McKesson 2009 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2009 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

McKESSON CORPORATION
8
Connectivity: Through the segment’s vendor-neutral RelayHealth® and its intelligent network, the company
provides interactive solutions that streamline clinical, financial and administrative communication between patients,
providers, payors, pharmacies and financial institutions. RelayHealth® helps to accelerate the delivery of high-
quality care and improve financial performance through online consultation of physicians by patients, electronic
prescribing by physicians, point-of-service resolution of pharmacy claims by payors, pre-visit financial clearance of
patients by providers and post-visit settlement of provider bills by payors and patients. RelayHealth® securely
processes more than 12 billion financial and clinical transactions annually.
In addition to the product offerings described above, the Technology Solutions segment offers a comprehensive
range of services to help organizations derive greater value, enhance satisfaction and return on investment
throughout the life of the solutions implemented. The range of services includes:
Technology Services: The segment has worked with numerous healthcare organizations to support the smooth
operation of their information systems by providing the technical infrastructure designed to maximize application
accessibility, availability, security and performance.
Outsourcing Services: The segment helps organizations focus their resources on healthcare while the segment
manages their information technology or operations through managed services, including outsourcing. Service
options include remote hosting, managing hospital data processing operations, as well as strategic information
systems planning and management, revenue cycle processes, payroll processing, business office administration and
major system conversions.
Professional Services: Professional services help customers achieve business results from their software or
automation investment. The segment offers a wide array of quality service options, including consulting for
business and/or clinical process improvement and re-design as well as implementation, project management,
technical and education services relating to all products in the Technology Solutions segment.
Payor Group: The following suite of services and software products is marketed to payors, employers and
government organizations to help manage the cost and quality of care:
•Disease management programs to improve the health status and health outcomes of patients with chronic
conditions;
•Nurse triage services to provide health information and recommend appropriate levels of care;
•Clinical and analytical software to support utilization, case and disease management workflows;
•Business intelligence tools for measuring, reporting and improving clinical and financial performance;
•InterQual® Criteria for clinical decision support; and
•Claims performance solutions to facilitate accurate and efficient medical claim payments.
Acquisitions, Investments and Discontinued Operations
We have undertaken strategic initiatives in recent years designed to further focus on our core healthcare
businesses and enhance our competitive position. We expect to continue to undertake such strategic initiatives in
the future. These initiatives are detailed in Financial Notes 2 and 7, “Acquisitions and Investments” and
“Discontinued Operations,” to the consolidated financial statements appearing in this Annual Report on Form 10-K.
Competition
In every area of healthcare distribution operations, our Distribution Solutions segment faces strong competition,
both in price and service, from national, regional and local full-line, short-line and specialty wholesalers, service
merchandisers, self-warehousing chains, manufacturers engaged in direct distribution and large payor organizations.
In addition, this segment faces competition from various other service providers and from pharmaceutical and other
healthcare manufacturers (as well as other potential customers of the segment) which may from time to time decide
to develop, for their own internal needs, supply management capabilities which would otherwise be provided by the
segment. Price, quality of service, and in some cases, convenience to the customer are generally the principal
competitive elements in this segment.