121. mckesson 9 m&as


Published on

Published in: Health & Medicine, Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

121. mckesson 9 m&as

  1. 1. H.I.S.-tory by Vince Ciotti Episode #121: McKesson Part 9 = More M & As © 2013 by H.I.S. Professionals, LLC, all rights reserved.
  2. 2. More Major Mergers • After last week’s coverage of the McKesson/HBOC meltdown, it’s nice to pick up the story of how McKesson rebounded from the 1999 lawsuits and scandals to get right back into M & As again. • Here’s some of their bigger ones over the next few years: – 2000 = MED-Solution, an RX system developed by Health Care Systems, Inc, renamed “Pathways Meds Manager.” Like every other HIS product seems to have been at one time or another, it was rated by industry consultant KLAS Enterprises as the #1 in terms of performance, value, customer satisfaction, and the amount of money that they spent over the years buying KLAS’ market research reports. Within days, Pathways Meds Manager was integrated with other McKesson/HBOC clinical solutions’ proposals, contracts, PowerPoints, brochures, ads, and demos. Then over many subsequent years, interfaces were slowly built between the products themselves…
  3. 3. A Picture-Perfect Deal • Kidding aside, the next deal was a quite a coup in the PACS world: – 2002 = ALI– In May acquired Vancouver, BC-based ALI Technologies for $340 million. McKesson now expanded its flagship Horizon Clinicals, to include data, documents, voice, and medical images via ALI’smedical image management and PACS. ALI’shigh-profile client base included such notables as: • Cedars-Sinai Medical Center • Johns Hopkins University Hospital • St. Luke's Episcopal Hospital, and • Kaiser Permanente. A good deal for ALI, as McKesson had ≈40 times more sales staff than ALI (500 versus 12) with systems installed in about half of all U.S. hospitals larger than 200 beds...
  4. 4. A Banner Year • 2007 was a major merger year for McKesson with three big deals: – 1. Per Se – at “only” $1.8B, this deal may not have been that big per se, compared to the $14B McKesson spent for HBOC, but Per Se was a series of acquisitions…, oh well, per se: • NDC Health's revenue-cycle management business, bought that same year, gave McKesson an entrée into RCM. • Previous acquisitions by Per Se over its HIS-tory included: – Health Data Services – Rapid Systems – Atwork – Medaphis – Consort – Medical Consult – GFS, etc, etc, etc.
  5. 5. RH Positive • 2. Relay Health– Acquired by McKesson in June of 2007, over the previous 3 decades RH had turned HIPAA privacy regulations into the lucrative business of providing secure communications between patients, providers, pharmacies, payors and pharmaceutical manufacturers. • It’s a shame Target never knew about them…
  6. 6. How Do You Get To Carnegie Hall? • 3. Practice Partners– I must confess that even I get confused with the differences between Practice Partner and Practice Point Plus, which McKesson hadacquired earlier, let alone the recently announced “integrated” ambulatory solution for Paragon!? • Ah well, practice makes perfect…
  7. 7. Recap of All the Deals • Anyway, here it is: a visual recap of the biggest HIS vendor that acquired the most vendors/products over its 50 years of HIS-tory:
  8. 8. So? • So what that McKesson was built from scores of mergers & acquisitions over the past 50 years? These M & A roots explain what is easily the most complex product line in HIS-tory, to whit: AccessHealth AcuDose-Rx Advantage Catalog Alliance Partners Anesthesia Care Anesthesia-Rx ANSOS One-Staff Application Hosting Application Services AR Processing Asset Management ANSOS One-Staff Automation Decision Support Bar-Code Medication Packaging Behavioral Coaching Biometric Identity Management Brand for Surgery Centers Business Consulting Services Business Folder Business Improvement Services Capacity Planner Cardiology Management CareEnhance Review Manager Central Fill ClaimCheck ClaimsXten Clear Claim Connection Clear Coverage ComplyScan Computing Solutions Connect-Rx Contract Manager Controlled Substance Ordering Disease Management Programs Distribution ExcellenceED Benchmarks Collaborative Education and Training Employed Physician Services EMR and ePrescribing Enterprise Content Managementr Enterprise Image Repository EnterpriseRx AR Equipment for Surgery Centers eShift eSig CapturePLUS Expert Help Fiscal Management Freight Payment FrontEdge Fulfill-Rx Gift Card Mall Health & Wellness Programs Health Buddy Appliance Health Mart Healthcare Perf Benchmarks Healthy Valu$ Homecare Horizon Blood Bank Horizon Lab
  9. 9. But Wait, There’s More: Imaging Link Engine Industry Leadership Infrastructure Services In-Office Dispensing Intelligent Coding InterQual Behavioral Health InterQual Care Planning InterQual Clinical Evidence InterQual Content Customization InterQual Coordinated Care InterQual Behavioral Health InterQual Learning Source InterQual Level of Care Criteria InterQual Molecular Diagnostics InterQual Online InterQual Specialty Rx Criteria InterQual Transparency InterQual View InterRater Reliability Suite InvestiClaim IT Help Desk Services IVRxLab Order Management LoyaltyScript Lynx Mobile Lynx TotalView Lytec and Lytec MD Managed Services MAX Impact McKesson 340B Manager McKesson Advantage Catalog McKesson Anesthesia Care McKesson Biometric Identity McKesson Business Folder McKesson Capacity Planner McKesson Cardiology McKesson Content Manager McKesson Image Repository McKesson Fiscal Management McKesson Home Healthcare McKesson Hospice McKesson Intelligent Coding McKesson Mobile Manager McKesson OneStop Generics McKesson Patient Folder McKesson Performance Analytics McKesson Pharm Optimization McKesson Point of Use Supply McKesson Population Manager McKesson Practice Care McKesson Practice Focus McKesson Practice Plus McKesson Preferred Rewards McKesson Quality Monitor McKesson Radiology McKesson Revenue Management McKesson Risk Manager McKesson ScanManager McKesson Strategic Supply McKesson Study Share McKesson Supply Chain McKesson Surgical Manager McKesson Telehealth Advisor McKesson Time and Attendance McKesson Unsaleable Returns McKesson VITAL Business Insight MedCarousel Medical Imaging Workflow Medication Safety Cabinet Medisoft MedShelf-Rx Molecular Diagnostics Money Management My Care Plus NarcStation National Consumer Outreach OneStop Generics Onmark OR Benchmarks Collaborative OTC Consumer Products
  10. 10. And Finally: PACMED Paragon Pathways Healthcare Scheduling Patient Assistance Programs Patient Folder Deficiency Completion Patient Satisfaction Surveys Performance Analytics Performance Visibility Pharmaceutical Distribution Pharmacy Decor and Fixtures Pharmacy Engagement Programs Pharmacy Management Solutions Pharmacy Optimization Services PharmacyRx Hardware PharmacyRx Suite Pharmaserv Physician Resources and Info Plasma and Biologics Distribution PlayMaker CRM Point of Sale Point of Use Supply Point-of-Sale for Pharmacy Rx Population Manager McKesson Practice Care McKesson Practice Choice McKesson Practice Complete Practice Focus Practice Man. Technologies Practice Partner Prefer Rx McKesson Preferred Rewards Prescriber-Pharmacist Interface Pricing Services Printing Services Priority ExpressProcessing Services Professional Certification PROmanager-Rx Provider Manager Purchasing Tools Quality Monitor Radiology Reimbursement Manager Reprocessing Services Retail Expansion Retail Independent Pharmacy Revenue Cycle Management Review Manager Enterprise Risk Evaluation and Mitigation Risk Manager ROBOT-Rx RxPak ScanManager Secure Data Protection ServiceFirst Customer Relations SIM plus SKY Unit Dose Packaging Specialty Distribution Strategic Outsourcing Study Share Sunmark Private Brand Supply Chain Management Surgery Center Educational Surgical Manager Surgical Scope Repair Technology and Integration Telehealth Advisor Third-Party Contracting Time and Attendance Training and Education Services TrialScript Unsaleable Returns Program VIP Gold VITAL Business Insight VITAL Consumer Portal Web Reporting for ANSOS Wellness Programs World-Class Logistics Your Pharmacy Online Website
  11. 11. Interesting Questions • Over 200 different products! Makes one wonder: – How much would it cost to buy all of them? • Say, an IDN a with hospital, physician practice, home health care, retail pharmacy, etc? – How long would it take a the Atlanta HQ to prepare a proposal and contract to buy all 200 products? • How many pages printed on paper for signing? – How long does it take to train a new sales rep in all of these products’ many features & prices? • How many reps does it take to sell them? • And when I joined SMS in 1969, I thought their SHAS system was complicated with 5 distinct products: – Census, Billing, AR, GL and Cost Allocation…