Optum, a subsidiary of UnitedHealth Group Incorporated (NYSE:UNH) specializing in health services, has entered into a strategic partnership with ProHealth Care aimed at enhancing the latter’s administrative functions. This collaboration underscores the growing capabilities of Optum, which Ahave been bolstered by UnitedHealth’s strategic investments in the business.
Under this partnership, ProHealth Care will leverage Optum’s advanced technology to streamline its administrative processes, improve patient care, and prioritize community service. Optum will take on responsibilities for ProHealth Care’s revenue cycle management, informatics, analytics, IT services, and inpatient care management.
As part of the agreement, more than 800 employees from ProHealth Care, based in Wisconsin, will join Optum, working in the aforementioned departments. These employees are set to benefit from Optum’s state-of-the-art tools and technologies.
This move follows a similar deal between Optum and Northern Light Health, an integrated delivery system in Maine, earlier in the year. Approximately 1,400 employees from Northern Light Health transitioned to Optum in March while continuing to support the operations of Northern Light Health.
Expectations are that UnitedHealth will pursue more such strategic partnerships in the future, as the company continues to invest in enhancing Optum’s capabilities. This segment is a critical component of UnitedHealth’s diversification strategy. In the previous year, the segment’s revenues showed a robust 17% year-over-year increase. It has expanded to contribute 49.4% of operating earnings in 2022, compared to just 25% in 2014. Looking ahead, each of its sub-segments is anticipated to perform strongly, driving overall business growth.
In terms of stock performance, UnitedHealth’s stock has demonstrated a gain of 8.8% over the past three months, outpacing the industry’s 7.5% rise.
Featured Image: Megapixl
