McKesson, CHC complete creation of new health technology company
SAN FRANCISCO – McKesson and Change Healthcare Holdings on Thursday announced the completion of their previously-announced agreement to create a new healthcare information technology company. The new company is named Change Healthcare and combines substantially all of CHC’s business and the majority of McKesson Technology Solutions.
“Today marks an exciting step forward to achieve enhanced benefits for our customers, employees and stockholders,” commented John Hammergren, chairman of the board, Change Healthcare, and chairman and CEO, McKesson Corporation. “I want to thank all of the employees who made today possible and who will continue the important work of building an industry-leading company that will help make the vision of value-based care a reality for payers, providers and consumers.”
“Over the last several years, our industry has experienced a continued shift toward value-based care, requiring an increasingly consumer-centered approach to healthcare,” stated Neil de Crescenzo, CEO, Change Healthcare. “Change Healthcare will be distinctly positioned to leverage its data, analytics and forward-thinking insights to bring new innovative solutions to payers, providers and consumers as they strive to achieve the best healthcare outcomes as efficiently as possible in this new environment.”
By uniting the majority of MTS’ businesses with CHC, the new company will inspire a better healthcare system through a broad set of complementary capabilities that will deliver financial, operational and clinical benefits to payers, providers and consumers. From an interconnected and integral position at the center of healthcare, the new Change Healthcare will be a collaborative catalyst for accelerating its customers’ and partners’ paths to value-based care and better engagement with consumers.
“We are thrilled to have completed this combination of two great organizations. Our nearly 15,000 team members will be working with our collective customers and partners to provide a stronger, increasingly collaborative and more efficient healthcare system that enables better healthcare outcomes,” de Crescenzo continued. “I’m confident that Change Healthcare’s expertise and comprehensive offering of solutions will not only deliver near- and long-term value for our customers and partners, but also help drive the journey toward improved lives and healthier communities.”
In addition to de Crescenzo, previously announced as CEO Change Healthcare, the following individuals will comprise the executive leadership team of the new company:
Randy Giles, EVP and CFO;
Rod O’Reilly, EVP and president, software and analytics;
Erkan Akyuz, EVP and president, imaging, workflow and care solutions;
Kris Joshi, EVP and president, network solutions;
Pat Leonard, EVP and president, technology-enabled services;
Mark Vachon, EVP, sales and operations;
Loretta Cecil, EVP and general counsel;
Alex Choy, EVP, R&D/IT and chief information officer;
Linda Whitley-Taylor, EVP and chief people officer;
Thomas McEnery, EVP and chief marketing officer; and
Megan Callahan, SVP and chief strategy officer.
As previously announced, the new organization will leverage the Change Healthcare name, but today introduces a new logo, brand positioning and visual identity to reflect the broader capabilities of the unified organization. The migration to the new brand will happen over the next year.
McKesson owns approximately 70% of Change Healthcare, with the remaining equity ownership held by CHC stockholders, including Blackstone and Hellman & Friedman. The new company is jointly governed by McKesson and CHC stockholders.
In conjunction with the creation of the new company, Change Healthcare raised approximately $6.1 billion in debt, which was utilized to fund cash payments of approximately $1.25 billion to McKesson and approximately $1.75 billion to CHC stockholders, cover transaction costs and repay approximately $2.8 billion of existing CHC debt.