UnitedHealth Group

Company Profile
“Our mission is to help people live healthier lives and to help make the health system work better for everyone”

Key People
President & CEO Stephen J. Hemsley
Executive Vice President
Gail K. Boudreaux
Executive Vice President & CEO of Optum
Larry C. Renfro
Other Key People are:
Edson Bueno (Director), David S. Wichmann (CFO), Marianne D. Short (CLO), William A. Munsell (Executive Vice President), Anthony Welters (Executive Vice President), Eric S. Rangen (CAO & Senior VP), Jeannine M. Rivet (Executive Vice President), D. Ellen Wilson (Executive Vice President), Richard Migliori, M.D. (CMO), Don Nathan (CCO & Senior VP), Cory B. Alexander (Executive VP), John S. Penshorn (Senior VP), Terry Clark (Senior VP)

Financial Information
Consolidated Financial Results: Revenues (in millions) 2012: $110,618
2013: $122, 489
Net Earnings (in millions)
2012: $5,526
2013: $5,625
Net Earnings Per Share
2012: $5.28
2013: $5.50
$14.7 Billion returned to shareholders

Financial Information
$ 160 Billion
Performanced-Based Care (UnitedHealth Care)
2012: $28 Billion
2018E: $65 Billion
Operating Earnings (Optum)
2011: $1.3 Billion
2012: $1.4 Billion
2013: $2.3 Billion

Industry
Strengths: Competencies in diversified health benefits market segment National scale helping leverage competencies and brand
Strong presence in high margin health services business
Weaknesses: Significant level of indebtedness affecting flexibility for expansion
Litigations likely to impact the financial soundness and brand image of the group
Opportunities:
Inclusion of uninsured population to drive membership base growth
Favorable trends towards low cost generic drugs uptake could help save costs Threats: Health care cost containment could limit earning potential
Negative publicity likely to affect private health insurance business
Increasing competition likely to erode the market share and profitability of the group

Services
Health insurance
-Group health plans
-Specialty benefits
-Retiree solutions
-Global healthcare solutions
Medicare Plans
Medicaid Plans
Health and wellness information
Hospice Care
Health management
Pharmacy benefit management
Software and information tools
Healthcare network
Practice resources

Suits and Claims
2008: Alleged violation of the Mental Health Parity and Addiction Equity Act of 2008.
California
Responded in a socially reactive manner
2013: Another alleged violation of the Mental Health Parity and Addiction Equity Act of 2008.
Minnesota
Again responded in a socially reactive manner

Social Responsibility
“We take seriously our responsibility to serve others and to bring forward meaningful and sustaining
change”
Annual giving campaigns
Company-wide volunteering
UnitedHealth Foundation
United Healthcare Children’s Foundations
Green business practices

Growth Plan
Functional diversification
Organizational innovation- Optum One and Health4Me app
Focusing on core markets and territories

Application
Learned how responding to customer complaints/issues negatively can affect an organization’s image adversely.
-- How one responds to societal/ethical issues should also reflect the mission/values of the given company.
Saw the real life application of the SWOT analysis
Better able to see the value of Porter’s 5 industry forces
Learned valuable information about a company that has local roots