Insurance giant UnitedHealth Group’s strong financial showing in the third quarter was driven in part by its fast-growing provider segment, Optum Health.
UnitedHealth’s network of outpatient clinics and roughly 60,000 doctors is already more profitable than the company’s larger insurance division, UnitedHealthcare. UnitedHealth’s CEO outlined the company’s plans to expand Optum Health’s reach even further on an investor call Friday.
Just 15% of patients served by the company’s network of medical groups are covered under what’s known as fully capitated arrangements, where insurers pay Optum a set amount to handle all patients’ health care needs, said Andrew Witty, UnitedHealth Group’s CEO. Optum Health’s revenue per consumer grew 31% in the quarter ended Sept. 30 compared with the prior-year period, which Witty said was driven in part by more capitation.
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