UnitedHealth Group Q1 2016 Earnings Call Transcript

UnitedHealth Group (UNH) CEO Stephen Hemsley said the company had its highest customer retention ratio in its history

“UnitedHealth Group businesses have steadily strengthened over the last several years and this trend continued in the first quarter of 2016. Our momentum is evident in the highest levels of customer and consumer retention in our history combined with new customer acquisitions driving strong revenue gains across the enterprise; growth in the size, scope and diversity of products and services within our client base; steadily improving metrics for brand and reputation and steadily rising net promoter scores across our businesses.”

Pulling out of most Obamacare exchanges as they aren’t profitable 

“As you know, we have been evaluating public exchanges on a state-by-state basis. We have maintained our regular public dialog with you since November about the individual exchange market and how our own experience and performance have been unfavorable in these markets.  The smaller overall market size and shorter-term higher risk profile within this market segment continue to suggest we cannot broadly serve it on an effective and sustained basis. Next year we will remain in only a handful of states, and we will not carry financial exposure from exchanges into 2017. We continue to remain an advocate for more stable and sustainable approaches to serving this market and those who rely on it for care.”

They’ve tripled their number of prescriptions filled by namely acquiring firms 

“today the business is running at over 1 billion scripts annually up from 350 million in 2012. Since we came together our retention rates have persisted in the high 90%s and we are building our largest ever pipeline of opportunities. We were pleased this quarter to announce an innovative partnership with Walgreens to which we are creating a 90 day at retail pharmacy offering.”

Continuing to find ways to drive hospital admissions and costs down 

“2015 marked our seventh consecutive year of absolute reductions in both admissions and bed days on a per capita basis and that’s true across all of our lines of business. But we also extend that work into other areas with particular focus around outpatient because it’s one of the bigger drivers of cost and making sure that we’re driving care to the most appropriate setting and likewise looking at out-of-network spend.”

Using data analytics to also drive down costs and help patients 

“We fire off 131 billion rule-based decisions every month to help close gaps using our tool like Optum One, which you’ve heard a lot about. It’s really crunching and assessing both clinical and claims data to predict where we’re going to see people that need interventions, and those interventions are additive to the tool and how we’ve extended it in terms of being able to action it where we can actually go out and prove where we’ve shown how our interventions intercede in people having strokes, people having heart attacks, and what that saves not obviously is good for the patient, but obviously good for the system. Our revenue cycle analytics actively are taking out friction between payers and providers, speeding up payment, driving more accuracy and improving the financial conditions of both payers and providers.”