McKesson Acquires Rosebud Solutions : McKesson Corporate

McKesson Acquires Rosebud Solutions

April 01, 2008

SAN FRANCISCO--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK) today announced it has acquired Rosebud Solutions, LLC, a provider of software solutions to track and manage instruments, endoscopes and tissue implants for surgical services, as well as medical crash carts and mobile equipment. The Rosebud Solutions portfolio is designed to create efficient and responsible workflow processes in the surgical, central services and sterile processing departments to help hospitals improve patient care, reduce surgical delays and costs and save staff time.

“Better tracking and management of surgical instruments, tissues, implants and mobile medical equipment can improve operating room throughput, dramatically reduce new instrument purchases, and help improve patient safety by reducing delays on the operating table,” said Chris Bauleke, vice president and general manager of Resource Management solutions for McKesson Provider Technologies. “Since an efficient OR is critical to the profitable care delivery and financial performance of a healthcare organization, our customers are looking for ways to ensure patient safety, reduce case delays, and improve efficiency. Rosebud Solutions’ offerings are the perfect complement to McKesson’s award-winning materials management and comprehensive surgical services solutions.”

The Rosebud Solutions software set helps central services/sterile processing departments and surgical services electronically manage, track and reduce costly waste for thousands of expensive surgical trays and instruments that are used in several locations throughout the hospital. The solutions also help hospitals manage regulatory requirements for safe tissue and implant management. For instance, surgical managers can determine the tissue implant inventory on-hand and expirations and in turn, they can record proper storage and reconstitution of these implants required by the Joint Commission.

“The workflow in central services and sterile processing departments is complex and it’s virtually impossible to track and manage surgical trays and instruments, tissues and implants manually,” said Alicia Torres, president and chief executive officer of Rosebud Solutions. “Our automated system helps guide workflow and captures the required information that improves efficiency.”

While some hospitals have automated their surgical instrument tray count sheets, Bauleke estimates that less than 30% of hospitals are automatically tracking them, from assembly, sterilization and patient use to decontamination. For those that have automated tracking, the benefits are powerful. For example, a top 10 teaching hospital on the West Coast has used Rosebud Solutions to save at least $1 million over the past four years by reducing or eliminating surgical instrument replacements. Another leading teaching institution in the Midwest increased net reimbursement for patient charges of equipment use by $2.5 million annually. And at a community hospital in the South the sterile processing department has maintained the same headcount over four years to manage a caseload that has doubled in volume during the same time frame.

With the addition of Rosebud Solutions, McKesson’s surgical suite continues to meet the growing demands of the perioperative, anesthesia and central services areas, helping healthcare organizations with their goal of providing safe and efficient patient care. The acquisition also expands McKesson’s materials management solution with mobile medical equipment and tray management and tracking capabilities. The materials management solution has ranked Best in KLAS in the financial management/ERP category for five consecutive years.¹

Comprising integrated scheduling, perioperative charting, anesthesia management and instrument and tissue tracking, McKesson’s surgical management suite is part of McKesson’s Patient Care Advantage™ offering. Patient Care Advantage drives a “one patient, one care team, one plan” approach, enabling safer, more efficient care with solutions that also include workforce management, enterprise clinical solutions and medication safety capabilities.

Patient Care Advantage is a component of Horizon Advantage™, McKesson’s family of solutions that together solve the biggest issues facing healthcare by uniting the patient, clinicians, pharmacy, payor and employer. McKesson understands the interdependencies among these constituents and delivers solutions that enable health systems to improve patient care quality, operational excellence and financial performance.

Risk Factors

Except for historical information contained in this press release, matters discussed may constitute “forward-looking statements”, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These statements may be identified by their use of forward-looking terminology such as “believes”, “expects”, “anticipates”, “may”, “should”, “seeks”, “approximates”, “intends”, “plans”, “estimates” or the negative of these words or other comparable terminology. The most significant of these risks and uncertainties are described in the company’s Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission and include, but are not limited to: adverse resolution of pending shareholder litigation regarding the 1999 restatement of our historical financial statements; the changing U.S. healthcare environment, including changes in government regulations and the impact of potential future mandated benefits; competition; changes in private and governmental reimbursement or in the delivery systems for healthcare products and services; governmental and manufacturers’ efforts to regulate or control the pharmaceutical supply chain; changes in pharmaceutical and medical-surgical manufacturers’ pricing, selling, inventory, distribution or supply policies or practices; changes in the availability or pricing of generic drugs; changes in customer mix; substantial defaults in payment or a material reduction in purchases by large customers; challenges in integrating and implementing the company’s internally used or externally sold software and software systems, or the slowing or deferral of demand or extension of the sales cycle for external software products; continued access to third-party licenses for software and the patent positions of the company’s proprietary software; the company’s ability to meet performance requirements in its disease management programs; the adequacy of insurance to cover liability or loss claims; new or revised tax legislation; foreign currency fluctuations or disruptions to foreign operations; the company’s ability to successfully identify, consummate and integrate strategic acquisitions; changes in generally accepted accounting principles (GAAP) and general economic conditions. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The company assumes no obligation to update or revise any such statements, whether as a result of new information or otherwise.

About McKesson

McKesson Corporation, currently ranked 18^th 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, marking its 175^th anniversary this year. 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.