McKesson Connect Link:A One McKesson Differentiator!

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A Customer Initiated Solution

McKessonMcKessonConnect LinkConnect LinkMcKessonMcKesson

Connect LinkConnect Link

Business Issue:to increase National Drug Code (NDC)

accuracy.

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Connect LinkWhere is Accuracy Needed Most?

1. CMS billing requirement Medicaid Medicare

2. 340B compliance tracking

3. Barcode medication administration database

4. Acquisition pricing updates

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What is the NDC billing issue?

NDC detail required for Medicaid claims for outpatient “physician administered medications” effective January 1st

NDC detail required for Outpatient Medicare claims (e.g. ED, ASC’s, infusion clinics); this billing requirement is projected to extend to all Medicare Inpatients in the near future

Pharmacy IS and purchasing methods are not designed to track NDC numbers

Intentional non-compliance may result in fraud. NDC omission results in no pay.

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NDC: How Connect Link Helps

Hospital Financial System

Pharma DistributionMcKesson Connect

► New NDCs► Purchased not primary

File Updates

Horizon Meds Manager Connect Link

NDC Detail

McKesson Connect Link Benefits: • Improves accuracy of NDC billing detail • Improves Medicare/Medicaid compliance• Improves revenue capture

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What is the 340B issue?

340B is a federal program for not-for-profit disproportionate share hospitals (DSH).

Covered entities can purchase outpatient drugs at a greatly discounted price (25%+)

For many hospitals this can mean millions of dollars in drug spend savings.

Intentional non-compliance can lead to a lifetime ban from program.

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ED

Clinic

IV

SDS

340B: How Connect Link Helps

McKesson 340BManager

Connect LinkHorizon Meds Manager

Pharma DistributionMcKesson Connect

Orders

ReportsAudit Trail

340BOrder

RegOrder

McKesson Connect Link Benefits: • Maintains accurate NDC numbers• Improves 340B program compliance• Optimizes potential 340B savings

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What is the BCMA issue?

Bar Code Med Admin (BCMA): as much as 10% of medications not being scanned─ Major contributing factor: inaccurate barcode

databases

Out-of-date barcode database results in scan overrides and med safety risk.

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Horizon Admin-Rx

Pharma Distribution’s McKesson Connect

► New NDCs► Purchased not primary

File Updates

Horizon Meds Manager

Connect Link

Master File (MFN) Update

BCMA: How Connect Link Helps

New/ChangedNDCs

Scan

McKesson Connect Link Benefits:• Facilitates barcode accuracy in Horizon

Admin-Rx (BCMA)• Increases scan rates • Improved medication safety

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Cost Updates: How Connect Link Helps

Searches for pricing updates and alerts user for prices outside “guardrails”

Detects contract pricing errors and pack size changes

Provides efficient method of maintaining charges based on Average Wholesale Price (AWP)Accurate cost detail gives true meaning

and value to pharmacy reporting/analytics.