Calls Synergies 'a Stretch'
Claims that the two companies can achieve synergies are "a stretch," said
Ben Rooks, an analyst at CIBC Oppenheimer. While Mr. Rooks said he
sees some scope for one-time cost savings, he said that overall, "There's a
little bit of apples and screwdrivers." In health-care circles, though, the
proposed combination attracted some more upbeat responses. "HBO has
an incredibly large provider base, and McKesson has good technology,"
said James Kagen, a top consultant at CSC Healthcare, New York, a unit
of Computer Sciences Corp. "This can bring McKesson closer to its
customers."
One big customer, Columbia/HCA Healthcare Inc., Nashville, Tenn., also
reacted positively. Columbia/HCA, which operates 300 hospitals, uses
McKesson for much of its supply-chain management, but traditionally
hasn't done much business with HBO. The proposed merger "can't do
anything but help us," said Jim Fitzgerald, Columbia/HCA's vice president
for contracts and operations support. "We want to provide end users with
better data, so it can help affect health outcomes." |
