The route that medications take from hospital dock to patient can literally mean the difference between life and death. From receipt and packaging to distribution and administration, there is simply no room for error.

McKesson, America's oldest and largest health care services company, specializes in the delivery of vital medicines, medical supplies, health information technology and automation solutions.

For McKesson Automation, Inc., delivering the right medications to the right patient at the right time—in the correct dose and as prescribed—has always been the company vision. Based in the Pittsburgh suburb of Cranberry, the Automation team develops hardware and software systems that receive, package, distribute and administer bar-coded medications within a hospital.

The division was formed in 1996 when McKesson International, a BFTP alumni company, acquired Automated Healthcare. McKesson, America's oldest and largest healthcare services company, ranks 16th in the Fortune 500 and delivers more than a third of all medicines used daily by pharmacies, hospitals, nursing homes and doctors' offices. Its 25,000 employees worldwide are dedicated to delivering vital medicines, medical supplies, health information technology and automation solutions. Worldwide, McKesson employs more than 1,000 people—600 in the Pittsburgh region alone.

"We don't just drop products off at the loading dock and send the customer an invoice," says Phil Spano, the vice president of innovation advancement and business development. "We are involved throughout the distribution process through a comprehensive service and support model."

Help Exactly When It Was Needed
In the late 1980s and early 1990s Automated Healthcare was a fledgling company that received critical early-stage support from Ben Franklin Technology Partners.

"BFTP was the group that first believed in the vision of our founders," Spano says. "Without its support, the business plan might still be just a dream." Ben Franklin Technology Partners invested nearly $468,000 between 1987 and 1992.

For Spano and others who were part of the Automated Healthcare team to be where they are today—part of an $80 billion a year company—they needed some help along the way.

"Taking an idea from business plan to the commercial market has many pitfalls along the way. BFTP provided not only dollars but also access to advisors and helped open doors within the Pittsburgh business community," Spano says. "Their investment and guidance added legitimacy to those of us working to make our business plan a reality."

Solving the Most Pressing Problems
In August, the company announced that the Ontario Ministry of Health will implement McKesson systems in 80 hospitals as part of a government plan to increase access and reduce wait times for five major health services: cancer surgery, cardiac procedures, cataract surgery, hip and knee replacements as well as MRI and CT exams.

Hospitals are constantly struggling to contain costs, increase efficiencies and drive revenue. The OR in particular is a key area that must run at peak performance. "Expensive human and capital resources are used in these areas," Spano says. "Getting even one more procedure accomplished in a day can greatly change the economic picture of the operations."

Standing Out in the Crowd
According to Spano, Automated Healthcare survived its early days and is now thriving under the umbrella of its corporate parent by maintaining its culture of innovation and dedication to doing what is right for its hospital customers.

"Competitors with shortcuts, poor quality and a 'me too' story are always going to show up," says Spano. "That's why we always remember our roots, why we built this company, and the principles that guide us. Staying customer-focused is the only successful sustaining strategy."

Spano says McKesson Automation will continue to grow wherever there are problems to be solved in health care. "It's an exciting market to be in these days with the expansion of ambulatory care and surgery centers, home health care growth and of course an aging Baby Boomer population that's living longer and healthier," says Spano. "Our challenge is to identify opportunities ahead of time—and determine what will have the biggest impact and most value for our customers."

 From the October 2006 issue