PROSPECTUS SUPPLEMENT 
 (TO PROSPECTUS DATED JUNE 18, 1997) 
                      
              4,000,000 TRUST CONVERTIBLE PREFERRED SECURITIES 
                           MCKESSON FINANCING TRUST
                 5% TRUST CONVERTIBLE PREFERRED SECURITIES 
         (LIQUIDATION AMOUNT $50 PER CONVERTIBLE PREFERRED SECURITY) 
                GUARANTEED TO THE EXTENT SET FORTH HEREIN BY, 
                              MCKESSON HBO, INC. 
                               _______________
  
      This prospectus supplement supplements and amends the prospectus dated
 June 18, 1997, relating to the 5% Trust Convertible Preferred Securities of
 McKesson Financing Trust, a statutory business trust formed under the laws
 of the State of Delaware and a subsidiary of McKesson HBOC, Inc.
 ("McKessonHBOC").  The Convertible Preferred Securities represent preferred
 undivided beneficial interests in the assets of McKesson Financing Trust
 and the shares of McKessonHBOC common stock, par value $.01 per share,
 issuable upon conversion of the Convertible Preferred Securities. 
  
      On January 12, 1999, McKesson Corporation and HBO & Company ("HBOC"),
 a leading healthcare information company, consummated their previously
 announced merger transaction.  McKessonHBOC began operations on January 13,
 1999, at its corporate headquarters located in San Francisco, California. 
 Common shares of McKessonHBOC continue to trade on the New York Stock
 Exchange under the symbol "MCK."  The merger of the two companies will be
 accounted for as a pooling of interests.  McKessonHBOC has a fiscal year
 end of March 31.  The quarter ending March 31, 1999, will be McKessonHBOC's
 first quarter of combined financial results and will include a charge for
 merger-related costs.  For the quarter ended December 31, 1998,
 McKessonHBOC reported separate financial results for McKesson Corporation
 and HBOC, respectively, on January 25, 1999. 
  
      Charles W. McCall, formerly president and chief executive officer of
 HBOC, has become chairman of McKessonHBOC's board of directors, and Mark A.
 Pulido, formerly president and chief executive officer of McKesson
 Corporation, has become president and chief executive officer of
 McKessonHBOC.  McKessonHBOC's board of directors consists of twelve
 members, which includes six members from the former McKesson Corporation
 board and six members from the former HBOC board.  

      The table on pages 56 through 58 of the Prospectus, which sets forth
 information with respect to the Selling Holders (as defined in the
 Prospectus) and the respective amounts of Convertible Preferred Securities
 beneficially owned by each Selling Holder that may be offered pursuant to
 the Prospectus (as supplemented and amended), is hereby amended by the
 deletion of items 4 and 65 of that table and the substitution therefor of
 items 4 and 65 below: 

 
 
                                  Convertible Preferred                             Convertible Preferred
                                  Securities Owned                                  Securities Owned  
                                  Prior to Offering        Number of                After Offering
                                  ---------------------    Convertible Preferred    ---------------------
 "Selling Holder                   Number        Percent    Securities Offered      Number        Percent
 -----------------------------    ------        -------    ---------------------    ------        -------
                                                                                    
 4.  New York Life Insurance       
      Company                     32,000         0.80%          32,000                   0          0.00

 65. Salomon Smith Barney Inc.    20,050         0.50%          20,050                   0          0.00

 

   The Prospectus, together with this Prospectus Supplement, constitutes
 the prospectus required to be delivered by Section 5(b) of the Securities
 Act of 1933, as amended, with respect to offers and sales of the
 Convertible Preferred Securities and McKessonHBOC Common Stock issuable
 upon conversion of the Convertible Preferred Securities.  All references in
 the Prospectus to "this Prospectus" are hereby amended to read "this
 Prospectus (as supplemented and amended)". 

 CONSIDER CAREFULLY THE RISK FACTORS ABOVE AND BEGINNING ON PAGE 6 IN THIS
 PROSPECTUS. 
                      
 NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
 COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON
 THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS.  ANY REPRESENTATION TO THE
 CONTRARY IS A CRIMINAL OFFENSE. 
  
 This prospectus supplement is dated February 5, 1999.