McKesson reorganizes, creates 4 business segments

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McKesson headquarters.

McKesson reorganizes, creates 4 business segments

By Sandra Levy - 07/02/2020

Big changes are coming to McKesson. The company announced that is restructuring its business into four segments, beginning in the second quarter of fiscal 2021.

“McKesson has had a long history of leadership in the healthcare industry by advancing our business to meet the changing needs of our customers, providers, biopharma partners and the patients we collectively serve,” said Brian Tyler, McKesson CEO. “We are in the midst of a dynamic healthcare environment with ongoing shifts in technology, reimbursement, policy and patient centricity. This new structure positions McKesson to better meet our customers’ needs by driving efficiencies, enhancing operations and delivering new solutions that are directly focused on solving their biggest challenges. This reportable structure, which will create a more streamlined organization, will also enable new opportunities and increased innovation that will strategically position our business for future growth.”

McKesson will have the following four reportable segments:

  • U.S. Pharmaceutical and Specialty Solutions, or USPSS will become U.S. Pharmaceutical, or USP, led by Kirk Kaminsky, president, and will continue to focus on best-in-class wholesale drug distribution and value-added technology solutions for retail pharmacies, health systems, payers and community providers.

"USP also will continue to lead the market in cancer care transformation through our comprehensive solutions offered through The US Oncology Network, US Oncology Research, McKesson Data Evidence and Insights and Biologics by McKesson specialty pharmacy," the company said.

  • Prescription Technology Solutions, or RxTS, a new reportable segment that brings together RelayHealth, CoverMyMeds and RxCrossroads by McKesson to serve the company's biopharma and life sciences partners and patients. This segment, led by Nathan Mott, president, will work across the healthcare delivery system to connect pharmacies, providers, payers and biopharma for next-generation patient access and adherence solutions;
  • International is a newly established reportable segment that combines McKesson Canada and McKesson Europe. Bringing together non-U.S.-based drug distribution services, specialty pharmacy, retail and infusion care services, McKesson’s International segment will focus on enabling and accelerating the delivery of affordable, quality healthcare solutions. Together, these business units are positioned to further leverage the company’s scale and reach to drive value across key differentiators like the company’s owned retail pharmacy assets. Kevin Kettler remains CEO and chairman of the management board, McKesson Europe, and will take on the added responsibility of leading McKesson’s International segment. Domenic Pilla remains CEO, McKesson Canada; and
  • Medical-Surgical Solutions distributes medical-surgical supplies and provides logistics and other services to healthcare providers in the United States. This segment, led by Stanton McComb, president, is unaffected by the realignment.

Business activities previously reported in Other will be included in the newly created reportable segments, excluding the company’s investment in the Change Healthcare joint venture, which was separated from the company in the fourth quarter of 2020.

McKesson expects to transition to financial reporting under the new four-segment structure for periods commencing after the first quarter of fiscal 2021.