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McKesson Health Solutions Signs Cooperative Agreement With CMS for Medicare Health Support Program in Mississippi; Mississippi Program Starts This Month

Posted on: Monday, 22 August 2005, 09:01 CDT

McKesson Corporation (NYSE:MCK) today announced that its subsidiary, McKesson Health Solutions, has signed a cooperative agreement with the Centers for Medicare & Medicaid Services (CMS) to offer a Medicare Health Support pilot program to pre-selected Medicare beneficiaries in Mississippi.

McKesson Health Solutions will provide health education and support to approximately 20,000 pre-identified, fee-for-service Medicare beneficiaries with heart failure and/or diabetes. Beneficiaries will also have access to a free, 24X7 nurse advice line.

CMS has mailed a letter to the selected beneficiaries inviting them to participate in the program, and McKesson Health Solutions will start contacting them later this month to determine their interest in participating.

"Completing the agreement with CMS is an important milestone for McKesson. That we pursued and were selected to offer this program shows the company's commitment to helping Medicare beneficiaries manage their health more effectively," said John H. Hammergren, chairman and CEO, McKesson Corporation.

The three-year pilot program is designed to improve the health and wellness of the population. McKesson Health Solutions is one of eight organizations nationwide that will operate regional Medicare Health Support pilot programs. McKesson Health Solutions has guaranteed a 5 percent net savings to CMS and has also committed to achieving specific clinical quality goals and participant satisfaction goals.

"McKesson chose Mississippi due to our experience and partnership with the state, the community and providers. We look forward to this exciting opportunity to make a difference in an area that can benefit from these services," said Emad Rizk, M.D., president, McKesson Health Solutions.

McKesson Health Solutions has tailored its approach to the Medicare population in part based on its experience providing disease management and/or nurse advice programs to Medicaid populations in Colorado, Florida, Mississippi, Montana, New Hampshire, Oregon, Pennsylvania, Texas and Washington. Most recently, McKesson disease management programs saved the State of Oregon $6 million.

McKesson also provides disease management programs to Medicare beneficiaries in Medicare Advantage plans. The company's successful program was featured in the Journal of the American Geriatrics Society where Medicare participants with heart failure experienced a significant decrease in hospitalizations, emergency department visits, readmissions and skilled nursing facility days, compared to non-participants.

Medicare Health Support participants will receive education and support directly from community-based registered nurses. Nurses available by phone are based at the Mississippi Care Center -- a McKesson Health Solutions call center at the Jackson Medical Mall. Nursing staff will focus on ensuring a holistic approach to supporting every participant.

McKesson Health Solutions' unique approach to the Mississippi Medicare Health Support program includes a physician-directed delivery model that will promote and sustain the beneficiary-physician relationship. Physicians will receive benefits to encourage participation and for care coordination functions, which can lead to improvements in quality of care and patient safety. Physicians can also receive additional benefits for achieving specific process and outcome goals related to the program.

Services available to physicians include face-to-face meetings with a local medical director and/or with provider outreach coordinators for office work-flow support.

McKesson Health Solutions is collaborating with local and national health-related organizations, including The American Geriatrics Society, the American College of Physicians, the American Academy of Family Physicians, and the University of Mississippi Medical Center, in developing the overall approach and strategy of the program, including provider and member communications materials, and outreach activities.

"By working closely with many local and national organizations, McKesson Health Solutions has developed an integrated delivery model that is unique and allows us to work closely with healthcare providers," said Sandeep Wadhwa, M.D., vice president, Care Management Services, McKesson Health Solutions.

Medicare Health Support is designed as a two-phase Initiative. Phase I pilot programs will operate for three years. The Secretary of Health and Human Services (HHS) is authorized to proceed with Phase II expansion within two to three-and-a-half years after the start of Phase I if some of the programs or program components prove to be successful in improving clinical outcomes, increasing beneficiary satisfaction, and meeting Medicare spending targets for their assigned populations.

About McKesson

McKesson Corporation (NYSE:MCK), currently ranked 15 on the Fortune 500, is a 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 172-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 us at www.CareEnhance.com or www.mckesson.com.

CareEnhance is a registered mark of McKesson Health Solutions LLC.

Source: Business Wire

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