UnitedHealth Group expects revenues to top $240B next year
- UnitedHealth Group unveiled its financial outlook for 2019 to a group of investors in New York on Tuesday. The nation's largest commercial insurer said it expects to generate revenue of up $245 billion next year and said revenue will likely come in at $226 billion by the end of this year.
- UnitedHealth said its adjusted net earnings are expected to be between $14.40 to $14.70 per share for 2019, while cash flows from operations are expected to range from $17.3 billion to $17.8 billion.
- The company also said it's expanding its direct-to-patient reach with the acquisition of a Seattle-based clinic that focuses on primary and specialty care, according to the Minneapolis Star Tribune.
The outlook news comes as the healthcare landscape is poised for major shakeup. Vertical integration has taken over the sector in the past year or so: in one major example, CVS closed its takeover of Aetna on Wednesday in a deal valued at $78 billion when debt is included.
The merger consummation gives the combined company the ability to interact more frequently with its insured members through CVS big box pharmacy stores. CVS has said that a vast majority of Americans live within a short drive of one of its pharmacies.
Cigna has yet to close on its deal to acquire Express Scripts, which will allow the company to cater more holistically to its insured members, combining the medical and pharmaceutical benefit under one umbrella.
UnitedHealth shows no intention of being left behind in the race to vertically integrate. Through the acquisition of Polyclinic, UnitedHealth will gain 200 physicians and 12 locations throughout the greater Seattle area.
In 2017, the company said it planned to acquire DaVita Medical Group, a subsidiary of the dialysis giant, for nearly $5 billion. DaVita Medical Group treats nearly 1.7 million patients a year at its 300 medical clinics throughout California, Colorado, Florida, Nevada, New Mexico and Washington.
In 2017, UnitedHealth also acquired Surgical Care Affiliates, an ambulatory surgery center and surgical hospital provider.
UnitedHealth also operates its own pharmacy benefit management firm after it acquired Catamaran in 2015.
- UnitedHealth Group UnitedHealth Group to Discuss Business Outlook at Investor Conference