3. Safe Harbor Clause
Some of the information in this presentation
may constitute forward-looking statements
that are subject to various uncertainties
and could cause actual results to differ
materially from those projected or implied.
These uncertainties are described in the
Company’s reports and exhibits filed with
the Securities and Exchange Commission.
5. Redefining Success
To make healthcare safer, it takes:
• More than software
• Broadscale adoption of technology
• Joint accountability
• Making every dollar count
7. More Than Software:
Medication Safety Solution
Distribution Software
Automation
Packaging
8. More Than Software:
Undisputed Leadership in Medication Safety
Inpatient
• 44M scanned bedside meds annually
• 400,000 warnings issued weekly
• 56,000 errors prevented weekly
• Considered more often than any other vendor (KLAS)
Ambulatory
• 80,000+ e-prescriptions/month and growing
• McKesson in top three for MD office e-prescribing
• Connectivity to PBMs, retail pharmacies
9. More Than Software:
Innovative Solutions and Technologies
McKesson Telehealth
Horizon PatientVision
Advisor
10. Introducing… CarePoint-RNTM
•“All-in-One” tool for nurses
–Lightweight and portable
–Meds, supplies and clinical systems
travel with the nurse
–Two patient medication container
options
• Drawers
• Envelopes
–Links McKesson clinical software with
automation technologies
11. Broadscale Adoption:
More Value, Faster Value
• Drive value for clinicians
– HorizonWP Physician Portal – 1.3M logons per month,
15-minute training time
– Medical and document imaging
– Horizon Expert Orders – 200 beds live in four months
at Duke University Hospital; 96% of orders placed by
physicians
• Speed time to value
– McKesson QuickStart for medication safety
– IASIS - rapid implementation model across 15
hospitals
12. Broadscale Adoption
“Surround” Strategy
Physician Portal
Medication Safety
Medication Safety
Existing IT
CPOE/CDS
CPOE/CDS
Systems
Medical Document
Imaging Imaging
13. Broadscale Adoption:
Connect the Physicians
Physician
Physician Practice
Practice
Physician
Hospital Practice
Physician
Portal Physician
Practice
Practice
15. Joint Accountability:
Centra Health Program Summary
Program Steering Physician User
Executive
Committee Program Sponsors Group
Program Management Office
(PMO)
Clinical Informatics Information Services Financial Informatics
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
2004 2005 2006
Integrated Testing
April May June July Aug Sept Oct Nov Dec Jan FebMarch April May June July Aug Sept Oct Nov Dec Jan Feb March April May June July Aug
Passport Standalone Passport POS
STAR - ADT, PA, MR. RWS, Acct Express STAR
Upgrade
Stmts EC 2000 Remittance
Horizon Pat Folder/Horizon Bus Folder (MR, BO)
HPM (Financial Decision Support/Budgeting) HPF HBF
Horizon Business Insight Upgrade
Path Fin Mgmt(GL/FA) PFM (GL/FA)
PCON w/NDC PCON w/STAR (inc. 1500's)
Denials Denials and Appeals Compliance Advisor
Clinical Infrastructure Pathways Healthcare Scheduling
Horizon Care Record
Alerts
Messaging
Rounding
Clinical Upgrade
Horizon Expert Documentation HED (Rollout to CC and Med Surg)
Horizon Order Management Horizon Expert Orders ..to M36
Horizon Radiology
HAC Lab Outreach
Horizon Meds Manager/Order Scanning
AdminRX
ED Tracking Board
Physician Portal
Pathways Interface Mgr
Secure Remote Access
Horizon OnePass
16. Making Every Dollar Count
Technology and Service Innovation
Value
Operational
• LINUX
Improvement
• Clinical continuity and
disaster recovery
Optimization solutions
Services
• System optimization
• Customer certification
Installation • Lean Six Sigma
17. Redefining Success from the Customer’s
Perspective
• Duke University Hospital, Durham, N.C.
– Mike Russell, M.D., Associate Chief
Information Officer
• Presbyterian Health Services,
Albuquerque, N.M.
– Mark Reifsteck, Senior Vice President, Chief
Operating Officer
18. Optimizing Clinical Workflow
Mike Russell, M.D.
Associate Chief Information Officer
Duke University Health System and
Medical Center
19. IT Focus at Duke
• Patient Safety – top priority
• Bridging Academic and Community Medicine
• Increasing collaborations with technology as an
enabler
• Information accessibility and stability
• Defining technology with a focus on process,
workflow and ease
• Providing technological solutions that are safe,
efficient, and effective
Looking at the complete picture
20. CPOE Value – Clinical Decision Support
System and Workflow Logic
• Incorporating evidence-based best practices and optimized workflow
logic into the CPOE product
– Development of rules and alerts to prevent errors
– Critical rules for all services versus clinical service / clinical
department specific rules - standardization
– Integration of rules across various vendors and ancillaries
– Proactive decision support, as well as retrospective
– Data capture for overrides and tracking
– Tracking clinical outcomes
– Deployment platforms – desktop, mobile, wall-mounted
– Desktop Integration
– Zero Data Loss back-end
– High Availability back-end
21. CPOE--A Unique
Development Approach
McKesson – Duke Relationship
CPOE Development
Traditional Systems
Life Cycle
Development Life
Cycle
Implementation
Evaluation
Evaluation
Analysis
Analysis
Evaluation
Analysis
Design
Analysis
Evaluation
Design
Analysis
Programming
Design
Design Programming
Design
Programming
Programming Programming
Testing
Evaluation
Implementation
Evaluation
Analysis
Analysis
Evaluation
Design
Evaluation Analysis
Evaluation
Design
Analysis
Programming
Design
Programming
Design
Programming
Programming
22. Swift Deployment
• CPOE is currently live on 260 beds in Duke
North:
– 79 Cardiology + CCU
– 78 General Medicine + MICU
– 33 Pulmonary / Renal + MICU Stepdown
– 70 Oncology + BMTU (as of Feb 14 & 15)
23. Cumulative Orders by Order Category
400,000
Transcribed or Protocol = 1.4%
Verbal or Phone Order = 2.6%
350,000
Directly Entered = 96.0%
N78 - Pulmonary
The initial CPOE Go-Live was on Sept 28, 2004 on N71. The
Cumulative Number of Orders
300,000
dates demarcate the number and location of beds live on N81 - Gen Med
190 beds
N83 - Gen Med
CPOE. The vast majority of orders are entered directly into
N82 - MICU
CPOE. A small percentage are entered as Verbal Orders. A
smaller percentage are transcribed from hand-written orders
250,000
as part of the go-live conversion process or entered by nurses 157 beds
as part of a clinical protocol.
200,000
150,000
100,000
N72 - CCU
50,000
N73 - Cardiology
79 beds
N71 - Cardiology
63 beds
31 beds
8 beds 43 beds
4 beds
0
1-Sep-04 1-Oct-04 1-Nov-04 1-Dec-04 1-Jan-05 1-Feb-05 1-Mar-05
24. Cumulative Orders by Clinician Category
400,000
Nurse Practitioner = 5.5%
Physician Assistant = 6.1%
350,000
Attending = 6.1%
Housestaff = 82.3%
N78 - Pulmonary
300,000 190 beds
N81 - Gen Med
Cumulative Orders
Most CPOE orders are entered by N83 - Gen Med
N82 - MICU
Housestaff. However, a significant number
250,000
are also being entered by Attendings, PAs,
157 beds
and NPs.
200,000
150,000
100,000
N72 - CCU
50,000
N73 - Cardiology
79 beds
N71 - Cardiology
63 beds
31 beds
8 beds
4 beds 43 beds
0
1-Sep-04 1-Oct-04 1-Nov-04 1-Dec-04 1-Jan-05 1-Feb-05 1-Mar-05
25. Number of Clinicians Using CPOE Weekly
350
Registered Nurse
This graph shows the number
Licensed Practical Nurse
and type of clinicians using
Attending
CPOE on a daily basis. The
300 Physician Assistant
number of clinicians of all types
N78 - Pulmonary
remains fairly stable based on Nurse Practitioner
the number of beds. Variability Housestaff
is mainly determined by 190 beds
weekends and holidays. The
Number of Clinicians
250
hospital units and cumulative
number of beds live on CPOE
N81 - Gen Med
are also shown.
N83 - Gen Med
200 N82 - MICU
N72 - CCU
157 beds
150 79 beds
N73 - Cardiology
63 beds
100
43 beds
31 beds
50 N71 - Cardiology
8 beds
4 beds
0
1-Sep-04 1-Oct-04 1-Nov-04 1-Dec-04 1-Jan-05 1-Feb-05 1-Mar-05
26. Cumulative Number of CPOE Users
Cumulative Number of CPOE Users
700
Cumulative Total = 564
This graph shows the cumulative number of clinical
personnel who have entered orders via CPOE. These
clinicians do not necessarily use CPOE on a daily
basis.
600
Housestaff and Attendings rotate on and off of a
N78 - Pulmonary
service. PAs, RNs, LPNs, Health Unit Coordinators,
Respiratory Therapists, Pharmacists, and Dieticians 190 beds
500 usually stay on a specific service, but have a rotation
schedule over time with others.
Number of Users
The hospital units where CPOE has been activated, N81 - Gen Med
400 and the cumulative number of beds, are also shown. N83 - Gen Med
RN = 269
N82 - MICU
157 beds
300
Housestaff = 150
N72 - CCU
200
79 beds
N73 - Cardiology
63 beds
Attending = 48
43 beds
100
HUC = 27
31 beds
Pharm = 26
N71 - Cardiology
8 beds PA = 14
Resp = 13 NP = 7
4 beds
0 LPN = 7 Diet = 3
1-Sep-04 1-Oct-04 1-Nov-04 1-Dec-04 1-Jan-05 1-Feb-05 1-Mar-05
27. CPOE
Order Sets in
Clinical
ps
ral
nt
Ma
s
me
ne
ure
s
Production
die
re
Ge
ge
ID
s
atm oced
Ca
die
Stu
ts
na
s-
s-
Lis
Stu
Ma
ls &
mm s
ts
Pr
on
on
ory
ion
ure
e
(as of 02/01/05)
en
on
ps
arg
ati
ati
se
ide
ing
co
rat
s
ss
ed
rku
die
dic
dic
ea
ch
r
oto
mi
ds
bo
ag
tal
he
oc
Wo
Stu
Tre
Dis
Dis
Me
Me
Co
Ad
Be
To
La
Im
Ot
Pr
Pr
4 4 1 3 4 9 1 1 3
Cardiology 30
4
Endocrine 4
2 2 2
Gastroenterology 6
3
Heme-Coag 3
Infectious Disease
3 2
General Medicine
1 1
Nephrology 2
2 1 2
Neurology 5
Oncology
1 1
Psychiatry 2
2 1 1 1 1 2 1
Pulmonary 9
1
Rheumatology
1
Cardiothoracic Surgery 1
Neurosurgery
General Surgery
Orthopaedics
Plastic Surgery
OHNS
Ophthalmology
Urology
Radiology
1 1
Pain Management 2
1 2 1 11 2 5 17 3 5
General 47
Total 9 12 8 4 7 12 5 1 11 2 12 8 18 3 5 117
Red denotes Order Sets completed and put into service within the past month.
28. Order Entry Benefits
End to
Benefit Manual Clerk Physician
End
Patient Safety
Timely Processing of
orders
Order Context
Information
Online Decision Support
Downstream Decision
Support
Utilization Management
29. Targeted Benefits
• Patient Safety & Quality Improvement
– Evidence Based Medicine
• Cost Savings
– Clinical standardization
• Increased Productivity
– Complete clinical adoption
• Improved Communication
– Complete orders interfaced to ancillaries
• Compliance with JCAHO and CMS
– Process and nomenclature standardization
30. Partnering with McKesson
Mark Reifsteck
Senior Vice President, Chief Operating
Officer
Presbyterian Healthcare Services
32. Presbyterian Healthcare Services
• New Mexico’s largest care provider for 95 years
• Two hospitals in Albuquerque, five rural
• State’s largest health plan with HMO,
indemnity, Medicaid, Medicare Advantage
• State’s fastest-growing employed physician
group with 300+ physicians, 30 practice sites
• Modern Healthcare’s Top 10 for integration
• State’s highest quality award, Zia
• Top 100 “Most Wired”
33. What are we trying to achieve?
• “Three Things”
–Malcolm Baldrige Quality Award – continuously improve
processes to produce nationally excellent clinical, service
and business results
• Earned New Mexico’s highest quality award, Zia, in
2004
–Top 10% in Patient Safety – create safest possible
environment for those who place their trust in us
• Dramatic reduction in medication errors
–“AA” Rating – control expenses while growing our
business to sustain positive financial performance and to
fund excellence
• Achieved in 2004
34. What does this mean day-to-day?
• Integrating the patient experience, from physician
office to inpatient and back home
• Controlling our costs so that our customers can
afford our care
• Creating a “high-reliability” organization with
standardized, safe delivery of care
35. How does McKesson help us do this?
• Automation to drastically reduce medication errors
– ROBOT-RxTM
– Horizon Admin-RxTM
– Horizon Meds ManagerTM
– Drove 80% reduction in medication errors
36. How does McKesson help us do this?
• Helping us control costs
– Managing our supply chain with efficiency
• Expenses 15.6% of net revenue — industry
benchmark
• Approximately $7M in savings over last five years
• In 2004, an additional $1.5M in new savings
– Solving late starts in operating rooms with McKesson
consulting
• 55 additional surgical cases/month, $2.4M annually
in new revenue
– Capturing and charting all medications
• $3.8M annually in new captured revenue
37. How does McKesson help us do this?
• Helping us integrate our business and clinical functions
Web Solutions
Clinical Products
HorizonWP Physician Portal
ROBOT-Rx and Pak-Plus
HorizonWP Patient Portal
Horizon Admin-Rx
Horizon MobileCare Rounding
AcuDose-Rx
Resource Management Solutions
Horizon Order Management
Horizon Surgical Manager
Horizon Expert Orders
Pathways Healthcare Scheduling
Horizon Clinical
Horizon Passport (EMPI)
Documentation
Pathways Materials Management
Horizon Meds Manager
SupplyScan (inventory management)
Horizon Ambulatory Care
Revenue Cycle Solutions
Horizon Care Record
HealthQuest Patient Accounting
Horizon Emergency Care
Pathways Contract Management
Horizon Medical Imaging
Statement Administrator
Horizon Radiology Manager
Real-Time Eligibility
Horizon Lab
Horizon Homecare
38. Partnering with McKesson
From the earliest days of our
partnership, we have expected
McKesson to be “in the room”
with us as we care for patients
39. Breakout Sessions
• Ambulatory
–Brian Schatz, Chief Operating Officer
Medical Associates, Dubuque, IA
• Medication Safety
–Tom Smith, Admin. Director of Oncology/ Pharmacy
FirstHealth / Moore Regional Hospital, Pinehurst, NC
• Enterprise Imaging
–Steve Stanic, Chief Information Officer
Memorial Health System, Savannah, GA
41. Medical Group Practice Market Segments
SEGMENT Segment Size Total buying Projected
entities Segment IT
(Groups) Spend – 2008
74,108 MDs 15,574 $804.5M
MGP*s 3-10 Physicians
43,781 MDs 2,989 $960.1M
MGPs 11-25 Physicians
41,558 MDs 943 $813.4M
MGPs 26-99 Physicians
66,784 MDs 241 $1,866.9M
MGPs 100+ Physicians
IDN-owned practices &
98,950 MDs 1048 $2,449.0M
AMCs
* MGP = Medical Group Practice
Sources: POMIS Report 2004; Datamonitor
42. Ambulatory Market Dynamics: Our View
Shifting Dynamics in Ambulatory Care
Unprecedented
Resulting Market Trends
Federal Impact
More incentives, standards for EMR &
eRx adoption
Changing MD-
Hospital relations
Continued growth of ASCs, Diagnostic
Centers, “PHOs”
Advancing Medical
Technology
Fewer 1-2 MD practices; Fewer major
standalone groups
Economic issues
for MDs
Focus on total patient experience as
competitive differentiator
“Patient migration”
Pay-for-performance linked to quality
Focus on chronic
measures
disease management
43. McKesson’s Solution Portfolio for
Ambulatory Care
Specialty Pharmaceuticals
– Distribution services
– Specialty pharmacy
services
– Reimbursement services
– Clinical support programs
Patient-centered Solutions
– Disease management
Information Technology
– Patient Web Portal
– Patient Education solutions – Electronic Health Record
– Financial &
Administrative
– E-Prescribing
– EDI Connectivity
– PACS
– Inventory Management
Supply Solutions
Pharmacy Services
– Medical-Surgical supplies
– Capital equipment
– Retail pharmacy automation
– McKesson Brand
– E-Prescribing connectivity
solutions
44. Strategic Initiatives:
MD-Hospital Relationships
Physician
Practice
Physician
Via Portal Practice
•Outreach
•Complete EMR
•E-prescribing
•Practice Management Physician
Practice
Hospital •Other services
(McKesson IT
Solutions)
Physician
Practice
Physician
Practice
49. McKesson’s Leadership Position
Breadth of Solutions
Service Excellence
• Supply solutions
• 99% customer satisfaction in specialty
pharmaceuticals*
• Information technology
• 98% customer satisfaction in physician practice I.T.*
• Consulting and clinical support
• Highest customer satisfaction in primary care medical-
• Solutions for physician practices, ambulatory
medical-surgical supply*
centers, & patients
Scale & Resources
Experience & Knowledge
• Hospitals / IDN’s
• 50 years’ experience serving the ambulatory market
• Over 500 account managers focused on ambulatory
• Over 40,000 ambulatory customers nationwide
surgery & primary care
• Savvy clinical, administrative, process management,
• 12 Distribution Centers Nationwide serving
and financial experts
ambulatory customers
* Based on independent customer surveys
50. Physician Adoption of EHR
An Update on Status of McKesson
Horizon Ambulatory Care Roll-out,
Physician Adoption and Early Results
at Medical Associates Clinic, P.C.
53. Medical Associates Clinic
• Oldest multi-specialty group in Iowa - c.1924
• Privately owned, for-profit; 83 shareholder physicians
• 140+/- revenue producing providers
– (MD, PA, NP, DPM, PT, Audiology)
• 30 Specialties, including ancillary services
• 40,000+ member health plan; ambulatory surgery and
occupational medicine joint ventures
• 210,000 population service area - 60 mile radius
• Total patient visits: 540,000 - CY 2004
54. MA Core Values
• Above all else, provide high-quality care
• Always exceed service expectations
• Be the recognized leader in healthcare for the Tri-State
area
• Treat everyone with compassion and respect
• Teamwork among physicians, staff, patients and
customers
• Achieve financial success through motivated, innovative
and hardworking people
55. Why EMR?
• A strategic opportunity, not a financial crisis
– “Be the recognized leader in healthcare…”
• Improve quality of care through evidenced-based
practice and better processes
• EMR will become the standard – “when, not if”
• Improve coordination and communication throughout the
medical group
• Administrative efficiency and cost savings
• Make the strategic financial investment while we are able
56. Financial Return on
Investment Approach
• Stop using the paper record
– “Age” paper chart (not start “paperless”)
– Eliminating chart pulls and transportation
– Default to electronic clinical information for
patient care
• Reduce transcription expense (dictate less)
• Grow encounter revenue (code better)
57.
58. eMac Project High-level Goals
• High physician adoption (ideal goal: 100%)
• Minimal reduction in physician productivity while
implementing; no reduction long-term
• EMR integration with legacy systems, including practice
management and lab
• Group-wide implementation over 2-3 year period
• Achieve a 6-year return on financial investment
59. Full Implementation – Incremental Annual
Operational Income Impact
Software Maintenance ($200,000)
PC Replacement ($100,000)
IT/User Support Staff ($200,000)
Depreciation / Big Box ($100,000)
Additional Revenue $500,000
Annual Savings $1,888,946
Net Income Impact $1,788,946
61. Ambulatory EMR
Progress-to-Date*
• Implementation began July 1, 2003 with one physician
• Using a phased approach:
– 96 providers in 25 specialties live on E-
prescribing module
• 25,000 e-prescriptions monthly
– 53 providers in 12 specialties live on Orders
and Results module
• 4,200 diagnostic e-orders monthly
– 21 providers in 4 specialties live on
Documentation/Charting * As of February 11, 2004
66. Preliminary Transcription $ Savings
• 21 physicians and providers on Documentation /
Charting (as of 2/11/05)
• 40%-80% dictation reduction in first 2 weeks
– Several individuals > 90%
– Long-term reduction target of >75%
achievable
– Voice recognition pilot / March
67. “Stop Moving the Chart” Savings
• Approximately 10% year-over-year savings in Medical
Records staffing expense as of 1/2005
• Scheduled 43% Medical Records staffing hours and
expense reduction by end of 3rd Qtr 2005. $580,000
annually.
– Initial savings from not maintaining paper
chart “redundancy.”
– Additional savings will accrue as patients are
seen “chartless”.
68. Why McKesson?
• Ambulatory EMR product best compared to available
• Collaboration with McKesson on further product
development – value in this relationship
• Single vendor IT strategy: Clinical, Administrative, Imaging
69. What’s Next?
• Full EMR deployment
– Ensure administrative gains
– Pursue enhanced quality management
• Full PACs deployment with EMR/PACs integration
70. Enterprise Imaging
Jay Deady
Vice President
McKesson Provider Technologies
71. McKesson’s Imaging Solution Overview
• Enterprise document imaging
• Enterprise medical imaging
• Common enterprise image access
• Common enterprise storage
• EHR framework
72. Enterprise Document Imaging
• Focused on:
– Medical Records / HIM
– Patient Accounting
– Registration Horizon Patient Folder
Horizon Patient Folder
Horizon Business Folder
Horizon Business Folder
– Human Resources
• Market leader with 57% share (Document Repository)
(Document Repository)
• 30,000+ physician logons daily
• 4B document images
• 120-150 day implementation
73. Enterprise Medical Imaging
• Focused on
– Radiology
– Cardiology
– Ultrasound
Horizon Medical Imaging
Horizon Medical Imaging • Contract volume doubled,
Horizon Radiology Manager
Horizon Radiology Manager vs. last year
(Medical Image Repository)
(Medical Image Repository) • 700 facility installations
• 15M radiology exams/year
• 2B medical images
• 90-120 day implementation
74. Common Enterprise Image Access
HorizonWP Physician Portal
HorizonWP Physician Portal
(Enterprise Access)
(Enterprise Access)
• More than 1.3 million HorizonWP Physician Portal
logons per month
• Physician training in under 15 minutes
• Over 430 facilities are using the portal today
• 90-120 day implementation
75. Common Enterprise Image Access
HorizonWP Physician Portal
HorizonWP Physician Portal
(Enterprise Access)
(Enterprise Access)
• Discrete Data
• Lab
• Vitals—I & Os
Documents
• History & Physical
• Discharge Summary
Medical Images
76. An EHR Framework
HorizonWP Physician Portal
HorizonWP Physician Portal
(Enterprise Access)
(Enterprise Access)
Advanced Clinical Solutions
Advanced Clinical Solutions
Horizon Patient Folder
Horizon Medical Imaging Horizon Patient Folder
Horizon Medical Imaging
Horizon Business Folder
Horizon Radiology Manager Horizon Business Folder
Horizon Radiology Manager
(Document Repository)
(Medical Image Repository) (Document Repository)
(Medical Image Repository)
Enterprise Hardware and Storage
Enterprise Hardware and Storage
77. Steve Stanic
VP of Information Systems/ CIO
MEMORIAL HEALTH
UNIVERSITY MEDICAL CENTER
78. Memorial Health Profile
• Three hospitals
600 bed medical Center – Savannah, Georgia
Two small, rural hospitals
Servicing 50% of Savannah and 50% of rural Georgia
& South Carolina
• Largest integrated delivery system in Southeast Georgia
• Teaching program
• 4,000 employees
• Various awards as “Best Hospital” for clinical operations
J. D. Power Award for Excellent Patient Experience
“100 Most Wired” Health Systems four years in a row
Fortune “100 Best Places to Work” winner
• Financial operations
$550 M of net revenue
79. The Memorial process
to gain adoption
• Step One: Understand the technology potential
• Step Two: Know your user community and where the
quick wins lie
• Step Three: Keep the look and feel of the technology
simple
• Step Four: Institute a strong technology governance
structure
– Heavy senior leadership involvement
– They are driving most of the change that technology
enables
80. Quality Results…
• Through adoption of electronic medical record, clinical
data repository and picture archiving communication
system (PACS), clinicians now have:
– Access to 98% of all available clinical information
– Alerts that check allergies and adverse medication
reactions
– Access to this information anytime anywhere
• 75% reduction in sentinel events
• $10M in savings from technology implementation coupled
with our Error Prevention Program
• Streamlined order entry process for nurses and physicians
81. Cost Reduction and
Revenue Improvement
• PACS
– Savings of $850K per year due to eliminated film in
radiology
• PACS and Electronic Medical Record
– Annual salary savings of $805K
• Physician Portal
– 35% increase in physician referrals
• Increase in team member satisfaction from 3.85 to 4.25
82. Next Steps
Foundation is in place
•
Continue building the base
•
Introduce CPOE and clinical decision support
•
83. McKesson Medication Safety Advantage
Billie Waldo, MS, RN, BC
Vice President and General Manager
Medication Safety Solutions
84. McKesson Differentiator
McKesson is the ONLY
single-source provider of
integrated software,
automation, packaging,
distribution and
consulting services that
help organizations prevent
medication errors and
improve efficiency across
both the supply chain and
clinical process.
86. Innovation Track Record
1989 1992 2000 2004 2005
Clinical data BPOC/Smart
Bar-code Robotic Smart/mobile
repository IV pump
scanning drug medication
with rules- integration
with dispensing cart, Connect-
driven
computer- RN
monitoring
generated
alerts
MAR
87. Market Drivers
• Mandates from:
– Government
– Regulators
– Consumers
• Proof of Spending:
– Cap Gemini 2005 HIT Spending
– HIMSS 2004 Leadership Survey
– Health Data Management 2004 CIO Survey
88. Market Opportunity
• Computerized Provider Order Entry
– Clinical decision support
– Only 4-12% of large hospitals claim some usage
• Bar-coded medication administration
– Only 5% of hospitals scan bar codes at bedside
– McKesson market share leader (est. 32%)
• Robotics
– 80% of hospitals have centralized distribution
– Only 8% use robotic dispensing
– McKesson dominant player (est. 97%)
89. Results
University of Wisconsin Hospital & Clinics
87% fewer medication errors
Methodist Medical Center
50% fewer medication errors
Regional West Medical Center
More time for nurses to focus on care
Concord Hospital
80% fewer medication errors
90. Results
Dupont Hospital
Bar-code scanning of all inpatient medications
Presbyterian Healthcare Services
80% fewer medication errors
Peninsula Regional Medical Center
95% of medications robot dispensed
St. Vincent’s Hospital
Legible, accurate MAR’s
91. Bottom Line
Each week, McKesson customers
Issue 403,995 warnings and
Prevent 55,776 medication errors
44 million medications are safely scanned
at the bedside every year
92. FirstHealth of the Carolinas:
Medication Safety Strategies
Tom Smith, R.Ph., M.S
Administrative Director Oncology/Pharmacy
Moore Regional Hospital
Pinehurst, NC
93. First Health
Moore Regional Hospital
Three-hospital system
Seven clinics
Primary facility
400-bed community
hospital
26 nursing units
Specialties
Cardiology
Orthopedics
Comprehensive Cancer
Center
94. FirstHealth Goals
• Protect our patients
– Provide a comprehensive med safety
strategy across three hospitals
– Automate our system
– Optimize processes
– Measure outcomes
95. Choosing a Partner:
Why McKesson?
• Comprehensive suite of products
– Integrated approach to medication safety
• Proven track record in the industry
• Leader in medication safety
98. Outcomes
• Improved medication safety
– Reduced missing doses
90%
– Provided a bar-code
solution
• Streamlined our medication
delivery system
– Reduced time to fill meds
from 16 staff hours to 3
– Decreased medication
order turnaround time by
85%
– Reduced pharmacy staff
by 7 FTEs
99. Outcomes
• Dispensed 9 million+ doses error
free
• Redeployed pharmacists
– Saved $40K/RPh/yr
• 97% RPh retention
• $500,000 anesthesia charges
recouped with cabinets in
surgery suite
• Provided outcome data
100. Pearls of Wisdom
• It takes more than software
• Integration is key
• This technology pays for itself