UnitedHealth Group Incorporated (NYSE:UNH) Q4 2019 Earnings Conference Call - Final Transcript
Jan 15, 2020 • 08:45 am ET
David S. Wichmann
allow us to contribute more comprehensively to the development and deployment of the kind of next-generation health system needed in the US and globally. A more forward looking modern health system built around the people we serve seamlessly woven into their lives, simple, convenient, transparent and compassionate, a health system that is more affordable creates a better experience for both patients and physicians and improves health outcomes.
The health system we are helping to build will better meet the personalized needs of people, it leverages the next-generation data analytics, such as the individual health record to empower patients and their doctors with actionable Intelligence that drive next best actions to improve decision making in real time. We are committed to a future where every person has access to high quality, affordable health care that meets their unique healthcare needs and financial means. We are employing specific actions to help achieve this, driving better health outcomes and aiming ultimately to reduce the health care cost trend to general inflation levels even with an ageing more chronically ill population.
Notably the bipartisan repeal of the ACA taxes in December was a strong step towards improving affordability for Americans. It will greatly assist those who have been most affected by the cost of those taxes, especially seniors, small employers, and those who are individually insured. As we continue to do better for those we serve, we will grow helping improve the health system one person at a time, intensely focused on driving improved consumer and physician experiences.
Looking to the years ahead, our strengthening capabilities and diversified complementary businesses operating in a large growing healthcare market position us well to achieve our long term adjusted earnings per share growth rate objective of 13% to 16%, while we continue as always to invest in the future for sustainable market leading performance and advancing shareholder returns.
With that, let me turn it to UnitedHealth Group President and Optum's Chief Executive Officer, Andrew Witty to discuss Optum's results and momentum heading into the New Year.
Thank you, Dave. At Optum, we're encouraged on humbled by the expanding opportunities to grow and serve more people, more deeply. There's a distinct energy and eagerness across all businesses as we enter 2020.
In 2019, Optum revenues reached $113 billion, growing 12% year-over-year. Total operating earnings grew 14% to $9.4 billion. OptumHealth revenues reached $30.3 billion in 2019, up 26% led by OptumCare, our care delivery business. We're steadily expanding into new geographies and expanding the depth and breadth of services in existing regions to better provide patients with the highest quality convenient and affordable health services. One measure that help -- that will illustrate how we are serving people more comprehensively is revenue per consumer served, which grew 26% in the quarter. This measure will continue strongly advancing as we further build out our integrated care delivery network.
Turning to OptumRx, revenues of $74.3 billion grew 7%, even with the previously discussed impact of a single large customer transition.