UnitedHealth Group (NYSE:UNH) is a multinational, Minnetonka, Minnesota-based healthcare and insurance company. It is the result of 5 decades of mergers and acquisitions that began with the formation of Charter Med Inc in 1974. Charter Med Inc was a privately held medical services firm that was soon rebranded (1978) to United Healthcare Company. United Healthcare Company became the parent and holding company for the Physician’s Health Plan of Minnesota, an early HMO.
The company has had several key phases, including the late 1980s when it entered the pharmacy services industry; the mid-1990s when it made some major acquisitions to consolidate a large portion of the US HMO market, and the “modern” period in which it continues to pursue growth through acquisitions, expansion and deepening penetration. Among the more notable events are the inclusion of John Deere Healthcare and the restructuring of acquired assets into the Optum segment. Optum is UnitedHealth Group Incorporated’s technology-focused division and includes the staffed physical-care facilities located throughout the US.
Today, UnitedHealth Group Incorporated operates as a diversified healthcare company in the United States. It operates in four segments providing healthcare and insurance products globally. The company’s four segments are UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. It is the world’s 7th largest company by revenue and the largest insurer by annual premiums. It is ranked 11th on the Forbes Fortune 500 list and had a market capitalization of nearly $500 billion at the end of 2022. Total revenue in 2022 topped $320 billion.
On a segment basis, The UnitedHealthcare segment is the largest and comprises roughly 80% of the net business. It offers consumer-oriented health benefit plans for businesses and consumers and preventative and well-being services for people over 50. It also manages Medicaid plans, family health plans and dental plans among other services.
The OptumHealth segment is a consumer-oriented platform to access a care providers and services network. The OptumInsight segment provides technology, services and outsourcing to hospitals, physicians and organizations that provide health insurance and/or health plans. The OptumRx segment serves the pharmacy industry including the retail market, home delivery and specialty services. Optum users can connect to physicians, schedule appointments, and even fill their prescriptions.
UnitedHealth Group has a long track record of dividend payments that dates back to 1990. The company also has a track record for increasing its dividend if not on a consistent annual basis. The company does not have a dividend reinvestment plan.
UnitedHealth Group is committed to sustainable operations for its consumers and the planet. To that end, the company has committed to efforts that help control healthcare costs, including telehealth and value-based arrangement with providers. Regarding the environment, the company has committed to net-zero emissions by 2035 which is well ahead of the global target. The company is also committed to health equity or the idea that healthcare opportunities (including employment) be fairly and equitably available to all.
