UnitedHealth’s Optum Helps Healthcare Giant Boost Outlook Amid Pandemic

UnitedHealth Group raised its outlook for the rest of this year amid a strong financial performance of its businesses aided by its Optum healthcare services.

UnitedHealth, which operates commercial and government lines of health insurance, said revenues rose 11% to $72 billion in the second quarter, which were ahead of analysts expectations. “This growth was led by Optum Health – primarily our care businesses,” UnitedHealth chief financial officer John Rex told analysts during the company’s second quarter earnings call Thursday morning.

Already, the nation’s largest health insurer, UnitedHealth has become a massive provider of medical care, which is contributing more to the company’s bottom line, executives said Thursday. UnitedHealth’s net earnings grew 28% to nearly $4.1 billion or $4.52 per share compared to nearly $3.2 billion, or $3.30 per share in the year ago quarter.

UnitedHealth’s status as the nation’s largest health insurer and as a massive provider of medical care. UnitedHealth’s Optum unit has built up a menu of healthcare services from surgical care to treatment in a doctor’s office and urgent care centers.

“In the third quarter, the Optum platform comprised 54% of enterprise operating earnings and continues to show strong growth momentum,” Rex said of the $5.7 billion in earnings from operations in the quarter.