healthcare worker takes notes with masked patient

UnitedHealth Group executives called home the “new frontier for value-based care” late last week as the company prepares to close on its purchase of home health giant LHC Group through its Optum Health division.

“You will see us both developing the platform for home care increasingly in a comprehensive fashion, as well as integrating home care with our clinic-based care model,” Optum CEO Wyatt Decker, MD, told investors during an earnings call with Wall Street analysts. “It really creates two growth vehicles for us.” 

UnitedHealth is expected to close on its $5.4 billion deal to buy LHC Group in this quarter, and executives indicated the business will play a key role in the company’s plans to dive deeper into the home. In 2023, Minnetonka, MN-based UnitedHealth plans to expand in-home services including vaccinations, testing and social determinants of health.

Optum is becoming a key component in the health insurance giant’s business, accounting for more than half of the company’s $324.2 billion in revenues in 2022. It provides primary, specialty, urgent and behavioral care through medical groups, clinics and telehealth. UnitedHealth CEO Andrew Witty told analysts expanding care into the home is essential to driving Optum’s growth.

“Not everything happens when you’re in the clinic and a ton of things happen when you’re in the home, so we have to make sure we have care capabilities especially for folks who find it difficult to get out of the home or for whatever reason find it difficult to engage with the system,” Witty said. 

The line between payers and providers is increasing blurring. Louisville, KY-based Humana owns CenterWell, which provides primary care, pharmacy services and home health to older adults. Aetna is a division of CVSHealth which also owns retail pharmacies and provides in-home healthcare services. Witty predicted the trend likely will continue, telling analysts “this agenda has caught the imagination of other payers.”  

UnitedHealth beat Wall Street estimates for the final quarter of 2022, earning $5.34 a share on $82.8 billion in revenues for the quarter. That compared to $4.48 a share on $73.7 in revenues during the same period in 2021. The company earned $22.19 a share on revenues of $324 billion for the full year versus $19.02 a share on $287.6 billion in revenues in 2021.