McKesson 2016 Annual Report Download - page 16

McKESSON CORPORATION
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. Our
physician practice offering includes outsourced billing, collection, data input, medical coding, billing, contract
management, cash collections, accounts receivable management and extensive reporting of metrics related to the
physician practice. We also offer a full suite of physician and hospital consulting services, including financial
management, coding and compliance services, revenue cycle services and strategic services.
Enterprise Information Solutions: We provide comprehensive clinical and financial information systems for
hospitals and health systems of all sizes. These systems are designed to improve the safety and quality of patient
care and improve clinical, financial and operational performance. We also provide 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. We also offer a comprehensive 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 enterprise-wide analytics.
Business Combinations, Discontinued Operations and Other Divestitures
We have undertaken additional 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, 5, and 9 “Business Combinations,”
“Divestiture of Businesses,” and “Discontinued Operations,” to the consolidated financial statements appearing
in this Annual Report on Form 10-K.
Competition
Our Distribution Solutions segment faces a highly competitive global environment with strong competition
from international, national, regional and local full-line, short-line and specialty distributors, service
merchandisers, self-warehousing chain drug stores, 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. In all areas, key competitive factors
include price, quality of service, breadth of product lines, innovation and, in some cases, convenience to the
customer.
Our Technology Solutions segment experiences substantial competition from many companies, including
other software services firms, consulting firms, shared service vendors, certain hospitals and hospital groups,
payers, care management organizations, hardware vendors and internet-based companies with technology
applicable to the healthcare industry. Competition varies in size from small to large companies, in geographical
coverage and in scope and breadth of products and services offered.
Patents, Trademarks, Copyrights and Licenses
McKesson and its subsidiaries hold patents, copyrights, trademarks and trade secrets related to McKesson
products and services. We pursue patent protection for our innovation, and obtain copyrights covering our
original works of authorship, when such protection is advantageous. Through these efforts, we have developed a
portfolio of patents and copyrights in the U.S. and worldwide. In addition, we have registered or applied to
register certain trademarks and service marks in the U.S. and in foreign countries.
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