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

                               October 19, 1998
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                               (Date of report) 

                               October 17, 1998
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                       (Date of earliest event reported)

                             McKESSON CORPORATION
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            (Exact Name of Registrant as Specified in its Charter)

      Delaware                     1-13252                 94-3207296
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(State of Other Jurisdiction     (Commission             (IRS Employer
   of Incorporation)             File Number)          Identification No.)

McKesson Plaza
One Post Street
San Francisco, California                               94104
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(Address of Principal Executive Offices)              (Zip Code)

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

                                Not Applicable
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         (Former name or former address, if Changed Since Last Report)


 
ITEM 5. OTHER EVENTS

        On October 18, 1998, McKesson Corporation ("McKesson") and HBO & Company
("HBOC") announced that a definitive merger agreement has been signed for
McKesson to acquire HBOC. Terms of the merger call for each HBOC stockholder to
receive 0.37 shares of McKesson common stock for each share of HBOC common stock
in a tax-free exchange. The merger, which is subject to regulatory approval,
approval by the stockholders of the two companies, and certain other customary
conditions, will be accounted for as a pooling of interests and is anticipated
to close in the first quarter of 1999. Further information concerning the merger
is contained in the press release regarding this announcement, the text of which
is set forth in Exhibit (99) to this Current Report on Form 8-K and is hereby
incorporated by reference herein.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

        (c) Exhibits

                (99) Press Release issued by McKesson Corporation dated 
                     October 18, 1998.

                     SIGNATURE

        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.

Date: October 19, 1998

                                        McKESSON CORPORATION

                                        By:  /s/ Nancy A. Miller
                                           -------------------------------------
                                           Name: Nancy A. Miller
                                           Title: Vice-President and Secretary





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                                EXHIBIT INDEX
 
EXHIBIT 
  NO.      TITLE
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  (99)     Press Release issued by McKesson Corporation on October 18, 1998.