016.

Full-Year 2016 versus Prior Full-Year 2015

Revenue from continuing operations for the full year 2016 was

$935.6 million, compared to $982.2 million in the full year 2015, a decrease of $46.6 million or 4.7%. This revenue decrease was

the result of the Company's previously announced shift in its revenue mix to a greater percentage of core revenue and less

lower-margin non-core revenue.

Consolidated gross profit for the full year 2016 was $265.6

million, or 28.4% of revenue, up 180 basis points as a percentage of revenue, compared to the prior full year 2015 gross profit

of $260.9 million, or 26.6% of revenue. The improvement in gross profit percentage was the result of the improved revenue mix year

Consolidated Loss from continuing operations, net of income

taxes for the full year 2016 was ($34.4) million, representing an improvement of $269.0 million versus the prior full year 2015

Consolidated Loss from continuing operations, net of income taxes of ($303.4) million. The year over year change was the result

of improved operating results in 2016 combined with the prior year 2015 non-cash goodwill impairment charge, which did not recur

Consolidated Adjusted EBITDA from continuing operations for

the full year 2016 was $30.9 million, representing an increase of $15.0 million as compared to the prior full year 2015 Consolidated

Adjusted EBITDA of $15.9 million. The increase in Consolidated Adjusted EBITDA resulted from improved operational performance in

The Company is providing guidance for full-year 2017. This full-year

2017 guidance incorporates the estimated negative impact of the Cures Act legislation on the Company. The Cures Act legislation

results in a significant reduction in Medicare reimbursement rates on certain drugs effective January 1, 2017 and does not reimburse

any services payments for the administration of these drugs to patients via home infusion pharmacies. For the full-year 2017, we

are guiding to revenues in the range of $920.0 million to $950.0 million and adjusted EBITDA in the range of $45.0 million to $55.0

Liquidity and Capital Resources

As of yesterday, March 2, 2017, the Company had $21.8 million

of liquidity in the form of cash held in bank. Under the terms of the Company's Amended Credit Agreement, the Company no

longer has access to a revolving credit facility and therefore cash held in bank represents the Company's liquidity position.

As of December 31, 2016 the Company was in full compliance with its bank covenants under the terms of the Amended Credit Agreement.

The Company's net Days Sales Outstanding ("DSO") at December 31, 2016, was 43 days.

Conference Call and Presentation

BioScrip will host a conference call and live webcast, March

3, 2017, at 9:00 a.m. Eastern Time, to discuss its fourth quarter and full year 2016 financial results. Interested parties may

participate by dialing 888-372-9592 (US) or by accessing a link on the Company's website at www.bioscrip.com.

A replay of the conference call will be available for one weeks

after the call's completion by dialing 855-859-2056 (US) and entering conference call ID number 5266355. An audio webcast and archive

will also be available for 30 days under the "Investor Relations" section of the Company's website.

About BioScrip, Inc.

BioScrip, Inc. is a leading national provider of infusion and

home care management solutions. BioScrip partners with physicians, hospital systems, skilled nursing facilities, healthcare payors,

and pharmaceutical manufacturers to provide patients access to post-acute care services. BioScrip operates with a commitment to

bring customer-focused pharmacy and related healthcare infusion therapy services into the home or alternate-site setting. By collaborating

with the full spectrum of healthcare professionals and the patient, BioScrip provides cost-effective care that is driven by clinical

excellence, customer service, and values that promote positive outcomes and an enhanced quality of life for those it serves.

Forward-Looking Statements - Safe Harbor

This press release includes statements that may constitute "forward-looking

statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements regarding

2017 guidance, projections of certain measures of the Company's results of operations, projections of future levels of certain

charges and expenses, expectations of Home Solutions cost synergies and incremental cost structure improvements and other statements

regarding the Company's financial improvement plan and strategy. You can identify these statements by the fact that they do not

relate strictly to historical or current facts. In some cases, forward-looking statements can be identified by words such as "may,"

"should," "could," "anticipate," "estimate," "expect," "project," "outlook,"

"aim," "intend," "plan," "believe," "predict," "potential," "continue"

or comparable terms. Because such statements inherently involve risks and uncertainties, actual future results may differ materially