UnitedHealth Group

UnitedHealth Group Incorporated is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota.

Categories

Pharma and Life Sciences  

#16

Rank

$420.55B

MarketCap US

US United States

Country

Summary

UnitedHealth Group Incorporated is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota. Offering insurance services under UnitedHealthcare and healthcare products under Optum, it is the world's eleventh-largest company by revenue and the largest healthcare company by revenue, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 78% of the Group's overall revenue.

The company is ranked 11th on the 2022 Fortune Global 500. UnitedHealth Group has a market capitalisation of $400.7 billion as of March 31, 2021.


History

UnitedHealth Group has origins dating back to 1974 with the founding of Minnesota-based Charter Med Incorporated, founded by Richard Taylor Burke. It originally processed claims for doctors at the Hennepin County Medical Society. United HealthCare Corporation was founded in 1977 to purchase Charter Med and create a network-based health plan for seniors. It became a publicly traded company in 1984 and changed its name to UnitedHealth Group in 1988.

In 1988, United HealthCare started its first pharmacy benefit management, through its Diversified Pharmaceutical Services subsidiary. It managed pharmacy benefits delivered both through retail pharmacies and mail. The subsidiary was sold to SmithKline Beecham in 1994 for $2.3 billion.

In 1994, United HealthCare acquired Ramsey-HMO, a Florida insurer. In 1995, the company acquired The MetraHealth Companies Inc. for $1.65 billion. MetraHealth was a privately held company formed by combining the group healthcare operations of The Travelers Companies and MetLife. In 1996, United HealthCare acquired HealthWise of America, which operated HMOs in Arkansas, Maryland, Kentucky and Tennessee.

In 1998, the company was reorganised as the holding of independent companies UnitedHealthcare, Ovations, Uniprise, Specialized Care Services and Ingenix, and rebranded as "UnitedHealth Group". Also in 1998, United Health Group acquired HealthPartners of Arizona, operator of Arizona's largest AHCCCS provider.

In 2001, EverCare, a UnitedHealth Group subsidiary, merged with LifeMark Health Plans In 2002, UnitedHealth Group acquired GeoAccess and Medicaid insurance company AmeriChoice. In 2003, UnitedHealth Group acquired Mid Atlantic Medical Services, an insurer serving Maryland, Washington D.C., Virginia, Delaware and West Virginia. Also in 2003, UnitedHealth Group acquired Golden Rule Financial, a provider of health savings accounts. On July 21, 2003, Exante Bank started operating in Salt Lake City, Utah, as a Utah state-chartered industrial loan corporation. It changed its name to OptumHealth Bank in 2008 and to Optum Bank in 2012.

In April 2004, UnitedHealth Group acquired Touchpoint Health Plan, a Wisconsin health plan. In July 2004, the company acquired Oxford Health Plans.

In December 2005, the company acquired PacifiCare Health Systems. It agreed to divest parts of PacifiCare's commercial health insurance business in Tucson, Arizona and Boulder, Colorado to satisfy antitrust regulator concerns, and also agreed to end its network access agreement with Blue Shield of California. The Tucson business was sold to Cigna. The company acquired Prescription Solutions, another pharmacy benefits manager, as part of its acquisition of PacifiCare Health Systems. This business was later rebranded OptumRx.

In February 2006, the company acquired John Deere Health Care. The same year, William W. McGuire stepped down as chairman and director due to his involvement in the employee stock options scandal. He was replaced by CEO Stephen Hemsley who had served as president and COO and a member of the board of directors. 

In February 2008, the company acquired Sierra Health Services for $2.6 billion. As part of the transaction, to obtain regulatory approval, 25,000 customers were sold to Humana. In July 2009, UnitedHealth Group agreed to acquire Health Net's Northeast licensed subsidiaries for up to $570 million in payments spread out over two years. Through 2010 and into 2011, senior executives of the company met monthly with executives of other health insurers to limit the effect of the health care reform law.

In July 2010, Ingenix acquired Picis Clinical Solutions, Inc., a health information provider for the high-acuity areas of hospitals.

Former LHI buildings in La Crosse
In 2011, Logistics Health, Inc. of La Crosse, Wisconsin, was acquired by OptumHealth. In September 2014, the office buildings where LHI is based were sold to UnitedHealth Group for $45 million.

In February 2012, the company acquired XLHealth, a sponsor of Medicare Advantage health plans with a primary focus on medicare recipients with special needs such as those with chronic illness and those eligible for Medicaid ("dual eligibles"). In October 2012, UnitedHealth Group and Amil Participações, one of the biggest Brazilian health insurance companies, completed the first phase of their merger.

In February 2014, Optum secured a majority stake in the Washington, D.C.-based startup Audax Health. Audax's CEO, Grant Verstandig, continued running the firm alongside COO David Ko. In October 2014, Optum Health acquired the health services unit of Alere for $600 million cash.

In March 2015, it was announced that CatamaranRx would be acquired by OptumRx.

In April 2016, the company announced it was pulling out of all but a "handful" of state healthcare exchanges provided under Affordable Care Act and will continue to sell only in three states in 2017.

In 2017, UnitedHealth's Optum unit acquired Rally Health, a company started by Audax Health's executives. Prior to acquisition, in 2015, UnitedHealth supported Rally Health as a majority investor, and through enrolling 5 million UnitedHealth policy holders in Rally Health's flagship product, RallySM. The close relations between UnitedHealth, Audax Health and Rally Health follows a close personal relationship between Grant Vrestandig (Audax and Rally) and UnitedHealth's President and CFO at the time, David Wichmann.

In June 2019, UnitedHealth's Optum division acquired Davita Medical Group from DaVita Inc. for $4.3 billion. That year, the company also agreed to acquire Equian for $3.2 billion. On June 19, 2019, UnitedHealth acquired the online patient community platform PatientsLikeMe for an undisclosed amount and it will be incorporated into UnitedHealth Group's research division.

In November 2019, Andrew Witty was named president of UnitedHealth, in addition to his role as chief executive of the company's Optum division.

UnitedHealth announced in March 2022 that it would acquire LHC Group for $5.4 billion. The deal will expand its home health capabilities by combining LHC's services with UnitedHealth's Optum unit.


Mission

The mission of UnitedHealth Group, a leading health care company, is to help people live healthier lives and make the health system work better for everyone. They aim to achieve this by providing high-quality, affordable health care services, investing in innovative technologies and solutions, and collaborating with healthcare professionals, policymakers, and communities to drive positive change in the healthcare industry. 

UnitedHealth's ultimate goal is to create a healthcare system that is accessible, efficient, and responsive to the needs of individuals and communities.


Vision

The vision of UnitedHealth Group is to be a trusted leader in the healthcare industry, delivering innovative solutions and exceptional services that improve the health and well-being of individuals and communities. 

UnitedHealth aims to create a sustainable and integrated healthcare system that delivers superior outcomes, reduces costs, and enhances the overall experience for patients, providers, and payers. They envision a future where every individual has access to high-quality, affordable healthcare, and where technology and data are leveraged to drive better health outcomes and improved health equity. Ultimately, UnitedHealth's vision is to help people live healthier lives and make healthcare work better for everyone.


Key Team

Andrew Witty (CEO)

Dirk McMahon (President, Chief Operating Officer)

John Rex (Executive Vice President, Chief Financial Officer)

Cory B. Alexander (Strategic Advisor)

Catherine Anderson (Senior Vice President, Health Equity Strategy)

Rupert Bondy (Executive Vice President, Chief Legal Officer)

Heather Cianfrocco (Chief Executive Officer Optum Rx)

Terry M. Clark (Chief Marketing Officer UnitedHealth Group Chief Marketing & Customer Officer Optum)

Roger Connor (Executive Vice President, Enterprise Operations & Services Optum)

Sandeep Dadlani (Executive Vice President, Chief Digital & Technology Officer UnitedHealth Group)

Neil de Crescenzo (Chief Executive Officer Optum Insight)

Wyatt Decker, M.D. (Chief Executive Officer Optum Health)

Joy Fitzgerald (Senior Vice President, Chief Diversity, Equity & Inclusion Officer UnitedHealth Group)

Dame Vivian Hunt (Chief Innovation Officer Optum)

Patricia L. Lewis (Executive Vice President, Chief Sustainability Officer UnitedHealth Group)

Tracy Malone (Senior Vice President UnitedHealth Group President United Health Foundation)

Richard Mattera (Senior Vice President, Chief Development Officer UnitedHealth Group)

Phil McKoy (Enterprise Lead, Services and Integration Optum)

Erin McSweeney (Executive Vice President, Chief People Officer UnitedHealth Group)

Tom Roos (Senior Vice President, Chief Accounting Officer UnitedHealth Group)

Dan Schumacher (Chief Strategy & Growth Officer UnitedHealth Group)

Jennifer Smoter (Senior Vice President, Chief Communications Officer UnitedHealth Group)

Zack Sopcak (Senior Vice President, Investor Relations UnitedHealth Group)

Brian Thompson (Chief Executive Officer UnitedHealthcare)

Margaret-Mary Wilson, M.D. (Executive Vice President, Chief Medical Officer UnitedHealth Group)

Dr. Amar Desai (Chief Executive Officer Optum Health)


Recognition and Awards
Fortune's World's Most Admired Companies: UnitedHealth Group topped the health care: insurance and managed care sector on Fortune's 2023 list for the 13th consecutive year. It ranked No. 1 on all nine key attributes of reputation, highlighting its excellence in various areas. Fortune's America's Most Innovative Companies: UnitedHealth Group secured the No. 24 spot on Fortune's 2023 list, showcasing its commitment to innovation and driving positive change in the health care industry. Dow Jones Sustainability Indices: UnitedHealth Group has been named to the Dow Jones Sustainability World and North America Indices since 1999, recognizing its strong commitment to sustainability and corporate responsibility. United Health Foundation: The United Health Foundation, the company's not-for-profit private foundation, was recognized as a Healthy People 2030 Champion by the U.S. Department of Health and Human Services, showcasing its dedication to improving health and health care. Civic 50: UnitedHealth Group has been consistently recognized by Points of Light's Civic 50 initiative as one of the 50 most community-minded organizations, emphasizing its commitment to community engagement and social impact. Forbes' Best Employers: UnitedHealth Group has been named to Forbes' list of World's Best Employers and America's 500 Best Large Employers, highlighting its positive work environment and employee satisfaction. LinkedIn Top Companies List: UnitedHealth Group ranked No. 7 on LinkedIn's 2023 Top Companies List in the United States and has been recognized on LinkedIn's Top Companies Industry Edition list in Health Care, demonstrating its status as a top workplace for professionals. Corporate Equality Index: UnitedHealth Group received a perfect score on the Human Rights Campaign Foundation's Corporate Equality Index for its commitment to LGBTQ equality and inclusivity in the workplace. Military Friendly® Employers: UnitedHealth Group has been consistently recognized as a military-friendly employer, ranking No. 7 on the 2023 Military Friendly® Employers list and being designated as a Top Ten 2023 Military Spouse Friendly® Employer. Business Group on Health: UnitedHealth Group received the "Best Employers: Excellence in Health & Well-Being" award, recognizing its efforts to promote employee well-being through inclusive benefits and initiatives.

Products and Services

UnitedHealthcare, the company's health insurance arm, provides health benefit plans for individuals, families, employers, and government programs. It offers a variety of insurance options, including medical, dental, vision, and pharmacy coverage. UnitedHealthcare focuses on delivering accessible and affordable health care solutions to its members, ensuring access to a vast network of health care providers and facilities.

Optum, another key division of UnitedHealth Group, offers an array of health services and innovations. Optum provides health management services, including population health management, care delivery, and health analytics. It also offers pharmacy care services through OptumRx, delivering prescription medications and medication management programs. Optum's technology and data analytics solutions help optimize health care operations, improve clinical outcomes, and enhance patient experiences.

UnitedHealth Group is committed to promoting wellness and preventive care. It offers employer-sponsored wellness programs that incentivize healthy behaviors and support employee well-being. The company also focuses on delivering personalized and integrated care through its care coordination services, promoting better care coordination and management for individuals with complex health needs.

Additionally, UnitedHealth Group invests in research and development to drive innovation and advance health care solutions. Its research division collaborates with leading academic institutions and industry partners to develop new treatments, therapies, and technologies.


References
UnitedHealth Group
Leadership team

Dirk McMahon (President, Chief Operating Officer)

John Rex (Executive Vice President, Chief Financial Officer)

Cory B. Alexander (Strategic Advisor)

Catherine Anderson (Senior Vice President, Health Equity Strategy)

Industries

Pharma and Life Sciences

Products/ Services
Health Care, Medical, Wellness
Number of Employees
Above 50,000
Headquarters
Minnetonka, Minnesota, United States
Established
1977
Company Type
Public Limited Company
Company Registration
0000731766
Net Income
Above - 20B
Revenue
Above - 1B
Traded as
UNH
Social Media

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Sun Apr 21 2024
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