Drug distributors are re-defining their role in the new health care delivery system, moving from anonymous product suppliers to providing greater value through enhanced service capabilities. Cardinal Health is among the leaders of wholesaling's new breed, moving closer to the hospital and establishing new relationships with pharmaceutical companies. Cardinal's latest venture, an outcomes data program called Jericho, could be a major step toward shedding the wholesaler's product-neutral label, putting distributors in the role of influencing drug selection and moving market share.

A few years ago, generics looked unstoppable; today, pricing's reached suicidal levels. As for generic substitution, patients would rather fight than switch.

Through a series of innovative service acquisitions, Cardinal is moving closer to the point of dispensing and to the point where it can influence product selection.