Nearly $34 Million Net Savings During First Year of Illinois Department of HFS, McKesson Health Solutions DM Program

HFS and McKesson launched the multi-disciplinary DM program to help disabled adult Illinois Medicaid beneficiaries and children with asthma and their caregivers who are part of the Family Health Medicaid program. Altogether, more than 220,000 Illinois residents are eligible.

“The program, one of the largest of its kind ever undertaken, is unique in truly partnering with providers in a substantial way to reduce healthcare costs while improving the quality of care,” said Emad Rizk, M.D., president, McKesson Health Solutions.

During the program’s first year – July 1, 2006-June 30, 2007 – Your Healthcare Plus^TM lowered inappropriate inpatient and emergency department admissions, and improved key clinical indicators to help HFS achieve a net savings of nearly $34 million after program fees. Across all managed chronic diseases, decreases in inpatient admissions ranged from 8.5% to nearly 20% and decreases in emergency department admissions ranged from more than 1% to 13%. Self-reported flu vaccination rates for program participants increased an average of 18% during the first year across all managed chronic conditions.

“Our Disease Management program enhances service delivery to Medicaid beneficiaries by coordinating the efforts of caregivers, clinics, hospitals, nurses and other providers,” said Barry S. Maram, director of the Illinois Department of Healthcare and Family Services. “The HFS program has helped to reduce healthcare expenses for the state while improving the health and wellness of the state’s most vulnerable residents.”

Registered nurses and other healthcare professionals use evidence-based guidelines to help Your Healthcare Plus beneficiaries suffering from any health condition learn new ways to manage their health. This helps participants manage any type of chronic illness, including asthma, coronary artery disease, heart failure, chronic obstructive pulmonary disease, diabetes, behavioral health conditions, end stage renal disease, HIV/AIDS, and other co-morbid conditions.

“McKesson’s health professionals and our unique care management technology platform help participants gain better control of their life situation: from food and housing to multiple chronic conditions. By taking this view, our nurses, social workers, behavioral health specialists and pharmacists are able to work closely with Illinois providers to ensure that participants get the help that they need, resulting in a financially and clinically successful program,” Dr. Rizk said.

Your Healthcare Plus supports and encourages the physician/patient relationship, and a survey of providers reflects this. The program received high marks from Medicaid providers where nearly two-thirds who were surveyed reported that the program is useful to enrolled patients. Seventy percent of providers would recommend that eligible patients participate in the program.

Beneficiaries also had strong, positive feelings about Your Healthcare Plus. A quarterly survey from late 2007 showed that 94% of beneficiaries were Very Satisfied or Satisfied with the nurse’s ability to answer questions about chronic conditions; 94% were Very Satisfied or Satisfied with the program overall; and 95% were Very Satisfied or Satisfied with the education and support provided by the nurse.

About McKesson Corporation

McKesson Corporation, currently ranked 18th 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. McKesson is the longest-operating company in healthcare today, and will mark 175 years of continuous operations in 2008. Over the course of its 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 www.mckesson.com.