McKesson General Medical
This article was originally published in The Gray Sheet
Executive Summary
Columbia/HCA replaces Owens & Minor with McKesson as the medical/surgical supplier to Columbia member health care facilities under a five-year agreement announced May 28. The deal, which is expected to increase McKesson's revenues "by more than $450 mil. annually once fully implemented," is part of a comprehensive health care supply agreement between the firms that is expected to generate $1 bil. annually for McKesson. Owens & Minor says that the "greatest impact" from the contract's cancellation is expected to be felt "in 1999 rather than this year." Under the contract, which was to run through May 1999, Owens & Minor's annual sales volume was approximately $360 mil., or about 11% of the firm's total sales. However, the contract's "contribution as a percent of profits is lower than that percentage," the company maintains