UnitedHealth Group – An American-based Managed Healthcare and Insurance Company.
The American multinational company UnitedHealth Group Incorporated is based in Minnesota, United States. It is founded in 1977 by Richard T. Burke is a for-profit healthcare company. UnitedHealth Group mainly provides healthcare products and insurance services to people in the US and beyond. The company has accomplished massive success within the last four decades and has become the second-largest healthcare company in the entire world. UnitedHealth is also the eighth largest company across all sectors in the world in terms of revenue. The current market capitalization of UnitedHealth Group is more than $400 billion. The company is currently under the leadership of Andrew Witty.
About the Company
UnitedHealth Group is a Fortune Global 500 company and is ranked 8th on the list this year. The company is also a part of both S&P 100 and S&P 500 components. UnitedHealth Group’s main goal is to give everyone a healthier life and make the working of the health system better for everyone. The company is striving to improve affordability and enhance the healthcare experience for every citizen which will build an overall healthier community. During the crisis of COVID-19, the company has funded more than 2,500 oxygen concentrators in India and supported the vulnerable population in the US and across the world. Recently, the company has been selected by the State of Nevada to serve its medical beneficiaries.
History of UnitedHealth Group
In 1974, a private company called Charter Med Incorporated was founded by Richard Taylor Burke. After three years, in order to restructure and reorganize the company, another business was established, United Healthcare Corporation. And, the former company became a subsidiary of this bigger company. The company was established to play the role of a health management organization and its first goal was to manage the physician’s health plan of Minnesota.
Eventually, the company started opening a new business which includes launching its first pharmacy benefit management in 1988. This new solution was rolled out through one of its subsidiaries called Diversified Pharmaceutical Services. Later, this subsidiary was acquired by SmithKline Beecham for $2.3 billion.
Acquisition and Expansion
The company started making a significant number of acquisitions in the 1990s. In 1994, it acquired a company called Ramsey-HMO followed by The MetraHealth Companies Inc in 1995. An acquisition in 1996 helped the company expand to Arkansas, Maryland, Kentucky, and Tennessee through the operated HMOs of the acquired business. The United Healthcare Corporation was rebranded as UnitedHealth Group as the company was reorganized as holding many independent companies. Some of the companies are Ovations, Uniprise, UnitedHealthcare, etc. The same year, the company also acquired HealthPartners of Arizona.
In the early 2000s, a subsidiary of the UnitedHealth Group merged with LifeMark Health Plans. In 2002, the company acquired two brands, GeoAccess and AmeriChoice respectively. The next year, UnitedHealth Group expanded its business to West Virginia, Delaware, Washington D.C., and Maryland as it acquired Mid Atlantic Medical Services. The company also acquired Golden Rule Financial, Touchpoint Health Plan, Oxford Health Plans, PacifiCare Health Systems in due course of time. A lot of other companies were acquired by UnitedHealth Group but particularly the Optum unit of the company made some significant acquisitions and helped the company to expand further.
The Optum unit of UnitedHealth Group acquired companies like Rally Health in 2017 followed by Davita Medical Group in 2019 for $4.3 billion. The brand Optum was created by UnitedHealth Group in 2011 as the company’s health services business and currently it is the technology focussed brand of the parent company. In 2019, Andrew Witty who played his role as the CEO of the company’s Optum division became the President of the UnitedHealth Group.
About the Founder
Richard T Burke is a famous businessman who is currently on the board of the UnitedHealth Group. Apart from playing his role as the CEO of UnitedHealth, he was also the CEO of Arizona Coyotes for some time. He currently owns 7,000 units of UnitedHealth Inc stocks and his net worth is approximately $907 million as of July 2021. Richard is an alumnus of Georgia State University.
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