McKesson to Acquire Portico Systems

MALVERN, PA, 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.