UnitedHealth Group, the largest insurer in the US, has a significant impact on the healthcare industry. With a history dating back to 1974, it has grown through acquisitions and established its health services arm, Optum. The company is led by CEO Andrew Witty and employs around 340,000 people worldwide. UnitedHealthcare’s insurance division holds a substantial market share, while Optum is the largest employer of physicians in the US. Recent acquisitions, partnerships with Walmart, and a focus on value-based care further highlight its influence in the healthcare landscape.
UnitedHealth Group, the largest insurer in the United States by membership and the largest employer of physicians in the country, has become a powerhouse in the healthcare industry. This article provides an in-depth look at 50 key facts about UnitedHealth Group, ranging from its history and notable acquisitions to its leadership, divisions, recent acquisitions, and plans. Understanding the various facets of this healthcare giant is crucial in comprehending its significant influence on the American healthcare landscape.
History
1. In 1974, a group of physicians and healthcare professionals founded Charter Med Corporation in Minnetonka, Minnesota.
2. Charter Med’s founder, Richard Burke, had previously worked as a researcher at a Minneapolis-based think tank led by Dr. Paul Ellwood, who coined the term “health maintenance organization” (HMO).
3. In 1977, UnitedHealthcare was established as the parent company of Charter Med.
4. UnitedHealthcare went public in 1984, transforming the organization into a publicly traded company.
5. The company rebranded as UnitedHealth Group in 1998 to reflect its diversified operations in the healthcare industry.
6. Over the years, UnitedHealth Group acquired several health insurers and practices, including MetraHealth, AmeriChoice, PacifiCare Health Systems, and Sierra Health Services.
7. In 2011, UnitedHealth Group established Optum, its health services arm, to further expand its capabilities in healthcare delivery.
Fast Facts
8. UnitedHealth Group ranks fifth on the Fortune 500 list, following Walmart, Amazon, Apple, and CVS Health.
9. The company employs approximately 340,000 people worldwide.
10. UnitedHealth Group’s headquarters are located in Minnetonka, Minnesota.
11. In 2022, approximately 77 percent of the company’s revenue came from UnitedHealthcare, while the remaining quarter came from Optum.
12. UnitedHealth Group reported net earnings of $20.6 billion in 2022, representing a 16 percent increase compared to the previous year.
Leadership
13. Andrew Witty, the former CEO of pharmaceutical manufacturer GSK, assumed the role of CEO of UnitedHealth Group in February 2021.
14. In 2022, Andrew Witty received a total compensation of $20.9 million.
15. The CEO-to-median-employee pay ratio at UnitedHealth Group in 2022 was 331:1.
16. John Rex has served as the CFO of UnitedHealth Group since 2016 and received a total compensation of $15.8 million in 2022.
17. Dirk McMahon became the COO of UnitedHealth Group in 2021 and received a total of $15.8 million in 2022.
18. Stephen Hemsley, the former CEO of UnitedHealth Group, currently serves as the chair of the company’s nine-member board of directors.
UnitedHealthcare
19. As of the first quarter of 2023, UnitedHealthcare had 52.9 million commercial medical insurance members.
20. UnitedHealthcare is the largest commercial payer in terms of total membership.
21. The company also holds the largest share of Medicare Advantage membership, with around 1 in 4 MA beneficiaries enrolled in a UnitedHealthcare plan in 2022, according to the Kaiser Family Foundation.
22. At the end of the first quarter of 2023, UnitedHealthcare had 7.5 million Medicare Advantage members.
23. Additionally, the company had 27.4 million commercial members and 8.4 million Medicaid members in the U.S. at the end of the first quarter of 2023.
24. Brian Thompson assumed the role of CEO of UnitedHealthcare in 2021 after joining the division in 2004.
25. In 2022, Brian Thompson received a total compensation of $9.9 million.
Optum
26. Optum, a subsidiary of UnitedHealth Group, comprises three core divisions: Optum Health, Optum Insight, and OptumRx.
27. Optum is the largest employer of physicians in the United States, employing at least 70,000 physicians at 2,200 locations in 2023.
28. In the first quarter of 2023, Optum Health served 103 million customers.
29. Optum Health experienced 34 percent year-over-year revenue growth in the first quarter of 2023, primarily due to increased customers in value-based care arrangements.
30. OptumRx, the pharmacy care services division of Optum, filled 378 million prescriptions in the first quarter of 2023.
31. Optum’s headquarters are located in Eden Prairie, Minnesota.
32. Heather Cianfrocco serves as the CEO of OptumRx, Neil de Crescenzo is the CEO of Optum Insight, and Wyatt Decker, MD, leads Optum Health.
Recent Acquisitions
33. In October 2022, Optum merged with Change Healthcare, a healthcare data and analytics company, in a $7.8 billion deal that faced scrutiny from antitrust regulators.
34. The Justice Department dropped its appeal to block the merger in March.
35. UnitedHealth Group plans to spend $100 million on integrating Change Healthcare and Optum.
36. In February 2023, UnitedHealth Group completed a $5.4 billion acquisition of LHC Group, a home-health company.
37. A proposed $1.5 billion acquisition of the U.K.-based EMIS Group is currently under review by regulatory authorities in the United Kingdom.
38. In February, Optum quietly acquired Crystal Run Healthcare, a multispecialty physician group with over 400 providers across more than 30 locations in Middletown, N.Y.
39. Optum also purchased Kelsey-Seybold, a Houston-based medical group, in 2022.
40. In March 2022, Optum acquired Refresh Mental Health, a network of over 300 outpatient mental health clinics.
Recent Headlines
41. Arbitrators ruled in favor of physician services company Envision Healthcare in a legal dispute with UnitedHealthcare, stating that the payer breached their contract by reducing reimbursement rates. UnitedHealthcare was ordered to pay $91 million in damages.
42. Starting in the summer of 2023, UnitedHealthcare plans to eliminate 20 percent of its current prior authorizations and implement a national gold-card program.
43. As of March 2023, UnitedHealth Group’s 20-acre headquarters in Minnetonka, Minnesota, is up for lease. The company, however, affirms that Minnesota will remain its home.
44. UnitedHealth Group intends to incorporate more behavioral and home health services into its care delivery strategy as it expands its value-based care offerings, according to CEO Andrew Witty.
45. Dame Vivian Hunt was appointed as UnitedHealth Group’s chief innovation officer in January.
46. The company expects to generate between $357 billion and $360 billion in revenue in 2023.
47. UnitedHealth Group and Walmart are collaborating on a value-based care model for Medicare Advantage members and launching a co-branded health plan. The 10-year partnership will begin at 15 Walmart Health Centers in Florida and Georgia in 2023.
48. In January, UnitedHealth Group appointed Dame Vivian Hunt as its newly appointed chief innovation officer.
49. The company has projected its revenue for 2023 to range between $357 billion and $360 billion.
50. UnitedHealth Group and Walmart have joined forces to establish a value-based care model aimed at Medicare Advantage members. As part of this collaboration, the two companies will launch a co-branded health plan. Commencing in 2023, the 10-year partnership will initially focus on 15 Walmart Health Centers situated in Florida and Georgia.
