An excerpt from the press release listed below. The marketing and analysis algorithms continue to lead a trail of profit and it is growing over prior years results and based on business intelligence software projection they anticipate $ 4.8 billion by year in with profits. With huge profits in this area it’s not hard to afford putting Walgreens and the YMCA on the incentive payroll.
UnitedHealthCare To Use Data Mining Algorithms On Claim Data To Look For Those At “Risk” of Developing Diabetes – Walgreens and the YMCA Benefit With Pay for Performance Dollars to Promote and Supply The Tools
Behavioral underwriting continues to be a focus with algorithmic formulas and biometric monitoring used within their own organization and made available to other insurers, this is the data game as you, your body and your healthcare history are assessed for “risk”.
All contracts though as they stand today with capitated HMO agreements are having an effect on various healthcare organizations with either rebranding or the offerings of other options to where some employers are having to make changes at higher rates and their plan compensations are being with with challenge at some hospitals and healthcare facilities as they are not covering what the hospitals require.
Employers in Orange County Looking for New HMO Contracts as St. Josephs and Some Others Begin Cancelling Agreements with Pacificare (UnitedHeatlhCare) – Employer Capitation Contracts
As you can see from the link below, the continued investment in analytics grows and this was mentioned in the news this week on conjunction with a study that came out of Harvard about the use of generic drugs and the need for additional software to provide statistics for some government reporting where United said the purchase of additional analytics was needed relating to the purchase of QualityMetric.
Ingenix (Subsidiary of United Health Care) Buys QualityMetric – More Algorithmic Formulas To Choose From To Identify Future Risk and Cost
I do agree there’s a lot of money to be saved with technology; however when the average consumer is struggling the job market and increased premium cost today, numbers like this do not invoke any popularity. On a side note, Goldman Sachs reported a profit of $3.46 Billion for the first quarter.
Do you see a connection between publicly traded health insurance firms and Wall Street here? BD
MINNEAPOLIS--(BUSINESS WIRE)-- UnitedHealth Group (NYSE:UNH) today reported first quarter results, including better-than-projected membership and services growth and effective cost management across its businesses. Financial metrics were in line with or better than Company expectations.
Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group, said, "This quarter again reflects solid results. Each quarter we are performing more strongly, improving in consumer and care provider satisfaction, delivering a steady stream of innovation, and effectively and appropriately controlling operating and medical costs. The market is recognizing this steadily advancing fundamental execution. We can see this in better market responses and growth and in strong business retention. We expect further opportunities will emerge for companies that can effectively optimize care resources and deliver the high quality care and innovation that consumers value. Our focus on these areas, supported by our investments in organizing health resources, modern technology and health information, positions us well to meet the market's changing requirements and bring further value to those we serve."
The Company anticipates full year 2010 revenues of approximately $92 billion, net earnings in the range of $3.15 to $3.35 per share and cash flows from operations in the range of $4.4 billion to $4.8 billion.