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U.S. healthcare company

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"McKesson" redirects here. For other uses, see McKesson (disambiguation)

McKesson Corporation is a publicly-traded American company that distributes pharmaceuticals and provides health information technology, medical supplies, and health management tools. The company delivers a third of all pharmaceuticals used in North America and employs over 51,000 employees. With $308.9 billion in revenue, it is the ninth-largest company by revenue in the United States and the nation's largest health care company. The company is headquartered in Irving, Texas. It is a member of the S&P 500 and New York Stock Exchange, where it is traded under the ticker symbol NYSE: MCK.

McKesson provides extensive network infrastructure for the healthcare industry and was an early adopter of technologies, including barcode scanning for distribution, pharmacy robotics, and RFID tags.[2] The company has been named in a federal lawsuit for profiting from the opioid epidemic in the United States.[3]

Throughout the COVID-19 pandemic, McKesson was a key vaccine distributor, serving as the U.S. government's centralized distributor for hundreds of millions of COVID-19 vaccine doses and ancillary supply kits for over a billion doses across the United States.[4][5]

History

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19th century

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McKesson was founded in in New York City as Charles M. Olcott by Charles M. Olcott. It was later renamed Olcott, McKesson & Co. and John McKesson in ,[6] the business began as an importer and wholesaler of botanical drugs. A third partner, Daniel Robbins, who joined the enterprise as it grew, and who previously "was an assistant to the original partners",[7] was the "Robbins" when the company was renamed McKesson & Robbins following Olcott's death in .

20th century

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The company successfully emerged from the McKesson and Robbins scandal under CEO Phillip Musica, one of the most notorious business and accounting scandals of the 20th century, a watershed event that led to major changes in American auditing standards and securities regulations after being exposed in .

In , Foremost Dairies, a company founded by James Cash Penney, which was headquartered in San Francisco since , acquired McKesson & Robbins in a hostile takeover[8] to form Foremost-McKesson Inc.[9] The Foremost dairy operations were sold in and the name changed to McKesson Corporation but headquarters remained in San Francisco.[10]

In , McKesson acquired medical information systems firm HBO & Company (HBOC).[11][12] The combined firm operated as McKessonHBOC for two years.[13] Accounting irregularities at HBOC reduced the company's share price by half, and resulted in the dismissal and prosecution of many HBOC executives.[12]

21st century

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In , the company's name reverted to McKesson.[14] In the early 21st century, McKesson increased its market in medical technology through acquisitions, including Per Se Technologies and RelayHealth in [15][16] and Practice Partner in .[17]

On January 6, , McKesson acquired NDCHealth Corporation.

In , McKesson acquired the oncology and physician services company US Oncology, Inc. for $2.16 billion, which was integrated into the McKesson Specialty Health business.[18]

In April , McKesson agreed to pay the United States $190M to settle allegations that it had inflated prices and overbilled Medicaid.[19] Three months later, in July , McKesson agreed to pay California and 28 other states $151M to settle allegations that it had inflated prices and overbilled Medicaid.[20]

On June 24, , 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".[21]

In , McKesson acquired Celesio to become one of the world's largest health care companies, with over $179 billion in annual revenue.[22]

In June , McKesson announced plans to merge its IT business with Change Healthcare.[23]

In , 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.[24][25]

In November , the company announced it would relocate its headquarters from San Francisco to Irving, Texas, effective April 1, .[26] [27] Also in April , Brian Tyler took over as CEO of the company.[28]

In February , McKesson Corp announced that it would part ways with Change Healthcare.[29] McKesson gave up its ownership in the company and its three seats on the company's board of directors.[29]

Opioid epidemic

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In , McKesson paid $13 million in fines for failing to report large orders of hydrocodone.[30] In January , McKesson agreed to pay a $150 million civil penalty for alleged similar violations of the Controlled Substances Act regarding the distribution of opioids.[31]

In January , McKesson agreed to pay $150M to settle allegations that it had not done enough to track and stop suspicious opioid sales.[32] The agreement also obligated McKesson to suspend all sales of controlled substances from its distribution centers in Colorado, Florida, Ohio, and Michigan for multiple years.

In May , Attorney General of Oklahoma Michael J. Hunter sued McKesson in Bryan County District Court, alleging that the company's actions helped fuel Oklahoma's opioid crisis. The suit was filed along with lawsuits against Cardinal Health and AmerisourceBergen, and the three lawsuits allege that the three companies provided "enough opioids to Bryan County that every adult resident there could have had 144 hydrocodone tablets."[33]

In January , McKesson, AmerisourceBergen, Cardinal Health, and Johnson & Johnson agreed to pay $26 billion to settle with all but five of the states suing them.[34] Had the states gone to court, the companies could have faced up to $95 billion in penalties.[35]

COVID-19 pandemic

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In August , during the COVID-19 pandemic, the CDC and HHS selected McKesson as the U.S. government's centralized distributor for COVID-19 vaccine doses and ancillary supply kits under Operation Warp Speed.[36][4] The company has played a key role in distributing the Moderna and Johnson & Johnson vaccines while also distributing ancillary supply kits for these as well as for the Pfizer&#;BioNTech vaccine across the U.S. (in addition to supporting the U.S. government in efforts to send doses and kits abroad).[37][5]

As of May 5, , McKesson had distributed over 380 million vaccine doses and delivered supply kits to support over 1.2 billion vaccines doses throughout the United States.[5]

Finances

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For the fiscal year , McKesson reported earnings of US$3.56 billion on revenue of US$276.711 billion.[38] As of , McKesson was the nation's largest health care company and the ninth-largest company by total revenue on the Fortune 500.[39]

Year Revenue
(US$M) Net income
(US$M) Total assets
(US$M) Price per share
(US$) Employees 79,096 &#;157 18,775 36.41 86,983 751 20,961 44.00 92,977 913 23,943 51.66 101,703 990 24,603 45.79 106,632 823 25,267 43.23 108,702 1,263 28,189 57.52 32,500 112,084 1,202 30,886 71.40 32,500 122,321 1,403 33,093 80.91 36,400 122,196 1,338 34,786 113.59 43,500 137,392 1,263 51,759 173.29 42,800 179,045 1,476 53,870 198.26 70,400 190,884 2,258 56,523 156.90 68,000 198,533 5,070 60,969 141.87 78,000 208,357 67 60,381 132.29 78,000 214,319 34 59,672 127.96 80,000 231,051 900 61,247 148.34 80,000 238,228 &#;4,539 65,015 195.88 76,000 263,966 1,114 63,298 325.94 75,000 276,711 3,560 62,320 405.02 51,000

Divisions

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McKesson Provider Technologies

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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, , 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.[40]

In October , McKesson agreed to buy a 50% stake in Germany-based Celesio for $8.3 billion.[41]

McKesson Medical Supplies and Equipment

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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.[42]

In , McKesson Medical-Surgical opened its new headquarters in Richmond, Virginia.[43]

Health Mart pharmacy franchise

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McKesson Pharmacy Systems in Livonia, Michigan

Health Mart, a network of over 4,000[44] independently owned and operated pharmacies, is a wholly owned subsidiary of McKesson Corporation, which owns the name "Health Mart". McKesson acquired Health Mart owner FoxMeyer in October .[45]

Former divisions

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Mosswood Wine Company

McKesson operated the Mosswood Wine Company from until , when the division was sold to maintain their focus on pharmaceuticals. The division was founded and run by wine writer Gerald Asher.[46]

NDCHealth (Relay Health)

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NDC (from the initials of its former identity as National Data Corporation) became NDC-Health Corp in following the spin-off of its payments division, Global Payments, in .[47] NDCHealth was acquired by McKesson in through the purchase of Per-Se Technologies at which time it began doing business as RelayHealth in .

International

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McKesson Canada

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McKesson Canada

In , McKesson Corporation acquired a 100 percent interest in Medis Health and Pharmaceutical Services from Provigo. In , 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 , McKesson agreed to purchase Canadian pharmacy chains IDA, Guardian Pharmacy, and The Medicine Shoppe from the Katz Group of Companies for $920 million.[48]

In March , McKesson agreed to purchase Canadian pharmacy chain Rexall from the Katz Group of Companies for $3 billion.[49] The deal was finalized in December following approval received under the Investment Canada Act.[50]

On April 12, , it was announced that McKesson Canada reached a deal to acquire 330 Uniprix pharmacies.[51]

In May , McKesson Canada closed 40 Rexall locations in Ontario and Western Canada.[52]

United Kingdom

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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 , 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.[53][54] This came after the company had posted significant year on year losses in revenue (16% in the /13 financial year[55]) after taking over a very successful British operation in .[56]

In April , McKesson UK was acquired by the private equity company, Aurelius Group in a £477m deal. The companies acquired by Aurelius include LloydsPharmacy, and AAH Pharmaceuticals.[57]

Australia and New Zealand

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In , McKesson Asia-Pacific was acquired by Medibank Private Ltd.[58][59]

McKesson ANZ is a fully owned subsidiary of McKesson Corporation. McKesson expanded its footprint in Australia and New Zealand by acquiring Emendo in November .[60] 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 in 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 Planne, formerly Emendo CapPlan, is used in more than 40 hospitals in Australia, New Zealand, Britain, Canada, and the U.S.[61] to forecast future patient activity and help health systems to allocate resources efficiently and identify unnecessary costs.[60][62]

Germany

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On November 2, , Walgreens Boots Alliance (WBA) and McKesson announced the completion of their previously announced agreement to create a joint venture combining their respective pharmaceutical wholesale businesses in Germany, Alliance Healthcare Deutschland (AHD) and GEHE Pharma Handel (GEHE). WBA holds a 70 percent controlling equity interest in the joint venture and McKesson holds the remaining 30 percent interest.[63]

See also

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References

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