McKesson to Acquire Portico Systems
June 22, 2011 - Today, McKesson announced it has signed a definitive agreement to acquire Portico Systems , a leader in solutions that enable healthcare organizations to design, build, service and provide value-based reimbursement to their complex provider networks. This pending acquisition will allow McKesson to bring together a unique set of financial management competencies for payers and accountable care organizations that include the claims auditing and decision management tools from McKesson Health Solutions, as well as the connectivity solutions from RelayHealth.
"The ability to create new products that use value-based reimbursement to align payers and providers on achieving the right outcomes is a key strategic imperative," said Emad Rizk, MD, president of McKesson Health Solutions. "Portico will further enhance McKesson's ability to help organizations efficiently navigate and manage increasingly complex delivery systems."
Payment and delivery reform are changing the way that payers and providers share risk - placing new importance on the ability to efficiently and strategically manage provider networks. Today, McKesson supports clients in point of care evidence-based decision making; care management; medical and payment policy automation; claims auditing; and fraud, waste and abuse programs. These solutions help organizations make care decisions in accordance with the evidence and then help ensure that the care is paid for in accordance with medical policy and contracts. Portico adds integrated provider management and value-based reimbursement solutions to this McKesson portfolio to help automate network management, provider enrollment, credentialing, contracting and pricing. Following the addition of Portico's solutions, McKesson will be able to bring to the market a full continuum of automated decision support that will include the important ability to help payers and accountable care organizations manage their networks efficiently, reduce their administrative costs and facilitate the movement to new, complex reimbursement models.
Founded in 1997, the privately held Portico has offices in Blue Bell, Pa., and Beaverton, Ore. Portico's solutions give approximately 33 payer and provider networks - representing approximately 42 million covered lives - the ability to design networks, contract for care in a value-based way and manage network performance.
"We believe that the combined organization will benefit all of our customers," said Ned Moore, chief executive officer of Portico. "I am excited about what Portico and McKesson can bring to the market to help healthcare organizations address the challenges of managing risk in the new era of health reform."
The parties expect to complete the transaction in the next 45 days, subject to the satisfaction of customary conditions, including receipt of all necessary regulatory clearances.
About Portico Systems
Portico Systems is exclusively focused on empowering health plans to transform the performance of their networks, while significantly reducing medical, administrative and IT costs. Its Integrated Provider Management (IPM) platform simplifies the design, maintenance, reimbursement, and performance management of provider networks, while facilitating provider-patient collaboration. Portico Systems is a partner company of Safeguard Scientifics, Inc . For more information on Portico Systems, visit www.porticosys.com .
McKesson Corporation, currently ranked 15th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. We partner with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. For more information, visit http://www.mckesson.com .
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements regarding the expected timing of the completion of the transaction; the ability to complete the transaction considering the various closing conditions; the expected benefits of the transaction; any statements of the plans, strategies and objectives of management for future operations; any statements regarding product or service development, extensions or integration; any statements of expectation or belief; any statements regarding general industry conditions and competition; any statements regarding economic conditions; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include risks related to the timing or ultimate completion of the transaction, as the transaction is subject to certain closing conditions, including receipt of all necessary regulatory clearances; the possibility that expected benefits may not materialize as expected; McKesson's ability to successfully implement integration strategies; as well as the ability to ensure continued performance or market growth of Portico's products and services. These risks, uncertainties and other factors, and the general risks associated with the business of McKesson described in the reports and other documents filed with the Securities and Exchange Commission, could cause actual results to differ materially from those referred to in the forward-looking statements. All forward-looking statements are based on information currently available to McKesson and Portico and are qualified in their entirety by this cautionary statement. Except as required by law, neither McKesson nor Portico assumes any obligation to update any such forward-looking statements or other statements included in this press release.