UnitedHealth Group has maintained its near term outlook, taking into account the Change Healthcare cyberattack impact.
After a fatal targeted shooting in Manhattan, UnitedHealth Group lost a 20-year veteran, Brian Thompson, who was the CEO of the company’s medical insurance segment. The company was in the midst of its annual investor day when this incident took place. UnitedHealth Group has maintained its near term outlook, taking into account the Change Healthcare cyberattack impact. UNH stock has risen 27% from levels of around $480 in early 2022 to $610 now. This can be attributed to:
Let’s dive deeper into these factors.What Drove UnitedHealth Group’s Earnings Growth?
UnitedHealth’s revenue growth was primarily driven by the increased demand for its OptumHealth business, which provides health care through local medical groups. For perspective, OptumHealth’s revenue grew 76% between 2021 and 2023, compared to a 34% rise in revenue for the overall company. The strong growth in the OptumHealth business can be attributed to a rise in the number of patients served under the company’s value-based arrangements, including at-home services.
Now, UnitedHealth Group has two business verticals – UnitedHealth and Optum. UnitedHealth’s insurance business has seen an adverse impact from the rising medical costs and an overall increase in the number of procedures performed.
