No sooner did UnitedHealth announce plans to diversify further beyond its core medical insurance business than the company agreed to acquire Executive Health Resources (Newtown Square, PA), which helps hospitals with medical necessity compliance for Medicare and Medicaid patients. EHR, with 1000 employees and more than 1100 hospital clients, will become part of United’s Ingenix division.
How far does the EHR transaction move the needle for United – which believes non-health insurance lines could eventually account for 30% to 40% of company operating earnings, up from 20% today? “We have quiet some distance to travel to get up into that range. One or two transactions won’t do it,” says Jon Penshorn, senior vice president of investor relations.
Extended coverage appears in the Aug. 9 issue of Carl Mercurio’s Health Plan Market Trends Letter.
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