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UnitedHealth's (UNH) Optum to Boost Northern Light's Efficiency
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UnitedHealth Group Incorporated’s (UNH - Free Report) arm, Optum, recently announced a strategic partnership with Northern Light Health, an integrated delivery system in Maine. The move is expected to boost Northern Light’s efficiency, cut costs and enable it to provide better service and experience to its customers throughout the state.
Per the deal, around 1,400 employees of Northern Light will move to Optum this March while continuing their support of Northern Light’s operations. The move will enable Optum to take over Northern Light’s revenue cycle management and manage its information systems, inpatient care management, analytics, project management and supply-chain management.
Optum, a fast-growing business of UnitedHealth, is expected to help improve the billing and scheduling experience for both clients and providers. It will also enhance Northern Light’s digital capabilities and assist it in more effectively utilizing data analytics to foresee patient and staff requirements.
The deal highlights the prowess of UnitedHealth’s increasingly valuable health service business, branded Optum. UNH invests heavily to enhance Optum’s capabilities, which are paying off. From 2017 to 2021, the segment’s compounded revenues and earnings witnessed a CAGR of 14.3%.
Through the latest deal, Optum is expected to help Northern Light boost its administrative efficiency and save more than $1 billion over the next 10 years, per reports. This might allow the company to recover from the financial toll it incurred due to the pandemic.
Price Performance
UnitedHealth’s stock has risen 4.4% in the past year, underperforming the industry’s 10% rise.
The Zacks Consensus Estimate for CareDx’s 2022 earnings has improved 24.5% in the past 60 days. CDNA has witnessed two upward estimate revisions during this time against none in the opposite direction. It beat earnings estimates by 57.1% in the last reported quarter.
The Zacks Consensus Estimate for MedAvail Holdings’ 2022 bottom line indicates a 37.3% improvement from the prior-year reported number. MDVL has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for AMN Healthcare’s 2022 bottom line indicates a 44% improvement from the prior-year reported number. The consensus estimate for AMN’s top line suggests 30.1% year-over-year growth.
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UnitedHealth's (UNH) Optum to Boost Northern Light's Efficiency
UnitedHealth Group Incorporated’s (UNH - Free Report) arm, Optum, recently announced a strategic partnership with Northern Light Health, an integrated delivery system in Maine. The move is expected to boost Northern Light’s efficiency, cut costs and enable it to provide better service and experience to its customers throughout the state.
Per the deal, around 1,400 employees of Northern Light will move to Optum this March while continuing their support of Northern Light’s operations. The move will enable Optum to take over Northern Light’s revenue cycle management and manage its information systems, inpatient care management, analytics, project management and supply-chain management.
Optum, a fast-growing business of UnitedHealth, is expected to help improve the billing and scheduling experience for both clients and providers. It will also enhance Northern Light’s digital capabilities and assist it in more effectively utilizing data analytics to foresee patient and staff requirements.
The deal highlights the prowess of UnitedHealth’s increasingly valuable health service business, branded Optum. UNH invests heavily to enhance Optum’s capabilities, which are paying off. From 2017 to 2021, the segment’s compounded revenues and earnings witnessed a CAGR of 14.3%.
Through the latest deal, Optum is expected to help Northern Light boost its administrative efficiency and save more than $1 billion over the next 10 years, per reports. This might allow the company to recover from the financial toll it incurred due to the pandemic.
Price Performance
UnitedHealth’s stock has risen 4.4% in the past year, underperforming the industry’s 10% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are CareDx, Inc (CDNA - Free Report) , MedAvail Holdings, Inc. and AMN Healthcare Services, Inc. (AMN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CareDx’s 2022 earnings has improved 24.5% in the past 60 days. CDNA has witnessed two upward estimate revisions during this time against none in the opposite direction. It beat earnings estimates by 57.1% in the last reported quarter.
The Zacks Consensus Estimate for MedAvail Holdings’ 2022 bottom line indicates a 37.3% improvement from the prior-year reported number. MDVL has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for AMN Healthcare’s 2022 bottom line indicates a 44% improvement from the prior-year reported number. The consensus estimate for AMN’s top line suggests 30.1% year-over-year growth.