McKesson Strengths, Domain Expertise, and Key Differentiators
McKesson’s technology solutions have been installed in more than 70% of the nation's hospitals that have more than 200 beds. McKesson's Paragon hospital information system (HIS) is being used in more than 250 healthcare facilities nationwide.
McKesson Financial/ERP suite includes three solutions – Pathways Materials Management, Pathways Financial Management and Horizon Human Resource Management.
Because of the size of McKesson, its technology solution has always enjoyed a captive audience with the ability to cross-sell and upsell across different product lines across the vast installed base of McKesson.
McKesson Recent Developments
In April 2019, McKesson US healthcare giant decided to shift to the cloud. McKesson plans to do the digital transformation as fast as it can. This means big changes, patricianly in handling data security and identity.
In April 2019, McKesson Corporation moved its head office to a new location in Irvin Texas. According to McKesson, the Dallas metro area provides a great environment to do business.
In October 2018, McKesson Corporation relaunched its biopharmaceutical services business under its U.S. Pharmaceutical and Specialty Health business unit at McKesson Life Sciences. The new structure not only reflects its continued dedication to serving the life sciences industry but also indicates how the business has evolved to meet the industry’s need for a best-in-class and integrated portfolio of commercialization, launch and in-market solutions. McKesson Life Sciences leverages deep functional and therapeutic expertise, actionable data and insights as well as extensive reach across the healthcare spectrum to solve for its customers’ biggest challenges in connecting patients to and keeping them on their therapies.
McKesson Mergers and Acquisitions (M&A) Activities
McKesson is evaluating its options in the technology space after making a series of acquisitions in the past years.
In June 2018, Medical Specialties Distributors, a distributor of infusion and medical-surgical supplies, has been acquired by McKesson.
McKesson is focusing on multiple growth pillars as well as a comprehensive review of the company's operations and cost structure. Also, the company is focusing on multiple growth pillars as well as a comprehensive review of the company's operations and cost structure. The acquisition of MSD supports two of the company's strategic growth manufacturer services and specialty and complements its existing low-cost site of care infusion platform. MSD's established offering to providers in the home infusion market, as well as technology and services to support customers and patients using these products, will allow McKesson to provide incremental services to other customer segments, according to the company.
McKesson’s in 2018, completed the acquisition of RxCrossroads, a provider of tailored services to pharmaceutical and biotechnology manufacturers. This acquisition enhances McKesson’s end-to-end solutions for manufacturers of branded, specialty, generic and biosimilar drugs, including comprehensive patient support services, custom pharmacy solutions and third-party logistics.
In addition, this acquisition added plasma logistics to McKesson’s manufacturer solutions, complementing the company’s established customer-facing plasma offerings. This is a continuation of the company's strategy to achieve better patient outcomes through efficiency and coordination across the supply chain and throughout the patient journey.
McKesson Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying McKesson applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of McKesson and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified McKesson HealthQx, customers.
Ownership: - MCK : NYSE
Number of Employees: 78000
Functional Markets: ERP Services and Operations Management,
McKesson Key Enterprise and Cloud Applications
McKesson Revenues, $M:
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* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
McKesson Revenue Breakdown By Type, $M:
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McKesson Enterprise Applications Revenues By Functional Markets, $M:
McKesson Enterprise Applications Revenues By Verticals, $M:
McKesson Revenues By Region, $M
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McKesson Direct vs Indirect sales
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McKesson Customers - Breakdown by Geo, Size, Vertical and Product
No. of McKesson Customers: 16000
No. of McKesson Enterprise Applications Customers: 16000
No. of McKesson Cloud Customers: 0
No. of McKesson Cloud Subscribers: 6700000
McKesson North America pharmaceutical distribution and services business is the largest pharmaceutical distributor in the United States with more than 40,000 customers.
Among McKesson's customers are LHP Hospital Group, Rideout Health, HomeTown Health, Blue Cross and Blue Shield of North Carolina, Tampa General Hospital, St. Mark's Medical Center, Abington (Pa.) Memorial Hospital, Baptist Healthcare System, Gulfcoast Oncology Associates, Marquette General, Novation, OSU Pathology Services, LLC., Safeway Inc., St.Joseph's Hospital Health Center, St.Rose Hospital of Hayward, Suburban Hospital Healthcare System, and VHA Inc.
McKesson Market Opportunities, M&A and Geo Expansions
In April 2018 McKesson Corporation launched Health Mart Atlas, a network of high-performing community pharmacies dedicated to delivering high-quality care with a personal touch.
The new joint venture, created with McKesson AccessHealth and American Pharmacy Cooperative, Inc. ’s (APCI’s) American Pharmacy Network Solutions (APNS), will manage core PSAO services, including third-party PBM and payer contracting, credentialing, central pay, and MAC pricing appeals for community pharmacy, including all current AccessHealth and APNS members.
Health Mart Atlas is focused on making managed care easier for community pharmacy by helping to identify opportunities that are right for their needs, and giving pharmacies the time to focus on those opportunities. Health Mart Atlas also provides key partnerships with vendors such as EQuIPP, Mirixa, PrescribeWellness, and RelayHealth Pharmacy to provide access to tools and solutions designed to help improve pharmacy performance.
McKesson Risks and Challenges
McKesson Technology Solutions division divested its premised software assets for practice management including McKesson Practice Choice, Medisoft, Medisoft Clinical, Lytec, Lytec MD, and Practice Partner. That came after declining revenues for the division.
The acquisition of Siemens Health by Cerner is expected to pressure McKesson to rethink the long-term strategy of its technology business, which has been under assault by a slew of Cloud-based and domain-specific vendors that focus on nothing else but software.
On the other hand, McKesson does most of its business by distributing drugs and surgical supplies.
Following its 2011 decision to stop the development of its legacy Horizon products and pour its resources on Paragon as well as other Microsoft-based applications, McKesson continues to reshuffle its software lineup through acquisitions.
The purchase of MED3000 was the latest example of McKesson needing to deploy proven revenue cycle management and EHR systems to the physician market. MED3000 has 1,900 employees in the U.S., and its customers include more than 10,000 physicians, hospitals and health systems, physician networks. The purchase also underscores the difficulty in transitioning some of McKesson’s on-premise systems to the Cloud. The sale of its on-premise assets in 2016 underscores the fact that McKesson's software strategy is in a state of flux, which raises the question of its long-term commitment to the software market.
McKesson Ecosystem, Partners, Resellers and SI
McKesson primarily relies on its direct sales force to sell its hospital information management systems, but its low-end physician practice applications are being sold through its direct sales force and a network of value-added resellers.
McKesson has a network of about 100 resellers, which account for 20% of its software revenues.
McKesson Cloud Infrastructure Insights
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Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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