If you have been following the news feed over the last 24 hours, or if you’re in Chicago for the McKesson Ideashare you probably heard the news. There is a new company being formed that is going to combine McKesson Technology Solutions and Change Health care. The plan is that McKesson has a 70% stake, […]
If you have been following the news feed over the last 24 hours, or if you’re in Chicago for the McKesson Ideashare you probably heard the news. There is a new company being formed that is going to combine McKesson Technology Solutions and Change Health care. The plan is that McKesson has a 70% stake, while Change Healthcare has a 30% stake, and new company has combined revenues pro forma revenues equaling $3.4 billion, yes billion with a B. Leaders from the two camps expect to generate around an additional $150 million in revenue with the shared synergies by the second year of the deal.
The timing is great for McKesson as they are currently hosting there annual tradeshow in Chicago, and will be able to roll out information about the new cobranded company to interested key users of there services at the event. Change Healthcare some of you might not be as familiar with. They offer a few different solution packages for pharmacy, most of it specialized in automating tedious payment processes, and sharing data across platforms to better serve the patients, and get the hospital and pharmacy networks on the same page.
Per the press release on the transaction”
“The new organization brings together the complementary strengths of MTS and Change Healthcare to deliver a broad portfolio of solutions that will help lower healthcare costs, improve patient access and outcomes, and make it simpler for payers, providers, and consumers to manage the transition to value-based care. As a separate entity singularly focused on healthcare technology and technology-enabled services, the new organization will be positioned to better respond to customer needs and deliver next-generation innovations.”
This other tidbit, more pertinent to us in pharmacy was also in the release
“Change Healthcare, a provider of software and analytics, network solutions and technology-enabled services, will contribute all of its businesses to the new company, with the exception of its pharmacy switch and prescription routing business.”
So as of now, we don’t know how this will effect the future of software and technology solutions for pharmacy, but the leadership of the team definitely has some experience in the industry, so I would expect some new exiting IT products coming down the pipeline at some point. Jon our CEO here used to work at a company McKesson had ownership in, Parata, so he took special notice. Overall interesting business news. It looks like the market has reacted well to the news MCK ended the day (Tuesday, June 28) 176.58, up almost 4% on the day.