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Organizations Recover More Than $1 Billion With McKesson Revenue Cycle Solutions

Revenue Cycle Million Dollar Club Members Demonstrate How Bottom Line Results Support Improved Clinical and Operational Performance

This week McKesson will highlight the achievements of the Revenue Cycle Million Dollar Club, whose members have exceeded $1 billion in cumulative cash saved or recovered. Now in its fourth year, the Revenue Cycle Million Dollar Club has grown to 90 healthcare organizations that have each saved or recovered at least $1 million by using McKesson solutions to improve their cash position and reduce accounts receivable. In addition to achieving sustainable revenue improvement, Club members have used dollars recovered from underpayments and denials to fund patient care and operational initiatives, as well as to increase patient satisfaction.

McKesson will formally honor the 2005 Revenue Cycle Million Dollar Club members at the InSight Annual Conference to be held Sept. 22-24, in Atlanta, Ga. The Revenue Cycle Million Dollar Club was created by McKesson to promote the value that financial solutions can bring to funding clinical and other operational initiatives.

"With a slim average profit margin of 1.6 percent, amid increasing capital and operational costs, healthcare organizations are under great financial pressure," said Duncan James, group president of McKesson's Business Performance Solutions. "Our revenue cycle solutions include proven monitoring and management tools that help to accelerate cash collections, prevent claim denials and improve payor performance. The resulting incremental cash flow enables organizations to invest in projects that further their mission, from community programs to building projects to technology that helps to improve the quality of care or supply chain efficiency."

2005 Top Achievers

This year McKesson welcomes 12 new Club members. The 2005 top achievers include:

--  Carolinas HealthCare System, Charlotte, N.C. ($80.9 million
    result/Large Bed Size Category)
--  St. Joseph Hospital, Nashua, N.H. ($15 million result/Medium Bed Size
    Category)
--  Proctor Hospital, Peoria, Ill. ($5.9 million result/Small Bed Size
    Category)
    

Carolinas, a 4,249-bed health system, gained sustainable financial improvement from recovered denials and underpayments. "In addition to purchasing technologies that help caregivers improve patient care, our focus on revenue cycle processes has helped us to maintain our AA bond rating and limit the impact of increased charity care," said Oren Wyatt, group vice president of Carolinas HealthCare System. "The more we tightened our processes, the more money we brought into the system. As a result, there was a greater likelihood that senior management would endorse additional technologies to make our system even better."

St. Joseph Hospital increased cash collections by using McKesson's consulting services. "McKesson strengthened our patient service and operational performance by redesigning workflows to maximize our information technology and human resources," said Dick Plamondon, vice president of finance and chief financial officer of St. Joseph Hospital. "Ultimately, this service is creating a more positive patient experience, as well as a stronger financial footing for our hospital."

Other Club Member Highlights

Several healthcare organizations will be recognized for attaining sustainable improvement to the bottom line since becoming Club members. Among these providers is Illinois Valley Community Hospital, Peru, Ill. Illinois Valley joined the Club in 2001 and has seen financial benefits each year, with $6.4 million recovered in 2004 alone. "We've been able to use our recovered dollars to purchase McKesson pharmacy and PACS systems, as well as renovate our facility," said Steve Davis, chief financial officer of Illinois Valley. "McKesson's revenue cycle and HIS systems have done such a good job at reducing paper that we are looking to purchase their document imaging systems, which will help us go paperless on claims information and patient records."

About McKesson

McKesson Corporation is a Fortune 15 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 170-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare, and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information, visit http://mpt.mckesson.com.

About InSight

An independent users group, InSight represents the Vision, Voice and Value of McKesson customers through enhancements, education, knowledge sharing and networking. Comprised of more than 3,500 individual, consultant and affiliate members, InSight is the only organization representing provider-based customers of McKesson products. Members include front-line users, IT or department managers, and IT or healthcare executives. For more information, visit www.insight-net.org.

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