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BUSINESS HEALTHCARE – STUDY OF UNITEDHEALTCARE GROUP INC
Contents
Contents    2
Introduction    3
Analysis    4
Part 1    4
Part 2    5
Conclusion    8
Work Cited    9
Introduction
United Healthcare Corporation Inc. is the pioneer, well diversified and World’s Biggest Healthcare Company in terms of Revenue generated. The company is an industry leader with staff of 330,000 across worldwide and annual revenue of 257.1 bn
UHG had a modest beginning in the year 1974 as Minnesota based Charter Med Incorporated with Richard Taylor Burke as Promoter and founder. In 1977 it was incorporated and restructured as United Healthcare Corporation to take over mantle as parent company of Charter med and to manage Physician health plan of Minnesota. The company went public in 1984 and was renamed UnitedHealth Group 1988 (United Health Group, 2020).
The Company’s journey started with advent of HMO model (Healthcare Maintenance Organization) after the passing of HMO Act 1973. These HMOs are kind of managed healthcare specialty service wherein all kind of health-related services like referrals to Primary care providers PCP, consultations with expert Physicians, Insurance services, claims and pharmacies are all provided under one roof at one place only to the members of HMOs. Through these HMOs Burke created United Healthcare, as a profit company and thus United Healthcare was born. Gradually through inorganic method of acquisitions and internal expansions plans united healthcare grew. In 1984 company went public and started trading over the counter with renewed vigor. United Healthcare had presence in 22 states in US providing cheaper managed health care plans through its owned or contracted ones. Now United’s primary focus was on providing cheaper managed health care and controlling medical Claim procedures. United Healthcare was household name and company’s revenue jumped to $ 1.4bn and income rose 54% to $ 111.5Mn. The company was renamed United Health group in 1998. United Healthcare continued with its series of acquisition in order to grow and expand its operation across America. It ranked at 14th in Fortune 500 companies in 2014.United ended 2021 with record revenue of $ 287.6 bn. and Net income of $ 17.3Bn (Visnji, 2019).
Analysis
Part 1
United Health Group is the world’s largest, diversified HMO and America’s biggest professionally managed healthcare service provider and Insurance Company. It has tied up with numerous PHPs, PPOs, experts, Pharma cost management services, clinics and hospitals for providing relatively affordable best quality medical infrastructure by integrating health insurance and health care delivery under one roof either through its owned specialty centers or other medical centers empaneled on its rosters to those at the bottom of pyramid or those who can’t afford quality medical services (United Health Group, 2022). It’s Mantra
· Cutting exorbitant cost of providing superior quality healthcare benefits
· Continuously improving the quality of services to customers
Health Insurance companies function as aggregators like Uber, AMAZON platform, SWIGGY etc. They aggregate or consolidate customers (i.e., individuals, employees and Government organization) who need the health care insurance plans by selling them health benefit plans directly or through brokers. It collects risk premium from customer who buy these plans. Patient are further referred to pre-empaneled specialist consultants by PCPs for specialized treatments. While if the members want to directly connect with these preferred care providers, they have to foot the entire bill themselves being services outside the plan network.
Subscribers to PPOs can also access anyone outside network by paying small % of coinsurance fee. UHG started as plain vanilla HMOs but gradually built good network of PCPs. With huge membership base of more than 70Mn. it is able to negotiate competitive rates with these PCPs and thus offer very affordable medical insurance plans to members (Booth,...