Dive Brief:
- McKesson subsidiary McKesson Medical-Surgical plans to open a new distribution center in Roseville, California in mid-2018, Sacramento Business Journal reported.
- The facility will employ about 166 employees. McKesson expects to begin hiring this fall.
- Two smaller distribution centers already operating in the Sacramento area will be folded into the Roseville center.
Dive Insight:
McKesson ranks fifth on the Fortune 500 list of most successful American companies with $192.5 billion in 2016 revenue — a 6.2% gain over the previous year. The company employs about 70,000 workers worldwide.
Revenues for the fiscal 2018 first quarter, ended June 30, were $51.1 billion, up 3% from $49.7 billion a year ago. First-quarter GAAP earnings per diluted share from continuing operations were $1.44, down 50% year-over-year
News of the new distribution center comes as McKesson is scaling back its health IT business and focusing more resources on its growing drug distribution business. But med-surg remains a major focus, with market growth driving distribution and service revenues up 4% for the quarter.
In March, McKesson and revenue cycle management company Change Healthcare Holdings (CHC) announced plans to create a new healthcare technology company, Change Healthcare, that combines a majority of McKesson Technology Solutions with all of CHC. The new company’s end-to-end payment and claims solutions and clinical capabilities could be leveraged in areas like workflow, healthcare analytics and patient engagement.