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McKesson Corporation (ticker: MCK, exchange: New York Stock Exchange (.N)) News Release - 6-Aug-2002

PreferredOne Selects McKesson Corporation Disease Management Services to Increase Patient Wellness, Attract New Members

BROOMFIELD, Colo., Aug 6, 2002 (BUSINESS WIRE) -- CareEnhance(SM) Diabetes Disease Management Rolled Out to PreferredOne

HMO Members

PreferredOne, a health benefits management company serving Minnesota and the upper Midwest, recently chose McKesson Corporation, through Medical Management Services, to implement its diabetes disease management program for the healthcare company's HMO patients.

PreferredOne's program provides diabetic members with nurse counseling services designed to help them gain control of their condition, improve their health and functioning, and markedly improve the quality of their lives.

"McKesson's diabetes disease management expertise allows us to assist PreferredOne in successfully launching its disease management program for diabetic patients," said Sandeep Wadhwa, M.D., vice president of Disease Management at McKesson Health Solutions.

McKesson studies of claims show that participation in the CareEnhance(SM) Diabetes Program (HMO) reduces inpatient hospitalization and emergency department visits by 35 percent and 6 percent, respectively. Positive patient behavior changes include a 70 percent increase in aspirin use, which is an important indicator of disease self-management. In addition, 22 percent of patients report lower blood glucose levels.

"With a chronic disease like diabetes, it's essential to manage costs through increased patient self-care to change the natural course of the disease," said John Frederick, M.D., vice president and chief medical officer at PreferredOne. "McKesson has a proven track-record of successfully implementing disease management for diabetes, which translates into real economic benefits and improved health for our members."

In addition to the diabetes program, PreferredOne currently uses McKesson's CareEnhance Resource Management (CRMS(TM)) software, which provides analytic and reporting capabilities to help organizations improve efficiency and effectiveness of care.

"Because we already have a successful partnership with McKesson and were impressed by their ability to help us in our business, they were a natural choice for this program," Dr. Frederick said. "After looking at various option, McKesson had the most comprehensive offering, and we were impressed with the quality of their clinical staff. Enrolling our patients has gone smoothly, and we've been very pleased with our decision."

McKesson's enrollment strategy identifies patients for participation through inpatient, outpatient and pharmacy claims information. Eligible members are also sought out through case manager and physician referrals. "We have been able to quickly implement the program, which gets PreferredOne's members on the track to better health," Dr. Wadhwa said.

PreferredOne also uses the diabetes disease management program as a technique to maintain its current roster of members and to increase member enrollment in the future. In fact, McKesson patient satisfaction survey results show that more than 99 percent of diabetic patients in the CareEnhance Diabetes Program are satisfied with the service, feel comfortable talking with the nurses, and believe that the nurses understand diabetes symptoms and treatment, and have concern for patients.

"We see this disease management program as an effective way to provide a valuable service to current members and to reach out to potential members with an exceptional new program," Dr. Frederick said.

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.

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 PreferredOne

PreferredOne is a health benefits management company offering PPO, TPA, and HMO products and services in Minnesota and the upper Midwest. PreferredOne health care networks provide access to more than 10,000 physicians, clinics, hospitals and other health care providers. PreferredOne was founded in 1984 and is owned by Fairview Health Services, North Memorial Health Care and PreferredOne Physician Associates. PreferredOne is headquartered in Golden Valley, Minnesota, and employs approximately 330 persons.

McKesson Health Solutions

CONTACT:
McKesson Health Solutions
Jordan Gruener, 303/664-6410
or
PreferredOne
Mary Jo Kingston, 763/847-3337

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