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Case Study
                                         Saint Agnes Medical Center
                                         Revolutionizes Its Surgical
                                         and Supply Chain Processes
At a Glance                              Saint Agnes Medical Center faced        Saint Agnes identified a number
                                         excess inventory, inconsistent          of key goals:
Organization                             documentation of supplies, varying      – Reduce extensive, expensive
Saint Agnes Medical Center               practices and lost charges in its         onsite inventory
Fresno, Calif.                           surgical and supply departments.
                                         Using McKesson solutions, the           – Decrease surgical operating costs
– 436-bed acute-care medical center
                                         medical center achieved its vision      – Reduce variation in physician
– State-of-the-art heart and             for a seamless, fully automated           practice
  vascular center                        and integrated surgery and supply       – Decrease error rates for surgery
– Inpatient visits per year: 25,000      chain process. Results include            time and medication charging
– Outpatient visits per year: 330,000    standardized practices, optimized
                                         inventory management, a 20%             – Increase availability of necessary
Solution Spotlight                       increase in charge capture, and           surgical supplies

– Horizon Anesthesia                     savings of more than $11.5 million.     – Improve consistency, legibility,
  Documentation                                                                    accuracy and completeness of
                                         Challenge                                 documentation
– Horizon Business Insight
                                         With such distinctions as a Top 100     – Enhance management access
– Horizon Performance Manager
                                         Hospital for Cardiac Bypass Surgery       to data
– Horizon Surgical Manager               in America and a Consumer Choice
– Pathways Contract Management           Award winner for 11 consecutive         Answers
– Pathways Healthcare Scheduling         years, 436-bed Saint Agnes Medical      Saint Agnes has a long history of
– Pathways Materials Management          Center has long been the hospital       successfully using McKesson’s legacy
                                         of choice in Fresno, Calif. But with    solutions. To realize its goals, the
Critical Issues                          new hospitals in the area, Saint        hospital upgraded to McKesson’s
                                         Agnes faces fierce competition for      integrated surgical and supply chain
– Expensive onsite inventory             patients and revenue. Hospital          solutions to collect, transfer and
– High surgical operating costs          management pinpointed the need          manage key patient information —
– Inefficient accounts                   to more effectively and efficiently     from scheduling to admission to
  receivable/revenue recovery            manage surgical and supply costs        recovery to discharge. Through
– Lack of solid information              to remain competitive.                  the integration of McKesson’s
  for management                                                                 performance management solutions,
                                         “A large percentage of charges for      Saint Agnes can warehouse and
Results                                  a hospital are surgical charges, and    access data to support its strategic
                                         a large percentage of those are         goals. And McKesson’s surgical and
– Reduced supply inventory by            associated with supplies,” explains
  55.2%, a $2.1 million savings                                                  anesthesia documentation tools
                                         Kathleen Dole, manager of product       help clinicians produce legible and
– Reduced orthopedic and                 support systems. “Our goal was to       complete documentation, ultimately
  cardiovascular implant costs           integrate surgery and materials         automating the charging process
  by $2.3 million                        management. Without that, we            and eliminating billing errors.
– Gained lost charges of $1.5 million    would continue to experience lost
– Recovered managed care and             charges, billing errors, inconsistent   “The most valuable aspect of the
  contract charges of $5.8 million       availability of supplies, and lack of   integration between McKesson’s
                                         business-critical reporting data.”      surgical, performance and supply
– Enhanced access to business-critical
  reporting data                                                                 chain suite is that it allows the clinical,
Case Study


“I recently talked to one            financial and decision support sides to                          including $1.5 million in formerly
                                     speak the same language,” says Diane                             lost charges; and $5.8 million in
of my area competitors and           Kasten, RN, surgical systems specialist.                         managed care and contract charges.
he shared that some of his           “Now we speak with one voice.”
                                                                                                      Resource and Supply Utilization –
biggest worries were about his       Results                                                          Saint Agnes is now able to identify
                                     The integrated surgery and supply chain                          needed supplies at scheduling.
supply chain and revenue cycle.                                                                       Pathways Materials Management™
                                     process enabled Saint Agnes to leverage
Those are the least of my worries,   resources, reduce costs and improve                              reduces the inventory on hand for
                                     decision making. Results include:                                requested supplies as soon as pick
thanks to McKesson’s solutions.”                                                                      tickets are printed. A custom variance
                                     Cash Flow – With the support of                                  report compares Horizon Surgical
                                     McKesson technology, Saint Agnes                                 Manager and Pathways Materials
Kathleen Cain                        dramatically reduced slow-moving                                 Management pick tickets, lists the
                                     surgical inventory and eliminated                                items missing from the cart and allows
Chief Financial Officer              “just-in-case” supplies. Inventory was                           procurement from OR supply locations.

Saint Agnes Medical Center           reduced 55.2%, saving $2.1 million.
                                                                                                      Patient Satisfaction/Accuracy of Billing
                                     Operating Costs – Horizon Business                               – Horizon Anesthesia Documentation
                                     Insight™ provides valuable information                           and Perioperative Documentation
                                     to Saint Agnes personnel, including                              produce legible and complete
                                     data that convinced physicians to                                documentation, automating charging
                                     adopt standardized surgical practice                             processes to eliminate billing errors.
                                     patterns. The hospital reduced
                                     orthopedic and cardiovascular                                    Strategic Management and Decision
                                     implant costs by $2.3 million.                                   Making – Horizon Performance
                                                                                                      Manager™ and Horizon Business
                                     Operating Revenue – Horizon                                      Insight allow data access that creates
                                     Surgical Manager™ automates all OR                               business-critical management reports
                                     and recovery time charges, virtually                             — daily, monthly or whenever needed.
                                     eliminating errors, and eliminates
                                     rekeying of pharmacy charges.                                    “I recently talked to one of my area
                                     Horizon Anesthesia Documentation™                                competitors and he shared that some
                                     eliminates separate entry of anesthesia                          of his biggest worries were about
                                     charges. With Pathways Contract                                  his supply chain and revenue cycle,”
                                     Management™, Saint Agnes monitors                                says Kathleen Cain, Saint Agnes chief
                                     contract compliance and compares                                 financial officer. “Those are the least
                                     daily payments received against                                  of my worries, thanks to McKesson’s
                                     contract terms. Results include an                               solutions.”
                                     ongoing recovery of payments owed,

                                     Copyright © 2007 McKesson Corporation and/or one of its subsidiaries. All rights reserved. Horizon Anesthesia Documentation,
McKesson Provider Technologies       Horizon Business Insight, Horizon Performance Manager, Horizon Surgical Manager, Pathways Contract Management,
                                     Pathways Healthcare Scheduling and Pathways Materials Management are trademarks of McKesson Information Solutions
5995 Windward Parkway                LLC. All other product or company names mentioned may be trademarks, service marks or registered trademarks of their
Alpharetta, GA 30005                 respective companies.                                                                                         PRT291-07/07


http://www.mckesson.com
1.800.981.8601

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Saint Agnes Medical Center

  • 1. Case Study Saint Agnes Medical Center Revolutionizes Its Surgical and Supply Chain Processes At a Glance Saint Agnes Medical Center faced Saint Agnes identified a number excess inventory, inconsistent of key goals: Organization documentation of supplies, varying – Reduce extensive, expensive Saint Agnes Medical Center practices and lost charges in its onsite inventory Fresno, Calif. surgical and supply departments. Using McKesson solutions, the – Decrease surgical operating costs – 436-bed acute-care medical center medical center achieved its vision – Reduce variation in physician – State-of-the-art heart and for a seamless, fully automated practice vascular center and integrated surgery and supply – Decrease error rates for surgery – Inpatient visits per year: 25,000 chain process. Results include time and medication charging – Outpatient visits per year: 330,000 standardized practices, optimized inventory management, a 20% – Increase availability of necessary Solution Spotlight increase in charge capture, and surgical supplies – Horizon Anesthesia savings of more than $11.5 million. – Improve consistency, legibility, Documentation accuracy and completeness of Challenge documentation – Horizon Business Insight With such distinctions as a Top 100 – Enhance management access – Horizon Performance Manager Hospital for Cardiac Bypass Surgery to data – Horizon Surgical Manager in America and a Consumer Choice – Pathways Contract Management Award winner for 11 consecutive Answers – Pathways Healthcare Scheduling years, 436-bed Saint Agnes Medical Saint Agnes has a long history of – Pathways Materials Management Center has long been the hospital successfully using McKesson’s legacy of choice in Fresno, Calif. But with solutions. To realize its goals, the Critical Issues new hospitals in the area, Saint hospital upgraded to McKesson’s Agnes faces fierce competition for integrated surgical and supply chain – Expensive onsite inventory patients and revenue. Hospital solutions to collect, transfer and – High surgical operating costs management pinpointed the need manage key patient information — – Inefficient accounts to more effectively and efficiently from scheduling to admission to receivable/revenue recovery manage surgical and supply costs recovery to discharge. Through – Lack of solid information to remain competitive. the integration of McKesson’s for management performance management solutions, “A large percentage of charges for Saint Agnes can warehouse and Results a hospital are surgical charges, and access data to support its strategic a large percentage of those are goals. And McKesson’s surgical and – Reduced supply inventory by associated with supplies,” explains 55.2%, a $2.1 million savings anesthesia documentation tools Kathleen Dole, manager of product help clinicians produce legible and – Reduced orthopedic and support systems. “Our goal was to complete documentation, ultimately cardiovascular implant costs integrate surgery and materials automating the charging process by $2.3 million management. Without that, we and eliminating billing errors. – Gained lost charges of $1.5 million would continue to experience lost – Recovered managed care and charges, billing errors, inconsistent “The most valuable aspect of the contract charges of $5.8 million availability of supplies, and lack of integration between McKesson’s business-critical reporting data.” surgical, performance and supply – Enhanced access to business-critical reporting data chain suite is that it allows the clinical,
  • 2. Case Study “I recently talked to one financial and decision support sides to including $1.5 million in formerly speak the same language,” says Diane lost charges; and $5.8 million in of my area competitors and Kasten, RN, surgical systems specialist. managed care and contract charges. he shared that some of his “Now we speak with one voice.” Resource and Supply Utilization – biggest worries were about his Results Saint Agnes is now able to identify The integrated surgery and supply chain needed supplies at scheduling. supply chain and revenue cycle. Pathways Materials Management™ process enabled Saint Agnes to leverage Those are the least of my worries, resources, reduce costs and improve reduces the inventory on hand for decision making. Results include: requested supplies as soon as pick thanks to McKesson’s solutions.” tickets are printed. A custom variance Cash Flow – With the support of report compares Horizon Surgical McKesson technology, Saint Agnes Manager and Pathways Materials Kathleen Cain dramatically reduced slow-moving Management pick tickets, lists the surgical inventory and eliminated items missing from the cart and allows Chief Financial Officer “just-in-case” supplies. Inventory was procurement from OR supply locations. Saint Agnes Medical Center reduced 55.2%, saving $2.1 million. Patient Satisfaction/Accuracy of Billing Operating Costs – Horizon Business – Horizon Anesthesia Documentation Insight™ provides valuable information and Perioperative Documentation to Saint Agnes personnel, including produce legible and complete data that convinced physicians to documentation, automating charging adopt standardized surgical practice processes to eliminate billing errors. patterns. The hospital reduced orthopedic and cardiovascular Strategic Management and Decision implant costs by $2.3 million. Making – Horizon Performance Manager™ and Horizon Business Operating Revenue – Horizon Insight allow data access that creates Surgical Manager™ automates all OR business-critical management reports and recovery time charges, virtually — daily, monthly or whenever needed. eliminating errors, and eliminates rekeying of pharmacy charges. “I recently talked to one of my area Horizon Anesthesia Documentation™ competitors and he shared that some eliminates separate entry of anesthesia of his biggest worries were about charges. With Pathways Contract his supply chain and revenue cycle,” Management™, Saint Agnes monitors says Kathleen Cain, Saint Agnes chief contract compliance and compares financial officer. “Those are the least daily payments received against of my worries, thanks to McKesson’s contract terms. Results include an solutions.” ongoing recovery of payments owed, Copyright © 2007 McKesson Corporation and/or one of its subsidiaries. All rights reserved. Horizon Anesthesia Documentation, McKesson Provider Technologies Horizon Business Insight, Horizon Performance Manager, Horizon Surgical Manager, Pathways Contract Management, Pathways Healthcare Scheduling and Pathways Materials Management are trademarks of McKesson Information Solutions 5995 Windward Parkway LLC. All other product or company names mentioned may be trademarks, service marks or registered trademarks of their Alpharetta, GA 30005 respective companies. PRT291-07/07 http://www.mckesson.com 1.800.981.8601