UnitedHealth (UNH) Unit to Offer Better Care in Central New York
UnitedHealth Group Incorporated’s UNH pharmacy benefit manager and care services group Optum recently partnered with Bassett Healthcare Network. Notably, Basset is the integrated health system that has been offering healthcare services across New York.
Shares of UnitedHealth Group gained 0.4% in the last three days’ trading.
Per the tie-up, Optum will utilize a wide array of services to boost the financial and operational abilities of Bassett. It will upgrade revenue cycle processes for hospitals coming under Bassett’s care delivery network. This, in turn, will relieve Bassett of administrative burdens and offer transparent billing processes. Optum will also strive to accelerate digitization and enhance network security for the abovementioned hospitals.
Over time, Optum has made significant investments in boosting its analytic and technological capabilities. These capabilities will now be utilized by Bassett to intensify focus in offering high-quality and affordable healthcare services to Central New York’s patients.
In January 2021, Optum and Change Healthcare CHNG agreed to merge, which will result in the integration of Optum's enhanced data analytics and Change Healthcare's technological advancements.
The Optum unit continues to perform well based on increased number of people served through value-based care arrangements and higher acuity of care services provided. As a result, revenues from the unit climbed 10.8% year over year to $36.4 billion in first-quarter 2021.
Strong performance of the company’s two subsidiaries — Optum and UnitedHealthcare have led to strong year-over-year revenue growth of 9% at UnitedHealth Group in the first quarter.
Backed by initial business performances of 2021, UnitedHealth Group raised its yearly outlook for adjusted earnings per share. The metric is now anticipated to be $18.10-$18.60, up from the prior guidance of $17.75-$18.25. The mid-point of the newly provided guidance indicates growth of 8.7% from the 2020 reported figure. Also, the same stands lower than the Zacks Consensus Estimate of $18.61 per share.
Of the medical sector players that reported first-quarter 2021 results, Cigna Corporation CI and Molina Healthcare, Inc. MOH have raised their earnings guidance for 2021.
Zacks Rank & Price Performance
Shares of this Zacks Rank #3 (Hold) healthcare provider have gained 35.4% in a year compared with the industry’s rally of 29.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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