McKesson 2011 Annual Report Download - page 14

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McKESSON CORPORATION
8
Connectivity: Through our vendor-neutral RelayHealth® and its intelligent network, the Company provides
health information exchange and revenue cycle management solutions that streamline clinical, financial and
administrative communication between patients, providers, payers, pharmacies, manufacturers, government 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 payers, pre-visit financial clearance of patients by providers and post-visit
settlement of provider bills by payers and patients. RelayHealth® securely processes more than 14.8 billion
financial and clinical transactions annually.
In addition to the product offerings described above, Technology Solutions 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: Technology services supports the smooth operation of numerous organizations’
information systems by providing the technical infrastructure designed to maximize application accessibility,
availability, security and performance.
Outsourcing Services: With these services, we help providers focus their resources on healthcare while their
information technology or operations are supported 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. A wide array of service options is available, 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.
Payer Group: The following suite of services and software products is marketed to payers, hospitals 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 advice 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 utilization management; and
• Claims payment solutions to facilitate accurate and efficient medical claim payments.
Business Combinations and Discontinued Operation
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 6, “Business Combinations” and “Discontinued
Operation,” 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, third-party logistics
companies and large payer 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 that 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.