McKesson, Change Healthcare finalize new company focused on value-based care
McKesson and analytics company Change Healthcare Holdings have completed the creation of a new company that joins nearly all of CHC’s business with most of McKesson Technology Solutions.
The new company is named Change Healthcare.
McKesson had previously announced in June 2016 it would create a new healthcare company to offer services and technology for value-based care.
“Over the last several years our industry has experienced a continued shift toward value-based care, requiring an increasingly consumer-centered approach to healthcare,” Change Healthcare CEO Neil de Crescenzo said in a statement. “Change Healthcare will leverage its data, analytics and forward-thinking insights to bring new solutions to payers, providers and consumers as they strive to achieve the best healthcare outcomes as efficiently as possible in this new environment.”
By combining the majority of McKesson Technology Solutions’ businesses with Change Healthcare Holdings, the new company can make the most of a broad set of complementary capabilities to deliver wide-ranging financial, operational and clinical benefits to payers, providers and consumers, he added.
Since the announcement of this transaction on June 28, 2016, both McKesson and CHC have engaged in measured integration planning de Crescenzo stated. Now that the transaction has closed, integration will accelerate with a focus on ensuring customer service continuity and innovation efforts and new solutions.
McKesson owns approximately 70 percent of Change Healthcare, with the remaining equity ownership held by CHC stockholders, including Blackstone and Hellman & Friedman. The new company is jointly governed by McKesson and CHC stockholders.
To create the new company, Change Healthcare raised approximately $6.1 billion in debt, which was used to fund cash payments of approximately $1.25 billion to McKesson and approximately $1.75 billion to CHC stockholders, cover transaction costs and repay approximately $2.8 billion of existing CHC debt.