McKesson Health Solutions, State of Washington Medical Assistance Administration Report 3:1 ROI for Medicaid DM Program

“We are committed to the success of our clients and the significant ROI shown in Washington demonstrates the value of McKesson’s programs,” said Emad Rizk, M.D., president of McKesson Health Solutions.

Milliman Consultants and Actuaries¹ performed the computations for Washington’s Medicaid disease management program at the request of the state. Milliman reviewed the program period from August 2005-June 2006 and included the four diseases managed through the program: asthma, diabetes, congestive heart failure (CHF) and chronic obstructive pulmonary disease (COPD).

The program generated substantial net savings and return on investment through the effective management of Medicaid beneficiaries who had chronic illnesses. The program also included a 24/7 nurse advice line, which beneficiaries used when they needed recommendations from registered nurses about acute medical issues. Registered nurses administered the program telephonically and in-person, and provided comprehensive direct-to-beneficiary communications.

Clinical Outcomes

Beneficiary behavior change is another measure of program success. Clinicians want to see positive behavior change between the beneficiary’s initial assessment and follow-up assessments. Clinical outcomes were calculated by Qualis Health.

Asthma

COPD

Diabetes

Heart failure

Beneficiary Satisfaction

Participants gave the program and the nurses high marks across-the-board. Program satisfaction research – which aggregates satisfaction scores from 2002-2006 – found that Washington Medicaid beneficiaries were “satisfied” or “very satisfied” with the nurses’:

• Ability to answer questions about the condition: 95 percent;
• Support and education: 93 percent; and
• Understanding of symptoms and related concerns: 95 percent.

Overall program satisfaction was 93 percent during the same time. And 92 percent of beneficiaries said that they were “comfortable” or “very comfortable” when speaking with nurses by phone.

¹Milliman Consultants and Actuaries. “State of Washington Medical Assistance Administration McKesson Disease Management Savings Evaluation,” Contract Period 8/01/2005-6/30/2006. Prepared April 10, 2007. It is important to note that this calculation is intended to be consistent with the contractual provisions agreed to by HRSA and McKesson, and was not an independent assessment of the program savings performed by Milliman. This report should not be used outside this context as a basis for comparing other DM programs. Additional details on how Milliman quantified the contractual savings are available.

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