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UnitedHealth (UNH) Arm Optum Partners With ProHealth Care
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UnitedHealth Group Incorporated’s (UNH - Free Report) health service business, branded as Optum, recently curved a strategic relationship with ProHealth Care to improve the latter’s administrative functions. The deal highlights Optum’s growing capabilities, which were fueled by UNH’s strategic investments in the business.
The partnership will enable ProHealth Care to utilize Optum’s technological prowess to streamline its administrative needs, enhance patient care and focus more on serving the community. The deal is expected to make Optum responsible for its partner’s revenue cycle management, informatics, analytics, IT and inpatient care management.
Optum will likely absorb more than 800 employees of Wisconsin-based health system ProHealth Care, working in the departments mentioned above. These workers are expected to benefit from Optum’s tools and technologies.
Optum struck a similar deal with Northern Light Health, an integrated delivery system in Maine, at the beginning of this year. Around 1,400 employees of the company were expected to move to Optum in March while continuing their support of Northern Light’s operations.
More such partnerships are expected in the future as UnitedHealth continues to invest in enhancing Optum’s capabilities. The segment is crucial to the company’s diversification strategy. Last year, the segment’s revenues improved 17% year over year. It expanded to contribute 49.4% of operating earnings in 2022 from only 25% recorded in 2014. Looking ahead, each of its sub-segments is expected to deliver a solid performance, driving the overall business’s growth in turn.
Price Performance
UnitedHealth’s stock has gained 8.8% in the past three months, outperforming the industry’s 7.5% rise.
The Zacks Consensus Estimate for Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion.
The Zacks Consensus Estimate for Tenet Healthcare’s 2023 bottom line is pegged at $5.73 per share, which rose 0.7% in the past 60 days. During this time, THC has witnessed one upward estimate revision against none in the opposite direction. It beat earnings estimates in all the last four quarters, with the average surprise being 25.9%.
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UnitedHealth (UNH) Arm Optum Partners With ProHealth Care
UnitedHealth Group Incorporated’s (UNH - Free Report) health service business, branded as Optum, recently curved a strategic relationship with ProHealth Care to improve the latter’s administrative functions. The deal highlights Optum’s growing capabilities, which were fueled by UNH’s strategic investments in the business.
The partnership will enable ProHealth Care to utilize Optum’s technological prowess to streamline its administrative needs, enhance patient care and focus more on serving the community. The deal is expected to make Optum responsible for its partner’s revenue cycle management, informatics, analytics, IT and inpatient care management.
Optum will likely absorb more than 800 employees of Wisconsin-based health system ProHealth Care, working in the departments mentioned above. These workers are expected to benefit from Optum’s tools and technologies.
Optum struck a similar deal with Northern Light Health, an integrated delivery system in Maine, at the beginning of this year. Around 1,400 employees of the company were expected to move to Optum in March while continuing their support of Northern Light’s operations.
More such partnerships are expected in the future as UnitedHealth continues to invest in enhancing Optum’s capabilities. The segment is crucial to the company’s diversification strategy. Last year, the segment’s revenues improved 17% year over year. It expanded to contribute 49.4% of operating earnings in 2022 from only 25% recorded in 2014. Looking ahead, each of its sub-segments is expected to deliver a solid performance, driving the overall business’s growth in turn.
Price Performance
UnitedHealth’s stock has gained 8.8% in the past three months, outperforming the industry’s 7.5% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Medical space are Select Medical Holdings Corporation (SEM - Free Report) , Atai Life Sciences N.V. (ATAI - Free Report) and Tenet Healthcare Corporation (THC - 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 Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion.
The Zacks Consensus Estimate for Tenet Healthcare’s 2023 bottom line is pegged at $5.73 per share, which rose 0.7% in the past 60 days. During this time, THC has witnessed one upward estimate revision against none in the opposite direction. It beat earnings estimates in all the last four quarters, with the average surprise being 25.9%.