Q2:23 Thematic Earnings Roundup

Q2:23 Thematic Earnings Roundup

This earnings season has provided us with insights into how various publicly traded healthcare companies are navigating the current landscape. Let’s delve into the trends and outcomes that defined the second quarter of 2023. The Home Health & Hospice Market: The Erosion of Medicare Fee-For-Service The Home Health & Hospice (HH&H) market has been volatile of late, with companies like Amedisys Inc. (NASDAQ: AMED) reporting a significant shortfall in earnings and a decline in revenue compared to the same period last year. Amedisys reported a financial loss in the second quarter of $80.3 million, after reporting a profit in the same 2022 period. A significant portion of this... Read More »
Dr. Amar Desai to Lead Optum Health as New CEO

Dr. Amar Desai to Lead Optum Health as New CEO

After less than six months in his role as president of health care delivery at CVS Health, Dr. Amar Desai is returning to UnitedHealth Group as the new CEO of Optum Health. The shift in leadership comes as Optum Health is growing its presence in the home health and hospice market. The company recently acquired two of the largest providers in the space – LHC Group and Amedisys Inc. – with price tags of $6 billion and more than $3.7 billion, respectively. In his role as Optum’s CEO, Dr. Desai will oversee operations of the company’s nearly 135,000 employees that provide home health, hospice and other services to 103 million patients nationwide. “I am looking forward to working with our... Read More »
UnitedHealth Group Reports 16% Growth YoY, Expanding Optum Network and Embracing Biosimilars

UnitedHealth Group Reports 16% Growth YoY, Expanding Optum Network and Embracing Biosimilars

UnitedHealth Group Incorporated (NYSE: UNH), one of the largest health insurers in the United States, reported its second quarter financial results on Friday, July 14. When we covered UnitedHealth Group during the last earnings season, the company demonstrated positive performance and balanced growth across its Optum and UnitedHealthcare business segments. This trend seems to have persisted into Q2, with UnitedHealth Group continuing to report strong contributions from both segments, even as UnitedHealth continued to invest to support growth. During Q2:23, UnitedHealth reported group revenues of $92.9 billion, up 15.6% year-over-year and surpassing analysts’ estimates of $91 billion.... Read More »
UnitedHealth Group Reports 16% Growth YoY, Expanding Optum Network and Embracing Biosimilars

UnitedHealth Group Revenues up 15%, Focus on Value-Based Care Pays Off

UnitedHealth Group Incorporated (NYSE: UNH), one of the largest health insurers in the United States, reported a positive performance in the first quarter of 2023, demonstrating balanced growth across its Optum and UnitedHealthcare business segments. The company’s revenue increased by 15% to $91.9 billion in Q1:23, and its adjusted earnings per share rose by 14% to $6.26 compared to the same period last year. Year-to-date, UnitedHealthcare also expanded its customer base, serving 1.2 million more people in the United States, with half of this growth coming from its commercial offerings. Additionally, the OptumHealth segment reported a significant increase in the number of patients... Read More »
Spotlight on Cardiology and the Mounting Interest from Private Equity

Spotlight on Cardiology and the Mounting Interest from Private Equity

Cardiology has been described as the “hot commodity” among private equity groups looking to increase investment in healthcare. Factors including significant patient demand for the services, more procedures shifting to outpatient settings, and the smaller number of existing independent practices compared to cardiologists working for health systems, have fostered competition in the sector and driven valuations higher than in any other specialty. A number of private equity firms have established platforms including Webster Equity Partners with Cardiovascular Associates of America, Ares Management and US Heart and Vascular, and Varsity Healthcare... Read More »