Washington State Expands Disease Management Contract with McKesson Corporation to Include Diabetes and Heart Failure.

Business Editors & Health/Medical Writers

BROOMFIELD, Colo.--(BUSINESS WIRE)--July 23, 2002

CareEnhance(SM) 360 Speeds Identification of Chronically Ill

Medicaid Recipients and Increases Enrollment in Care Management

Programs

After recently enlisting McKesson Corporation to manage the state's Medicaid asthma population, the Washington State Department of Social and Health Services expanded its three-year contract to include telephonic and face-to-face diabetes and heart failure disease management and McKesson's comprehensive CareEnhance 360, a state-of-the-art telephonic nurse-based service that facilitates the seamless transition from an episodic health encounter to longitudinal care.

"Patients with diabetes and heart failure have extremely high rates of complications and utilization of healthcare services. By participating in the disease management program, patients gain control of their disease, stay healthy and avoid emergency room visits and hospital stays. This translates into net reductions in Medicaid expenditures," said Sandeep Wadhwa, M.D., vice president of Disease Management at McKesson. "By using McKesson to serve this complex population, Washington State is truly setting the precedent for the Medicaid system in terms of patient care."

Approximately 10,000 Washington Medicaid Fee-For Service recipients, who suffer from diabetes or heart failure, now will have access to McKesson's specialized nurse counseling services that include educating patients about the benefits of behavior change.

These counseling services are designed to help Washington State's clients realize improved quality of life and healthcare outcomes, while reducing costs associated with unnecessary use of healthcare services. The chronically ill, including those with diabetes and heart disease, represent a disproportionate share of Medicaid expenditures.

"Washington's Medicaid population and its associated expenditures have been increasing dramatically," said Doug Porter, assistant secretary for the Medical Assistance Administration of the Washington State Department of Social and Health Services. "We selected McKesson as our disease management partners because they offer a solution that includes individualized attention to the chronically ill. McKesson understands that we cannot achieve our goals without strong working relationships between our contractors, Washington state providers, and community stakeholders. Overall, we believe the integrated program approach of disease management will have a positive impact on access to services and both the quality and cost of care for our clients."

Equally important was the ability to address the complexities of multiple co-morbidities, including mental illness, as well as the lack of social support systems typical of this population. The goal in providing this specialized support is to promote scientific, evidence-based standards of care, which in turn helps organizations responsibly manage healthcare costs.

Encouraging Washington's eligible Medicaid participants to join these new program offerings is a critical component of its success. Through CareEnhance 360, McKesson nurses speak to potential disease management patients at the "teachable moment," a time when they are already seeking information and most open to the idea of participating in a program designed to improve their health and quality of life. Engaging patients at this critical time has led to 70 percent of members identified with a condition to accept a referral to a disease management program.

For those participants with limited or no access to a telephone, McKesson has partnered with Specialty Disease Management Services, Inc. (SDMSI), of Jacksonville, Florida, who will have nurses in Washington to assist clients to augment McKesson's telephonic enrollment and management. Both operations will be integrated on McKesson's software platform to enhance the coordination of services.

About McKesson Corporation

McKesson Corporation is the leading provider of supply, information and care management products and services designed to reduce costs and improve quality across healthcare. Founded in 1833, with annual revenues of more than US$50 billion, McKesson ranks as the 31st largest industrial company in the United States. The McKesson Health Solutions business unit focuses on advancing integrated services and technologies for the healthcare payor and manufacturer markets. Its two divisions include Specialty Pharmaceutical Services, and Medical Management Services and Technologies.

McKesson Specialty Pharmaceutical Services offers both specialty product dispensing, reimbursement and patient management services and wholesale distribution services to all channels to reduce overall medical costs and improve patient outcomes. The McKesson Medical Management Services and Technologies division offers a comprehensive suite of medical management services and technologies to help payors better manage the cost and quality of care. Its CareEnhance(SM) solutions include InterQual(R) Criteria for clinical decision support; products and services for case, disease, and utilization management and nurse triage; and software tools and applications that support health information, referral, workflow, analysis and reporting processes.

About Specialty Disease Management Services (SDMSI)

A pioneer in field-based disease management, SDMSI consistently demonstrates positive quality, cost, and satisfaction outcomes in the management of patients with complex chronic diseases. SDMSI takes a four-pronged approach to disease management that emphasizes field-based management by specially trained nurses, comprehensive data tracking (using Precept-DM(TM), a proprietary disease management application), patient self-management education, and continuous provider training. For more information, visit our Web site at www.specialtydisease.com.