marrying tech & care

UnitedHealth Group strategy map.
Unbundling Optum. SVB in healthcare.

The ABG (Always Be Growing) strategy of UHG

Hi there,

Silicon Valley Bank was a major partner not only to healthcare startups, but also to their VCs. 

Clients can read our breakdown of the top investors in SVB’s healthcare inner circle here.

And now, on to UnitedHealth Group’s growth strategy.

After seeing a 13% YoY growth in revenue in 2022, UnitedHealth Group (UHG) is projected to experience double-digit growth again in 2023. 

Given recent economic headwinds, how does it keep growing?

One key driver of UHG’s growth is its focus on technology. As we detail in our UnitedHealth Group strategy map, the company has expanded beyond its origins of health insurance and pharmacy benefits management to tech-focused areas such as virtual care, digital therapeutics, and health data. 

CB Insights clients can read our full analysis here.

“Optum”-izing value

Within the UnitedHealth Group ecosystem, its health services division Optum will be integral to continued revenue growth in the years ahead. Optum has established a three-pronged approach to care delivery via its services division OptumCare, its pharmacy benefits division OptumRX, and its data analytics platform OptumInsights. 

Optum is expected to grow its revenue in 2023 by 15-17%, as it continues efforts to transition members to value-based care (VBC) contracts. In 2023, Optum anticipates treating 4M people on VBC contracts, more than doubling the 1.8M cared for last year. 

Supporting these VBC transitions are technology investments such as the acquisition of LHC Group, which owns Imperium Health Management, a consultancy and tech-enabled services firm that helps providers to streamline VBC contracts.

Want to dig deeper? Check out our Unbundling Optum brief here.

Stay healthy,

Scott J. Dunn

P.S. Thank you Anjalika for your help compiling the newsletter this week! 

P.P.S. Find out what big tech is doing in healthcare by attending our upcoming webinar on Tuesday, March 21, 2023, at 2 PM EDT. Sign up here.

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A curated mix of the most recent and notable health tech financings, news, product launches, and deals.
 

DEALS

Vytalize Health, a provider enablement platform, raised $100M in Series C funding led by Enhanced Healthcare Partners and Monroe Capital. 

Kindbody, a tech-enabled hybrid fertility care clinic, raised $100M in Series C funding led by Perceptive Advisors.

Transcarent, a consumer-focused healthcare and benefits management provider, is acquiring virtual primary care platform 98point6 for $100M to expand its customer base by 3.5M.
 

NEWS

Weight Watchers will acquire the subscription telehealth platform Sequence to offer virtual appointments, dietary and fitness coaching, as well as medication prescription capabilities.   

Best Buy Healthcare has partnered with Atrium Health to develop a hospital-at-home program.