Will UNH have a better future?

KyleLennon

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UnitedHealth has the largest and most diverse membership base within the MCO market, which gives it significant competitive advantages.

The firm’s diversification into high margin healthcare IT services niche gives it the opportunity to increase its bottom line through a high growth market niche.

UnitedHealth’s health service business, branded as Optum, is becoming an increasingly valuable business. It is also crucial to the company’s diversification strategy. The primary growth drivers for Optum are pharmacy care services, care delivery, technology, government services, and international. Management is considering the expansion of the health service business to 35–40% of operating income over the long term.

UnitedHealth is aggressively expanding its international business due to increasing regulations in the U.S. The major deal to acquire Brazil-based Amil Participações S.A attests to the fact. Other overseas acquisitions made by the company include Dubai-based Al Sagr National Insurance Co., which will allow the company to expand in the Middle East.

UNH quarterly revenue growth was 9.50%, higher than the industry and sector average revenue growth (6.33% and 4.49%, respectively).

How do you think?

Source
 
UnitedHealth Group CEO: In 10 years, tech will push health care to become more value-based.

"I think the systems of the benefits and the health systems broadly going to more value-based mechanisms will drive greater efficiency and effectiveness in health care," the CEO said.
 
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