May 20, 2022

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$5.4B LHC Group Deal Creates Home-Based Care Health System for Optum


Last week, UnitedHealth Group (NYSE: UNH) disclosed that it is buying growing older-in-put large LHC Group Inc. (Nasdaq: LHCG) and combining the provider with its Optum organization. In the aftermath of that announcement, one particular of the most appealing thoughts to ponder has been: How will LHC Team in shape together with the rest of Optum’s house-focused choices?

Optum is a diversified overall health products and services business housed inside of UnitedHealth Group, the guardian of UnitedHealthcare, the largest wellness coverage firm in the U.S., based mostly on earnings. The business emerged in 2011, when UnitedHealth Team consolidated its care supply, pharmacy rewards and analytics lines into a vertically built-in one particular-quit store.

“We are aligning these companies to better match the way we serve shoppers and the way our customers entry well being solutions,” G. Mike Mikan, Optum’s first CEO, explained at the time. “This move will make it simpler for consumers to connect with the broad expertise and progressive abilities across our firms, so we can help them increase populace health and fitness, lower the value of care and make health and fitness treatment do the job superior for anyone.”

Back then, Optum served a tiny around 60 million persons, experienced about 30,000 staff members and introduced in about $25 billion in once-a-year earnings. Now, Optum serves more than 100 million folks, has around 180,000 workers and generates upwards of $155.6 billion in annual revenue.

Significantly of that growth has arrive at first, but Optum has also executed numerous significant-ticket acquisitions more than the previous handful of years when concurrently developing a sizable medical doctor house phone calls plan.

Days just before the LHC Team offer was declared, in truth, Optum reportedly obtained up-and-coming outpatient psychological health company Refresh Psychological Wellbeing from private equity company Kelso & Co. Soon right after that information broke, an additional report mentioned it experienced also bought Kelsey-Seybold Clinic, a multi-specialty team practice primarily based in Houston, Texas.

Meanwhile, Optum previous yr quietly obtained Landmark Health and fitness – the in-dwelling clinical team established by Adam Boehler, former head of the Centre for Medicare and Medicaid Innovation (CMMI). And in 2020, it landed naviHealth, a organization that provides publish-acute care management expert services.

With Optum’s current capabilities, LHC Group, Refresh, Landmark and naviHealth would collectively build a 1st-of-its-kind residence-centered treatment health and fitness process, I imagine. That procedure, in flip, would accelerate home health care’s go towards value-primarily based treatment, a issue that Optum leadership has currently emphasised.

“Now, we’ll be capable to consider the expertise and featuring of LHC Team and offer you them to Optum Health sufferers significantly, a lot a lot more broadly,” Dr. Wyatt Decker, Optum Health’s recent CEO and a practicing crisis medical professional, stated in a movie posted on the web. “We have over 4 million individuals in value-dependent arrangements, and we’re really psyched to be ready to present the providers of LHC Group to these persons.”

I dig into all this and more in this week’s unique, associates-only HHCN+ Update.

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