During an Oct. 28 earnings call, UnitedHealth Group executives said the company has overrelied on its network of more than 90,000 affiliated and employed physicians and plans to switch to a direct employment model.
UnitedHealth Group’s care services division, Optum Health, reported flat, year-over-year revenue this past quarter. Optum CEO Patrick Conway attributed three factors to the quarter’s results: the company’s provider network grew too large, a reliance on affiliated physicians not aligned with value-based care policies created operating inconsistencies, and products and services were not aligned with Optum’s “clinically oriented, value-based model.”
Optum manages a sweeping, but quiet, physician empire in the U.S. The company has inked affiliation contracts with more than 10% of the nation’s physicians, as of 2023. Rather than building inpatient care facilities, the company hires employees at existing healthcare organizations, including health systems, ambulatory surgery centers, home health companies and administrative/support entities.
The network’s size is now an issue, according to Optum executives. As the company separates from physicians not aligned with the value-based care approach, Optum said it will work with fewer providers in 2026.
“We are moving to employed or contractually dedicated physicians wherever possible,” Mr. Conway said.
