UnitedHealth’s Optum Expectations for Q3 2018



UNH’s Optum business

UnitedHealth Group (UNH) has a market capitalization of $260 billion and is the largest managed healthcare company in the United States. It operates through two subsidiaries: UnitedHealthcare and Optum. UnitedHealthcare offers health benefits, and Optum offers health services across complementary platforms.

UnitedHealth Group established Optum in 2011. It offers care delivery and ambulatory care through OptumHealth, data analytics and technology services through OptumInsight, and pharmacy benefit services through OptumRx. Optum has been expanding through inorganic growth in recent years.

On September 28, UnitedHealth Group announced the acquisition of Genoa Healthcare from Advent International, which will extend its pharmacy benefits.

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Optum growth and expectations

Optum has been growing at a fast pace. It expects sales growth of ~19% CAGR (compound annual growth rate) from 2011 to 2018. In fiscal 2018, it expects sales of $99 billion–$100 billion. Its pharmacy care services business is expected to report sales of $66.5 billion–$67.5 billion in fiscal 2018. The other two businesses—OptumHealth and OptumInsight—are expected to report fiscal 2018 sales of $24 billion–$24.5 billion and $9.2 billion–$9.5 billion, respectively.


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