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McKesson Information Solutions



       HIMSS Briefing
Larry Kurtz

Vice President, Investor Relations




                      2
Safe Harbor Clause

Some of the information in this presentation
may constitute forward-looking statements
which 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.


                              3
John Hammergren

    Chairman and
Chief Executive Officer



                4
McKesson Information Solutions
          Overview

         Pamela Pure
    Chief Operating Officer


                    5
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Breakouts
   Closed Loop Medication Management
   Closed Loop Medical Image Management
   Horizon Expert Orders
   Revenue Cycle Solutions
  Q&A
                             6
McKesson Information Solutions
           Core Goals
                            Customer Satisfaction
                                To have the most satisfied
                                customers in the industry




                                                             Employee Satisfaction
  Financial Success                Metric-Driven
                                                             To provide an environment
To achieve the best financial
                                    Execution                 that attracts and retains
performance in the industry
                                                                 outstanding talent



                                   Accountability
                            To fulfill our commitments to
                                our customers and to
                                       each other
                                                        7
Customer Satisfaction
    is Improving
                                        -7

                                5.55

 5.29              5.25

          5.02

                                        -1
Jan-98   Mar-00   Jun-01       Mar-02
                           8
Customer Support is Improving


                                                   SCP Certifications
50%

                                                   • 15 Support Organizations
40%
                                                   • 88% cases handled by
                                                     SCP certified centers
30%

              97% Satisfaction
20%


                   29,000+ Customer
10%
                        Surveys
0%
       Q1     Q2    Q3    Q4   Q1FY'03   Q2   Q3
      FY'02

               % First call Resolution


                                                     9
Employee Satisfaction
                 Above Industry Standard

3.8
3.8
                                            3.80          Survey scores-
                                   3.75
3.7
3.7
                                                          exceed industry
                          3.66
                                                          standard: 3.59
3.6
3.6

                 3.53                                     Turnover: 4.4%
3.5
3.5

        3.30
3.4
3.4

3.3
3.3
        3.30
3.2
3.2

3.1
3.1

 3
 3
      Q3 FY'00 Q4 FY'00 Q2 FY'01 Q3 FY'02 Q4 FY'02
      Q3 FY'00 Q4 FY'00 Q2 FY'01 Q3 FY'02 Q4 FY'02
                                                     10
Accountability –
    Fulfilling our Commitments
FY’02 New Products           FY’03 New Products
 Horizon Foundation         Horizon Expert Orders
 Horizon Physician Portal   Horizon Medical Imaging
 Horizon Care Record        Horizon Homecare Advanced
                            Clinicals
 Horizon Meds Manager
                            Horizon Supply Source
 Horizon Business Insight
                            Horizon Emergency Care
 Horizon Surgical Manager
 Horizon Ambulatory
 Home Health Portal
 STAR and Series Horizon
 Enablers



                                   11
Financial Performance
Revenue Growth (millions)

840

                            825
800




                     %
                   .7
760

                 12
          732
720


680
      FY02 Q1 - Q3       FY03 Q1 - Q3

                           12
Financial Performance
Income Growth (millions)

60

                                 55
50

40




                    9%
30

                18
20
         19
10

 0
     FY02 Q1 - Q3        FY03 Q1 - Q3


                            13
Financial Performance
      Q3 Contracts


Catholic Healthcare - $5,585,000

Ascension - $2,189,000

Munroe Regional - $1,240,000




                     14
Financial Performance
                    Clinical Leadership
                                                              Enterprise Solutions
                       Clinical Units Sold                    •   Physician access
                                                              •   Medication safety
                                                              •   Evidence-based POE
Dec FY'03                                          829        •   Advanced nursing
                                                              Departmental Solutions
                                             599
Jul FY'03                                                     • Surgery    • Ambulatory
                                                              • Laboratory • Emergency
Mar FY'02                            495                      • Pharmacy
                       233
Dec FY'02

                 121
Oct FY'02

            75          275       475       675    875
                              Product Units


      Horizon Clinicals Announced July 2001

                                                         15
Summary

Customer satisfaction increasing
Employee satisfaction higher
than industry standard
Meeting commitments to our
customers and our employees
Sales & backlog growing
Solid financial performance

                    16
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Breakouts
   Closed Loop Medication Management
   Closed Loop Medical Image Management
   Horizon Expert Orders
   Revenue Cycle Solutions
  Q&A
                             17
Horizon Update


Its Ready !!

Strong Momentum




               18
Its Ready !!




          19
Its Ready !!




          20
Horizon Preview




          21
Strong Momentum


Unique Differentiation

Track Record for Delivery

Customer Success


                 22
Closed Loop Care

                                                 Distribution

                                      Resources Managed

 Patient           Event
Identified       Scheduled
                                 Care                                          Analysis
                                                                   General
                                                    Billing
                              Management                          Accounting
              Eligibility /
             Authorization

                              Robot   Scanning

                                                    Transaction
                                                       Hub




                                                      23
Ensure Rapid Physician Adoption
    Horizon Physician Portal




           Momentum
   • 251 hospitals licensed
   • 390,000 logins per month


                      24
Medical Records
        Enterprise Document Imaging

Solution:
                                After
  A complete patient
  history at just a Momentum
                    touch of
  the button
  • 277 facilities
  Access by multiple
  constituents at the same
  • 20,000+ physicians log into our
  time
  Automates MR and day
    system every
  Business Office
  • 200 million individual medical
  Provides real results to
    records stored on our systems
  the bottom line

                           25
Minimize Variability of Care
     Horizon Expert Orders
             % of Ideal Patients Who Received Therapy
                   100%                                 100%

                          Momentum
100%   91%
             82%
                                                               Teaching Hosp
                                   75%

  • 48 facilities signed for HorizonNon-Teaching
                63%
                    58%             Vanderbilt
    Expert Orders         48%
50%
                                                  37%
  • HEO generally available on-time
  • 12 Customers in the
 0% Clinical Leadership Program
       Daily Aspirin      ACE Inhibitors   Beta Blockers

                                             26
Reduce Medication Errors
Closed Loop Medication Management


                                Momentum
                               Solutions At Every                            CONSULTING
    DISTRIBUTION
                                  Point of Care                         Analysis
Product fulfillment
                                                                        Process Improvement
      • 253 facilities committed to
Usage analysis



        medication safety strategy
      • 1,300 pharmacist users
      • 92,000+ medication orders processed
                         TRANSCRIBING   DISPENSING      ADMINISTERING   MONITORING
           PRESCRIBING
        daily Pharmacist Bar-coding
                         Bar-       Point of Care Quality &
        Improved
                         Verification                                   Outcomes
           Physician                    Robotics        Check “5”
           Workflow      Intervention                   rights          Clinical
                                        Centralized &
                         tracking                                       Alerts
           Clinical                     Decentralized   Care Team
           Screening                    Dispensing      Communication   Longitudinal
                                                                        Record



                                                           27
Increase Care Team Efficiency
Horizon Expert Documentation


              Momentum
• 255 facilities
• 116,325 R.N. Users
• 98,888 active devices
• 6.5 million orders placed per week


                          28
Manage Diagnostic Testing
  Horizon Medical Imaging



            Momentum
• #1 Ranking in KLAS and MD Buyline
• More than 500 installations



                        29
Closed Loop Care
                  Resource Management
                                                 Distribution

                                      Resources Managed

 Patient           Event
Identified       Scheduled
                                 Care                                          Analysis
                                                                   General
                                                    Billing
                              Management                          Accounting
              Eligibility /
             Authorization

                              Robot   Scanning

                                                    Transaction
                                                       Hub




                                                      30
Closed Loop Resource
            Management

                  Momentum
• 376 facilities using Healthcare Scheduling
• 462 facilities using Materials Management
• 124 CLINICAL PROCEDURES
       facilities scheduled for Horizon Surgical
               SCHEDULED/   ORDER              DECISION
                                     LOGISTICS
  Manager
                PRODUCT   MANAGEMENT           SUPPORT
       EVENT
                SELECTED


• 841 facilities using McKesson’s decision
  support solutions

                                   31
Closed Loop Care
         Revenue Cycle Management
                                                 Distribution

                                      Resources Managed

 Patient           Event
Identified       Scheduled
                                 Care                                          Analysis
                                                                   General
                                                    Billing
                              Management                          Accounting
              Eligibility /
             Authorization

                              Robot   Scanning

                                                    Transaction
                                                       Hub




                                                      32
Revenue Cycle Management

Benefits:
                 Momentum
    Optimize reimbursement for
•   55 customers in the “Million Dollar Club”,
    services
    $350+ million saved or recovered
• Over 300 million EDI transactions per year
  Prevent losses tied to denials
• 285 customers using our Contract
  Managementpayment cycle time
  Shortens solution
• 267 customers using our Compliance solution
  Reduces operational costs
• 207 customers using our Claims solution


                                 33
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Breakouts
   Closed Loop Medication Management
   Closed Loop Medical Image Management
   Horizon Expert Orders
   Revenue Cycle Solutions
  Q&A
                             34
HIMSS Announcements


Pre-Service Manager
Horizon Care Access
Horizon Business Folder




                35
Revenue Cycle Solutions
    Pre-Service Manager
Communication link to electronically expedite
information between physician office and hospital
departments
  Regardless of differing applications
  Efficiently share up-to-date information
  Capture information before the patient arrives

                 Pre-Service Manager
  Physician’s                                Hospital
    Office




                                     36
Patient Demographics Screen

                                   A demographic
                                   page is displayed
                                   with all of the
                                   patient details




                              37
Pre Services Manager ePackage Form




  The user opens up the Pre
  Services Manager ePackage
  request form
  Form launched from a button
  on the local PC (not a remote
  Web site)



                                  38
Integrate data into ePackage Form



                       Information


  Clicking on the Pre Services
  Manager icon (in the Windows
  Tool Tray) moves the
  information from the practice
  management application into
  the ePackage form
  Works with any application
  Easy to implement (hours)
  Saves time and reduces errors




                                     39
ePackage Delivered Securely over the Internet

             Registration


Compliance




Scheduling




                                        PM




                             40
Proof Statement

Live at WellStar in Atlanta, GA since Sept. 2002
20+ practices use the solution to refer patients for all non-
stat radiology requests
   No patients have lost or forgotten the signed order or been
   turned away at registration
   Average time to complete order reduced from 10 min to 1 min
   Nurse overtime in practice reduced 40%
   Reduction of central scheduling phone hold time from 6
   minutes to 34 seconds
   Average time to schedule patient reduced from 10 min to 6 min
   Significant reduction in call backs and interruptions
   Increase in employee and physician satisfaction



                                          41
Horizon Care Access

New wireless nurse communication solution
Enhances nurse/patient/physician efficiency and
patient satisfaction
Extends McKesson’s ongoing commitment to
nursing
Routes a patient’s nurse call directly to the
appropriate caregiver
Instrumental in creating a 5% increase in Press-
Ganey score at Evanston Northwestern


                                42
Horizon Business Folder

Enables document imaging and management
designed for the patient accounting office

Integrates with market leading Horizon Patient
Folder – medical records solution

Streamlines the management of claims
documentation, remittance advices, etc.




                              43
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Breakouts
   Closed Loop Medication Management
   Closed Loop Medical Image Management
   Horizon Expert Orders
   Revenue Cycle Solutions
  Q&A
                             44
Closed Loop Care

                                                Distribution

                              MomentumManaged
                                Resources
         •     Solid financial performance
 Patient•      Strong clinical momentum
                   Event
Identified       Scheduled
                                Care
         •     Continual advancement strengthens General
                                                    industry Analysis
                                          Billing
                            Management            Accounting
               leading portfolio
              Eligibility /
             Authorization

                             Robot   Scanning

                                                   Transaction
                                                      Hub




                                                     45
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Breakouts
   Closed Loop Medication Management
   Closed Loop Medical Image Management
   Horizon Expert Orders
   Revenue Cycle Solutions
  Q&A
                             46

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McKesson Information Solutions HIMSS Briefing

  • 2. Larry Kurtz Vice President, Investor Relations 2
  • 3. Safe Harbor Clause Some of the information in this presentation may constitute forward-looking statements which 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. 3
  • 4. John Hammergren Chairman and Chief Executive Officer 4
  • 5. McKesson Information Solutions Overview Pamela Pure Chief Operating Officer 5
  • 6. McKesson Information Solutions Overview Business Update Horizon Update HIMSS Announcements Strategy Breakouts Closed Loop Medication Management Closed Loop Medical Image Management Horizon Expert Orders Revenue Cycle Solutions Q&A 6
  • 7. McKesson Information Solutions Core Goals Customer Satisfaction To have the most satisfied customers in the industry Employee Satisfaction Financial Success Metric-Driven To provide an environment To achieve the best financial Execution that attracts and retains performance in the industry outstanding talent Accountability To fulfill our commitments to our customers and to each other 7
  • 8. Customer Satisfaction is Improving -7 5.55 5.29 5.25 5.02 -1 Jan-98 Mar-00 Jun-01 Mar-02 8
  • 9. Customer Support is Improving SCP Certifications 50% • 15 Support Organizations 40% • 88% cases handled by SCP certified centers 30% 97% Satisfaction 20% 29,000+ Customer 10% Surveys 0% Q1 Q2 Q3 Q4 Q1FY'03 Q2 Q3 FY'02 % First call Resolution 9
  • 10. Employee Satisfaction Above Industry Standard 3.8 3.8 3.80 Survey scores- 3.75 3.7 3.7 exceed industry 3.66 standard: 3.59 3.6 3.6 3.53 Turnover: 4.4% 3.5 3.5 3.30 3.4 3.4 3.3 3.3 3.30 3.2 3.2 3.1 3.1 3 3 Q3 FY'00 Q4 FY'00 Q2 FY'01 Q3 FY'02 Q4 FY'02 Q3 FY'00 Q4 FY'00 Q2 FY'01 Q3 FY'02 Q4 FY'02 10
  • 11. Accountability – Fulfilling our Commitments FY’02 New Products FY’03 New Products Horizon Foundation Horizon Expert Orders Horizon Physician Portal Horizon Medical Imaging Horizon Care Record Horizon Homecare Advanced Clinicals Horizon Meds Manager Horizon Supply Source Horizon Business Insight Horizon Emergency Care Horizon Surgical Manager Horizon Ambulatory Home Health Portal STAR and Series Horizon Enablers 11
  • 12. Financial Performance Revenue Growth (millions) 840 825 800 % .7 760 12 732 720 680 FY02 Q1 - Q3 FY03 Q1 - Q3 12
  • 13. Financial Performance Income Growth (millions) 60 55 50 40 9% 30 18 20 19 10 0 FY02 Q1 - Q3 FY03 Q1 - Q3 13
  • 14. Financial Performance Q3 Contracts Catholic Healthcare - $5,585,000 Ascension - $2,189,000 Munroe Regional - $1,240,000 14
  • 15. Financial Performance Clinical Leadership Enterprise Solutions Clinical Units Sold • Physician access • Medication safety • Evidence-based POE Dec FY'03 829 • Advanced nursing Departmental Solutions 599 Jul FY'03 • Surgery • Ambulatory • Laboratory • Emergency Mar FY'02 495 • Pharmacy 233 Dec FY'02 121 Oct FY'02 75 275 475 675 875 Product Units Horizon Clinicals Announced July 2001 15
  • 16. Summary Customer satisfaction increasing Employee satisfaction higher than industry standard Meeting commitments to our customers and our employees Sales & backlog growing Solid financial performance 16
  • 17. McKesson Information Solutions Overview Business Update Horizon Update HIMSS Announcements Strategy Breakouts Closed Loop Medication Management Closed Loop Medical Image Management Horizon Expert Orders Revenue Cycle Solutions Q&A 17
  • 18. Horizon Update Its Ready !! Strong Momentum 18
  • 22. Strong Momentum Unique Differentiation Track Record for Delivery Customer Success 22
  • 23. Closed Loop Care Distribution Resources Managed Patient Event Identified Scheduled Care Analysis General Billing Management Accounting Eligibility / Authorization Robot Scanning Transaction Hub 23
  • 24. Ensure Rapid Physician Adoption Horizon Physician Portal Momentum • 251 hospitals licensed • 390,000 logins per month 24
  • 25. Medical Records Enterprise Document Imaging Solution: After A complete patient history at just a Momentum touch of the button • 277 facilities Access by multiple constituents at the same • 20,000+ physicians log into our time Automates MR and day system every Business Office • 200 million individual medical Provides real results to records stored on our systems the bottom line 25
  • 26. Minimize Variability of Care Horizon Expert Orders % of Ideal Patients Who Received Therapy 100% 100% Momentum 100% 91% 82% Teaching Hosp 75% • 48 facilities signed for HorizonNon-Teaching 63% 58% Vanderbilt Expert Orders 48% 50% 37% • HEO generally available on-time • 12 Customers in the 0% Clinical Leadership Program Daily Aspirin ACE Inhibitors Beta Blockers 26
  • 27. Reduce Medication Errors Closed Loop Medication Management Momentum Solutions At Every CONSULTING DISTRIBUTION Point of Care Analysis Product fulfillment Process Improvement • 253 facilities committed to Usage analysis medication safety strategy • 1,300 pharmacist users • 92,000+ medication orders processed TRANSCRIBING DISPENSING ADMINISTERING MONITORING PRESCRIBING daily Pharmacist Bar-coding Bar- Point of Care Quality & Improved Verification Outcomes Physician Robotics Check “5” Workflow Intervention rights Clinical Centralized & tracking Alerts Clinical Decentralized Care Team Screening Dispensing Communication Longitudinal Record 27
  • 28. Increase Care Team Efficiency Horizon Expert Documentation Momentum • 255 facilities • 116,325 R.N. Users • 98,888 active devices • 6.5 million orders placed per week 28
  • 29. Manage Diagnostic Testing Horizon Medical Imaging Momentum • #1 Ranking in KLAS and MD Buyline • More than 500 installations 29
  • 30. Closed Loop Care Resource Management Distribution Resources Managed Patient Event Identified Scheduled Care Analysis General Billing Management Accounting Eligibility / Authorization Robot Scanning Transaction Hub 30
  • 31. Closed Loop Resource Management Momentum • 376 facilities using Healthcare Scheduling • 462 facilities using Materials Management • 124 CLINICAL PROCEDURES facilities scheduled for Horizon Surgical SCHEDULED/ ORDER DECISION LOGISTICS Manager PRODUCT MANAGEMENT SUPPORT EVENT SELECTED • 841 facilities using McKesson’s decision support solutions 31
  • 32. Closed Loop Care Revenue Cycle Management Distribution Resources Managed Patient Event Identified Scheduled Care Analysis General Billing Management Accounting Eligibility / Authorization Robot Scanning Transaction Hub 32
  • 33. Revenue Cycle Management Benefits: Momentum Optimize reimbursement for • 55 customers in the “Million Dollar Club”, services $350+ million saved or recovered • Over 300 million EDI transactions per year Prevent losses tied to denials • 285 customers using our Contract Managementpayment cycle time Shortens solution • 267 customers using our Compliance solution Reduces operational costs • 207 customers using our Claims solution 33
  • 34. McKesson Information Solutions Overview Business Update Horizon Update HIMSS Announcements Strategy Breakouts Closed Loop Medication Management Closed Loop Medical Image Management Horizon Expert Orders Revenue Cycle Solutions Q&A 34
  • 35. HIMSS Announcements Pre-Service Manager Horizon Care Access Horizon Business Folder 35
  • 36. Revenue Cycle Solutions Pre-Service Manager Communication link to electronically expedite information between physician office and hospital departments Regardless of differing applications Efficiently share up-to-date information Capture information before the patient arrives Pre-Service Manager Physician’s Hospital Office 36
  • 37. Patient Demographics Screen A demographic page is displayed with all of the patient details 37
  • 38. Pre Services Manager ePackage Form The user opens up the Pre Services Manager ePackage request form Form launched from a button on the local PC (not a remote Web site) 38
  • 39. Integrate data into ePackage Form Information Clicking on the Pre Services Manager icon (in the Windows Tool Tray) moves the information from the practice management application into the ePackage form Works with any application Easy to implement (hours) Saves time and reduces errors 39
  • 40. ePackage Delivered Securely over the Internet Registration Compliance Scheduling PM 40
  • 41. Proof Statement Live at WellStar in Atlanta, GA since Sept. 2002 20+ practices use the solution to refer patients for all non- stat radiology requests No patients have lost or forgotten the signed order or been turned away at registration Average time to complete order reduced from 10 min to 1 min Nurse overtime in practice reduced 40% Reduction of central scheduling phone hold time from 6 minutes to 34 seconds Average time to schedule patient reduced from 10 min to 6 min Significant reduction in call backs and interruptions Increase in employee and physician satisfaction 41
  • 42. Horizon Care Access New wireless nurse communication solution Enhances nurse/patient/physician efficiency and patient satisfaction Extends McKesson’s ongoing commitment to nursing Routes a patient’s nurse call directly to the appropriate caregiver Instrumental in creating a 5% increase in Press- Ganey score at Evanston Northwestern 42
  • 43. Horizon Business Folder Enables document imaging and management designed for the patient accounting office Integrates with market leading Horizon Patient Folder – medical records solution Streamlines the management of claims documentation, remittance advices, etc. 43
  • 44. McKesson Information Solutions Overview Business Update Horizon Update HIMSS Announcements Strategy Breakouts Closed Loop Medication Management Closed Loop Medical Image Management Horizon Expert Orders Revenue Cycle Solutions Q&A 44
  • 45. Closed Loop Care Distribution MomentumManaged Resources • Solid financial performance Patient• Strong clinical momentum Event Identified Scheduled Care • Continual advancement strengthens General industry Analysis Billing Management Accounting leading portfolio Eligibility / Authorization Robot Scanning Transaction Hub 45
  • 46. McKesson Information Solutions Overview Business Update Horizon Update HIMSS Announcements Strategy Breakouts Closed Loop Medication Management Closed Loop Medical Image Management Horizon Expert Orders Revenue Cycle Solutions Q&A 46