UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The company’s UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, individuals, and military service members; and health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services. It also provides services dealing with chronic disease and other specialized issues for older individuals; Medicaid plans, Children’s Health Insurance Program, and health care programs; and health services, including commercial health and dental benefits. This segment serves through a network of 1 million physicians and other health care professionals, as well as approximately 6,000 hospitals and other facilities. Its OptumHealth segment offers health management services, including care delivery and management, wellness and consumer engagement, distribution, and health financial services. This segment serves individuals through programs offered by employers, payers, government entities, and directly with the care delivery systems. The company’s OptumInsight segment provides software and information products, and business process outsourcing and support services to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. Its OptumRx segment offers pharmacy care services and programs, including retail network contracting, home delivery and specialty pharmacy, and purchasing and clinical, as well as develops programs in areas, such as step therapy, formulary management, medication adherence, and disease/medication therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.
BUSINESS ANALYSIS OF UNITEDHEALTH GROUP
The Healthcare Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how UnitedHealth Group compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by UnitedHealth Group to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
- Revenue Growth: UnitedHealth Group reported a revenue growth of 17.7% year-on-year during 2016. Healthcare Payers Industry grew at 13.5% in the same period
- COGS share of Revenues: As a percentage of revenue, UnitedHealth Group spent 76.5% of its total revenues on COGS. Healthcare Payers industry average (COGS share of revenue) in the same period was 78.2%
- R&D share of Revenues: UnitedHealth Group R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, UnitedHealth Group spent 15.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Healthcare Payers industry average SG&A spending in the same period was 15.1%
- Inventory share of Revenues: UnitedHealth Group Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, UnitedHealth Group invested 16.1% of its total revenues on Accounts Payable (A/P) Healthcare Payers industry average Accounts Payable investment in the same period was 13.9%
- Accounts Receivable share of Revenues: As a percentage of revenue, UnitedHealth Group invested 8.5% of its total revenues on Accounts Receivable (A/R). Healthcare Payers industry average Accounts Receivable investment in the same period was 9.0%
- PP&E share of Revenues: As a percentage of revenue, UnitedHealth Group invested 3.2% of its total revenues on Property, Plants, and Equipments (PP&E). Healthcare Payers industry average PPE investment in the same period was 2.6%
- Intangibles share of Revenues: As a percentage of revenue, UnitedHealth Group invested 30.4% of its total revenues on Intangibles. Healthcare Payers industry average Intangibles investment in the same period was 21.9%
- Net Margins: UnitedHealth Group Net Margins in the year 2016 were 3.8%. Healthcare Payers industry average Net Margins in the same period were 3.0%
SECTOR AND INDUSTRY ASSOCIATION OF UNITEDHEALTH GROUP
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
UnitedHealth Group is associated with Healthcare Sector Group, Healthcare Services Sector, and Healthcare Payers Industry.
Healthcare Services sector is comprised of the following industries: Pharmacy Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services. The definitions for each of the industries is as follows:
- Pharmacy Stores, PBM and Distributors industry includes nationwide pharmacy store chains, pharmacy benefit management (PBM) companies, and medication distributors. Pharmacy stores also offer walk-in clinics and related pharmacy services. Distributors distribute branded and generic pharmaceutical and other healthcare products to hospitals, pharmacies and other healthcare providers. PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with medication manufacturers, and processing and paying prescription medication claims.
- Healthcare Payers industry includes healthcare insurance companies that finance or reimburse the cost of health services. These companies also offer collaborative care, population health management, healthcare technology, Pharmacy Benefit Management, analytics, consulting and administrative services.
- Healthcare Providers industry consist primarily of hospitals but recent changes in the health services industry have contributed to both increasing numbers of other types of facility providers. Companies in this industry include traditional healthcare providers and emerging healthcare facility providers like ambulatory surgery centers, behavioral healthcare facilities, dialysis clinics, home health care companies and others.
- Medical Software industry includes companies that offer any software item or system used within a healthcare context. These companies offer standalone software used for diagnostic, therapeutic purposes, clinical financial and operational purposes.
- Healthcare Research Services industry includes companies that offer biopharmaceutical development services, commercial outsourcing services; commercial pharmaceutical sales and service organizations, consulting, health information analytics and technology consulting.
INDUSTRY RANKING OF UNITEDHEALTH GROUP
With $184.8 billion revenues, UnitedHealth Group ranked number 1 of all the companies in the US Healthcare Payers industry.There were a total of 14 public companies in the US Healthcare Payers industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Healthcare Payers industry by revenues during 2016 were:
- UnitedHealth Group ($184.8 billion)
- Anthem ($84.9 billion)
- Aetna ($63.2 billion)
- Humana ($54.4 billion)
- Centene ($40.6 billion)
- Cigna ($39.7 billion)
- Molina Healthcare ($17.8 billion)
- WellCare ($14.2 billion)
- Magellan Health ($4.8 billion)
- Triple-S Management ($3 billion)
INDUSTRY PEERS AND COMPETITORS OF UNITEDHEALTH-GROUP
Anthem (ANTM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And..
Anthem, Inc. with $85 billion revenues in the year 2016 was the number 2 Healthcare Payers company. Read this report to know the top competitors of Anthem and identify growth and cost optimization opportunities of Anthem
Aetna (AET) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…
Aetna Inc with $63 billion revenues in the year 2016 was the number 3 Healthcare Payers company. Read this report to know the top competitors of Aetna and identify growth and cost optimization opportunities of Aetna
Humana (HUM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…
Humana Inc with $54 billion revenues in the year 2016 was the number 4 Healthcare Payers company. Read this report to know the top competitors of Humana and identify growth and cost optimization opportunities of Humana
Centene Corp with $41 billion revenues in the year 2016 was the number 5 Healthcare Payers company. Read this report to know the top competitors of Centene and identify growth and cost optimization opportunities of Centene
Cigna Corp with $40 billion revenues in the year 2016 was the number 6 Healthcare Payers company. Read this report to know the top competitors of Cigna and identify growth and cost optimization opportunities of Cigna
Molina Healthcare Inc with $18 billion revenues in the year 2016 was the number 7 Healthcare Payers company. Read this report to know the top competitors of Molina Healthcare and identify growth and cost optimization opportunities of Molina Healthcare
REVENUES ANALYSIS
UnitedHealth Group (UNH) Revenues And Revenue Growth From 2012 To 2016
This report provides the last five years revenues and revenue growth of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. UnitedHealth Group reported a revenue growth of 17.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.
PROFIT ANALYSIS
UnitedHealth Group (UNH) Net Profit And Net Margin From 2012 To…
This report provides the last five years net profit and net margin of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group reported a total net income of $7 billion during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. UnitedHealth Group net profit margin was 3.8% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.
COST & EXPENSES ANALYSIS
UnitedHealth Group (UNH) Research & Development (R&D) Spending Analysis 2016
This report provides the last five years sales, marketing, general & administrative (SG&A;) expenses of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group spent a total of $28.4 billion on sales, marketing, general, and administrative (SG&A;) activities during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. As a percentage of revenues, UnitedHealth Group spent 15.4% of its total revenues on SG&A; activities during 2016. The SG&A; spending numbers are for the fiscal year ending in December.
This report provides the last five years cost of sales (COGS) analysis of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group spent a total of $141.5 billion on COGS during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. As a percentage of revenues, UnitedHealth Group spent 76.5% of its total revenues on COGS during 2016. The cost of sales (COGS) numbers are for the fiscal year ending in December.
WORKING CAPITAL ANALYSIS
UnitedHealth Group (UNH) Accounts Payable (A/P) Analysis From 2012 To 2016
This report provides the last five years Accounts Payable (A/P) analysis of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group invested a total of $29.8 billion on accounts payable during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. As a percentage of revenues, UnitedHealth Group invested 16.1% of its total revenues on accounts payable activities during 2016. The accounts payable numbers are for the fiscal year ending in December.
UnitedHealth Group (UNH) Accounts Receivable (A/R) Analysis From 2012 To 2016
This report provides the last five years Accounts Receivable (A/R) analysis of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group invested a total of $15.7 billion on accounts receivable during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. As a percentage of revenues, UnitedHealth Group invested 8.5% of its total revenues on accounts receivable during 2016. The accounts receivable numbers are for the fiscal year ending in December.
Inventory analysis for UnitedHealth Group is not available because either the company does not provide the data or we don’t have it.
ASSET MANAGEMENT ANALYSIS
UnitedHealth Group (UNH) Intangible Assets Analysis From 2012 To 2016
This report provides the last five years Intangible assets analysis of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group invested a total of $56.1 billion on Intangible assets during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. As a percentage of revenues, UnitedHealth Group invested 30.4% of its total revenues on intangible assets during 2016. The Intangible asset numbers are for the fiscal year ending in December.
This report provides the last five years property, plant & equipment (PP&E;) investment analysis of UnitedHealth Group Inc (UNH) from 2012 to 2016. UnitedHealth Group invested a total of $5.9 billion on property, plant & equipment (PP&E;) activities during 2016. UnitedHealth Group generated a total of $184.8 billion revenues during 2016. As a percentage of revenues, UnitedHealth Group invested 3.2% of its total revenues on PP&E; activities during 2016. The PP&E; investment numbers are for the fiscal year ending in December.
