Case ID: 312002
Solution ID: 27156

McKesson Case Solution

Abstract

McKesson, a substantial, varied drug distribution and health care IT company, is considering progression of home based business options to help private practice doctors remain independent. The business, with $122 billion this season revenues, just made its first foray into health care services using purchasing U.S. Oncology, a built-in cancer care company, whose expertise it could leverage in options focused along with other physician areas. Getting an enormous portfolio of products and services serving a sizable spectrum of health care stakeholders, McKesson appears exclusively situated to understand and make use of the needs of health care companies. While using recent passage of health care reform adding towards the demands already blending the health care industry-including new payment models requiring significant coordination plus it capabilities-independent doctors are relocating groups to large health care organizations, abandoning the non-public practice model. McKesson might provide them with another. McKesson is certainly a very large company with somewhat autonomous business models, making the options of cooperating to make a mix-disciplinary offering for independent practices difficult. In addition, carrying this out would potentially extend McKesson to the clinical health services (and potentially risk-talking about) business, the correct merits which might be debated. Due to the uncertainty all over the physician practice atmosphere, the right type of an approach to help these clients remains unclear, and rivals getting another product mix may be better situated than McKesson to provide it. Finally, it might be too far gone altogether to show back trends going down hill the non-public practice model.


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