New Hampshire Department of Health and Human Services Renews McKesson Health Solutions Medicaid Disease Management Program

The original program began during the State’s 2005 fiscal year. The one-year renewal began Oct. 1, 2007 and lasts through Sept. 30, 2008.

“Improving the health status of New Hampshire Medicaid clients with chronic conditions and generating a return-on-investment are very important to McKesson. We are delighted to continue to serve the state of New Hampshire in meeting the health needs of its Medicaid recipients with programs that build upon recent successes, such as high participant satisfaction and nearly $5 million in net savings to the state over two years,” said Emad Rizk, M.D., president, McKesson Health Solutions.

The statewide service, which helps more than 4,400 eligible Medicaid clients who have asthma, diabetes, heart failure, coronary artery disease, COPD (chronic obstructive pulmonary disease), end stage renal disease and chronic kidney disease, generated $4.8 million net savings to the State over two years. In addition, the program was responsible for a 12 percent reduction in emergency department costs in the program’s second year.

“New Hampshire’s successful strategy has been to focus on the individual rather than the disease. This approach leads to beneficiaries who are highly satisfied with the program,” said Doris Lotz, M.D., MPH, medical director, DHHS.

Over time, the disease management program has consistently delivered savings to the Granite State. In September 2006, McKesson Health Solutions and DHHS announced that the disease management program saved 4.9 percent in net costs during its first year, according to Reden & Anders, Ltd. and Solucia Inc., two actuarial firms that audited the results of the program. Program ROI was 2.44 to1 for the first year. Savings were calculated across all disease states included in the chronic illness management program. Reden & Anders’ calculations were based on eight months of TANF data.

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.