Centra Health Selects McKesson, Converts to Electronic Environment; IT Transformation to Enhance Safety, Improve Patient Experience.

Business Editors/Health/Medical Writers/High-Tech Writers

LYNCHBURG, Va.--(BUSINESS WIRE)--May 19, 2004

Centra Health today announced that it has selected McKesson Corporation (NYSE:MCK) for its transformation to a paperless and wireless healthcare environment. In a five-year, comprehensive project, Centra Health is partnering with McKesson to modernize its existing clinical infrastructure as well as financial management and patient accounting systems. The project is expected to enhance patient safety and improve access to patient information, efficiency and financial performance.

"This project is a critical step that will not only transform healthcare in our community today, but also allow us to take maximum advantage of emerging technology," said George Dawson, president and chief executive officer of Centra Health, which operates Virginia Baptist Hospital and Lynchburg General Hospital.

Projected expenditures on the McKesson contract are placed at around $23 million over five years, or approximately 1.5% of annual revenues. "As a non-profit health system we have an important responsibility to create an environment that supports patient safety, enhances operating efficiency and attracts and retains the highest level medical talent," said Dawson. "This investment will pay valuable dividends for many years."

Centra Health already uses McKesson's Horizon Medical Imaging(TM) for digital radiology images, Horizon Surgical Manager(TM) for managing operating room supplies and scheduling, Pathways Financial Management(TM) for managing checks and accounts payable and Pathways Materials Management(TM) for managing purchase orders and invoices.

A wide range of McKesson solutions will be implemented during the lifetime of the project to improve overall performance and patient safety, including a centralized pharmacy information system that can electronically receive, verify and send drug orders for dispensing. In addition to documenting care electronically, Centra's 1,000-plus registered nurses will use bar-code scanning devices at the patient's bedside to ensure proper identification and safe medication administration. Physicians will have mobile "anytime, anywhere" access to the latest patient information to support clinical decision-making. They will also be able to electronically review and sign patient charts from remote locations, such as their home or office.

All patient interactions and medication procedures will be recorded in an electronic medical record, which will foster Centra Health's move to a more secure and efficient patient care environment. The McKesson system provides advanced information security and is fully compliant with federal HIPAA requirements. Long-term plans call for the implementation of Horizon Expert Orders(TM), McKesson's clinical decision support and provider order entry system.

Centra Health also will implement systems to improve hospital operations, ranging from the business office to high-revenue, high-cost areas such as radiology and the surgical suite. Centralized scheduling will also play a key role in improving efficiency and making better use of hospital resources such as supplies, facilities, equipment and medical staff.

"We are honored to partner with Centra in its transformation to a digital healthcare environment," said Pamela Pure, president, McKesson Provider Technologies. "We look forward to working side by side with the Centra team to deploy systems that drive value for key constituencies while delivering against Centra's strategic objectives for community care. Together, we can make healthcare safer, and we're thrilled to play an integral role supporting Centra's reputation as one of the best health systems in the nation."

About Centra Health

Centra Health is a regional, not-for-profit healthcare system located in the heart of Central Virginia. With more than 3,000 skilled health care professionals, Centra Health provides comprehensive medical care in a variety of settings.

Over the last twelve months Centra Health has received a number of national accolades. Solucient ranked Centra Health as one of the 100 Top Cardiovascular Centers in the nation; the Wall Street Journal featured Lynchburg General Hospital's Medical Intensive Care unit in a story on quality improvements in ICUs; Money Magazine included Lynchburg General in a profile of the nation's top orthopedic programs; Centra Health's Stroobants Heart Center received VHA's Leadership Award for Clinical Excellence for surpassing national standards in treating patients with emergent heart problems; and Centra Health consistently earns patient satisfaction scores that are among the top 10 percent of hospitals in the country. Visit Centra Health at www.centrahealth.com.

About McKesson

McKesson Provider Technologies is part of McKesson Corporation, the world's largest healthcare services and information technology company. McKesson is a Fortune 16 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes and improving the quality and safety of patient care. Over the course of its 170-year history, McKesson has grown to provide pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information, visit us at www.mckesson.com.