McKesson Corporation Signs Two-Year Agreement with Hennepin County Medical Center

Strategic Insights -

McKesson Corporation has signed a two-year agreement with Hennepin County Medical Center, a county-owned facility providing primary, acute, and tertiary care, as well as trauma services. The agreement designates McKesson as the primary supplier for pharmaceutical purchases, with anticipated revenues exceeding $26 million over the term of the agreement. In addition to supplying pharmaceutical products, McKesson will provide value-added services, including EconoLink Release 5.0, to increase efficiencies and cost savings in HCMC's pharmacy operations.

Key Takeaways:

  • The agreement between McKesson and HCMC is a two-year contract, designating McKesson as the primary supplier for pharmaceutical purchases.
  • McKesson anticipates revenues exceeding $26 million over the term of the agreement.
  • McKesson will provide value-added services, including EconoLink Release 5.0, to increase efficiencies and cost savings in HCMC's pharmacy operations.
  • HCMC's Director of Pharmacy, Chuck Cooper, stated that McKesson's services and programs were key factors in their decision to select the company as the primary vendor for their pharmaceutical supplies.
  • John Hammergren, group president of McKesson Health Systems Group, stated that McKesson looks forward to working with HCMC to apply its innovative tools and technologies to provide efficient, timely, and cost-effective services across the continuum of health care.
  • Hennepin County Medical Center projects more than 400,000 out-patient visits and an average daily census of 290 patients per day in 1998.
  • McKesson Corporation is the leading health care supply management company in North America through its U.S. Health Care businesses, its Canadian subsidiary, Medis Health and Pharmaceutical Services, and its interest in Mexico's Nadro.

Statistics:

  • $26 million: McKesson's anticipated revenues over the two-year term of the agreement.
  • 400,000: Number of out-patient visits projected by Hennepin County Medical Center in 1998.
  • 290: Average daily census of patients per day at Hennepin County Medical Center in 1998.

Sources:

  • "McKesson Corporation Signs Two-Year Agreement with Hennepin County Medical Center," McKesson press release, April 20, 1998.
  • [http://www.mckesson.com](http://www.mckesson.com)

(McKesson Corporation's website, press releases section)