Transcription
2015 Annual Review
Contents02Performance Highlights04UnitedHealth Group06UnitedHealthcare08Optum10Social Responsibility11Our Culture and Mission12Commitment to ExcellenceOn the CoverA care provider and patients at one of the 160 MedExpresscare centers operated by Optum, offering walk-in urgent careand a variety of other medical services. MedExpress is just oneexample of how Optum is helping improve access to high quality,convenient, affordable health care. Read more on page 9.
WelcomeThank you for your interest in UnitedHealth Group.The health care system continues to evolve. Consumers want more transparency,higher quality and more personalization. Physicians and other care providers are takingon greater accountability, being paid for performance in an ever more demanding health careenvironment. The influence of advanced information technology is transforming care deliveryand administration. Governments worldwide are trying to advance higher quality care,while bringing costs under control.UnitedHealth Group, Optum and UnitedHealthcare are responding to change by offeringpractical innovations, strong support for clinical excellence and the actionable informationand technological tools people and their care providers need for better decision-making.In 2015, UnitedHealth Group continued to drive overall growth and solid shareholder returns.The enterprise moved steadily forward, grounded in strong fundamental execution, qualityimprovement and strategic investments. We are entering 2016 with better momentum andmore opportunities than ever before. We expect growth to accelerate this year and remainstrong in 2017, 2018 and throughout the next decade.UnitedHealth Group Annual Review 1
Performance HighlightsUnitedHealth Group ended 2015 strongly and enters 2016 with greater capabilities andmany more opportunities for growth. We understand that growth can only be realizedif we offer high quality and consistently excellent execution in everything we do.Here are examples of the performance Optumand UnitedHealthcare delivered in 2015: Today, 25 million consumers are served throughUnitedHealthcare’s Advocate4Me service thatprovides people with a single point of contactto address their various health needs. Peopleserved by this approach are more engaged intheir health and more effective in their healthcare decision-making – and are more satisfied. More than 23 million consumers have accessto Rally, our online digital health portal. Usersare steadily advancing in selecting primarycare physicians, making better use of urgentcare over emergency care and more readilyadopting personal health and conditionmanagement programs. In Medicare we helped close 9 milliongaps in care for the seniors we serve. Andwe expect our efforts to advance the qualityof our Medicare offerings in 2015 will resultin 80 percent or more of our seniors beingserved through a four-Star quality plan by 2018.2 UnitedHealth Group Annual Review I n commercial benefits, we combine tierednetworks, clinical strategies and innovativeproduct designs to align with a wide arrayof price points for employers and consumers.Today, one-third of our commercial benefitscustomers are served through one of thesemore affordable plans. Optum continues to develop deeper, meaningfulrelationships with large customers facingcomplex challenges. For example, Optum360’srevenue management relationship withDignity Health improved their cash flowsby one-half billion dollars, with accountssettled a full eight days faster. Documentationtechnology is helping Dignity Health physiciansmeet demanding ICD-10 requirements evenas their billing staff is realizing a 50 percentgain in productivity. The OptumCare approach to care deliveryrespects local market norms and expectations,and our doctors deliver high quality results.We consistently outperform benchmarksaround acute care readmissions and skillednursing facility stays. More than three-quartersof private Medicare patients we care for arein health plans rated four Stars or better, anda survey of our Medicare Advantage patientsrevealed 96 percent would recommend ourlocal care provider office to others. Our HouseCalls services continue to deliverdistinctive value for Medicare recipients andpayers, with 98 percent patient satisfaction,more than 1 million visits to patients in theirhomes in 2015 and further growth expectedin 2016.The people of UnitedHealth Group are continuouslyincreasing the quality and consistency of ourproducts and services. Their efforts drive oursolid financial results and the strong growthmomentum set in motion in 2015. They are highlyengaged in our mission and committed to servingour customers and consumers with innovationand compassion.
The people of UnitedHealth Groupare committed to serving ourcustomers and consumers withinnovation and compassion.Performance Highlights20142015Revenues 130.5B 157.1BEarnings From Operations 11.0B 10.3BCash Flows From Operations 9.7B 8.1B 2.00 per share33%DIVIDENDUnitedHealth Groupincreased its annualdividend 33 percentto 2.00 per sharein 2015.UnitedHealth Group Annual Review 3
Advancing quality in health benefits and health servicesUnitedHealth Group is a highly diversified healthand well-being company serving virtually everyconstituent of health care – patients, physiciansand other care providers, hospitals, out-patientclinics and life sciences researchers, private andpublic sponsors of health benefits, state andfederal government agencies, payers, regulatorsand others. Our enterprise has one mission:to help people live healthier lives, and helpmake the health system work better for everyone.The people of UnitedHealth Group are dedicatedto continuously improving the quality of ourperformance for the individuals and customerswe serve. Five key values guide our operationsand every interaction: integrity, compassion,relationships, innovation and performance.Two Business PlatformsThe enterprise is built on two business platforms:UnitedHealthcare, providing a broad range ofaffordable health benefits to serve the health careneeds of people at every life stage; and Optum,for health services, analyzing data to createactionable information, improving consumerengagement and access and strengtheningthe performance of the care delivery system.Working autonomously and together, Optum andUnitedHealthcare are solving the fundamentalchallenges facing health systems in the midst4 UnitedHealth Group Annual Reviewof significant change as health care worldwideevolves to become more integrated, effectiveand consumer-centric.Three Core CompetenciesOur businesses are built around three enduringcompetencies – the things we do well to createvalue for both customers and shareholders: Data, analytics and health information –to inform and guide patients and physiciansin their decision-making. Clinical experience and expertise – to delivercare at higher quality, with greater consistency,at lower costs to consumers and to the healthcare system as a whole. Advanced technology operating at scale –to help coordinate care, integrate caredelivery and streamline administrationand revenue management.As a health advisor for UnitedHealthcare,Claire Meador says a big part of her job requiresconnecting with people on different levels,and exercising empathy and compassion.500BWE PROCESS MORE THAN500 BILLION DIGITALTRANSACTIONS ANNUALLY. 2.5BWE INVEST MORE THAN 2.5 BILLION ANNUALLY INTECHNOLOGY AND INNOVATION.
The extraordinary abilities of ouremployees, their ideas and energyare helping people live healthierlives and making the health systemwork better for everyone.Our PeopleThe more than 200,000 employees ofUnitedHealth Group power this enterprise withtheir entrepreneurial spirit and commitment toquality, delivering value our customers and healthcare consumers understand and appreciate. Theyserve individuals in local communities in all 50 statesof the United States and 125 other nations.Carl Allen, senior medicaldirector, OptumCare’sSouthwest Medical Associates,Las Vegas, is an advocatefor patients, providers andhis team. Carl says: “I reallyenjoy interacting with peopleand building and maintainingrelationships.”Globally, UnitedHealth Group has approximately18,500 physicians and nurses on staff,thousands of experts in technology, health careadministration, clinical services and diseasemanagement, health and wellness, actuarialservices and customer and consumer relationsamong others, all dedicated to living ourcultural values of integrity, compassion,innovation, relationships and performance.18,500PHYSICIANSAND NURSESON STAFFUnitedHealth Group Annual Review 5
Helping people live healthier livesBetter HealthThe people of UnitedHealthcare engageindividuals in their health and partner withphysicians, nurses and other care providersto deliver better health and positive medicaloutcomes. UnitedHealthcare supports personalhealth by preventing illness and promotingwellness, managing chronic and complexconditions and closing gaps in care.Superior Health Care ExperienceUnitedHealthcare is committed to givingconsumers the personalized information theyneed to make better health care decisions,along with greater choice in health programsand benefits that fit their lifestyles and finances.Affordable Benefits ProductsUnitedHealthcare is helping to manage thecost of care. The people of UnitedHealthcaregive care providers the support and resourcesto deliver more efficient and effective care andhelp them expand the use of evidence-basedcare. UnitedHealthcare’s value-based paymentsystems reward the quality of care, not thequantity of care.Actionable InformationWorking with Optum, UnitedHealthcareleverages powerful insights gleaned fromanalyzing data on medical claims, patient and6 UnitedHealth Group Annual Reviewphysician demographics and clinical informationto help customers and care providers makemore informed decisions, align and coordinatecare for each individual and achieve betterhealth at lower costs.Positioned for GrowthGrowth follows quality and value, andUnitedHealthcare is positioned to serve thehealth and wellness needs of more people inmore meaningful ways than ever before. In 2015,this business grew by more than 1.7 million peopledomestically, bringing total organic growthin the United States to nearly 10 million peopleover the past six years. As UnitedHealthcareconstantly improves quality and delivers value,it expects this growth trend to continue andaccelerate in 2016 and beyond.Wanisha Seals and Whitney Simon participate in fun,healthy exercises as part of a community baby showerhosted by UnitedHealthcare Community Plan ofLouisiana and March of Dimes. Participants alsowere able to learn about UnitedHealthcare’s BabyBlocks, an interactive incentive program designedto help them deliver healthy babies.(Photo: Lee Celano)UnitedHealthcare provides health benefitsto individuals at every stage of life.UnitedHealthcare Employer & Individual:Employer sponsored and individual health benefits plans.UnitedHealthcare Medicare & Retirement:Health and well-being products and servicesfor the growing senior market.UnitedHealthcare Community & State:State Medicaid and community programs.UnitedHealthcare Military & Veterans:Access to cost-effective, quality care for U.S. militaryservice members, retirees and their family members.UnitedHealthcare Global:Employer sponsored and individual medicalbenefits, principally in Brazil.
UnitedHealthcare’s award winning mobile app, Baby Blocks , is helpingnew mothers and their infants receiveaccess to the best care possible.Baby Blocks UnitedHealthcare’s Baby Blocks is an online,interactive incentive program that encouragespregnant women and new moms to visittheir doctors regularly and learn about infantdevelopment, and offers rewards for seekingpreventive care during pregnancy and thefirst two years of their babies’ lives.According to the Centers for Disease Control andPrevention, the high percentage of preterm birthsin the United States contributes to a higher infantmortality rate. Costs of preterm births are alsoconsiderable: Medical costs for a preterm babyare 12 times higher ( 54K) than for a full-termbaby without complications ( 4.4K).Baby Blocks helps improve maternity health,control medical costs and ensure newbornsare given the best possible start in life.BABY BLOCKS RECEIVED AFrom Medicaidbeneficiaries surveyedby UnitedHealthcarein 16 statesSATISFACTION RATINGUnitedHealth Group Annual Review 7
Helping make the health system work better for everyoneAdvancing CareOptum has deep experience in enabling care providercollaboration and engaging patients more directlyin their care. Optum’s care management programsconnect patients with the right care providers at theright time to improve health outcomes and reducecosts. This business also integrates pharmacy into theclinical care continuum and offers safe, convenientaccess to quality medications. Together, thesecapabilities deliver strong results across populationsof patients.Empowering ConsumersConsumers have a growing responsibility for theirhealth care choices. Optum delivers critical support,guidance and innovative tools and programsto engage consumers in managing their health.Unique distribution capabilities link consumerswith coverage options that best match their healthneeds and budgets. And Optum provides a rangeof financial products that help people save andpay for health care expenses.Modernizing Health System InfrastructureOptum continues to develop a more intelligent,connected, collaborative and efficient healthcare system. This business delivers targetedinsight and information to care providersat the point of care where critical decisions8 UnitedHealth Group Annual Revieware made. Accurate clinical care documentationsupports appropriate payment for services andcompliance with regulatory and health reformmandates. And Optum’s operational servicesand support solutions drive increased integrationand efficiency in the administrative processesat the core of the health system.Our Optum business serves: Nearly 115 million individuals More then 100,000 physicians, practices and other healthcare facilities 4 out of 5 U.S. hospitalsPositioned for GrowthSince 2011, Optum has compounded revenuesat 23 percent per year and operating earningsat 34 percent per year. In 2015, Optum grewits revenue by 42 percent (including theacquisition of Catamaran in July) and its contractbacklog by more than 20 percent. We expectOptum’s businesses – OptumHealth, OptumInsightand OptumRx – to continue to produce strong,sustainable growth across the board in 2016and beyond, as a leader in the U.S. andinternational health services markets estimatedat 1.0 trillion in the aggregate.OptumRx, a leading, integrated pharmacy care servicescompany, processes nearly 1 billion adjusted retail, mailand specialty drug prescriptions annually. A network of more than 67,000 pharmacies Approximately 300 health plans Government agencies in 31 states and D.C.
In 2015, Optum joined withMedExpress, a leader in high quality,affordable walk-in care, to expandaccess to lower-cost services incommunities nationwide.MedExpress UrgentCare CentersOptum’s MedExpress urgent care centersoperate at the convergence of health careand retail, measuring success one patient ata time. MedExpress can provide as much as90 percent of the care patients receive in the ERfor as little as 10 percent of the cost. This modelmitigates cost for both payers and consumers,while providing high quality, convenient care.MedExpress currently operates more than 160neighborhood care centers, with the goal ofoperating multiples of that number five yearsfrom now, including opening 35 in 2016.CAN PROVIDEAS MUCH ASOF THE CARE PATIENTSRECEIVE IN THE ERFOR AS LITTLE ASOF THE COSTUnitedHealth Group Annual Review 9
Social ResponsibilityBuilding Healthier CommunitiesUnitedHealth Group supports and leveragesthe capabilities of our businesses, the talent,expertise and compassion of our people andthe unique partnerships we have cultivatedacross the health care landscape to help buildhealthier communities where we work andlive. Our social responsibility programs focuson developing a health care workforce thatwill meet the growing demand for qualitycare and helping drive initiatives to improvehealth care quality and medical outcomes.Our PeopleAcross the enterprise, our people help individualsand strengthen local communities by participatingin our year-round charitable giving programand volunteering their time, energy and skillson behalf of causes they care about. Supportingmore than 12,300 charities and nonprofitorganizations worldwide, they donate millionsof dollars annually. In 2015, employeesdonated more than 1 million volunteer hoursand 63 percent took part in companysponsored volunteer initiatives.United Health Foundation is partnering withBlue Star Families (BSF) by providing a 750,000grant to train and support the more than 5.5 millionmilitary caregivers in the United States. Blue StarFamilies was founded by the spouses of militarymembers to help connect military families withcommunity groups and leaders to address thechallenges of military life. The new initiative aims toincrease caregiver knowledge, skills and confidencerelated to caring for wounded warriors, enhancetheir social support networks through a continuum10 UnitedHealth Group Annual ReviewOur PartnersPartnership and collaboration are critical tofulfilling our mission and goals as a sociallyresponsible company. We offer scholarships forstudents pursuing careers in health care andsupport the training of primary care providers.We partner with local governments andorganizations to improve community health andhealth care. And we work with organizations thatshare our mission to improve health and the qualityof life for all people, like Sesame Street, Blue StarFamilies, Florida Department of Health in AlachuaCounty, Columbus Public Health, and UNLVSchool of Medicine.The EnvironmentWe are committed to conserving energy andnatural resources, reducing our company’s carbonemissions and raising employee awareness aboutimproving the environment. In recognition of ourcontinued accomplishments, UnitedHealth Groupwas ranked 11th out of the largest U.S. companiesand 17th out of the largest global companies inNewsweek’s 2015 Green Rankings. Additionally,for a third year in a row UnitedHealth Group wasof care and improve caregiver quality of life throughnew online training and interactive resources.UnitedHealth Group participated in a Capitol Hillforum that highlighted unique military caregiverchallenges. L to R: Sherrie Wilcox, caregiver and seniorresearch advisor at BSF; Marine spouse and caregiverCallie Barr, BSF Operation Family Caregiver Program;Congressman Sanford Bishop, Jr.; and Tom Wiffler,COO of UnitedHealthcare Military & Veterans.(PHOTO: Barbara Salisbury)recognized as a leader among S&P 500 companiesby the environmental nonprofit CDP, earning aposition on its Climate Disclosure Leadership Index.United Health FoundationUnited Health Foundation is dedicated tobuilding healthier communities. To date,the Foundation has committed more than 315 million to programs and communitiesaround the world.UnitedHealthcare Children’s FoundationThe UnitedHealthcare Children’s Foundationgives families somewhere to turn when they needmedical assistance not covered by a commercialinsurance plan. Contributions come fromUnitedHealth Group employees and the generosityof others. Since 2007, the Children’s Foundationhas awarded more than 10,000 grants valued atmore than 29 million to children and their familiesacross the United States.
Our CultureThe people of this company are alignedaround basic values that inspire our behavioras individuals and as an institution:Integrity. We are dedicated to the highestlevels of personal and institutional integrity.We make honest commitments and work toconsistently honor those commitments. Wedo not compromise ethics. We strive to deliveron our promises and we have the courage toacknowledge mistakes and do whatever isneeded to address them.Relationships. We build trust through cultivatingrelationships and working in productivecollaboration with government, employers,physicians, nurses and other health careprofessionals, hospitals and the individualconsumers of health care. Trust is earnedand preserved through truthfulness, integrity,active engagement and collaboration withour colleagues and clients. We encouragethe variety of thoughts and perspectives thatreflect the diversity of our markets, customersand workforce.Compassion. We try to walk in the shoes ofthe people we serve and the people we workwith across the health care community. Ourjob is to listen with empathy and then respondappropriately and quickly with service andadvocacy for each individual, each group orcommunity and for society as a whole. Wecelebrate our role in serving people and societyin an area so vitally human as their health.Innovation. We pursue a course of continuous,positive and practical innovation, using ourdeep experience in health care to be thoughtfuladvocates of change and to use the insights wegain to invent a better future that will make thehealth care environment work and serve everyonemore fairly, productively and consistently.Our Mission We seek to enhance the performance of thehealth system and improve the overall healthand well-being of the people we serve andtheir communities.Our mission is to help peoplelive healthier lives and to helpmake the health system workbetter for everyone. We work with health care professionals andother key partners to expand access to qualityPerformance. We are committed to deliver anddemonstrate excellence in everything we do.We will be accountable and responsible forconsistently delivering high quality and superiorresults that make a difference in the lives ofthe people we touch. We continue to challengeourselves to strive for even better outcomes in allkey performance areas.health care so people get the care they need atan affordable price. We support the physician/patient relationshipand empower people with the information,guidance and tools they need to make personalhealth choices and decisions.UnitedHealth Group Annual Review 11
Commitment to ExcellenceEvery company has an obligation to conduct itsbusiness responsibly. As a health care company,UnitedHealth Group must meet even higherexpectations. We are intimately connected tothe health and well-being of millions of individuals.We touch millions of physicians and other careproviders and facilities across the spectrum ofhealth care. We take this responsibility veryseriously and strive daily to meet the needs ofthe people we serve and the communities wherewe live and work through our commitment tointegrity, compassion, relationships, innovationand performance.We are honored to have been recognized in 2015 forour continuing commitment to excellence:Business PerformanceUnitedHealth Group was the top ranking company inthe insurance and managed care sector on Fortune’s 2016“World’s Most Admired Companies” list. This is the sixthstraight year UnitedHealth Group ranked No. 1 overallin its sector and the seventh consecutive year the companyranked No. 1 in its sector for innovation.Optum ranked No. 1 on the 2015 Healthcare Informatics(HCI) 100, a listing of the top health care IT companiesbased on U.S. revenues.Optum360, a leading provider of health care revenuemanagement services, earned the No. 1 spot in the2015 Black Book Rankings for revenue cycle and codingsoftware and services.12 UnitedHealth Group Annual ReviewCatamaran, which formally combined with OptumRxin July 2015, was named to the World’s Most InnovativeCompanies 2015 list by Forbes magazine.UnitedHealthcare’s Baby Blocks mobile, interactive incentiveprogram for expectant moms, new parents and theirbabies enrolled in UnitedHealthcare plans has receivedthe following recognition: Business Intelligence Group 2015 BIG Innovation Award 2015 American Business Awards (Stevie Awards) 2015 Connecticut Quality Improvement Award M inneapolis/St. Paul Business Journal 2015 Eureka! AwardUnitedHealthcare’s Advocate4Me service, whichleverages innovative tools and technology to simplifyand personalize care, received a Stevie Award in theSales & Customer Service category at the 2015American Business Awards.Supporting the CommunityThe American Bar Association recognized UnitedHealthGroup with its 2015 Pro Bono Award for demonstratingan exceptional commitment to providing pro bono legalservices.Second Harvest Heartland, one of the nation’s largestfood banks, recognized Optum with a 2015 HungerHero Volunteer Award. The Hunger Hero Awards honororganizational partners who make a compassionateand transformational impact on those who are hungryin the heartland.Brazil-based Amil received a Best Marketing Sustainabilityaward in 2015 for “Say No to Childhood Obesity,”its initiative to encourage physical activity and reeducateadults and children on dietary practices.Supporting Our EmployeesIn 2015, for the fifth consecutive year, the National BusinessGroup on Health honored UnitedHealth Group with a “BestEmployers for Healthy Lifestyles” Platinum award.UnitedHealth Group was named to the list of the Best 100Companies for Flexible Fortune 500 Jobs (2015), whichrecognizes employers that hire for flexible working optionssuch as telecommuting, part-time and flextime.UnitedHealth Group was named a 2016 Top 100 MilitaryFriendly Employer and a 2016 Top 50 Military SpouseFriendly Employer by Victory Media, the publisher ofG.I. Jobs and Military Spouse magazines.UnitedHealth Group was honored with the Above andBeyond Award from the Employer Support of the Guardand Reserve (2015). The award distinguishes employerswho have gone above and beyond the requirements forgranting leave and providing support for military duty fortheir employees.SustainabilityUnitedHealth Group has been named to the Dow JonesSustainability World Index and Dow Jones North AmericaIndex annually since 1999.
You can find more information about UnitedHealthGroup and its businesses by visiting our website:www.unitedhealthgroup.com.10%10%This annual review is printed on recycled papers and uses reducedVOC (Volatile Organic Compounds) vegetable-based inks.
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UnitedHealth Group ended 2015 strongly and enters 2016 with greater capabilities and many more opportunities for growth. We understand that growth can only be realized if we offer high quality and consistently excellent execution in everything we do. Here are examples of the performance Optum and UnitedHealthcare delivered in 2015:
