McKesson Corporation

McKesson Corporation
Formerly
 Olcott & McKesson
(1833–1853)
McKesson & Robbins (1853–1999)
McKessonHBOC
(1999–2001)
Public
Traded as NYSE: MCK
S&P 500 Component
Industry Healthcare
Founded New York City, United States
1833 (1833)
Founder John McKesson
Charles Olcott
Headquarters San Francisco, California, U.S.
Key people
 John Hammergren
(Chairman and CEO)
Products Pharmaceuticals
Medical technology
Health care services
Revenue Increase US$198.533 billion (2017)[1]
Increase US$7.109 billion (2017)[1]
Increase US$5.153 billion (2017)[1]
Total assets Increase US$60.969 billion (2017)[1]
Total equity Increase US$11.095 billion (2017)[1]
Number of employees
 ~78,000 (2017)[1]
Subsidiaries Rexall Drugstore
Health Mart
Website McKesson.com

McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools. The company had revenues of $198.5 billion in 2017.[2]

McKesson is based in the United States and distributes health care systems, medical supplies and pharmaceutical products. Additionally, McKesson provides extensive network infrastructure for the health care industry; also, it was an early adopter of technologies like bar-code scanning for distribution, pharmacy robotics, and RFID tags.[3]

It is a Fortune Global 500 company, and the 5th[2] highest revenue generating company in the United States.

History

Founded in New York City as Charles M. Olcott in 1828 and later as Olcott, McKesson & Co. by Charles Olcott and John McKesson in 1833,[4] the business began as an importer and wholesaler of botanical drugs. A third partner, Daniel Robbins joined the enterprise as it grew, and it was renamed McKesson & Robbins following Olcott's death in 1853.

The company successfully emerged from one of the most notorious business/accounting scandals of the 20th century—the McKesson & Robbins scandal, a watershed event that led to major changes in American auditing standards and securities regulations after being exposed in 1938. In the 1960s, McKesson & Robbins merged with Foremost Dairies of San Francisco to form Foremost-McKesson Inc.[5]

Since the mid-20th century, McKesson has derived an increasing proportion of its income from medical technology, rather than pharmaceuticals. This culminated in its purchase of medical information systems firm HBO & Company (HBOC) in 1999; the combined firm was briefly known as McKessonHBOC. Accounting irregularities at HBOC reduced the company's share price by half, and resulted in the dismissal and prosecution of many HBOC executives. The firm's name reverted to "McKesson" in 2001.[6] McKesson Technology Solutions, as the information technology branch of the company is now known, has continued to increase its market share through acquisitions, notably Per Se Technologies, RelayHealth, and Practice Partner.

In 2010, McKesson acquired leading cancer services company US Oncology, Inc. for $2.16 billion, which was integrated into the McKesson Specialty Care Solutions business.

On June 24, 2013, The Wall Street Journal reported that McKesson Chairman and CEO John Hammergren's pension benefits of $159 million had set a record for "the largest pension on file for a current executive of a public company, and almost certainly the largest ever in corporate America." A study in 2012 by GMI Ratings, which tracks executive pay, found that 60% of CEOs at S&P 500 companies have pensions, and their value averages $11.5 million.[7]

In addition to its offices throughout North America, McKesson also has international offices in Australia, Ireland, France, the Netherlands, and the United Kingdom. Today, McKesson is one of the oldest continually operating businesses in the United States.

In 2014, McKesson acquired Celesio to become one of the world's largest health care companies, with over $179 billion in annual revenue.[8]

As of August 23, 2016, McKesson has decided to merge a majority of its IT business with Change Healthcare.

In 2017, McKesson was involved in a number of lawsuits against the state of Arkansas over the supply of vecuronium bromide. McKesson was under contract by Pfizer not to sell to any correctional facility that authorized and carried out Capital punishment.[9][10]

Divisions

McKesson Provider Technologies

McKesson Provider Technologies is the retail name for McKesson Technology Solutions; the software development division of McKesson. Their customer base in the United States includes 50% of all health systems, 20% of all physician practices, 25% of home care agencies, and 77% of health systems with more than 200 beds.

On June 20, 2005, McKesson Provider Technologies acquired Medcon, Ltd., an Israeli company which provides Web-based cardiac image and information management solutions for heart centers, that includes: diagnostic digital image management, archiving, procedure reporting, and workflow management.[11]

In October 2013, McKesson agreed to buy a 50% stake in German peer Celesio for $8.3 billion.[12]

McKesson Medical Supplies and Equipment

McKesson Medical-Surgical Corporate campus in Richmond, Virginia
McKesson Medical-Surgical Corporate campus in Richmond, Virginia

McKesson Medical-Surgical (MMS) offers a large selection of national health care brands, along with McKesson’s exclusive brand of medical products.

Their online medical supply ordering platform serves the needs of physician offices, surgery centers, home health agencies, DMEs, labs, and long-term-care facilities.[13]

In 2015 McKesson Medical-Surgical opened its new headquarters in Richmond, Virginia.[14]

Health Mart pharmacy franchise

McKesson's global headquarters building in downtown San Francisco.
McKesson Pharmacy Systems, Livonia, MI

Health Mart is a network of over 4,000[15] independently owned and operated pharmacies. It is a wholly owned subsidiary of McKesson Corporation, which owns the name "Health Mart." McKesson acquired Health Mart owner FoxMeyer in October 1996[16].

Former divisions

McKesson operated the Mosswood Wine Company from 1978 until 1987, when the division was sold to maintain their focus on pharmaceuticals. The division was founded and run by wine writer Gerald Asher.[17]

Settlement

In 2008, McKesson paid $13 million in fines for failing to report huge orders of hydrocodone.[18] In January 2017, McKesson agreed to pay a $150 million civil penalty for alleged similar violations of the Controlled Substances Act regarding the distribution of opioids.[19]

International

McKesson Canada

In 1991, McKesson Corporation acquired a 100 percent interest in Medis Health and Pharmaceutical Services from Provigo. In 2002, the McKesson Canada name was adopted. McKesson Canada is a wholly owned subsidiary of McKesson Corporation. It includes various business units: McKesson Pharmaceutical, McKesson Automation, McKesson Specialty, McKesson Health Solutions and McKesson Information Solutions.

In March 2016, McKesson agreed to purchase Canadian pharmacy chain Rexall from the Katz Group of Companies for $3 billion.[20] The deal was finalized in December 2016 following approval received under the Investment Canada Act.[21]

In May 2018, McKesson Canada closed 40 Rexall locations in Ontario and Western Canada.[22]

United Kingdom

In the United Kingdom, McKesson (operating as McKesson Information Solutions UK Ltd) was a provider of information technology services to the health care industry. In addition to numerous clinical software systems and finance and procurement services, McKesson also was responsible for developing the Electronic Staff Record system for the National Health Service which provided an integrated payroll system for NHS's 1.3 million staff, making it the world’s largest single payroll IT system. McKesson Shared Services also provided payroll services for over 20 NHS Trusts, paying over 100,000 NHS members.

McKesson's United Kingdom base was in Warwick with data centers in Newcastle upon Tyne and Brent Cross and offices in Sheffield, Bangor, Glasgow and Vauxhall, London. Across the United Kingdom, it employed over 500 people.

In June/July 2014 McKesson sold most of their healthcare software business to the private equity firm Symphony Technology Group and indicated also that they would not be re-bidding for the Electronic Staff Record contract.[23][24] This came after the company had posted significant year on year losses in revenue (16% in the 2012/13 financial year[25]) after taking over a very successful British operation in 2011.[26]

Australia and New Zealand

In 2010, McKesson Asia-Pacific was acquired by Medibank Private Ltd.[27][28]

McKesson ANZ is a fully owned subsidiary of McKesson Corporation. McKesson expanded its footprint in Australia and New Zealand by acquiring Emendo in November, 2012.[29] McKesson ANZ develops and sells healthcare optimization services and software. The company has traditionally been focused on the public markets in Australia and New Zealand. The majority of the District Health Boards in NZ use one or more of McKesson’s Capacity Management solutions.

Christchurch, New Zealand, is one of McKesson’s global Capacity Management R&D centers of excellence. All of McKesson’s R&D for McKesson Capacity Planner is performed in New Zealand. The company employs approximately 40 team members across Australia and New Zealand including general management, R&D, sales, services and support employees.

McKesson Capacity Planner (formerly Emendo CapPlan) is used in more than 40 hospitals in Australia, New Zealand, Britain, Canada and the US[30] to forecast future patient activity and help health systems to allocate resources efficiently and identify unnecessary costs.[29][31]

Facilities

In addition to its global headquarters in San Francisco, California, McKesson maintains facilities around North America.[32]

See also

References

  1. 1 2 3 4 5 6 "2017 Form 10-K, McKesson Corporation". sec.gov. United States Securities and Exchange Commission.
  2. 1 2 Corporate, Corporate (May 18, 2017). "Corporate Website". Corporate Website. Retrieved Oct 5, 2017.
  3. ↑ Mitchell, Luke (February 1, 2009). "Sick in the Head". Harper's Magazine.
  4. ↑ McKesson & Robbins, First Aid In Emergencies, 1930, p. 63.
  5. ↑ "History of McKesson Corporation". mckesson.com. Retrieved April 20, 2015.
  6. ↑ Milt Freudenheim (January 13, 2005). "McKesson Agrees to Pay $960 Million in Fraud Suit". The New York Times. Retrieved March 17, 2008.
  7. ↑ Mark Maremont (June 25, 2013). "McKesson CEO Is Due $159 Million Pension". Wall Street Journal. Retrieved April 20, 2015.
  8. ↑ McKesson Launches Public Takeover Offer for Celesio
  9. ↑ "Can big pharma stop the Arkansas mass executions?". The Guardian. April 16, 2017.
  10. ↑ Supplier: Drug sold to Arkansas not intended for executions | CBS News
  11. ↑ McKesson Completes Acquisition of Medcon Ltd. | Business Wire August 15, 2005
  12. ↑ Ludwig Burger (October 24, 2013). "McKesson $8.3 billion deal for drugs trader Celesio to create market leader". Reuters.
  13. ↑ "McKesson Medical Supplies and Equipment". Retrieved 2018-03-01.
  14. ↑ Times-Dispatch, GREGORY J. GILLIGAN Richmond. "McKesson Medical-Surgical opens its new headquarters". Richmond Times-Dispatch. Retrieved 2018-01-12.
  15. ↑ "Health Mart Pharmacy of the Year Spotlight". healthmart.com.
  16. ↑ "McKesson Corp, Form 8-K, Current Report, Filing Date Nov 22, 1996". secdatabase.com. Retrieved Apr 23, 2018.
  17. ↑ Archived June 1, 2013, at the Wayback Machine.
  18. ↑ Bill Whittaker (December 17, 2017). "Whistleblowers: DEA attorneys went easy on McKesson, the country's largest drug distributor". CBS News. Retrieved 24 December 2017.
  19. ↑ "McKesson Corp, Form DEF 14A, Filing Date Jun 16, 2017" (PDF). secdatabase.com. Retrieved Apr 23, 2018.
  20. ↑ Strauss, Marina (March 2, 2016). "Rexall takeover shakes up Canada's drugstore industry". The Globe and Mail.
  21. ↑ "McKesson Completes Acquisition of Rexall Health and Appoints Domenic Pilla as CEO of McKesson Canada | McKesson Investor Relations". investor.mckesson.com. Retrieved 2018-07-17.
  22. ↑ "Rexall closing after less than 5 years in London's downtown core". 980 CFPL. Retrieved 2018-07-17.
  23. ↑ Jon Hoeksma (May 8, 2013). "McKesson UK put up for sale". ehiNEWS.
  24. ↑ Jon Hoeksma (June 2, 2014). "Symphony buys McKesson UK health ops". ehiNEWS.
  25. ↑ "Article: Symphony Technology Group snaps up McKesson divestments". HealthInvestor. Retrieved 2016-01-02.
  26. ↑ "McKesson To Acquire British Software Vendor System C | HIStalk". Histalk2.com. 2011-03-03. Retrieved 2016-01-02.
  27. ↑ "McKesson to Sell Its McKesson Asia-Pacific Business to Medibank Private Ltd". Archived from the original on April 13, 2016. Retrieved March 30, 2016.
  28. ↑ "Medibank finalises acquisition of McKesson Asia-Pacific".
  29. 1 2 "McKesson NZ aims for growth with plans to add staff and products - Computerworld New Zealand". Computerworld.co.nz. 2014-05-23. Retrieved 2015-07-30.
  30. ↑ Tamlyn Stewart (2012-11-08). "Pharma giant snaps up Emendo". Stuff.co.nz. Retrieved 2015-07-30.
  31. ↑ Tamlyn Stewart (2012-11-07). "Fortune 500 firm buys Kiwi tech company". Stuff.co.nz. Retrieved 2015-07-30.
  32. ↑ https://www.mckesson.com/contact-us/
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