UnitedHealth Group sees home health as the ‘new frontier’ of value-based care

UnitedHealth Group (NYSE: UNH)’s deal with LHC Group Inc. (Nasdaq: LHCG) could close in the first quarter.

According to a report from Dealreporter last week, citing people familiar with the matter, each side has confirmed “substantial compliance” and no sales are expected.

As this deal draws to a close, the home health industry is on the verge of learning how one of its largest representatives, the LHC Group, will be used under the auspices of UnitedHealth Group and Optum.

Until then, there is more than just tea leaves to read from the purchaser.

“We see home healthcare as one of the new frontiers of cost-based healthcare because of the convenience it provides,” Optum CEO Dr. Wyatt Decker said Friday in a call to UnitedHealth Group about fourth-quarter and year-end earnings. . “This provides an opportunity to access people, such as patients with dual special needs, who often find it very difficult to leave their home to get help.”

The two main divisions of UnitedHealth Group are health care delivery platform Optum and UnitedHealthcare, one of the largest managed care organizations in the country. Ultimately, the LHC Group will be built into Optum.

November’s Investor Day focused on home and community services.

“You will see how we are developing the home care platform more and more comprehensively, as well as integrating home care into our clinic-based care model,” continued Decker. “It really creates two vehicles for us to grow.”

Based in Eden Prairie, Minnesota, Optum is a diversified health care company with over 190,000 employees worldwide. Even before joining, LHC Group Optum has invested heavily in home and community care.

“On the home side, it’s sort of a byproduct,” UnitedHealth Group CEO Andrew Whitty said during a call Friday. “This home creates an opportunity that allows us to serve these [special needs population] people feel better, and that will certainly be an accelerator.”

UnitedHealth Group and Optum see home health care as a key part of their comprehensive value-based health care plan.

“For value-driven patients, our in-home services have reduced hospital visits by 15% compared to service fees, delivering comparable health outcomes and reaching an NPS of approximately 80,” said the president and chief operating officer. UnitedHealth Group Dirk McMahon.

Optum will serve 750,000 additional patients this year alone, according to the company.

Overall, UnitedHealth Group’s fourth-quarter revenue was $82.8 billion, up 12% from $73.7 billion in the same period in 2021. year of increase.

As for Optum, the company’s fourth-quarter revenue was $47.9 billion, up 16% from last year. For the full year, its revenue reached $182.8 billion, up 17% from last year.

“We’re very excited about how this is going,” Decker said. “We are creating a differentiated offering to help accelerate the growth of value care and provide the comprehensive care people need.”

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