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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 subje...
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 Brea...
McKesson Information Solutions
           Core Goals
                            Customer Satisfaction
                   ...
Customer Satisfaction
    is Improving
                                        -7

                                5.55

 ...
Customer Support is Improving


                                                   SCP Certifications
50%

               ...
Employee Satisfaction
                 Above Industry Standard

3.8
3.8
                                            3.80  ...
Accountability –
    Fulfilling our Commitments
FY’02 New Products           FY’03 New Products
 Horizon Foundation       ...
Financial Performance
Revenue Growth (millions)

840

                            825
800




                     %
     ...
Financial Performance
Income Growth (millions)

60

                                 55
50

40




                    9%
...
Financial Performance
      Q3 Contracts


Catholic Healthcare - $5,585,000

Ascension - $2,189,000

Munroe Regional - $1,...
Financial Performance
                    Clinical Leadership
                                                            ...
Summary

Customer satisfaction increasing
Employee satisfaction higher
than industry standard
Meeting commitments to our
c...
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Brea...
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

                                      Res...
Ensure Rapid Physician Adoption
    Horizon Physician Portal




           Momentum
   • 251 hospitals licensed
   • 390,...
Medical Records
        Enterprise Document Imaging

Solution:
                                After
  A complete patient
...
Minimize Variability of Care
     Horizon Expert Orders
             % of Ideal Patients Who Received Therapy
            ...
Reduce Medication Errors
Closed Loop Medication Management


                                Momentum
                    ...
Increase Care Team Efficiency
Horizon Expert Documentation


              Momentum
• 255 facilities
• 116,325 R.N. Users
...
Manage Diagnostic Testing
  Horizon Medical Imaging



            Momentum
• #1 Ranking in KLAS and MD Buyline
• More tha...
Closed Loop Care
                  Resource Management
                                                 Distribution

    ...
Closed Loop Resource
            Management

                  Momentum
• 376 facilities using Healthcare Scheduling
• 462...
Closed Loop Care
         Revenue Cycle Management
                                                 Distribution

        ...
Revenue Cycle Management

Benefits:
                 Momentum
    Optimize reimbursement for
•   55 customers in the “Mill...
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Brea...
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 physicia...
Patient Demographics Screen

                                   A demographic
                                   page is d...
Pre Services Manager ePackage Form




  The user opens up the Pre
  Services Manager ePackage
  request form
  Form launc...
Integrate data into ePackage Form



                       Information


  Clicking on the Pre Services
  Manager icon (i...
ePackage Delivered Securely over the Internet

             Registration


Compliance




Scheduling




                 ...
Proof Statement

Live at WellStar in Atlanta, GA since Sept. 2002
20+ practices use the solution to refer patients for all...
Horizon Care Access

New wireless nurse communication solution
Enhances nurse/patient/physician efficiency and
patient sat...
Horizon Business Folder

Enables document imaging and management
designed for the patient accounting office

Integrates wi...
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Brea...
Closed Loop Care

                                                Distribution

                              MomentumMana...
McKesson Information Solutions
          Overview
  Business Update
  Horizon Update
  HIMSS Announcements
  Strategy Brea...
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McKesson Information Solutions HIMSS Briefing

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McKesson Information Solutions HIMSS Briefing

  1. 1. McKesson Information Solutions HIMSS Briefing
  2. 2. Larry Kurtz Vice President, Investor Relations 2
  3. 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. 4. John Hammergren Chairman and Chief Executive Officer 4
  5. 5. McKesson Information Solutions Overview Pamela Pure Chief Operating Officer 5
  6. 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. 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. 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. 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. 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. 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. 12. Financial Performance Revenue Growth (millions) 840 825 800 % .7 760 12 732 720 680 FY02 Q1 - Q3 FY03 Q1 - Q3 12
  13. 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. 14. Financial Performance Q3 Contracts Catholic Healthcare - $5,585,000 Ascension - $2,189,000 Munroe Regional - $1,240,000 14
  15. 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. 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. 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. 18. Horizon Update Its Ready !! Strong Momentum 18
  19. 19. Its Ready !! 19
  20. 20. Its Ready !! 20
  21. 21. Horizon Preview 21
  22. 22. Strong Momentum Unique Differentiation Track Record for Delivery Customer Success 22
  23. 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. 24. Ensure Rapid Physician Adoption Horizon Physician Portal Momentum • 251 hospitals licensed • 390,000 logins per month 24
  25. 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. 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. 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. 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. 29. Manage Diagnostic Testing Horizon Medical Imaging Momentum • #1 Ranking in KLAS and MD Buyline • More than 500 installations 29
  30. 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. 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. 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. 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. 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. 35. HIMSS Announcements Pre-Service Manager Horizon Care Access Horizon Business Folder 35
  36. 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. 37. Patient Demographics Screen A demographic page is displayed with all of the patient details 37
  38. 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. 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. 40. ePackage Delivered Securely over the Internet Registration Compliance Scheduling PM 40
  41. 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. 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. 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. 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. 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. 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

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