Kevin JohnsonMcKesson Corporation is a pharmaceutical distributor and health information technology (IT) provider. John McKesson and Charles M. Olcott founded the company in 1833 to import and wholesale pharmaceutical products. In 1853, the firm was renamed McKesson & Robbins after Olcott died, and Daniel Robbins took his place as McKesson’s partner. The company changed its name several times before rebranding to McKesson in 2001.
McKesson moved its headquarters from San Francisco to Irving, Texas. The company has been involved in several scandals, from the fraud by CEO Phillip Musica in the 1930s to the US opioid epidemic. In January 2023, McKesson agreed to pay a $141 million settlement for fixing generic drug prices. [1]
McKesson operates through two segments – distribution and technology. The company distributes pharmaceuticals, healthcare systems, medical supplies, and equipment to retail pharmacies and hospitals across the US. On the other hand, McKesson’s technology division develops and installs health IT systems for medical facilities. McKesson also sells products through its private-label brands.
In August 2023, the company launched its new health and wellness brand, Foster & Thrive. McKesson is a leader in pharmaceutical distribution and health IT. However, the firm faces stiff competition from Cencora, Cardinal Health, Owens & Minor, Henry Schein, Athenahealth, Oracle Cerner, and Conifer Health. [2]
Here is an in-depth analysis of McKesson’s top competitors and alternatives:
1. Cencora, Inc.
Year founded: 2001
Headquarter: Conshohocken, Pennsylvania
Cencora is an American drug wholesale company formerly known as AmerisourceBergen. The company is at rank 11 on the Fortune 500 and 24 on the Global Fortune 500. As of August 2023, Cencora had over 46,000 employees.
Cencora is a leading global pharmaceutical solutions provider, but the name only emerged in Aug 2023 after AmerisourceBergen rebranded to Cencora. The company partners with pharmaceutical innovators to facilitate and optimize market access to therapies. Cencora is the top McKesson competitor and alternative. [3]
2. Cardinal Health
Year founded: 1971
Headquarter: Dublin, Ohio
Cardinal Health is a global pharmaceutical distributor and healthcare services provider. The company delivers medical products to over 30 countries. As of August 2023, Cardinal Health had around 48,000 employees.
Cardinal Health and McKesson distribute pharmaceuticals, but Cardinal Health operates in over 30 countries, while McKesson focuses on North America. In Q4 2023, Cardinal Health refined its Pharmaceutical segment by launching the Navista Network, investing in Nuclear & Precision Health Solutions, and merging its Outcomes business. Cardinal Health is one of the top competitors for McKesson. [4]
3. Owens & Minor, Inc.
Year founded: 1882
Headquarter: Richmond, Virginia
Owens & Minor is a Fortune 500 global healthcare logistics company. It distributes medical supplies from other brands and manufactures and sells its in-house products. As of August 2023, Owens & Minor had over 20,000 employees.
Owens & Minor uses proprietary technology and solutions to improve visibility, control, and efficiency across the supply chain. It manufactures personal protective equipment, surgical products, and medical supplies for managing chronic and acute conditions. In Q2 2023, the company was awarded Commodity and Clinical Preference Supplier of the Year. Owens & Minor is a worthy alternative to McKesson in the medical distribution sector. [5]
4. Henry Schein
Year founded: 1932
Headquarter: Melville, New York
Henry Schein is a leading healthcare solutions and services distributor. The company supplies over 300,000 brands and in-house brands to healthcare professionals across 32 countries. As of May 2023, Henry Schein had 23,000 employees. [6]
Henry Schein delivers over 300 healthcare solutions to over 1 million customers globally. The company operates a centralized and automated distribution network. Practitioners and healthcare facilities rely on Henry Schein’s technologies and solutions to improve operational success and clinical outcomes. Henry Schein is one of the best alternatives to McKesson.
5. athenahealth
Year founded: 1997
Headquarter: Watertown, Massachusetts
Athenahealth is an American network-enabled software and services provider. The company serves medical groups and health systems in the US. In 2022, Athenahealth had over 6,000 employees.
Athenahealth offers innovative healthcare technology to connect clinicians, patients, payers, and partners. Its electronic health record, revenue cycle management, and patient engagement solutions improve financial outcomes for medical practitioners.
In February 2023, the company won four Best in KLAS awards for athenaOne, athenaClinicals, and athenaCollector. These three solutions improve medical billing, clinical productivity, and care delivery. Athenahealth is an innovative competitor for McKesson. [7]
6. Oracle Cerner
Year founded: 1979
Headquarter: Kansas City, Missouri
Oracle Cerner is a health IT services, devices, and hardware provider. In June 2022, Oracle acquired Cerner for $28 billion and integrated their health businesses to create Oracle Cerner.
The main competitive advantage of Oracle Cerner is its integration with Oracle’s ecosystem. In September 2023, Oracle launched its new Oracle Clinical Digital Assistant. Providers can now use generative AI and voice commands to reduce manual work and documentation burden.
The company also introduced new healthcare-specific analytics and workforce management capabilities to the Oracle Fusion Cloud Applications Suite. These innovations increase Oracle Cerner’s competitive advantage over McKesson. [8]
7. Conifer Health
Year founded: 2008
Headquarter: Frisco, Texas
Conifer is a health IT services and systems provider owned by Tenet Healthcare. The company provides tech-enabled, end-to-end, and point solution revenue cycle services. In May 2023, Conifer offered value-based care services for health and financial management to over five million customers.
Conifer’s IT products and services help healthcare facilities and practitioners address revenue cycle challenges and enhance the patient experience. The company manages over 17 million unique patient interactions and over $25 billion in net patient revenue.
In May 2023, Conifer Health extended its partnership with Northwest Community Healthcare. Conifer Health is one of the top competitors for McKesson’s technology division. [9]
8. Medline Industries
Year founded: 1966
Headquarter: Northfield, Illinois
Medline Industries is an American healthcare company with over 35,000 employees. It is a leading manufacturer and distributor of healthcare products. In February 2023, Medline was named to Forbes America’s Best Large Employers list. The company moved 100 spots from #360 in 2022 to #260 in 2023. [10]
Medline offers clinical and supply chain resources to help healthcare providers improve operating performance and care delivery. In May 2023, Applied BioCode selected Medline to distribute its MDx-3000 System to clinical laboratory customers across the US. Medline is one of the best alternatives to McKesson. [11]
9. 3M Health Information Systems (HIS)
Year founded: 1983
Headquarter: Cedar Valley, Utah
3M HIS is a global leader in health information technology. The company specializes in coding, patient classification, performance management software, and consulting services. As of April 2023, 3M’s solutions were used in 10,000 hospitals across 25 countries.
3M HIS uses innovative approaches to value-based care to help providers, payers, and health policy entities lower costs, optimize payment, and improve quality outcomes. In April 2023, the company partnered with Amazon Web Services (AWS) to accelerate the innovation of 3M M* Modal ambient intelligence. This solution will use AWS machine learning and AI to transform the patient-physician experience and reduce the administrative burden for physicians. 3M HIS is an innovative competitor for McKesson. [12]
10. BioCare
Year founded: 1988
Headquarter: Tempe, Arizona
BioCare is a leading specialty distribution company that owns BioCareSD and LogiCare3PL. The company provides life-saving medications to patients across the US through field-based account management teams. In July 2023, BioCareSD partnered with AllyRetina GPO to launch a new specialty-only distribution GPO for community retina practices. [13]
The main competitive advantage of BioCare is its nationwide network of distribution centers and agile supply chain capabilities. BioCare was named to the Inc. 5000’s Fastest-Growing Private Companies in America list for 2023. In August 2023, Curant Health partnered with BioCareSD and LogiCare3PL to fulfill the complex rare disease patient and product needs. BioCare is a formidable competitor for McKesson. [14]
11. Morris & Dickson
Year founded: 1841
Headquarter: Shreveport, Louisiana
Morris & Dickson is America’s fourth-largest wholesale pharmaceutical distributor. It is an independent full-line drug supplier specializing in next-day delivery. As of June 2023, the company distributed drugs and related products to healthcare facilities in 22 states.
Morris & Dickson was recently accused of shipping 12,000 orders of opioids to pharmacies and hospitals from 2014 to 2018. In June 2023, the US DEA revoked Morris & Dickson’s license to sell and ship opioid medications. The ban only affects the company’s controlled substance division, not its entire distribution business. However, the scandal undercuts Morris & Dickson’s competitive advantage over McKesson. [15]
12. Anovo
Year founded: 2013
Headquarter: Memphis, Tennessee
Anovo offers specialty pharmacy services and customized treatment and support programs. The company addresses the needs of patients with complex and chronic diseases. In December 2022, Anovo was named to Memphis’ Best Places to Work. The company plans to hire 60-70 employees.
Anovo provides comprehensive end-to-end services, including third-party logistics, patient support, and specialty pharmacy programs. The company covers the entire supply chain, from the production point to delivery to the patient. In 2022, TPG Growth invested in Anovo to expand its best-in-class services for biopharmaceutical manufacturers. Anovo is one of the fastest-growing competitors for McKesson. [16]
13. Danaher Corporation
Year founded: 1984
Headquarter: Washington, DC
Danaher is a Fortune 500 science and technology innovator. The company has around 81,000 employees. In October 2016, Danaher acquired Phenomenex to expand its portfolio. Phenomenex distributes high-value consumables to laboratories.
Danaher owns over 20 companies specializing in different subsectors, with its Phenomenex brand competing against McKesson in the distribution sector. In August 2023, Danaher acquired Abcam to provide antibodies, reagents, biomarkers, and assays for research. Danaher is a worthy competitor for McKesson. [17]
14. Optum, Inc.
Year founded: 2011
Headquarter: Eden Prairie, Minnesota
Optum is an American healthcare services provider owned by UnitedHealth Group. It offers healthcare technology services, which compete against McKesson’s tech division. In September 2023, Optum pledged support for Sequoia’s new initiative to make healthcare data more useful. [18]
Optum diversified its portfolio beyond healthcare technologies to include home-based post-acute care services. In July 2023, Optum announced plans to acquire Amedisys for $3.3 billion to strengthen its home healthcare portfolio. As a subsidiary of UnitedHealth Group, Optum has enough resources to compete and poach some customers from McKesson. [19]
15. Access Healthcare
Year founded: 2011
Headquarter: Dallas, Texas
Access Healthcare is a health IT provider. The company offers comprehensive AI-powered business process outsourcing, application services, and robotic process automation tools. In 2022, Access Healthcare had 25,000 employees.
Access Healthcare serves healthcare providers, payers, and related service providers. In June 2023, the company was recognized as a Leader in the Everest Group’s RCM Operations Assessment. Access Healthcare is one of the best alternatives to McKesson for health IT. [20]
References & more information
- Pierson, B. (2023, Jan 21). McKesson’s $141 mln deal in investor suit over price-fixing gets initial OK. Reuters
- DT Staff (2023, Aug 2). McKesson Launches Health and Wellness Brand, Foster & Thrive. Drug Topics
- Cencora, Inc. (2023, Aug 30). AmerisourceBergen becomes Cencora in alignment with the company’s growing global footprint. Yahoo Finance
- Cardinal Health (2023, Aug 15). Cardinal Health Reports Fourth Quarter and Full Year Results for Fiscal Year 2023. PRNewswire
- Owens & Minor (2023, Aug 4). Owens & Minor Reports Second Quarter 2023 Financial Results. Owens-Minor.com
- Henry Schein, Inc. (2023, May 9). Henry Schein Reports First-Quarter 2023 Financial Results. Yahoo Finance
- Athenahealth (2023, Feb 9). Athenahealth Wins Four 2023 Best in KLAS Awards. Business Wire
- Miliard, M. (2023, Sep 19). Oracle Cerner adds generative AI to its EHR platforms. Health Care IT News
- Conifer Health (2023, May 23). Conifer Health Solutions Enters into New Partnership with Northwest Community Healthcare. PRWeb
- Medline (2023, Feb 15). Medline was named to Forbes 2023 ‘America’s Best Large Employers’ list. Medline.com
- Applied BioCode (2023, May 8). Applied BioCode Announces Distribution Agreement with Medline Industries. Business Wire
- 3M HIS (2023, Apr 18). 3M Health Information Systems collaborates with AWS to accelerate AI innovation in clinical documentation. 3M.com
- BioCare (2023, Jul 28). BioCareSD and AllyRetina Join Forces to Provide a Specialty-Only Distributor-GPO Option for Retina Practices. PRNewswire
- Curant Health (2023, Aug 28). Curant Health Partners with BioCareSD and LogiCare3PL to Offer Integrated, Enhanced Product and Patient Journey Business Wire
- Sullivan, T. (2023, Jun 16). Morris & Dickson’s Controlled Substance License Revoked. Policy Med
- TPG Growth (2022, Jan 12). TPG Invests in AnovoRx. Business Wire
- Abcam plc (2023, Aug 18). Danaher to acquire Abcam for $24.00 per Share. Abcam.com
- Diaz, N. (2023, Sep 20). Optum’s top moves in 2023. Becker Hospital Review
- AHA Editor (2023, Jul 11). Optum Rounds Out Its Home Health Portfolio as Competition Heats Up. America Hospital Association
- Access Healthcare (2023, Jun 29). Access Healthcare retains the “Leader” title for the 5th year in Everest Group’s RCM Operations – Services PEAK Matrix® Assessment 2023. PRNewswire
- Featured Image by National Cancer Institute
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