Electronic Health Records

Policy & Regulation News

McKesson, Change Healthcare to Form New Health IT Company

McKesson Technology Services and Change Healthcare have agreed to form a new health IT company.

By Kyle Murphy, PhD

- After a series of moves that hinted at McKesson’s exit from the health IT marketplace, its technology division is set to merge with Change Healthcare to form new health IT venture with the former retaining majority control.

Health IT merger of McKesson and Change Healthcare

Last week, Reuters reported on the possibility of a merger between the health IT division of McKesson Corporation and Change Healthcare, a provider of revenue cycle management technology formerly known as Emdeon Inc. The latter claims to operate the single largest financial and administrative healthcare network in the United States, with more than 75,000 physicians, 5,000 hospitals, and 1,200 payers.

The end-result will lead to a new health IT company, combining resources from both companies and topping $3.4 billion in annual revenues. McKesson and Change Healthcare will own 70 percent and 30 percent of the company, respectively.

McKesson is set to contribute the majority of its remaining health IT businesses, excluding RelayHealth Pharmacy and its Enterprise Information Solutions division. Change Healthcare, meanwhile, will pony up its entire business, with the exception of its pharmacy switch and prescription routing business.

  • HIE Partnership to Improve Health Data Exchange of Imaging
  • Technical requirements for practices in meaningful use
  • ICD-10 Regulation Kicks In, Response Teams Standing By
  • What Medicare costs could EHR use help cut?
  • Home health Medicare scam leads to $150 million settlement
  • California survey shows low certified EHR use
  • Ohio Military Medical Center Joins Health Information Exchange
  • Health Information Exchange Part of Care Quality Initiative
  • AMA wants to improve EHR adoption, minimize distractions
  • Population Health Management Tools Unveiled at HIMSS15
  • DirectTrust President and CEO David Kibbe, MD, to Step Down
  • How is CPOE more than cookbook medicine in the EMR?
  • VA Cerner EHR Contract Negotiations to Be Finalized in February
  • ICD-10 educational sessions being held at HIMSS14
  • Bill Mandates Transition Period During ICD-10 Implementation
  • What hospitals, physicians should know about EHR donations
  • Will vendor lag limit ICD-10 success for physician practices?
  • Is MACRA the “Burning Platform for Progress” in Healthcare?
  • Customer Loyalty to EHR Systems Declines to 75% in 2016
  • How EHR Data Integration, Integrity Hold Back Effective EHR Use
  • Health IT Interoperability Among CHIME Chronic Care Concerns
  • Who’s responsible for resolving EHR-HIE interoperability?
  • Meaningful use audit leaves Arkansas hospital owing $900,000
  • Vermont Health Information Exchange Adds Telehealth Component
  • Cerner: ICD-10 delay may put focus on revenue cycle management
  • CHIME Advises HHS Improve Interoperability, Standardization
  • Apps Stumble with Patient-Generated Health Data Burdens
  • Time, money worry healthcare CIOs in Stage 2 Meaningful Use
  • AHIMA: Got five minutes? Use it for online ICD-10 education
  • Health Information Exchange Reduced Radiology Exams by 47%
  • UDIs to impact Stage 3 Meaningful Use, population health?
  • Patients with PHR access more responsible, engaged, satisfied
  • Study: EHRs make residents lose 16 minutes per patient
  • New Calls for Meaningful Use Reporting Changes, ICD-10 Delay
  • Why clinical quality measures are necessary
  • AMA Pushes to Boost Meaningful Use Requirements Flexibility
  • How Stage 3 MU Concerns Impact EHR Incentive Programs
  • VA, DOD must present EHR interoperability plan in January
  • Why are payers concerned with patient engagement strategies?
  • Cerner EHR to Streamline Care at IN State Psychiatric Facilities
  • WEDI Appoints Former AHIP Exec as Interim CEO
  • Epic Systems, Cerner Among 8 Health IT Companies Recognized by EHRA
  • How to Make the EHR Replacement Project a Successful One
  • KeyHIE lets long term care providers use HIE without an EHR
  • HITPC: Stage 3 Meaningful Use to focus on patient safety, quality
  • Realizing the Benefits of Clinical Documentation Improvement
  • Direct messaging enhances Kansas HIE
  • Centura Health Receives HIMSS Davies Award for Health IT
  • Telehealth gets Congressional attention with letter, new bill
  • What does the RAND study really say about EHR adoption, cost savings?
  • KHIN adds to its health information exchange capabilities
  • CMS Administrator Welcomes Providers to ICD-10 Compliance
  • Hybrid EHR-paper workflows contribute to medical errors
  • Preparing AI-Powered Virtual Assistants to Improve EHR Usability
  • 5 Strategies Driving SHIN-NY Roadmap for Health Data Exchange
  • Pundits offer predictions for healthcare, health IT in 2014
  • Software Advice lists top 10 EHR vendors for meaningful use
  • EHR Data, Decision-Making Ultimately Lie in the Patient’s Hands
  • Does cloud-based EHR increase health data security?
  • Southern Tier HealthLink NY partners with NYeC
  • Epic, Cerner Beat Out MEDITECH in Small Hospital EHR Adoption
  • Former National Coordinator DeSalvo Joins UT Dell Med School
  • Slavitt: CMS Already Mulling Changes to MACRA Start Date
  • A Shakeup at Allscripts
  • Local telehealth projects unite patients with technology
  • Alpha II Registry Approved as 2017 MIPS Qualified Registry
  • Top Inpatient EHR Companies by Hospitals
  • MACRA Must Do More to Promote Health Data Interoperability
  • ePrescribing Expected and Preferred in 82% of Older Patients
  • As HIE expands, is it time for national patient identifiers?
  • Patient EHR Data Contained in CT HIE to Aid in Suicide Prevention
  • Care Plans are Key in Patient-Centered Care, Research Shows
  • IBM partners with Epic for highly coveted DoD HIM contract
  • HalfPenny offers latest Meaningful Use Tool Kit
  • MI Health Information Exchange Joins Opioid Research Project
  • What new health IT will hospitals buy after implementing EHRs?
  • Clinical Workflow Progress Vital to Boost Health IT Quality
  • CMS Seeks Comments on Reporting Clinical Quality Measures
  • Allscripts Drops Case Against NYC Health and Hospitals Corp.
  • Top 10 Meaningful Use Challenges
  • California, Pennsylvania HIEs Make Health Data Exchange News
  • EHR Use Fuels Research, Interventions to Close Gaps in Care
  • Why have EHR adoption, EMRAM scores stalled for hospitals?
  • What Changes will MIPS, MACRA Bring for Clinical Quality Reporting?
  • Integrating EHR with medical education for improved care
  • ONC, Louisiana celebrate Crescent City Beacon Community
  • Did EHR Workflow Flaw Lead to Ebola Mistake in Dallas?
  • Check twice, click once: avoiding physician mistakes when using EHR
  • Surgeon General updates family health website for holiday season
  • DirectTrust’s Patient-Centered HIE to Boost Patient Engagement
  • Return of Annual Updates to ICD-10 Code Set Begin Oct. 1
  • Study: Only 27% of providers see ROI on EHR adoption
  • CMS Proposes Quality Payment Program Changes, Administrative Relief
  • OSF-BCBSIL commercial ACO set to launch in Illinois in 2014
  • List of Regional Extension Center Contacts
  • How New York is doing patient portals differently: NYeC Q&A
  • Team Says Interoperability Is Key for DOD EHR Modernization
  • Doctors dissatisfied with current EHRs but hopeful for future
  • 4 Ways to Reduce EHR Use-Related Patient Safety Threats
  • Epic falls to athenahealth as 2013 “Best in KLAS” vendor
  • “This is a bold, innovative transaction that creates a company with an enhanced ability to help customers address their increasingly complex financial and clinical challenges,” McKesson Chairman & CEO John H. Hammergren said in a public statement.

    “The new company will establish a more efficient suite of end-to-end payment and claims solutions, as well as clinical capabilities, while unlocking the value of our MTS businesses in a tax-efficient manner,” he continued. “We look forward to partnering with Change Healthcare’s management team and employees to create this new enterprise and to help customers reduce complexity, lower costs and ultimately provide better care.”

    The as-of-yet unnamed new company is targeting health plans and providers with its offering of end-to-end financial and payment technology as well as the transition to value-based care.

    “Together we will create significant value by bringing together complementary capabilities from both organizations to deliver innovative new solutions for customers, create opportunities for team members at a leading healthcare technology company, and drive advancements that address the three critical areas of cost, quality and outcomes across the healthcare sector,” added Change Healthcare President & CEO Neil de Crescenzo.

    De Crescenzo will serve as CEO for the new venture, with Hammergren serving as Chairman. According to Reuters, an initial public offering will follow a few months after the transaction closes.

    A recent report in the Wall Street Journal raised the possibility of a sale of the company’s health IT unit Technology Solutions in order to focus on its business as a drug and medical supply distributor, an unnamed source familiar with the matter told WSJ reporters.

    Compared to the company’s core drug-distribution business which had sales of $188 billion, its health IT division saw $2.9 billion in sales in its most recent fiscal year ending in March.

    Earlier this year, McKesson offloaded a sizeable portion of its ambulatory EHR technology to EHR vendor e-MDs, increasing the latter’s number of ambulatory EHR providers to 55,000. The announcement specifically mentioned six products as part of its expanded health IT lineup. In efforts to pare down its health IT units, the company also sold its care management unit to Comvest Partners.

    Recently, Black Book named two McKesson as the highest rated EHR vendor the ambulatory specialties —neurosurgery and oncology & hematology — and at the same time noting the growing interest in specialty-specific EHR replacement. At the same time, McKesson also lost market share to other EHR vendors, according to a June Kalorama Information report. 

    X

    EHRIntelligence

    Sign up to continue reading and gain Free Access to all our resources.

    Sign up for our free newsletter and join 1000,000 of
    your peers to stay up to date with tips and advice on:

    EHR Optimization
    EHR Interoperability
    MACRA

    White Papers, Webcasts, Featured Articles and Exclusive Interviews

    Our privacy policy

    no, thanks

    Continue to site...