UnitedHealth CEO: Optum won't build hospitals

OptumCare, the healthcare delivery unit of UnitedHealth Group, won't own inpatient care or post-acute care services, the health insurer's CEO said during an annual strategy conference, according to Business Insider.

When asked by an analyst at the Sanford C. Bernstein 2019 Annual Strategic Decisions Conference in New York City whether UnitedHealth plans to expand OptumCare, CEO David Wichmann and CFO John Rex said they want to build out the company to generate $100 billion in annual revenue by 2028. That's up from $16 billion last year.

The executives said they'll expand their footprint in areas outside of the hospital. These include urgent care practices, surgical centers and primary care offices.

Mr. Wichmann said while it won't be building any hospitals, he does see the insurer partnering with health systems for hospital-based services.

"Those will occur in markets where there is maybe less assets for us to accumulate and build from," Mr. Wichmann said, according to Business Insider.

Mr. Rex added UnitedHealth is looking to expand its services to senior members, especially those in Medicare Advantage plans, to further grow OptumHealth.

"Certainly that represents a tremendous multi-decade growth opportunity for that business," Mr. Rex said in relation to OptumHealth as a whole, according to Business Insider.

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