McKesson Corp. Realigns its Organization Structure to Focus on Key Health Care Services Markets

Business Wire, Jan 24, 1996

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 24, 1996--McKesson Corp. announced today a new organization structure in its Health Care Services sector to better meet the needs of the changing marketplace and to allow the company to focus on specific customer groups.

According to David E. McDowell, McKesson's president and chief operating officer, the new organization structure will unify the company's pharmaceutical product management and manufacturer relationships in one area and realign its retail business to focus on a new initiative to benefit independent and chain pharmacies. The company also named a new president for its McKesson Health Systems unit and announced a special corporate focus on developing new customer relationships.

"We took a first step toward better serving the health care provider market when we created McKesson Health Systems last April," said McDowell. "Now we're realigning to better coordinate pharmaceutical company relationships and programs and to focus on retail customers."

As part of the announcement, McDowell also defined new roles for three McKesson executives and announced the appointment of a president for McKesson Health Systems.

David L. Mahoney has been named president, Pharmaceutical Services Group, a new area, assuming overall responsibility for McKesson's relationships with ethical pharmaceutical and biotechnology companies. Mahoney, who will continue to report to McDowell, will retain his current responsibilities directing McKesson Healthcare Delivery Systems and McKesson BioServices, two operating units that provide innovative clinical trial, marketing and distribution support services for pharmaceuticals and biologicals.

"With his combined responsibility for all three areas," McDowell added, "David Mahoney will be able to integrate and manage McKesson's various prescription pharmaceutical manufacturer relationships and develop new programs that serve them both as suppliers and customers."

McDowell also announced that Deborah K. Jansen, senior vice president, Marketing and Product Management, for McKesson Drug Company, is leading the rollout and implementation of a new retail offering to benefit independent and chain pharmacies.

For several months now, McDowell noted, Jansen has headed up a cross-functional taskforce working on this major offering. Integral to this effort is the development of a centralized pharmacy computer application, OmniLink(SM), which enables pharmacists to gain a new advantage in patient care while also helping them to improve accuracy. OmniLink allows retailers to connect electronically to McKesson to better manage and serve customers, pharmacy benefit managers, pharmaceutical manufacturers and managed care organizations.

Independent pharmacists will have access to OmniLink through CareMax(SM), a new pharmacy network created especially for those independents who meet the standards required for competing in a managed care environment. Via OmniLink, CareMax members will be able to take advantage of new profit opportunities through improved access to managed care networks and programs designed to enhance patient care.

"As McKesson begins to roll out its new retail offering in February," said McDowell, "this realignment of functions will focus the McKesson Drug Marketing group on implementing these new initiatives for its customers."

Jansen, who will report to McDowell, has also assumed responsibility for McKesson's Managed Care function that previously reported to Mahoney, McDowell said, as well as responsibility for the company's Home Health Care business. He added that Jansen and Mahoney will work together to further develop McKesson's generics business.

Additionally, McDowell announced that James H. Smith, president of McKesson Drug Company, has accepted a new role as corporate vice president of McKesson with responsibility for developing new customer relationships in health care. Smith will continue to report to McDowell, who will serve as president of McKesson Drug Company until a new president is named.

McDowell also announced that the company has named John H. Hammergren president of McKesson Health Systems, effective January 22. Hammergren most recently was president of the medical/surgical division of Kendall Healthcare Products Company based in Mansfield, Mass. From 1989 to 1991, he served as vice president of Sales Worldwide for Lyphomed, Inc./Fujisawa USA. Earlier he spent eight years at Baxter Healthcare Corporation in sales and marketing positions of increasing responsibility, most recently as vice president, sales and marketing, for Baxter's international hospital group.

McKesson Corp. is a leading provider of health care products and services. Through McKesson Drug Co. and a Canadian subsidiary, Medis Health & Pharmaceutical Services, McKesson is the largest distributor of pharmaceutical and health care products in North America. The company, headquartered in San Francisco, is listed on the New York and Pacific stock exchanges (MCK). -0-