RRHA/JVC– Seagate Alliance
August 6th, 2015
Michael Carni – Senior
Account Manager
Ross McCune – Director
National Accounts
Brian Slusaw – Region
Manager
Jeannette Podlogar –
Clinical Support Manager
Agenda
• McKesson Overview
• McKesson Distribution
• Value Added Services/Technology
• Clinical Support and Offerings
• Summary Review / Partnership Scorecard
• Q&A
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
McKesson At-a-Glance
Driving Better Health for Over 180 Years
2
Core
Segments
Founded in
1833
>$170B 2
Distribution
Solutions
Combined
Revenues
85,000
Technology
Solutions
1
3
Employees1
Worldwide
Operates in Over
20
Countries1
Serves
120K
Pharmacies and Hospitals
Globally Daily1
>12K
Owned or Banner
Pharmacies1
As of December 2, 2014; 2 Approximates reported revenues of McKesson and Celesio AG for the twelve months ended September 30, 2014, stated USD”
(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
The McKesson Medical-Surgical Footprint
Distributing over 180,000 products to over 200,000 customers in
the alternate site market
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Primary Care
Long Term Care
Home Care
• 200,000 Customers
• 1,452 Sales
Professionals
• #1 in Surgery
Centers
• #1 in Retail Clinics
• Proprietary
Customer & Sales
Automation Tools
• Targeted Marketing
by Specialty
• 7,700+ Customers
• 160+ Sales
Professionals
• #1 in LTC Market
• Proprietary
Customer
Automation Tools
• 4,600+ Home
Health Agencies &
Home Medical
Equipment
providers
• #1 in HC Market
• 80+ Sales
Professionals
• Proprietary
Customer
Automation Tools
(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Lab
• 100,000+
Customers.
• Hundred of specialty
reps.
• Educated teams for
customized
programs.
PCS - Medimart
• 1900+ Payer
Contracts.
• Competitive Bid
winner
• Award winning call
center
• #1 WC billing
business.
• HC & LTC benefits.
Long-Term Relationships with
Global Leaders in Healthcare
Retail
Pharmacy
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Health
Systems
Primary and
Alternate Care
(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Payors
Manufacturers
National Brands
Name brands you know and trust
McKesson Medical-Surgical offers:
• The industry’s widest selection of more
than 45,000 products & equipment
• Products you need to expand your
offerings & better serve your patients
• The opportunity to satisfy existing patients
& acquire new patients
Featuring products for Inco,
Wound Care, Skin Care,
Ostomy, & Flu Supplies
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
McKesson Brands
Program Overview:
• “Never Compromise on Care” –Quality
products at competitive prices, backed
by our 100% money-back guarantee
• 2,300+ items in 30+ major medicalsurgical product categories
• Dual sourcing strategy through global
sourcing and major National Brands
• Decades of experience in the market
with resources to offer support to your
facility
• Robust QA program with to help ensure
quality products
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Key Product Categories:
•Diabetic monitoring supplies
•Gloves
•Incontinence
•Infection Prevention
•OTC’s
•Personal Care
•Skin & Wound Care
Distribution Expertise /
Regional Local Presence
• Significant presence in NY currently – 80+
LTC customers alone
• Next Day Delivery for all of RRHA
• Tenured representation, Local, National
Account / GPO Support / Field
Representation for Technology, Billing,
Clinical
• Over 45,000 products in-stock
• Up to five-day-per-week delivery (6 when
SNDA included)
• Flexible cut-off times
• McKesson-owned trucks &
common carrier (e.g. UPS) delivery
• Distribution centers with radio
frequency web-based technology
for improved order accuracy
• No charge on low unit of measure orders
• Automated Alternate Ship and
Backorder logic
• Freight schedule will be defined for each
facility and what works for them.
• Formalized Disaster Relief and
Preparedness Plans
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Centralized Customer On-Boarding
Project Manager
• Dedicated resource for customer on-boarding only
• Centralized point of contact
• Manage process for on-boarding new national accounts
Implementation Guideline
• Develop detailed checklist with target completion dates
• Outline what needs to be done when
• Timely follow-up
Communication
• Coordinate internal and external communication
• Support during and after implementation process
• Triage team support
Successful First Order Experience for Customer
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Medical Supplies Traditional vs. Future
• Selecting a Distribution Partner – How do we save Money on
Medical Supplies?
•McKesson Distribution – Key Differentiators…
– Billing Services – Divert Cost to appropriate resources = savings.
– Clinical Services – Save via product choice, utilization and eliminated
extra expense.
– Service – Save on operating expense & opportunity cost of that expense.
– Distribution Focus / Value Added Services – we focus on distribution
cost management vs. product sales.
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Value Added Solutions / Technology
•
•
•
•
•
•
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Supply Manager
Scan Manager
Orbits
Customer Business Reviews
Quality ONE
VIP Rewards
• 3rd Party Partnerships / Discounts
• Relias Learning
• Pathways
(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Supply Manager
https://mms.mckesson.com
Robust Website for:
• Ordering/Product information
• Formulary Management
• Inventory Valuation
• Budget Management
• Real time Stocking information
• Reporting
• Product Tracking
• Invoicing Management
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Supply Manager
Formulary Management /
Encourage preferred products /
lockout if desired
Ordering / Product Information/ MSDS/
Usage / Reporting
Real-time inventory information, switch and save
suggestions, replacements to MFG backorders,
export functions
Spend Manager / Budget Manager /
Automated Alerts
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
McKesson ScanManagerSM
Replenish Your Inventory:
• Portable hand-held device
• Integrated laser, barcode-based system that works in conjunction with
DSSI programs.
• Eliminate the chore of manually ordering and
managing supplies, saving time and reordering errors
• Use for inventory valuation as well
Simple 3-Step Process:
1. SCAN – Create your order by pointing the laser
barcode scanner at the bar-coded shelf labels or inventory sheets
2. SEND – Place the scanner in the cradle and automatically send your
order through McKesson’s online ordering system, McKesson
SupplyManagerSM
3. STOCK – Receive the right products in the right quantity ready for restocking
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
ORBITS®
Track Supplies from Storage to Reimbursement:
Manage Costs and Control Inventory:
Easy to Install and Use (Web-based):
• Track products to a patient
• Facility data is
• Capture charges not only for supplies but
for a variety of different service
categories
Inventory/Formulary Control:
• Control the products, formularies and
charges to patients
• No piggy-back bar code labels
automatically entered
• Updates to product databases and
enhancements to the system are
immediate and free of charge
Training:
• Technicians train you over the phone or
onsite
• Easy and quick
ORBITS®
ORBITS® dashboards provide quick visual tools to help you manage operations!
• Easy Data
Collection via
handheld scanner or
wall mounted kiosk
Charge Compliance Dashboard:
• Breaks out product spend into billable and
non-billable supplies
• Drill down to get patient-per-day charges
(PPD)
• Review staff entries to find areas in which
training is needed to help increase revenue
Spend-to-Charge Ratio Dashboard:
• Shows McKesson spend-by-month
• Track charge transactions per month, per
facility
• Shows dollars charged against dollars
purchased by item
Medical Supply Revenue Opportunity with ORBITS
Private Pay Ancillaries
Medical Supply Spend
Private Pay Census Guesstimate
Chargeable Supplies
Totals
Notes
$1,000,000
Conservative Estimate
20%
proportional figure
80.00%
minus gloves, gauze, misc.
Chargeable Supples to PVT
$160,000
Industry Mark-Up
100.00%
Can vary - 100% very common
$320,000 (30% + Savings)
* Not a guarantee number and could be higher
or lower depending upon various factors
including mark-up, compliance, spend etc.
Revenue Target on Medical Only
The McKesson Business Review
Business Reviews provided quarterly
at a group/alliance and/or individual
home level:
1. Review Spending and look for ways to
2.
3.
4.
5.
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save
Compare PPD’s by category to other
homes in the group or all of the Alliance
Product move recommendations that
would save money by going to better
priced options
Look for homes that could benefit from
clinical support by viewing PPD’s that
are lower of higher than the norm
Manage Product usage
(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
2. Redeem for Services from our VIP partners, or take as
a rebate (approximately 2% on average)
1. Earn Points with purchases from our VIP manufacturers
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
McKesson Billing Solutions
Key Differentiators (McKesson PCS/MediMart)
McKesson owned → compliance / service
 Billing for – Enteral, Wound, Ostomy, Urological, Trach
 No substitutions – complete product offering.
 Managed Care and Part B - Commercial and Managed Care
solution for your Non-Medicare residents. 2400 Managed Care
Insurance contracts.
 Educated & Compliant - Skilled in complex wound billing
procedures, ensuring regulatory compliance.
 Patient Specific shipping - labeled for simple in-house
distribution.
 14 Day Shipping vs. 30 Day Shipping – less waste = more
savings.
 Regulatory Compliance – Peace of mind
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Clinical Support
Personalized service provided by clinicians with varied
backgrounds to meet your needs.
Areas of expertise include:
•Wound Care
•Skin Care
• Ostomy Management
• Incontinence Management
• Nutrition and Enteral Feeding
• Tracheostomy Care
• Diabetic Testing
• Training and Education
• Product Evaluation
• Clinical Policies and Procedures
• Formulary Development
• Medicare Part B Reimbursement
•Facility Processes and Operations
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
McKesson Clinical ConnectionSM Providing
Clinical Support and Education
• Quality ONE
• Wound Care
• Online Education Portal
• Condition Based
Savings/Benchmarks
• Relias
• WCEI- Wound education and
Certification
• Supply iQ
•Pathway Health Regulatory Training
• PointRight MDS Analysis
– Interim Mgmt, Survey Help etc.
• UPrevent Infection Control
Education/Management
– Education and Training – DON, MDS
• OnShift
Coordinators and IDC-10
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• Tailored Education Programs
(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Introducing the NEW
McKesson Quality One
TM
McKesson Quality One is an innovative web-based tool that
not only incorporates QAPI best practices and QIS survey
questions; it makes the quality assurance process an
integral part of your facility.
By supporting the data you collect with guided
Root Cause Analysis and Performance
Improvement Plans (PIPs), McKesson Quality
One gives you insight to take action in the
areas of your facility that fall short of CMS
thresholds or are of concern to residents and
their families – helping improve quality of life.
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© 2015 McKesson Medical-Surgical Inc. 2015-0238
The journey to quality begins with CARE
McKesson Quality One is built to deliver best-in-class
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C
A
R
E
Collect pertinent
patient information
Assess outcomes
against benchmarks
Respond to issues
Ensure quality
processes are
maintained across
your facility
© 2015 McKesson Medical-Surgical Inc. 2015-0238
What’s Better?
More than just a survey readiness tool –
it’s a quality assurance tool
Real-time assessments allow you to take
action and make adjustments before locking and
sending reports
Offers more guidance for Root Cause Analysis and
a robust set of tools created by clinicians
Offers many options for reports and reporting
parameters so you can customize and choose
resident samples and follow your own MDS schedule
Powered by PointRight® for facility and national
rehospitalization levels, both actual and adjusted
rates
© 2015 McKesson Medical-Surgical Inc. 2015-0238
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McKesson Quality One at a Glance
Complimentary 2-part online
training course
VIP Rewards can be applied
to the monthly fee
No cancellation penalties –
just cancel 30 days in
advance
Additional training options
available from Pathway Health:
Web-based Training and 1-day,
2-day and 3-day On-sites
$100/month per facility, no
matter the size
(no set-up fee, not tied to
wholesale spend)
Education available through
our complimentary portal
30 day readmission rates
powered by PointRight®
© 2015 McKesson Medical-Surgical Inc. 2015-0238
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McKesson Clinical Connection
Complementary Online Education
CNA course requirements from CMS
and OSHA
CE credit courses for licensed
professionals
Archive of past McKesson Clinical
Webinars
Easy to use interface
Certificates verifying course
completion
Simple login and
self-registration
Variety of course options
to fit your needs
mckesson.training.reliaslearning.com
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(c) 2014 McKesson Medical-Surgical
Relias Learning
Providing individual CE education and organization training
Comprehensive system enabling your organization to:
 Customer education site
 Develop and add courses
 Assign course work to individual users
 Track enrollments and completions
Discounts available exclusively for McKesson
customers
Features Include:
•
•
•
•
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Senior Care focused organization with over 400 dedicated course
ANCC Accredited plus dozens of state accreditations
Courses in both English and Spanish
An easy-to-use interface for learning—even for staff with little or no computer experience
Wound Care Companion
• Comprehensive AWC solution
• Partnership with McKesson Brand,
S&N, Convatec and WCEI
• Care Giver Tools
• Product Resource Guide
• Complete Sample Kit
• Wound Care protocol and program in a
complete kit
• Clinical Support
Quick Rounds
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
Partnership Scorecard
FINANCIAL
IMPACT
Other
Savings
$300,000+
Cost shift
Savings
Revenue generation on medical/nonmedical services, supplies, etc.
Revenue
$500,000 - $1.0
Million
Inventory
Management
Scan Manager
Simplified Ordering
Labor Savings
Labor
Error
Reduction
Business Reviews
Usage Analysis, PPD Compare,
reduced cost recommendations
Savings
Competitive
Relevance
Product
Management
Clinical Services
Customized Clinical Programs /
Quality ONE, Quick Rounds, Wound
Care Companion,
Savings
$50,000 $150,000+++
Risk
Management
Pathways Clinical
Rewards Program
Assessments, interim management
discounts, mock surveys etc.
Savings
TBD
Risk
Management
VIP Rewards
Cash or Points back on VIP
Purchases
Savings /
Parntnership
$200,000 /
Discounts
Rebate or
Savings on
Services
INITIATIVE
PROGRAM
Patient Care
Solutions MediMart
3rd Party billing for MC and Med B
qualified patients on wound, ostomy,
urological, trach, enteral
ORBITS
Technology
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary
BENEFITS(S)
Questions / Discussion
Thank you for your time and the opportunity!
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(c)2015 McKesson Medical-Surgical - Confidential & Proprietary