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McKesson’s MED3OOO and Pioneer Medical Group Announce Strategic Partnership and Joint Venture

McKesson today announced that MED3OOO and Pioneer Medical Group have signed a definitive agreement to jointly own and operate a new advanced management services joint venture. MED3OOO was recently acquired by McKesson and operates as part of McKesson Revenue Management Solutions. The joint venture represents an important step toward McKesson’s goal of helping providers achieve better business health by improving their operations.

The joint venture will offer physician group management, operations (including revenue cycle management), administration, hosted technology solutions, data warehousing and third-party administrative services, and sophisticated data management for provider groups and networks, employers, and hospitals. With Pioneer Medical Group as its initial customer, the joint venture is positioned to expand to other interested physicians and physician groups in the greater Los Angeles area in the future.

Pioneer Medical Group is one of the premier multi-specialty physician groups in California. Based in Cerritos, Calif., the group includes 45 multi-specialty physicians with offices in Bellflower, Cerritos, Downey, Lakewood, Long Beach, Los Alamitos, and South Gate.

“We selected MED3OOO for this strategic partnership to help ensure our continued success in the ever-changing healthcare environment while continuing to preserve the great Pioneer brand and our autonomy as a physician-owned medical group,” explained John M. Kirk, chief executive officer, Pioneer Medical Group. “This partnership approach enables our medical group and independent practice association to maintain that independence from institutional ownership. The people of MED3OOO understand physicians and have a track record of building successful, long-term, meaningful partnerships. I am delighted to be associated with this great organization, and I believe that its vision, capabilities and culture of partnership will be an excellent fit with ours.”

“MED3OOO and Pioneer Medical Group are in alignment with the core missions of improving the quality and cost of care in the communities we serve,” stated Patrick Hampson, president, MED3OOO. “Pioneer Medical Group is led by strong physician and management teams. Our partnership will focus on expanding the group’s capabilities with technologies and operational resources to help grow the organization. We believe that physicians who want to remain independent will be attracted to joining Pioneer Medical Group and to be part of a physician-led organization managed by a company that can provide the added capabilities to help them spend more time on healthcare delivery and their patients. We are confident that the patients of Pioneer Medical Group also will benefit in both quality and cost of care.”

MED3OOO, recently acquired by McKesson, includes more than 1,900 employees who now operate as part of McKesson Revenue Management Solutions. Prior to joining McKesson, MED3OOO was recognized by Inc. magazine on its Top 5,000 List for the last five years as one of the fastest growing companies in the nation. MED3OOO offerings include an array of proprietary and non-proprietary healthcare management products and services, advanced operational infrastructure, and technology solutions. Customers include physician groups, hospitals and health systems, employers, and accountable care organizations (ACOs). ACO customers include those organizations that have been accepted for CMS shared savings programs and physician associations with risk-based contracts, as well as hospitals, physician groups, employers, and state and local governments.

A leader in medical billing and practice management services, McKesson Revenue Management Solutions (including MED3OOO) comprises more than 6,500 experienced revenue cycle professionals. Its services are uniquely designed to help practices improve efficiency and grow revenues while staying current with the latest regulatory requirements. Revenue Management Solutions plays a strategic role in McKesson’s Better Health 2020TM strategy, which is focused on providing the capabilities needed to reduce costs, improve financial performance and successfully manage complex payment models.

About Pioneer Medical Group

Pioneer Medical Group is a physician-owned multi-specialty medical group with operations in eight clinical locations in Los Angeles and Orange Counties. PMG was formed in October 2000 by 54 physicians and throughout the years has received numerous awards and recognition for clinical measures, IT development, and patient satisfaction. In addition to its fee-for-service business, PMG has capitated enrollment of approximately 35,000 covered lives.

About McKesson Corporation

McKesson Corporation, currently ranked 14th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. We partner with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. For more information, visit www.mckesson.com.

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