McKesson (MCK) Plans to Explore Options for EIS Business

McKesson Corporation (NYSE: MCK) announced that it is exploring strategic alternatives for its Enterprise Information Solutions (EIS) business, a division of McKesson that provides core hospital information systems.

EIS serves hospitals and health systems with software solutions, managed services, and infrastructure and hosting services to enable them to succeed through healthcare reform and beyond. The portfolio includes core solutions such as: Paragon® hospital information system; STARTM and HealthQuestTM solutions for revenue cycle management, financial and supply chain management; OneContentTM document and content management; and coding and other professional services to help maximize the total value of information technology.

“We appreciate the critical importance of the Electronic Medical Record (EMR) and other core information systems to the success of our provider customers,” said Pat Blake, executive vice president and group president, McKesson Technology Solutions. “As we embark on building a new, EMR-agnostic technology company with Change Healthcare, we believe that it is in the best interest of our customers to identify a strategic alternative that will allow for more focus on core provider information systems. We are committed to supporting our customers as we evaluate these options, ensuring a smooth transition through this process.”

“Exploring a new strategic path forward for Paragon, OneContent and our ERP-related businesses provides the best opportunity to accelerate our ability to meet our customers’ evolving needs,” said Nimesh Shah, president, EIS. “While we evaluate the best options, the overall priorities for EIS remain unchanged, and we will continue the many efforts we have underway to serve the long-term interests of our customers.”

There is no assurance that this evaluation will result in any transaction being announced or consummated. McKesson will not disclose further developments during this process until its Board of Directors has approved a specific action or McKesson has otherwise determined that further disclosure is appropriate. EIS is reported as part of our McKesson Technology Solutions segment.

In a separate announcement today, McKesson announced the formation of a new healthcare information technology company with Change Healthcare Holdings, Inc. that will include the majority of the McKesson Technology Solutions businesses.

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