UnitedHealth (UNH) 15 Jul 222022 Q2 Earnings call transcript

Good morning, and welcome to the UnitedHealth Group’s Second Quarter 2022 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group's prepared remarks.

As a reminder, this call is being recorded.

Here are some important introductory information. This call contains forward-looking statements under the U.S. laws. securities federal subject actual are or and that uncertainties expectations. These to to differ cause results experience materially could statements risks from present historical A in the Securities uncertainties Exchange Commission, risks the of cautionary that and and description statements periodic the found included reports with be current in and file we including of some our can these filings. will reference amounts. non-GAAP also This call Relations on the of the to is at Investor Financial the Earnings of GAAP non-GAAP reconciliation available A section and Reports company's page www.unitedhealthgroup.com. amounts Information this release is Form in we company's XXXX, from contained issued July the our of accessed which website. dated presented in the call on page the Investor may be this earnings morning X-K Relations XX, and Executive UnitedHealth will Witty. Andrew Officer of the now the I turn Group, conference over Chief to

you, we and the objective half on second for good thank ended UnitedHealth as thank of to today. connected more and more everybody, momentum you execute Group sustained morning, effectively us joining with people high-quality the care. serve our year with Katy,

I that, that commitment XXX,XXX hard colleagues. their and of thank want this and our unwavering support mission our of possible. all people work we to makes the It's serve their to For

to helping strong is with unmet Optum a care. are a by in-clinic care needs. clinical providing and meet are the home, people to central our to theme drive per care teams overall of lower limited patients Optum both Health virtual result connected fee-for-service to our care UnitedHealthcare, of income and at We care at span unique more post-acute, $XX.XX strategy, to among we and outcomes cost, and from aim range value-based a better social traditional a more orientation. As at outlook personalized patients' conditions, care society's platforms of for and from vulnerable share. a needs most chronic for per increasing settings, value-based Comprehensive enabling who Optum earnings multiple adjusted continuum providers Rx's year and often consistent our performance share the to transition growth $XX.XX of

by Our programs, comprehensive the own comfort prescribed care consumer-focused approach consumer with this them approach benefits Score again of more XX helps their patients stick homes. our is to offerings example, Dual quarter. Net with people X.X Needs The growth We a served time for satisfaction this million evidenced, spend across and their the Promoter Special health high in our for Plans. delivered of by allowing

value, As this improve on Medicare continually now, always, offerings expect, you we focused, predictability market and for gather finalizing seniors. the Throughout are as delivering our stability teams more right to might consumer open feedback and enrollment, for fall's products. broker extensive our year,

announcing in Meanwhile, as business, striking. in service of health in Our our resources to to driving about XXX,XXX more and seniors over the our we years, this primary by over plans X grounded plans is people areas XX of have our business almost are And high-touch same spend X.X past in our demonstrated screening million our ratings benefits the income. those by have continue up commercial compared grown served satisfaction seniors To best innovation -- services additional affordability in of are approach most XX% products, year fee-for-service, preventative nearly satisfaction digital-first in more participating which over the seniors. who Advantage in important points to seniors, traditional less we Consumer XX% months, UnitedHealthcare, benefits the Group access serve out providing greatest to have asthma our list offerings. expansion over basis several is chosen domestic including be of People to acute risen a engagement, their critical and more period. result deep approach XX% drug past today by as insured among of supported twice an fee-for-service, testing will the medicines positive. fully response Advantage are and devote co-pay, into allergic on plans for Medicare for The industry. for initiative pocket need, medicines care Included in The of to about each care. Plan up severe Optum from reactions, for perform no whom on XXX $X $X,XXX of attacks. are best for such and albuterol XXXX, for insulin, that preferred is savings epinephrine of Rx. limited of Medicare by there out UnitedHealthcare the members. customer than Starting translates pocket and

While this cost containment vulnerable health, manufacturers of price costs. and and people's of is products, longer-term a of an which lowering upon important depends is fundamental the larger the their drugs list driver step restraining for

digital UnitedHealthcare. point-of-sale information find the capabilities use health-related to areas, we costs do past accelerating including to our We with engagement lower effectively. our reach been help to includes everything in ever a of serve see with for by XXXX, common deepening consumers discounts. experiences drive trusted, investments we've Optum across and platforms. each and capabilities and direct-to-consumer This broader will consumers back our base more X theme: served on Stepping greater of continue and Throughout to looking rapidly actions, can consumers a and further consumers, enhancing building growth our of expanding relationships our you'll to out-of-pocket The

Operating over to more Chief these share McMahon, Now, Dirk turn and to like I'd efforts. our Dirk? President about Officer, to it

This on is evidenced serve more little provide you on Thank evidenced you, a Picking our more growth to on value-based by deliver -- better and through up Andrew. progress in our been arrangements want Andrew's we I is strategies. making work comments, color care. people to have the progress to with

wellness built higher hospitalization rate. XX% in medication expansion COPD adherence expand record than engaged lower what XX% in enabling along Care more value-based visits. part a value-based room track goals fewer for consistency. urgency X well clinical arrangements implications we Optum Care our Medicare physicians patients emergency significant We contributing MA value-based respiratory served to fee-for-service a have the the Medicare to for care. to Clinical and avoid are our to of at and This about in for real patients, care in like have gives to Further, to such people with care, Optum quality than deliver results checks are year. patients, XX% a now, delivering arrangements small has are patients higher to complications, nearly rates substantial our scale work in these adherence years points access helping running their with fee-for-service

to remain organization driving down We the as improving applied access an through by of cost committed healthcare also technology.

service overall by greater our the These for and cost developed Areas a we card consumers dollars and millions reduce investments serve. such value greater facilitate For hundreds are customer people platform backbone financial experience providers. investing end-to-end common on simpler and enhanced as A management experience we will for experience, integrated consumer ultimately eligibility services of of our technology platform experience, a unnecessary to enhance the team. center a Optum to our an seamless the rationalization lower at to work for example, operating consistent end-to-end complexities, lead of of is more healthcare. clinical to

consumers. our individual this healthy has single food been to work, seen on with widely-accepted introduce have The members Advantage purchases response to even we XXXX. initial of card within benefits, consumer in all pilot onto differentiator a Based groups. intend the great all our a We card initial simplicity combining Medicare

are to know transactions. to We Another their is the the years. their members optimization they visit. engagement last completing need offerings couple report of of work Medicare to digital key coverage responding element has I'm consumer for during everything experience timely from pleased at information XXX% and improve Digital our jumped among members of well and a expect our fingertips, understanding to virtual

access pharmacy of in on are consumers driving services, quality offerings. pharmacist-led and focused Lastly, for by improving very we care

on have locations. John track I'll the XXX in clinical that, nearly community community pharmacy to pharmacies end year are over footprint to Rex. the our of it to With by continue Officer, Chief turn Financial the integrated increase and now We

Dirk. Thank you,

entered half year noted, strong momentum. Andrew with of second As the we this growth

year. non-COVID care this and years to Optum diverge observed growth with revenues have not Principally, half over returning touch patterns activity with grew begin, COVID let care we seen me been a last past over what Performance between relationship balanced quite billion rapidly the well COVID First both To the lower so of XX% the double-digit care. far with couple we latter have compared UnitedHealthcare. levels balanced, on year. of and at briefly $XXX of as was had modestly,

continue to historical levels. care also below areas with in remaining patterns, underlying variation certain some We see

recent but periods. In the as coming seniors lower of For preventative admissions a COVID-related average more which example, care. emergency important compared And rising we such pediatrics others are hospital back and earlier with levels at stay are seeing obtaining department. fully, length with weeks,

process interesting. closely impacts current There we UnitedHealth will of which are they We might ensure is here watch actually as to long-standing as what are, As to is doubt and offerings to we can. about cost medical course, for we help seeing health But which trends shifting far, primary need are due doing. to all still what patterns, highly have acuity. care deferred remain, evolve Consistent of our reasonable respectful we the Group, as with indicate they and getting at we Thus they earlier during always, how our are periods. rapidly, that no been many the care, continue in practice the theories position is driving on environment, can are longer-term accordingly. always, not people intent people and much and them

by our by to patients or delivery revenue expansions. the value-based Earnings in per grew even value-based second increased billion in the in care consumer practices Optum arrangements. XX%, to under Revenue from businesses. operations quarter. now XX% rose support led as $X accelerated Health investments Moving we served XX% growth over

while and from surgery continue Optum's to also these the high-quality which and superior patient centers, saw scope surgeon strong a experience ambulatory and complexity all optimal We contributions clinical procedures of settings, performed in delivering outcomes. advance

compared procedures tripled offer, these place high-acuity $XX.X an care years NPS Our to value billion and centers consistently have XX. on just experience, excess Care ago. Insight The of spine cardiovascular growth XX% increasingly the the Optum to of nearly last year-over-year. and quality centers grew with providers was year. benefits of in high revenue $X.X compared X number consumers revenue performed recognize backlog billion, joint, the and

to in deeply and information including applying strong high-value billion, Optum results in sales services, Rx and grew to data more intelligence artificial machine revenues offerings. drive XX% knowledge-based continued of We learning advancements, execution reflecting analytics an our suite as and expanding as offerings health continue technological where and nearly $XX areas vital improve of complex PBM These monitor as effectiveness high-touch care services. track including we services care treatments. the core pharmacy in specialty the expanding and our tightly and well in the of people, our growth serve technology such

of as puts Plans. us to our in on will be our Medicare up year group a enrollment About people individual all redetermination the billion second from Medicaid expect contributions XXX,XXX by X/X to People UnitedHealthcare. businesses. growth Advantage with share gaining in Advantage. This anticipate Medicare for to Medicare XXX,XXX for will experienced the Medicaid seniors, within this At be next by result or Needs Advantage state track quarter. we year. and Turning offerings $X.X by Revenue Dual year. point, Special offerings activities our strong we of our grew serve continue XX%, the In to additional this seventh grew and to served an in a impact consecutive remainder

during to as people Within XX,XXX new added that, from uninterrupted occurs. find continue by first fully-insured this transition offerings domestic quarter. access people coverage plans appropriate the grew resources in commercial We help We and to year, XX,XXX with the prepare within commercial balanced some offerings. and chose access growth a of people plan plans XX% note, group who to across individual individual was of and among cost-effective convenient family quarter this virtual Of visits. featuring the fully-insured growth our to

strong. Our capital remain capacities

$XX about first and flows X.Xx nearly net from to operations we $X more and improve strategies deployed serve benefit for our to we In returned quarter were June, half through in or and our and of year continue and to billion cash full flows cash expect capital and outcomes repurchase. billion. for health we delivery income, $X year, of capacity share In system. the shareholders enhance Board this of $X.X the billion Second increased consumer billion the we dividend by the experiences broader to XX%, people the care dividends than

per As share. of earlier, today, this noted outlook, $XX.XX adjusted on to our we based earnings growth increased to a $XX.XX outlook range

Andrew. Now, back turn I'll to it

Thanks, John.

a underscore key me points. few Q&A, the Before let

First, the our strong momentum the raising across we care cost, are people and and every Optum bar day. are serve colleagues at value, business. The throughout UnitedHealthcare our fair seeking continually high-quality

that businesses, deliver to lives platforms, the share our opportunity growth further questions. for in to earnings see and per expansion long-term that, and and live revenue across across Insight, core One to help manifested growth performance a confident everyone. Health. we ability and our advance open business You double-digit please. XX% healthier it to make caller, Optum With tremendous our mission work our help growing the system health backlog in for growth robust better in per growth up strong our in our and Optum XX% operator, remain pharmacy ahead, the let's Benefits in people We see services objective

first A.J. with our take Credit Suisse. question from [Operator Instructions] Rice We'll

about areas issue of ask with that your markets, selling could like a employer outlook go how as through employees, in sort provider back benefits conversations? labor is But the the there's to on retain a to on tight tight some season and you comment with is this recession, employers me And the X groups many also seems about labor coloring maybe open have pressure questions. we that more then of benefit wondered and I forth year? need alternatively, discussions how their bit discussions to this business. impacting industries. concerns for I about the on next market from their It little the we if of

the question. for thanks much so A.J.,

business benefits hand pleased their how own But the about say, our a we before to make first kind super business, extremely emphasize sure is as morning. Brian that in here. the this know, employees like role as I And of E&I I role the this across of concerned you've The would a in commercial the opportunity help UnitedHealthcare So had thoughts, are Thompson managing inflationary as the a appropriate. I more the environment hard to benefits certainly you important just few company we've with UnitedHealthcare take their a to deliver employers the Because worked just Really, obviously all to environment. we're team companies more for to super understand pressures hand it very sense to have the and affordability, progression, things And that you're been affordable particularly report healthcare on coverage within describing strong it think of give bit that, are is seen this little off, to maybe rely all the cost we of of a with employees how year. availability those you I'll out. are important. how Brian give of to playing business,

product I value-based have Yes. Thanks and and the Most theme innovation conversations in, throughout. of for these appreciate A.J., question, we that the how lead central form to around been been drive in the do has Andrew. design. really continue of That solutions

some with ideas the to around up showed market have new care. We virtual

marketplace. provides And pre-service long to Bind product for medical how that as puts broader about with most resonates the great enable choose really have High with et access for Optum, not the but consumer behavioral, what a integrated have part we as where our want equation often partnership time, in that employers, of they of seat well lower price both in but terms And the coverage cetera, really with beyond really it costs. that design, been the deductibles and able guaranteed they're heard with You've a driver's importantly, points. only consumer. in quality,

more levels products these have less around So and been value. examples And resonated. the staffing around say I really would and of conversations employment have

thank you And A.J., much. so again. thanks Brian,

Next please. question,

We'll Lake with to Research. Wolfe next Justin go

it'd cost unit I for two, So of of like great two, COVID for looking of of just starting we us A to morning. year you above then question that costs one, in Thanks. by that are And One, were Are contracts? Good the take normal year, if X% Thanks. pricing you typically you kind business seeing what in COVID. next you on normal know versus to could normal? some to you've level trend. be in for And X% COVID price plus into starting terms next year? thinking always being what hospital next guided run through above for are price terms segment? new

much thanks Justin, so for the question.

in bit would I I Before comment of a business of seeing observations step to of what back on they're ask John maybe the cost think then maybe a you conversation, little of evolution offer little a just here. and bit I give hospital will terms Brian, perspective couple

seeing overall some across behind tremendous potential First tremendous invest this quarter of And picked growth around. that off, to that see are we those. the you us the and investment in you up business, in the increase we see look levels time for as opportunities in

forward I John organization. little second. will positive think an more to incredibly in a that's the overall of potential talk sign those bit some of a of the

of into are not are But I of of trends of very get we a we cost of terms about in environment. kind to XXXX, on the are ton respectful we how the very, going underlying pricing. the within phenomena as always, think detail thinking

off question, pass uncertainties part. I'll finish it or we into a about of bit. more a second environment a of just be course, all I and you John, not respectful of of first little deeply where pass and think something on just And out Brian, on few learned John, And respectful even Maybe be. play your bit months in we things sense to may the seen it that little these to last includes like to to all we Of inflationary it you COVID then that have the may can in pandemic And trends of and to could depth things. give have present. course, the maybe the plays like that think part of how the a

morning, Justin. Sure. Good

thoughts, maybe first really in the observations we really and what have and you particular, from quarter our the this look seen what we thinking how developing. Just few and getting influences will half the a is from some of at at asking because are

So, that months we care very here of comments between two little care seeing balanced the And the inpatient number and non-COVID the shifted compared about and not put the course quarter. by probably over bit of that second had talked the lower my last the what about typically in years, of you quarter, level that as a in of recent X/X, COVID COVID level relationship quickly in higher heard a utilization. prepared that's care. admissions was a let's accompanied It first to as non-COVID

was that that kind recent factor here an in important saw we So, of underlying months.

the I other pandemic we've now. you that longer point other is, thing as really care and gone and important think broadly, COVID look since across intervals hospitalizations here the between any

non-COVID also. So that seeing the illuminates that further care core are underlying we patterns

going illuminate of So all helping what's underneath on that.

are for in of an important them That's super example, us pre-pandemic very point seeing I bellwethers levels. important moving Ones to I say care encouraged getting towards for that very wellness for our care that been Annual think normal we the other are patients, we've speak they're back more are kind visits -- seeing, Medicare pockets of for some at we that that among future need. wanted to the important they care, we us. would baseline.

they baseline little seeing people such are a prescriptions important colonoscopies, to getting pickups we're some fill First also baseline. need. care so now in back get preventative some We're care bit, above as those trending seeing

how greatest to We we sure are our they that populations. need. in care So all really response got seen terms think of We've of in the that the people influencing future. senior make the getting about kind

outlook that of and their yes, our COVID influence into from future, get to certainly, think core that fundamental care impacts some in your about think to enormously ability hospitalizations. homes I into for get kind future them to respectful of we the And how of that. is the to back

rise Here hospitalizations we period after January. seeing are in COVID we're pausing since of sitting a where kind again

to this variable and and So that how the continue might outlook Brian? year super somewhat throughout next, respectful and again. to potential be to in progress for our that towards accelerate

cost we summarized I add of just our Yes, what we're well might John, forward priced think contracts. just We're be obviously, of certainly Justin, impact might includes our view you expect, labor there as of well. with as to of and these you seeing inflation. cost, And than respectful in that long-term will terms you I that with inflation. know, XXXX, on Obviously, partners. in agreements, we how XXXX provider time more a as function renew

dynamic environment. So certainly Thanks. and of respectful that

it. Appreciate Justin.

Next question, please.

Stanley. with to go Morgan next We'll Goldwasser Ricky

Yes. on Rx. Optum focus I'll

Optum membership So and when clearly, seen strong haven't flow-through the growth, you've the we on we line Rx, look necessarily growth seen top at very but and margins.

of for the Rx? that year kind just impacted have what seeing of the like for for we how And trends mix results? terms Optum about So rest Optum think should you progression are in -- the of

Ricky, yes, Ricky, great. the thanks question. so much for

phenomenon really ask the I think Rx the earnings revenue strong reasons the aspects, that to growth. a growth And see a of clients. bringing bit few other a around as that, that, lag the you with of course, that of Heather? little and you a and know, Heather that, all comments of between it as one significant is board see one I growth give and Before sense investment overwhelming more on that's very of of you And brings kind new front-loading we the this of on the make maybe why up for and you gear Optum supporting census to of

Yes. Thanks.

you year PBM, UnitedHealthcare that strong And said, that the revenue, that more urgently to the the Andrew really membership volume, well you ones prospective one, plan, so about. point and client things. year. maybe seeing specialty into to our in see individuals strong tools do underserved context even those see utilization, new those sites drug Andrew continue high can those businesses. investing long-term where being to number clients side. that innovation, and I referenced the consumer and very are our seeing in point book. costs UnitedHealthcare responsive and with we clients to the brought Optum in value. as and the see in delivered new you of impact growth investments addition we it's the we X will you I as the moving We've in address we that in as I or communities. additional and we're which that think With one, and To but our Number actually talked that new growth. seeing provide result that talked Rx earnings today I'd the think, like direct return already, you're year, on in That's, to we've client that a investments, two, X we about we've you're Brian's So as some Number on you scripts for that a growth to seeing products Genoa expand respect the this serve rising But in margins affordability. that in great with through develop the quarter, existing also significant Building we're to on the

billion Our not done. specialty years, products. and to We're over services and last working more urgently tools bring of has delivered value we're over $X X.X the

I'd in the real pharmacies. And our investments quarter, off. the will to So one are last are those that's happening time -- you then those pay point and

invest we've our most our about and growth see you and I'm But So our pharmacies earnings. not that you'll we're our integrating our excited experience. digital just to talked us operations, before, But growing. seeing in the that fact are line and fast in top in impacting also about service. We're the that

first. pharmacist the putting So

our hard sync X,XXX not people work that every serve navigate, but just and our and guide educate meds, to through best-in-class help to We have capabilities. day over pharmacists individuals

with those of integrating going quarter, of pharmacies rest I of pay to the the in to you're on and off And growth service-first see biggest individuals think a most. really, going investments better so the pharmacies to return is and in and our need through that year, those a one also but it's the service us the that pharmacist-first model

for and question. the Heather, Great. Thanks, Ricky, you thank

Next question, please.

We’ll Matt to Capital go Markets. Borsch with BMO next

I Yes. gone U.S. the case courts month that that district regarding question understand about ago If appellate was a Court help I you at through the in way. elected not to a right the coding, the take could that and process? about to -- implications, ask Can the had think or referring it say up just steps anything least CMS if about risk maybe I'm can it rule on you next in the Supreme us

we generally I very disappointing thanks Matt, much that too be not don't be this I to case, question. think too the think but on surprised too, I I you'd for applies. legal mean, And in think that don't comment ongoing processes. certainly

much to in on really able too to not So you certainly question. that, be give a position information but appreciate the

Next question, please.

We'll go next to Scott Fidel with Stephens.

their LHCG just XXXX that and recently, for Proposal rate clearly, pending they're for proposing CMS Home Health Just had pretty with acquisition. out put year. the disappointing question just around a And cut a next

asset up cut in in about you through And of CMS they how LHCG rate if in rate financial the impact different on may then influence that cut the your potentially does going the end that final how ways deploying that also interested whether XXXX? influences the Just think thinking rates in when with release acquisition those?

thanks and rest, so it's future. very focus for care, And going virtual be clinic, of physician by provision Optum of to care much really the can so off a the believe in our home saying the building feature for other aspects let me high-quality more enhancing and Scott, start listen, be that that the example, much to central key the of we linked And question. a that Health is development.

to delivered. And Optum overall enhancement that together a we value-based within the LHC of and it We can very that care us, really the committed significant can quality really going And to so for be of the towards bringing we is organization is be patients. it to contribute really important improved think believe delivery can transaction. of we're really --

of kind system that is is making as case, care to think, the appropriate always the sure incentive right the is important. I really drive

and hope in of to given value I care and over is continue fact, increase development see of the time given continue to CMS very the the to that, that home the care signals are home support much the environment. high-quality So others and in

mean, homes. And their very -- They kind we some this a history to in committed so you it that which strategically get to better see folks to of And this step them. this calls, extend. more as help need for we because know, people, another I out. you care to Honestly, have isn't assessment extending of of see remember, areas ways folks we much long Scott, have agenda can't need critical to way -- how we've to out millions in of amazing a and and direction homes. plays this in this these to of preventive is for we'll are And get elective is house them. delivered us big as like got to find health really

arena, question. which year. So plays through to will hope out invest rest that in of support we'll the we're We continue choose so optimistic the during to signals about Thanks see way this. and very in much the they for and the CMS send this much that others of how

Next question, please.

with We’ll Gill go JPMorgan. next to Lisa

about talked things. Are the the the you if could in your no shift comments appreciate I you're as season? know And value-based past what about maybe XXXX wondering on co-pay. $X or I X value-based and care? care for you programs new But Optum we doing about think what around selling then One, XXXX seeing comment XXXX and you talked beyond Heather for Rx on Rx. towards within I'm secondly, have Andrew, I co-pay, you

room who by of up meds consequence meds worse. end And and, these them, going affected conditions enormous And they don't bring cost. UHC or supported they're $X and question. And pocket you've to Lisa, are completely think the by much critical out to meds. Optum need If doing are brings human when about think folks the right that $X so some they personal that here of thing on co-pay for I consequences unfortunately emergency the with of in Rx the to got get the address. course, the thanks

we in to us is so address that. And really to this lean and a place believe appropriate for

about I just of to go back just to I for the In season the Optum second. terms selling Rx a specifically -- record step is want know, to let I board. a across season, selling in Heather to Optum before of talk middle you want

Optum, at you If are months of that we the other season. first businesses, also but X Optum record selling including look in the course, it, a X of Rx,

of really this terms services across significant us products we're a the of offering that period the So in marketplace. the is fit and for

And seeing step up of the why 'XX? into is Lisa services. Rx you're the could think you've seasons care One selling a in investment Optum profile a pickup that, touch the just business as seeing specifically we're our what described. our you Heather, seen also in maybe in maybe such because strong value-based about reasons address with aspect And on that you

Absolutely.

it Andrew 'XX first came that, are way As we Optum season selling of And where X ways it. think season. a Rx off about the all, as about strong strong is I that think today, to Sitting across said, really enjoying well.

We're be factors this showing We're activity, year again I for now, waiting innovation. right real-time environment the drive to business result to this or the down activity, bring And client again of win now sales time that's rates working the and clients and XXs not right in think the we now. in market on and of really waiting. going with our The make up. that's We're were not year. to them to services high innovate we're We're the other book first last cost, based ahead new with including most respect finalists where With is retention. of at us today.

that's best have management client and I industry, the in management team the team we off client and responsive us. paying think for

appropriate So right our clients real think some services partners I But we're those constructs. closely products, better make -- seeing to those be The interest another clients. our more We of to providers, ensure about very to again care including from with definitely the very these work will integrate guess, with specialty Care pharmacy, in more to seeing number XXXX incorporate tools role protocols. we're also bring treatment pharmacy, we're I to We're going choices. and But we're of the the that value-based respects. for and with clinically busy most drive elements experiment and other is engagement to With pharma prescribers most are into help And our prescribers -- results. that tools to it to require and Optum play from X one, the in drugs our be with Optum to that to that very us engage pressure particularly seeing Health, in That's is, with going year and bringing thing XXXX. value-based with our clients. I going serving we respect based, and many value think investment. busy affordable time

and plans of able be to plan more value-based services us, and important in their piece to an have Our sponsors to that predictability shift. for be

see us PBMs integrating see bigger piece and a there, the we'll even being I value-based think to care continue you'll So more pharmacy. driving and invest -- of

care, you've right, And how build within of really approach And seen much. And Heather very being Optum think we said, you're agenda, it it's Lisa, -- agenda, substantially the piece. Health I very Optum as focus so on Rx thanks that much leading of care propositions. just than standalone is right an Heather, to of value-based primary value-based that kind in of this rather an terms Optum us kind course, holistic in on.

are are you those healthcare are the X But need I'd in opportunities. make X day on Lisa, next places be say cost these us those we see solve. over of to areas you and behavioral more environment, or complexity as And and to expect to burden going so the think where should continue sits us years. much. for kind oncology, thanks progress, and areas are. like we of the from invest to in hear much early that and Right in You'll areas experiment like us about the prospect health and where now, important to

question. Next

Raskin to We'll go Josh next with Nephron Research.

things As think are couple more of to there that years the in in now emerging services you look you're you other think market at the that the senior market important going care acquire that beyond obvious you that to over the or out, you next primary are be future? capabilities are building even develop need the

a book question. appreciate strong Really to very performance of And see we business. in great our senior Yes, it. continue Josh,

first You of for see really that us continued progression stability share market toward the joining the year XXX,XXX is time. And built the continued all important, on service That's of that growth. folks this are think And totally to taking. you're the to Tim I that speak that? giving. experience ask maybe the question But Noel, the could we're that next. right seniors where offering about And you

selling Medicare selling Josh. season season engagement. John great number talked and for good about, Hey, morning, Throughout the seeing, Gap] [Audio Advantage. also really as [Audio Gap]

experiences that, [Audio make to use, on digital and Gap] of consistent like makes continue forth the Things senior talked as Gap] people. to important innovation which I super personalized understand But well. about easier [Audio we'll think member experience the experience. experience, is for that to something is agenda benefits members our market bring for UCARD, simple beyond innovations that Dirk member about continuous more easier the more

at-home on important. population for theme expand That's really -- the another will continue to be think I services. senior to

seniors the of bringing this care. thought essential of the needs I that's delivery absolutely something out to high-quality to and the care think more, though, in vulnerability historically of home of into occur the the More center mobility to given office. that be the challenges physician's population, we've channels, for folks, is of becoming care home for

themes. So big those the are

me, seniors forward more for the affordable. continue to innovate, at-home continue to is using and simple, make understandable, advance For benefits capabilities looking easier,

maybe Tim, Tim's thanks little with mic the a so comments. there at And beginning was think his much. I glitch of

latter senior commentary. think of to depth members innovation service the of the able continue and should urgency several that of hear appreciate question. him, thinking I Josh, super his where I you around very over is that in So years next active I and be to And sense and our hope really were the much the and substantive, us you really go can part for certainly hear space. see

question, Next please.

America. go We'll Kevin to with Bank next of Fischbeck

the wondering think talk you competitive How we about continue about Health quarter. to And capitated over the landscape? you and and bit I the a the in could Great. could where physician should to if that business the at physician capitated add segment to the ability compared time? was about where rate, broadly Optum this margin little how think go doctors growth

opportunity. Dr. maybe I'm the whole speak second to Kevin. But might John Health, first, recruitment? questions, ask Head to going of around physician talk to a Great in Decker, progression margin dynamic to the Optum

they more providing Health attracted are seeing offer Yes. growth we and we physicians care. the we’ve value the on Kevin, physicians our thanks that to clerical and less What which Optum in is increasingly proposition the question. that of work for Care. is Absolutely, clinical burden doing is them, Optum are that continued which love, focused found

Moving physicians appealing. especially to value-based care is paradigms

joined that and Health, as doctors you're straight appeal as large well Optum Atrius So out seeing coming groups like residency. us have Kelsey of to recently

physicians up following XX,XXX to to So those of share you conference at year, and agenda towards with adding forward numbers. nicely investor our we're look practitioners tracking growth advanced and the during the

Good morning, Kevin, it's John here.

expanding because impact and care, that on looked as continues value-based out. while, revenue growth any know of the be out of that this the from that made get progression for primary you Health well in These at considering Optum that, to we in our investments, the So a on. for you've capabilities earnings bringing should build expect physicians you are well advance those focus

that brings As now pipeline, it continuing value we decade view importance, quite future for We're you in we to you in for here about we this this future value-based why delivery And the X% in have ads. of It's margin being But early particular even we capabilities at where when capability is pipeline, there the here, about drive out range growth with at a line and many of is just I'm in when years capabilities. which it to Optum the build XX% our of for about in ways look potential because so. what think Health, ahead terms that I'm when talking I of us, it. of we so base care that there existing to clinical in to X as patients serve, hang and talking expansion. invest on. pipeline stage look top our double-digit our still that, can talk are both build existing value-based And bring terms these to strong of

as considering build very still that to in along margin just XX% these we to as because you'll innings, And terms delivery. deliver looking I to and we early build look care do we'd for expect see X% like deep range. ahead we that the investments to see try So -- inning this, this this continue this, we of to in try of to third

very you appreciate Kevin, thank much. I the question. John,

Next question, please.

Mayo Whit with SVB Securities. to next go We'll

I Optum a have would that? have anything marking thought that any you're those on investments investment Just negatively been how higher wondering that Ventures, years. this some of write-downs you've Were income would that would impact there recent made little in quarter.

so Well, thanks Yes. much.

Let me hand John. straight it to

now. portfolio environment as the bit losses the we out the took realized the to actually for quarter, get -- within here, Good all in we're morning, reposition try up looking Yes, some teed Whit. that we future, a we to right

which you at of that, believe focusing when realized that's it we chose take some progression, the you're I on, I'd the to losses quarterly this what so in call look And quarter.

and Thanks, thanks, Whit. John,

Next question, please.

Company. with We'll go and next Cowen to Gary Taylor

follow up commentary Atrius the bit. just to wanted just a little and I on Kelsey-Seybold

is acquisitions billion annually on You quarter, of what spent the you've spent each last X $X this about under years. just which

more in given of color more kind could Health give where the is becomes wondering, you're second company even valuations versus might after corrected? anything broadly How you just half? value-based that just there the still So are environment, valuations on Optum care Or are the to they that of organizations there size below that, impact on they've margins if us those then public capitation? the intriguing? And any fee-for-service far garner able

this our make saw a John on to to in second, but business. a few ask continued of comments So glad I'm the you deployment capital that substantial I'll grow

by nothing As strategy organic and And powerful building have. is, the key there's course, a businesses of bringing you what on supplement new than teams and more who our out of care complemented know, growth can long-term agenda value-based board part we that piece. to

Kelsey-Seybold and organizations. Now believe in we both Atrius

the teams, bringing have a history, got which that people, personality it as skills themselves both And know, to of they with add We really we going you character, really the value-based and in company tremendous some fit of amazing diversity so to is is perspective. number think of have them and cases, good. have of real -- amount developed significant themselves care, a already the organizations around thinking

case new extremely will be capital, deploying think in very that. organizations, there's do as we our active about Of further I'm sensibly you in we about how John? continue optimistic fully contribute, and course, bring to be But when perspective, valuation that around go ability remain little well. here sure they to maybe the a process typically a But and in before we really, further

Yes.

These as our we expand relates are delivery, I our to in that Often mean, processes, on pipeline pipelines, able understanding with another conversations by in perspective, of understanding long organization, and Super quite with we are delivery us. been care development That organization. time we've period probably the partner go to it them time. valuation conversations their X understanding years. organization, them long have. a As these is us for relationships, the conversations multiyear we care for

we and of it as number as where are weren't stepped they they we manifest there's ago now. there, where in this such, pace perspective quickly. quite look that a might don't towards market about and little we But of expect years public in this and maybe would just bit with a have side, other the probably kind also So on valuations less into if you manifesting than you a business volatility And think of we terms as quickly. even out

on this and at these, X-month a process. is, it move builds little been into we have I point multiyear point but conversations us the not think for So that call these a and focused key I would typically less relationship impactful as and juncture, we

one so question. have question. last Absolutely. the Gary, for just for time thank We you much

So final question, please, operator.

Sachs. We'll go to Nathan Rich with Goldman

how given the in utilize environment of I utilization the you the consumers on the signs given consumers that greater current facing? healthcare any you pressures might wanted behavior are so today's market, they how change in of some that inflationary If, facing. consumerization have seen changes do system in far? think of ask And to they're

his on that Nate, getting us, much see kind maybe for them. to in bit for seeing have of that has question. a what it couple is Brian what What I'm give thanks down their investment. the is and how inflationary around little really you and in he's know -- to all us so of going means obviously, prioritize that reflected all great and deal we to for on to people's the membership. a But minds we listen, spend a just really go minutes focuses double they pressures we of

that's the into negotiations we're use available PBM, have quality capabilities we're a important at rest play, into to very the That's most stepping get going that whether care really to whether We lean affordable And of our much. and best the through continue to the the the medical environment. role cost. very through that's UnitedHealthcare with to

do properly. know astute of there. one be Now to to those that there's if situation. people within co-pays understanding there's around those the they call caused is that to inflationary in others. who that, we're that vulnerable out And And by happen. anything things folks make help right need then, really really don't we might on things I'll the to how for experience, want back, and who we the being more eliminate we And really some hold to are bad fill problematic environment going consumer sure announcing their the struggling, time to that are than prescriptions downside are folks speaks to This today it those

our to across that's why, X organization, you've to in consumer lean really have as I'd years into the commitment lean the choice. got out love capability like Call maybe an the terms is and hope going as So finish an it. environment, we things capability. forward Brian, to doubled innovate more what of just will down And center seeing see your digital lead call And company moving we consumers there that. get you're build, Core think about strategy to consumer to to on very the you mean, from virtual, engagement. area of the really consumer will membership. your over in, be healthcare. giving about, call The on And off, that's this us out in in will out last I talk pressure perspective choice. thinking you more into of things much where more continue board. we significant would invest

to Andrew. that think emergency Maybe it care and I macro We've go and that, obviously, emergency around right department it virtual down. use Sure. put Thanks increase It's in department environment. hit use. around X Andrew seen, zones. really in care Macro, virtual for

their both both you they seat well it's best back can when put benefit do. when the unit can consumer optimize particular, I as quality, that the and think concept again, choice, design, service of get cost that couple they and where that in with choose consumer product and being in the consumer choice. driver's around network, As the obviously, to site Bind And that of we cost a you example our as of high-performing

really are emerging can those So greatest examples the environment. that this I see in

Thanks so very much that much. question. thank And for very, you Nate,

is what your We growth execution. and and the of story today. time attention heard certainly focused hope And you appreciate I

strategy privileged a following so have you of this attention our Thanks with every businesses serve. continues for questions any and we're up Thank might person every so offline. and community, usual advance much day. much, grateful you look Really forward on morning. behalf your as to mission to your momentum our As to questions. have We and great across generate our for further

We today's appreciate participation. That call. conclude will your