SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                            -----------------------

                                   FORM 8-K
                                CURRENT REPORT

                    Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                               January 28, 1997
                      (Date of Earliest Event Reported)

                             MCKESSON CORPORATION
            (Exact name of registrant as specified in its charter)

              Delaware                  1-13252              94-3207296
          (State or other       (Commission File Number)    (IRS Employer
           jurisdiction                                     Identification 
          of incorporation)                                    Number)

          
           McKesson Plaza, One Post Street, San Francisco, CA 94104
          (Address of principal executive offices, including Zip Code)

                                (415) 983-8300
             (Registrant's telephone number, including area code)


          Item 5 - Other Events.

                    McKesson Corporation ("McKesson"), General
          Medical Inc. ("General Medical") and certain stockholders
          of General Medical (the "Continuing Stockholders")
          entered into an Agreement and Plan of Merger, dated as of
          January 28, 1997 (the "Merger Agreement"), pursuant to
          which McKesson will acquire all of the outstanding
          capital stock (including options) of General Medical for
          approximately $347 million.  McKesson will also assume
          approximately $428 million in debt of General Medical. 
          The Merger Agreement, which has been approved by the
          Boards of Directors of each company and by the
          stockholders of General Medical, provides for the merger
          (the "Merger") of Spider Acquisition Corporation, a
          wholly owned subsidiary of McKesson ("Merger Sub"), with
          and into General Medical, with General Medical being the
          surviving corporation in the Merger.

                    The Merger Agreement provides that each share
          of General Medical common stock held by the Continuing
          Stockholders will be converted into the right to receive
          a combination of cash and shares of McKesson common
          stock, par value $.01 per share (the "McKesson Common
          Stock"), pursuant to formulas specified in the Merger
          Agreement.  The issued and outstanding shares of capital
          stock held by stockholders of General Medical other than
          the Continuing Stockholders (and other than dissenting
          shares, treasury shares and shares held by McKesson or
          Merger Sub) will be converted in the Merger into the
          right to receive cash.  Approximately one-half of the
          aggregate Merger consideration will be paid in cash and
          one-half in shares of McKesson Common Stock.  The Merger
          Agreement provides that the number of shares of McKesson
          Common Stock to be issued in the Merger will be
          determined on the basis of the average closing price of
          McKesson Common Stock for the five trading days ending
          two trading days prior to the closing; provided, however,
          that the average closing price of McKesson Common Stock
          will not be deemed to be greater than $63.11 or less than
          $46.64.  Accordingly, in the aggregate, no more than
          approximately 3,720,000 or less than approximately
          2,750,000 shares of McKesson Common Stock will be issued
          in the Merger.  The Merger Agreement provides that $30
          million of the cash consideration to be paid in the
          Merger will be held back from the General Medical
          stockholders (and optionholders) and such amount will be
          applied against any costs incurred by General Medical and
          certain other defendants in connection with a pending
          lawsuit involving General Medical and certain other
          persons.  The lawsuit was brought by the former
          controlling shareholder of the predecessor of General
          Medical against General Medical, GM Holdings, Inc., a
          wholly owned subsidiary of General Medical, Kelso &
          Company, L.P., a stockholder of General Medical, and one
          of its officers, and certain present and former officers
          and a director of General Medical, alleging fraud, breach
          of fiduciary duty and participation in and inducing
          breach of fiduciary duty in connection with the
          acquisition of General Medical from its predecessor
          company in 1993.

                    The Merger is subject to certain customary
          conditions, including expiration of the waiting period
          under the Hart-Scott-Rodino Antitrust Improvements Act of
          1976, as amended.  Copies of the Merger Agreement and the
          press release announcing the transaction are attached
          hereto as Exhibits 2.1 and 99.1, respectively, which
          exhibits are incorporated herein by reference.

                    McKesson and the Continuing Stockholders have
          also entered into a Registration Rights Agreement (the
          "Registration Rights Agreement") providing certain demand
          and incidental registration rights with respect to the
          shares of McKesson Common Stock which such stockholders
          will receive in exchange for their shares of General
          Medical common stock.  The Registration Rights Agreement
          also provides for certain "standstill" provisions and
          other limitations on disposition of the shares of
          McKesson Common Stock.  A copy of the Registration Rights
          Agreement is attached hereto as Exhibit 99.2, which
          exhibit is incorporated herein by reference.

                    The Private Securities Litigation Reform Act of
          1995 provides a "safe harbor" for forward-looking
          statements to encourage companies to provide prospective
          information about companies, so long as those statements
          are identified as forward looking and are accompanied by
          meaningful cautionary statements identifying important
          factors that could cause actual results to differ
          materially from those discussed in the statement.  The
          press release filed herewith contains certain forward-
          looking statements.  McKesson desires to take advantage
          of the "safe harbor" provisions with respect to
          statements it may make concerning the Merger.  The
          following important factors, among others, could affect
          the successful integration of the companies and the
          recognition of cost savings or other synergies from the
          transaction, as well as McKesson's continuing operations:

          Factors specific to the transaction include:

               - Absence of legislation which prevents the Merger
          from being consummated or makes the benefits expected to
          be realized upon consummation of the Merger more
          difficult to achieve.

               -  Possible adverse publicity or litigation from
          third parties interested in preventing the Merger from
          occurring.

               -  Loss or retirement of key executives of General
          Medical.

          Other factors affecting McKesson's operations include:

               - Level of competition for McKesson's products,
          including a possible willingness on the part of certain
          competitors to cut prices for their products in order to
          preserve or gain market share.

               - Increase in spending by competitors.

               - Risks inherent in new product introductions,
          including uncertainty of customer acceptance of the
          product's value proposition relative to competitors'
          products, and competitors' response to the introduction.

               - General economic and business conditions.

               - Uncertainty in the economic environment in foreign
          countries.

               - Other risks detailed from time to time in
          McKesson's filings with the Securities and Exchange
          Commission.

               The foregoing review of factors pursuant to the
          Private Litigation Securities Reform Act of 1995 should
          not be construed as exhaustive.


          Item 7(c) - Exhibits.

                2.1 Agreement and Plan of Merger, dated as of
                    January 28, 1997, by and among General Medical
                    Inc., McKesson Corporation, Spider Acquisition
                    Corporation and certain stockholders named
                    therein.

               99.1 Press Release of McKesson Corporation, dated
                    January 28, 1997.

               99.2 Registration Rights Agreement, dated as of
                    January 28, 1997, by and among McKesson
                    Corporation and certain stockholders named
                    therein.


                                  SIGNATURES

                    Pursuant to the requirements of the Securities
          Exchange Act of 1934, the registrant has duly caused this
          report to be signed on its behalf by the undersigned
          hereunto duly authorized.

                                   MCKESSON CORPORATION
                                   (Registrant)

          Date:  February 5, 1997       By:  /s/ Nancy A. Miller 
                                           --------------------------
                                        Name:  Nancy A. Miller
                                        Title: Vice President and
                                               Corporate Secretary


                                EXHIBIT INDEX

          Exhibit                                                    Page

           2.1    Agreement and Plan of Merger, dated as of
                  January 28, 1997, by and among General Medical 
                  Inc., McKesson Corporation, Spider Acquisition
                  Corporation and certain stockholders named
                  therein.

          99.1    Press Release of McKesson Corporation, dated
                  January 28, 1997.

          99.2    Registration Rights Agreement, dated as of
                  January 28, 1997, by and among McKesson
                  Corporation and certain stockholders named 
                  therein.
[{"type": "8-K", "sequence": "1", "description": "8-K", "secsgml_size_bytes": 10772}]
{"company-data": {"conformed-name": "PCS HOLDING CORP", "cik": "0000816768", "assigned-sic": "5122", "irs-number": "943040479", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "002-97752-99", "film-number": "97518113"}, "business-address": {"street1": "MCKESSON PLZ ONE POST ST", "city": "SAN FRANCISCO", "state": "CA", "zip": "94104", "phone": "4159838300"}, "former-company": [{"former-conformed-name": "MCKESSON CORP /DE/", "date-changed": "19920703"}, {"former-conformed-name": "MCKESSON HOLDING CO", "date-changed": "19870802"}]}
SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                            -----------------------

                                   FORM 8-K
                                CURRENT REPORT

                    Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                               January 28, 1997
                      (Date of Earliest Event Reported)

                             MCKESSON CORPORATION
            (Exact name of registrant as specified in its charter)

              Delaware                  1-13252              94-3207296
          (State or other       (Commission File Number)    (IRS Employer
           jurisdiction                                     Identification 
          of incorporation)                                    Number)

          
           McKesson Plaza, One Post Street, San Francisco, CA 94104
          (Address of principal executive offices, including Zip Code)

                                (415) 983-8300
             (Registrant's telephone number, including area code)

          Item 5 - Other Events.

                    McKesson Corporation ("McKesson"), General
          Medical Inc. ("General Medical") and certain stockholders
          of General Medical (the "Continuing Stockholders")
          entered into an Agreement and Plan of Merger, dated as of
          January 28, 1997 (the "Merger Agreement"), pursuant to
          which McKesson will acquire all of the outstanding
          capital stock (including options) of General Medical for
          approximately $347 million.  McKesson will also assume
          approximately $428 million in debt of General Medical. 
          The Merger Agreement, which has been approved by the
          Boards of Directors of each company and by the
          stockholders of General Medical, provides for the merger
          (the "Merger") of Spider Acquisition Corporation, a
          wholly owned subsidiary of McKesson ("Merger Sub"), with
          and into General Medical, with General Medical being the
          surviving corporation in the Merger.

                    The Merger Agreement provides that each share
          of General Medical common stock held by the Continuing
          Stockholders will be converted into the right to receive
          a combination of cash and shares of McKesson common
          stock, par value $.01 per share (the "McKesson Common
          Stock"), pursuant to formulas specified in the Merger
          Agreement.  The issued and outstanding shares of capital
          stock held by stockholders of General Medical other than
          the Continuing Stockholders (and other than dissenting
          shares, treasury shares and shares held by McKesson or
          Merger Sub) will be converted in the Merger into the
          right to receive cash.  Approximately one-half of the
          aggregate Merger consideration will be paid in cash and
          one-half in shares of McKesson Common Stock.  The Merger
          Agreement provides that the number of shares of McKesson
          Common Stock to be issued in the Merger will be
          determined on the basis of the average closing price of
          McKesson Common Stock for the five trading days ending
          two trading days prior to the closing; provided, however,
          that the average closing price of McKesson Common Stock
          will not be deemed to be greater than $63.11 or less than
          $46.64.  Accordingly, in the aggregate, no more than
          approximately 3,720,000 or less than approximately
          2,750,000 shares of McKesson Common Stock will be issued
          in the Merger.  The Merger Agreement provides that $30
          million of the cash consideration to be paid in the
          Merger will be held back from the General Medical
          stockholders (and optionholders) and such amount will be
          applied against any costs incurred by General Medical and
          certain other defendants in connection with a pending
          lawsuit involving General Medical and certain other
          persons.  The lawsuit was brought by the former
          controlling shareholder of the predecessor of General
          Medical against General Medical, GM Holdings, Inc., a
          wholly owned subsidiary of General Medical, Kelso &
          Company, L.P., a stockholder of General Medical, and one
          of its officers, and certain present and former officers
          and a director of General Medical, alleging fraud, breach
          of fiduciary duty and participation in and inducing
          breach of fiduciary duty in connection with the
          acquisition of General Medical from its predecessor
          company in 1993.

                    The Merger is subject to certain customary
          conditions, including expiration of the waiting period
          under the Hart-Scott-Rodino Antitrust Improvements Act of
          1976, as amended.  Copies of the Merger Agreement and the
          press release announcing the transaction are attached
          hereto as Exhibits 2.1 and 99.1, respectively, which
          exhibits are incorporated herein by reference.

                    McKesson and the Continuing Stockholders have
          also entered into a Registration Rights Agreement (the
          "Registration Rights Agreement") providing certain demand
          and incidental registration rights with respect to the
          shares of McKesson Common Stock which such stockholders
          will receive in exchange for their shares of General
          Medical common stock.  The Registration Rights Agreement
          also provides for certain "standstill" provisions and
          other limitations on disposition of the shares of
          McKesson Common Stock.  A copy of the Registration Rights
          Agreement is attached hereto as Exhibit 99.2, which
          exhibit is incorporated herein by reference.

                    The Private Securities Litigation Reform Act of
          1995 provides a "safe harbor" for forward-looking
          statements to encourage companies to provide prospective
          information about companies, so long as those statements
          are identified as forward looking and are accompanied by
          meaningful cautionary statements identifying important
          factors that could cause actual results to differ
          materially from those discussed in the statement.  The
          press release filed herewith contains certain forward-
          looking statements.  McKesson desires to take advantage
          of the "safe harbor" provisions with respect to
          statements it may make concerning the Merger.  The
          following important factors, among others, could affect
          the successful integration of the companies and the
          recognition of cost savings or other synergies from the
          transaction, as well as McKesson's continuing operations:

          Factors specific to the transaction include:

               - Absence of legislation which prevents the Merger
          from being consummated or makes the benefits expected to
          be realized upon consummation of the Merger more
          difficult to achieve.

               -  Possible adverse publicity or litigation from
          third parties interested in preventing the Merger from
          occurring.

               -  Loss or retirement of key executives of General
          Medical.

          Other factors affecting McKesson's operations include:

               - Level of competition for McKesson's products,
          including a possible willingness on the part of certain
          competitors to cut prices for their products in order to
          preserve or gain market share.

               - Increase in spending by competitors.

               - Risks inherent in new product introductions,
          including uncertainty of customer acceptance of the
          product's value proposition relative to competitors'
          products, and competitors' response to the introduction.

               - General economic and business conditions.

               - Uncertainty in the economic environment in foreign
          countries.

               - Other risks detailed from time to time in
          McKesson's filings with the Securities and Exchange
          Commission.

               The foregoing review of factors pursuant to the
          Private Litigation Securities Reform Act of 1995 should
          not be construed as exhaustive.

          Item 7(c) - Exhibits.

                2.1 Agreement and Plan of Merger, dated as of
                    January 28, 1997, by and among General Medical
                    Inc., McKesson Corporation, Spider Acquisition
                    Corporation and certain stockholders named
                    therein.

               99.1 Press Release of McKesson Corporation, dated
                    January 28, 1997.

               99.2 Registration Rights Agreement, dated as of
                    January 28, 1997, by and among McKesson
                    Corporation and certain stockholders named
                    therein.

                                  SIGNATURES

                    Pursuant to the requirements of the Securities
          Exchange Act of 1934, the registrant has duly caused this
          report to be signed on its behalf by the undersigned
          hereunto duly authorized.

                                   MCKESSON CORPORATION
                                   (Registrant)

          Date:  February 5, 1997       By:  /s/ Nancy A. Miller 
                                           --------------------------
                                        Name:  Nancy A. Miller
                                        Title: Vice President and
                                               Corporate Secretary

                                EXHIBIT INDEX

          Exhibit                                                    Page

           2.1    Agreement and Plan of Merger, dated as of
                  January 28, 1997, by and among General Medical 
                  Inc., McKesson Corporation, Spider Acquisition
                  Corporation and certain stockholders named
                  therein.

          99.1    Press Release of McKesson Corporation, dated
                  January 28, 1997.

          99.2    Registration Rights Agreement, dated as of
                  January 28, 1997, by and among McKesson
                  Corporation and certain stockholders named 
                  therein.