I have been hearing that it might be announced next week that Optum will separate from UHG to please the DOJ and many other reasons. Any validity in that?
22 replies (most recent on top)
"You must live in MN, you guys are so far off the left deep end you can’t see right! Bernie is a communist and giving free healthcare to 20M illegal immigrants is socialism!!"
You gotta love MAGA. Love buzzwords like "Communism" and "Socialism" and use them as if they were completely synonymous, when, in fact they are completely the opposite.
Hey, genius, are we great yet? I think we need Mexico and China to pay for more tariffs... Oh, wait...
@fz this is”vertical integration” with obvious conflict of interest pitched to the public / lawmakers as “value-based care”
Agree with an earlier poster. This has been rumored for years. Used to be a law that Ins. companies and providers could not be in cahoots. Not sure what happened there.
@OP maybe it will be leaked, just like everything else around here. So whoever is on the leak information committee can some of these questions be answered.
That, from a business perspective (and some greed) makes total sense. 1) Separate off the cash cow that is Optum. 2) Set up new Optum and print some stock for the big wigs, then take it to the markets so they can make $$$$ 3) Then let the ins side flail in the current form and stumble along, while MCARE/MCAID get gutted and hopefully they can break even until the bitter end.
As someone already said, the current model, in and of itself is dying. People have demonized the "socialized" healthcare in Europe since the dawn of time... but the truth is, if done right, it works better than what we have, and could, if our elected officials were not beholden to the big INS Co's and big-pharma (including the PBMs).
@eh Seriously? Get off this forum if all you focus on is politics. Get a life.
@ew and similar to before witty left, it is way too quiet right now. Something is definitely happening behind the scenes.
@ev I would gather it’s not public information and being worked in the background. Similar to how Hemsley was surely known to be coming back and Witty stepping down long before the public knew. Lots of movement/decisions happen behind closed doors before announced.
@OP that would have been all over the news, I’d say.
This is true. Maybe not next week timing. However I can validate it is coming this year.
@bg+1jx045969
You must live in MN, you guys are so far off the left deep end you can’t see right! Bernie is a communist and giving free healthcare to 20M illegal immigrants is socialism!!
Please the DOJ? You can't be serious.
Nonsense
70% of Optums revenue comes from who???
If only the dems were socialist LOL. Theyre pretty right wing
If the Democrats come back into power they are socialists so universal healthcare will be back on the agenda. UHG would be a provider of choice to service the plan for the country but not with their offshoring to India and elsewhere! It makes sense to protect those huge investments by spinning off Optum so UHG can be considered an American corporation that will find a way to outsource work to Optum. As Dennis Miller would say, it’s just my opinion I could be wrong, LoL!
UHC and Optum make the same profit. One has more upside: Optum can sell more and internationally, UHC can't continue to lose on MA and make up in volume. We march toward Single Payer (longer term), more regulation, perhaps more nonprofit Payers, or an unmitigated healthcare collapse due to Washington politics.
The market is pricing something between half off both (Optum + UHC) and UHC being worthless. The upside/value unlock for shareholders is a spinoff that leaves UHC as dead money in UNH, sell off the brick and mortar Provider side to fund a one-time dividend, and spin off non-OH Optum as a new ticker.
The guy in charge was the boss of the last guy. They saw skeletons and didn't change. Execs 1) know the industry is cooked and 2) haven't an ounce of innovation to do differently. Boss would personally benefit from millions in new Optum shares from a spinoff.
Layoffs will not placate the market this time, breakup is the only way. It's the business model in question, not bloated staffing levels.
Thta is a good one. Optum is the only thing in UHG that makes money. WTF will united do without a revenue source since the government trough of medicaid and medicare has run dry
This is in the works, absolutely. Not sure on timing but soon.
Oh rrreally???.... not a chance.
Agree, however, if it’s true it would result in many layoffs. It seems much more likely to happen with how they are positioning leadership right now.
That rumor has been going on for years. Maybe it happens maybe it doesn’t.