The United Health Group is the largest provider of healthcare services to Americans. According to Forbes (Lorenzetti, 2014), the group had revenue of $130.5 billion in 2014. United is the largest health insurer, and has a health services arm as well, Optum, which provides around one-third of the group's total revenue. United has net income of $5.62 billion in 2014 and served an estimated 85 million people. While the company's revenues have been growing quickly, the net income has been more stable, highlighting in particular that the tax burden has increased on the company, as gains in operating income have been slow to translate into gains in net income (MSN Moneycentral, 2015).
Part of United's competitive strategy is that is has diversification of services. The company has two divisions: UnitedHealthcare and Optum. UnitedHealthcare is the company's health care services and insurance provider. This group has a diverse client base that includes a full range of payers -- Medicaid, employee-sponsored plans, military personnel and the international health marketplace. Optum is a health information provider and pharmacy benefit management company (UnitedHealthgroup, 2015). United therefore targets a number of markets within health care, in theory leveraging its knowledge and experience in different areas to gain some synergy. There is some vertical integration in this structure as well, which can be important for things like cost savings, but also for the development of senior management talent. For the most part, however, people within United grow within their...
There is separation between United and Optum in particular, such that opportunities to move around may not be that commonplace outside of senior management.
One of the major challenges that any health care firm can expect to have in the coming years is to find the staff needed to scale up demand. Between the aging of the baby boomers and the influx of new patients under the Affordable Care Act. The company has examined its best practices from states where it has successfully scaled up its operations -- it cites on its website Kentucky and Arkansas -- as part of its strategy is to benchmark against success and then utilize those strategies nationwide.
United's growth strategy has identified several key issues for the company's attention going forward, in addition to the increase in coverage: children's health, chronic conditions, IT & innovation, primary care, rural health and specialty pharmacy. Each of these is a focus area because it represents an area of the business that is changing. While in general health care is a mature industry, there is little doubt that innovation, demographic shifts, government policy changes and general modernization are all resulting in changes to the industry. One consequence of this is that the company has an overall strategy plan to address these issues.…
Health Care Strategic Management The deliberative model in healthcare is expected to meet quite a few of the needs of the American public regarding the general area of healthcare. Of the many areas that may decide to look at this problem, an attempt is made here to look at two specific problems. One is the need of patients taking medicine properly and the other is the needs of patient care among
Healthcare management (Strategic operations plan) Several studies, including Kelly Barnes, show that healthcare generally moves from "costly settings" such as hospitals into cheaper and more flexible options, such as retail clinics and mobile health What this actually shows as a future trend is that the global recession has played an important role in defining the customer profile. Clients are no longer interested solely in the best available services, but in low-cost services.
Health Care Strategic Management There may be many reasons for change, but there is a demand now in United States that the changes in healthcare market take place now to remove the present inconsistency in quality and efficiency. The main reasons driving the reasons for change have been seen to be patient safety and quality, the move towards digitalization, demographic changes, workforce issue, financial issues, and the search for excellence. There
Health Systems Management and Electronic Health Records Healthcare is an essential factor or tool in relation to the American society. The society of America has no national socialized healthcare system. In this research paper, the focus will be on the Medicare healthcare system in the context of the United States. The paper will focus on illustration of the concepts of the Medicare healthcare system, various management challenges, problems, and opportunities in
United Healthcare In spite of the struggling economy throughout the country, United Healthcare industries ascended in development and improved their year over year incomes by 9% in 2010. They had found a way to widen their customer foundation by 1.5 million people. The economy disorder was an important motive for the development in Medicaid program contribution increasing nearly to 16% from one year to the next one. Furthermore, the aging "baby
Strategic Alternatives Addresses an External issue? Draws on a competitive advantage or fixes a competitive disadvantage? Fits with Mission, Values? Moves the organization toward the vision? Achieves one or more goals? Partner with a travel company to offer vacations that include dental surgery, plastic surgery, and vascular surgery. Supports the strategy of increasing global reach of the company and strengthening the ability to recruit physicians in key specialties. Draws on a competitive