McKesson, a big, diversified drug distribution and health care IT firm, is considering development of new business offerings to help private practice physicians stay independent. With a vast portfolio of services and goods serving a wide spectrum of health care stakeholders, McKesson seems uniquely positioned to understand and capitalize on the needs of healthcare businesses. With the latest passing of health care reform adding to the pressures already contracting the healthcare business-including new payment models requiring IT abilities and considerable coordination -independent doctors are migrating in droves to big health care organizations, abandoning the private practice model. McKesson could possibly give them an alternative.
Moreover, doing this would potentially expand McKesson into the clinical health services (and possibly risk-sharing) company, the tactical virtues of which can be debated. Given the uncertainty surrounding the physician practice environment, the ideal contour of a solution to help these customers remain cloudy, and compete with an alternate product mix, could be more effectively positioned than McKesson to deliver it. Eventually, it could be too late altogether to reverse the tendencies eroding the private practice model.
PUBLICATION DATE: October 04, 2011 PRODUCT #: 312002-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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