Profile: McKesson Corp (MCK.N)
26 May 2017
McKesson Corporation (McKesson), incorporated on July 7, 1994, is a pharmaceutical distribution services and information technology company. The Company delivers an offering of pharmaceuticals and medical supplies. The Company operates through two segments: McKesson Distribution Solutions and McKesson Technology Solutions.
McKesson Distribution Solutions
The McKesson Distribution Solutions segment distributes branded and generic pharmaceutical drugs and other healthcare-related products around the world and provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. This segment also provides specialty pharmaceutical solutions for pharmaceutical manufacturers, including offering multiple distribution channels and clinical trial access to its network of oncology physicians. It also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the United States. Additionally, this segment operates retail pharmacies in Europe and supports independent pharmacy networks within North America. It also sells financial, operational and clinical solutions to pharmacies (retail, hospital and alternate site) and provides consulting, outsourcing and other services.
The Distribution Solutions segment consists of the businesses, which include North America pharmaceutical distribution and services, International pharmaceutical distribution and services and Medical-Surgical distribution and services. Its North America pharmaceutical distribution and services business consists of business units, such as U.S. Pharmaceutical Distribution, McKesson Specialty Health (MSH), McKesson Canada, and McKesson Pharmacy Technology & Services. The U.S. Pharmaceutical Distribution business supplies branded, specialty and generic pharmaceuticals and other healthcare-related products to customers throughout the United States in over three primary customer channels, such as retail national accounts (including national and regional chains, food/drug combinations, mail order pharmacies and mass merchandisers); independent retail pharmacies, and institutional healthcare providers (including hospitals, health systems, integrated delivery networks, clinics and alternate site providers). This business also provides solutions and services to pharmaceutical manufacturers. This business sources materials and products from an array of different suppliers, including certain generic pharmaceutical drugs produced through a contract-manufacturing program.
The U.S. pharmaceutical distribution business operates and serves customer locations through a network of approximately 30 distribution centers, as well as a primary redistribution center, a strategic redistribution center and over two repackaging facilities, serving approximately 50 states and Puerto Rico. It invests in technology and other systems at all of its distribution centers. The Company uses Acumax Plus, a technology that integrates and tracks all internal inventory-related functions, such as receiving, put-away and order fulfillment in its distribution centers. Acumax Plus uses bar code technology, wrist-mounted computer hardware and radio frequency signals to provide customers with real-time product availability and order quality and fulfillment. In addition, it offers Mobile Manager, which integrates portable handheld technology with Acumax Plus to give customers ordering and inventory control. It also offers McKesson Connect, an Internet-based ordering system that provides item lookup and real-time inventory availability, as well as ordering, purchasing, third-party reconciliation and account management functionality. The customer groups of its U.S. Pharmaceutical Distribution business can be categorized as retail national accounts, independent retail pharmacies and institutional healthcare providers.
The Retail National Accounts are offered with solutions, including Central Fill, Redistribution Centers, McKesson SynerGx, RxPak, Inventory Management and ExpressRx Track. The solutions for managed care contracting, branding and advertising, merchandising, purchasing, operational efficiency and automation help independent pharmacists focus on patient care. Its solutions for Independent Retail Pharmacies include Health Mart, AccessHealth, McKesson Reimbursement Advantage (MRA), McKesson OneStop Generics, Sunmark, FrontEdge and McKesson Sponsored Clinical Services (SCS) Network. The solutions for Institutional Healthcare Providers include Fulfill-Rx, Asset Management, SKY Packaging, McKesson Plasma and BioLogics and McKesson OneStop Generics.
McKesson Specialty Health business provides a range of solutions to oncology and other specialty practices operating in communities across the country, to pharmaceutical and biotechnology suppliers manufacturing specialty drugs and vaccines, and to payers and hospitals. MSH is focused on three core business lines: Manufacturer Solutions, Practice Management and Provider Solutions. MSH's offerings include supply chain services, including specialty pharmacy services and third party logistics (3PL), provider and patient engagement programs, clinical trial support, patient assistance programs, reimbursement services and analytics. Practice Management provides a range of solutions, including practice operations, healthcare information technology, revenue cycle management and managed care contracting solutions, evidence-based guidelines and quality measurements to support The U.S. Oncology Network, a network of integrated, community-based oncology practices dedicated to evidence-based cancer care. It also supports U.S. Oncology Research, a research network specializing in oncology clinical trials.
Provider Solutions offers community specialists (oncologists, rheumatologists, ophthalmologists, urologists, neurologists and other specialists) a range of customizable products and services. Tools and services include specialty drug distribution and group purchasing organization (GPO) services, technology solutions, practice consulting services and vaccine distribution, including its distributor relationship with the Centers for Disease Control and Prevention's (CDC) Vaccines for Children program. McKesson Canada is a pharmaceutical distributor in Canada. McKesson Canada, through its network of approximately 10 distribution centers, provides logistics and distribution for manufacturers, delivering their products to retail pharmacies, hospitals, long-term care centers, clinics and institutions throughout Canada and through its network of infusion clinics, offers specialty services and adherence programs. Beyond pharmaceutical distribution, logistics and order fulfillment, McKesson Canada provides automation solutions to its retail and hospital customers, dispensing millions of doses each year. McKesson Canada also provides health information exchange solutions that streamline clinical and administrative communication and retail banner services for independent pharmacists. In partnership with other McKesson businesses, McKesson Canada provides a range of services to Canadian manufacturers and healthcare providers, contributing for the safety of care for patients.
McKesson Pharmacy Technology & Services business provides offerings that help retail chains, hospital outpatient pharmacies and small and independent pharmacies. It supplies integrated pharmacy management systems, automated dispensing systems and related services to retail, outpatient, central fill, specialty and mail order pharmacies. Its solutions include EnterpriseRx, Pharmaserv, PharmacyRx, McKesson 340B Solution Suite and Macro Helix and Supplylogix. Its international pharmaceutical distribution and services business provides distribution and services to the pharmaceutical and healthcare sectors primarily in Europe. Its pharmaceutical wholesale business supplies pharmaceuticals and other healthcare-related products generally to retail pharmacies and institutional customers. Its wholesale network consists of approximately 110 branches that deliver to over 65,000 pharmacies daily in approximately 10 European countries. The retail pharmacy business serves patients and consumers in over six European countries directly through approximately 2,200 of its own pharmacies and over 4,500 participant pharmacies operating under brand partnership arrangements. The retail business provides traditional prescription pharmaceuticals, non-prescription products and medical services and operates under the Lloyds Pharmacy brand in the United Kingdom.
Medical-Surgical distribution and services business provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers including physicians' offices, surgery centers, extended care facilities, homecare and occupational health sites through a network of distribution centers within the United States. This business is a distributor of supplies to a range of alternate-site healthcare facilities, including physicians' offices, clinics and surgery centers (primary care), long-term care and homecare sites (extended care).
McKesson Technology Solutions
The McKesson Technology Solutions segment delivers clinical, patient care, financial, supply chain and strategic management technology solutions, as well as connectivity, outsourcing and other services, including remote hosting and managed services, to healthcare organizations. It provides a portfolio of information technology and services to help healthcare organizations. The segment markets its products and services to integrated delivery networks, hospitals, physician practices, home healthcare providers, retail pharmacies and payers. The product portfolio for the segment is designed to address an array of healthcare clinical and business performance needs ranging from medication safety and information access to revenue cycle management, resource utilization and physician adoption of electronic health records (EHR). Analytics software enables organizations to measure progress as they automate care processes for optimal clinical outcomes, business and operating results and regulatory compliance. It also offers a range of services to support the implementation and use of solutions, as well as to assist with business and clinical redesign, process re-engineering and staffing (both information technology and back-office).
The McKesson Technology Solutions segment consists of businesses, including McKesson Health Solutions, Connected Care and Analytics (CCA), Imaging and Workflow Solutions, Business Performance Services and Enterprise Information Solutions. It offers a suite of services and software products designed to manage the quality of care for payers, providers, hospitals and government organizations. Its solutions include InterQual Criteria for clinical decision support and utilization management; clear Coverage for point-of-care utilization management, coverage determination and network compliance; claims payment solutions to facilitate medical claim payments; Business intelligence tools for measuring and reporting clinical and financial performance; network management tools to enable health plans to transform the performance of their networks, and RelayHealth financial solutions to facilitate communication between healthcare providers and patients and to aggregate data for claims management and trend analysis. The Company’s network and financial management portfolio also includes McKesson Episode Management, which is a prospective bundled payment automation solution; McKesson ClaimsXten, which is an advanced claims auditing rules engine; McKesson Reimbursement Manager; McKesson Contract Manager; McKesson Provider Manager, and McKesson Payer Connectivity Services. The McKesson Health Solutions portfolio includes ClarityQx, which is a payment technology.
The Company provides health information exchange solutions that streamline clinical and administrative communication among patients, providers, payers, pharmacies, manufacturers, government entities and financial institutions through its vendor-neutral RelayHealth and its intelligent network, RelayHealth pharmacy solutions, which help its customers for the delivery of care and financial performance through online consultation of physicians by patients, electronic prescribing by physicians, and point-of-service resolution of pharmacy claims by payers. It provides clinical and analytical software to support management workflows and analytics for optimization of hospital departments and a solution for homecare. It also provides performance management solutions. Enterprise visibility and performance analytics provide business intelligence that enables providers to manage capacity, outcomes, productivity and patient flow.
The Company offers medical imaging and information management systems for healthcare enterprises, including a picture archiving communications system, a radiology information system and a cardiovascular information system. It helps providers focus their resources on delivering healthcare while managing their revenue cycle operations and information technology through a suite of managed services. Services include full and partial revenue cycle outsourcing, remote hosting and business office administration. It also provides a solution for physician practices of all sizes, whether they are independent or employed, that includes software, revenue cycle outsourcing and connectivity services. Software solutions include practice management and EHR software for physicians of every size and specialty. Its physician practice offering includes outsourced billing, collection, data input, medical coding, billing, contract management, cash collections, accounts receivable management and reporting of metrics related to the physician practice. It also offers a suite of physician and hospital consulting services, including financial management, coding and compliance services, revenue cycle services and strategic services.
The Company provides clinical and financial information systems for hospitals and health systems of all sizes. It also provides professional services to help customers achieve business results from their software or automation investment. In addition, workflow management solutions assist caregivers with staffing and maintaining labor rule continuity between scheduling, time and attendance and payroll. It also offers a supply chain management solution that integrates enterprise resource planning applications, including financials, materials, human resources/payroll, scheduling, point of use, surgical and anesthesia services, and analytics.
1 Post St
SAN FRANCISCO CA 94104-5203
Company Web Links
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- UPDATE 2-Drug distributor McKesson's upbeat forecast sends shares soaring
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