Optum believes the U.S. addressable market for its services exceeds $850 billion and it expects to grow in the mid-single digit annual percent rate over the next several years, the company revealed during its 2019 investor conference on Dec. 3.
Optum projects 11 percent year-over-year revenue growth to $112.1 billion and 14 percent earnings growth to $9.35 billion. The company expects to grow even more in 2020 and beyond.
Eight things to know from the investor presentation:
1. In 2020, Optum expects revenue will climb another 13 percent to 14 percent, hitting $127 billion to $128 billion. Earnings are expected to grow up to 16 percent, hitting $10.6 billion to $10.8 billion.
2. Optum now comprises around 50 percent of UnitedHealth Group's operating earnings.
3. OptumHealth expects double-digit percentage revenue growth and operating margins of 8 percent to 10 percent over the next several years.
4. Expected revenue for OptumHealth is $38 billion to $39 billion in 2020, and the company predicts earnings will grow 25 percent to 28 percent, hitting $3.75 billion to $3.85 billion.
5. Optum360 works with nine out of 10 hospitals and has around $70 billion in annual billing.
6. Optum added 10,000 physicians in the past year, growing its network to 46,000 physicians.
7. Throughout 2019, Optum reported a 50 percent increase in patients who were served with value-based contracts.
8. Optum has around 180,000 team members and 120 million customers.