SOURCE: McKesson

February 21, 2006 09:14 ET

New Human Resource Solution Bolsters Payroll Efficiencies to Optimize Hospital Cash Flow and Business Operations

McKesson's Horizon Human Resource Management Solution Applies Automation and Integrated Reporting Tools to High Cost Area

ATLANTA, GA -- (MARKET WIRE) -- February 21, 2006 -- To help hospitals improve operating costs associated with employee utilization, McKesson has introduced the Horizon Human Resource Management™ solution, a comprehensive human resources and payroll solution that delivers standardization and automation to improve various aspects of human resource management. In an era of razor-thin margins, labor shortages and increasing regulation, hospitals must scrutinize all aspects of their operations to see where new technologies can improve their bottom lines. The new, comprehensive human resources and payroll solution from McKesson addresses a key target area for hospitals -- management of employee wages and benefits, which together account for up to 60 percent of operating costs.

Horizon Human Resource Management rounds out McKesson's financial enterprise resource planning (ERP) solution, which includes Pathways Materials Management™ and Pathways Financial Management™, named "Best in KLAS" for three straight years (2002-current) in the financial/ERP category by KLAS Enterprises, Inc.

Cookeville Regional Medical Center, Cookeville, Tenn., which already uses McKesson solutions for supply chain management and surgical services, selected the new human resources solution to drive operating efficiencies and meet an anticipated increase in administrative workload.

According to Tommye Rena Wells, Cookeville Regional's controller, Cookeville is in the midst of a multi-million dollar expansion project to meet growing patient numbers in its community. "We chose McKesson's new human resource system because we were seeking a solution that would fully integrate our human resources and payroll departments," said Wells. "With more than 1,400 caregivers on payroll and an anticipated growth in our employee population, the accounting department is looking forward to the workflow benefits offered by the solution. Its design addresses the unique challenges of healthcare organizations, such as employees working different shifts at varying rates and frequencies of pay. It also provides extensive support for the distribution of payroll and employee-related data back to general ledger or other financial applications."

Another key strength of the Horizon Human Resource Management solution is its ability to leverage comprehensive labor information with enterprise-wide reporting. This enables organizations to meet certification and regulatory requirements by agencies such as Occupational Safety and Health Administration (OSHA) and Joint Commission on Accreditation of Healthcare Organizations (JCAHO). The system's functionality also supports employee and manager self-service personnel functions such as updating insurance, pension, medical and cafeteria-style plans.

"The human resources department is very excited about McKesson's new HR product," said Angel Lewis, vice president of human resources, Cookeville Regional Medical Center. "It will offer our department more flexibility, automating many routine transactions, such as payroll deductions, attendance tracking and enrollment changes. We expect our human resource professionals will be freed to channel their skills into higher value tasks."

Additional forecasting and costing functionality enables managers not only to track personnel expenditures but also make projections based on customized scenarios for future staffing growth. A recruiting module also is included to help expedite the hiring process by giving managers the ability to create, track and fill job postings from both internal and external applicants.

"Automating processes related to labor costs can offer tremendous savings opportunities and create sufficient cash flow to generate capital for investments in key areas, such as quality improvement and patient safety," said Duncan James, group president of Business Performance Solutions, McKesson Provider Technologies. "With Horizon Human Resource Management, organizations like Cookeville now have the technology to manage all aspects of employee administration so they can more effectively manage business operations and spend more time and focus on how to improve the quality of patient care."

About Cookeville

Cookeville Regional Medical Center is a 247-bed regional referral center in the heart of the Upper Cumberland of middle Tennessee. Since its founding in 1950, the medical center has grown to provide inpatient, outpatient, rehabilitation and emergency care in addition to a host of specialty services such as The Heart Center and The Cancer Center. A medical staff of more than 120 physicians provides care in 36 specialties. For more information: www.crmchealth.org

About McKesson

McKesson Corporation, currently ranked 15th on the FORTUNE 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 173-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information: www.mckesson.com.

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