McKesson Selected by Department of Veterans Affairs as Prime Pharmaceutical Supplier to VA Healthcare System

SAN FRANCISCO--(BUSINESS WIRE)--

McKesson Corporation MCK announced today that it has been selected by the Department of Veterans Affairs (VA), which runs the nation's largest integrated healthcare system, to continue as the VA's prime pharmaceutical supplier. The two-year agreement calls for McKesson to supply all of the VA's medical centers and outpatient clinics, as well as the VA's Consolidated Mail Outpatient Pharmacies (CMOPs).

"We are extremely pleased to have been selected by the Department of Veterans Affairs to continue as its primary pharmaceutical supplier," said John H. Hammergren, chairman and chief executive officer, McKesson Corporation. "Our track record for driving substantial financial efficiencies while exceeding service levels is why government and commercial customers continue to choose McKesson. We are confident in our ability to meet the VA's growing needs over the term of our relationship, and in the process create significant value for the VA and for McKesson's shareholders."

As part of the contract award, McKesson will continue to supply pharmaceuticals to more than 700 locations, including more than 270 medical centers, as well as the VA's seven CMOPs. The initial two-year contract includes options for up to three, two-year extensions.

“Over the past eight years, McKesson has partnered with the VA to serve the healthcare needs of America's veterans,” said Paul Julian, executive vice president and group president, McKesson Corporation. “Together with the VA, we have leveraged innovative technology to improve patient service, while maintaining 99.998% order accuracy. Going forward, we will continue to provide innovative technologies, unparalleled service, and six sigma solutions, that will enhance the VA's ability to serve our nation's veterans and multiply the impact of tax payer dollars.”

Risk Factors

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Shareholders are encouraged to review additional information about McKesson, including its SEC filings, which can be found on the Company's investor website at www.mckesson.com.

About McKesson

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.