UnitedHealth Group Reports 2023 Results
-- Revenues of $371.6 Billion Grew 15% Year-Over-Year
-- Earnings from Operations Grew 14%
-- Cash Flows from Operations were $29.1 Billion or 1.3x Net Income
-- Full Year and Fourth Quarter Net Earnings were $23.86 and $5.83 Per
Share
-- Full Year and Fourth Quarter Adjusted Net Earnings were $25.12 and
$6.16 Per Share
UnitedHealth Group (NYSE: UNH) reported full year and fourth quarter 2023 results reflecting broad-based growth at Optum and UnitedHealthcare.
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UnitedHealth Group corporate headquarters (Photo: Business Wire)
“UnitedHealth Group enters 2024 well prepared to build on our efforts to improve patient care and consumer experiences broadly, and to continue delivering strong and balanced growth,” said Andrew Witty, chief executive officer of UnitedHealth Group.
UnitedHealth Group affirmed the 2024 performance objectives established at its November 29(th) Investor Conference, excluding the potential impacts from the pending sale of its Brazil operations, which is expected to close in the first half of 2024. Upon closing, the Company’s net earnings outlook will be impacted by the previously announced expected charge and the Company confirmed the adjusted earnings outlook presented at its Investor Conference.
Quarterly and Annual Financial Performance
Three Months Ended Year Ended
------------------------------------------- ------------------------------
December 31, December 31, September 30, December 31, December 31,
2023 2022 2023 2023 2022
------------- ------------- ------------- -------------- --------------
Revenues $94.4 billion $82.8 billion $92.4 billion $371.6 billion $324.2 billion
Earnings
from
Operations $7.7 billion $6.9 billion $8.5 billion $32.4 billion $28.4 billion
Net Margin 5.8% 5.8% 6.3% 6.0% 6.2%
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-- UnitedHealth Group's 2023 revenues grew $47.5 billion or 14.6%
year-over-year to $371.6 billion, including double-digit growth at both
Optum and UnitedHealthcare, driven by serving more people, more
comprehensively across its offerings. Full year 2023 earnings from
operations were $32.4 billion, an increase of 13.8%.
-- The full year medical care ratio at 83.2% compared to 82% last year,
driven by previously noted outpatient care, primarily serving seniors,
and business mix. The fourth quarter medical care ratio was 85%. Days
claims payable of 47.9 compared to 49.9 at year end 2022 and 50.7 in the
third quarter 2023. Medical reserve development was $840 million
favorable for full year 2023 and $100 million unfavorable in the fourth
quarter.
-- The full year 2023 operating cost ratio of 14.7% was consistent with
last year, reflecting strong operating cost management, offset by
continued growth of the services businesses and investments to support
growth.
-- Cash flows from operations for the full year were $29.1 billion or
1.3-times net income. During 2023, the company returned $14.8 billion to
shareholders through dividends and share repurchases. Return on equity of
27% in 2023 reflected the company's strong overall growth and efficient
capital structure.
UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience and reducing the total cost of care.
Quarterly and Annual Financial Performance
Three Months Ended Year Ended
------------------------------------------- ------------------------------
December 31, December 31, September 30, December 31, December 31,
2023 2022 2023 2023 2022
------------- ------------- ------------- -------------- --------------
Revenues $70.8 billion $63.0 billion $69.9 billion $281.4 billion $249.7 billion
Earnings
from
Operations $3.1 billion $2.9 billion $4.6 billion $16.4 billion $14.4 billion
Operating
Margin 4.4% 4.7% 6.6% 5.8% 5.8%
------------- ------------- ------------- ------------- -------------- --------------
-- UnitedHealthcare full year revenues of $281.4 billion grew $31.6
billion or 12.7% year-over-year and operating earnings increased 14.2% to
$16.4 billion. People served by UnitedHealthcare grew by over 1 million
in 2023.
-- The number of consumers served with commercial benefits grew by over
800,000 in 2023, reflecting the strong customer response to the company's
innovative and affordable benefit offerings.
-- The number of people served by the company's offerings for seniors and
people with complex needs grew by 950,000 due to product designs tailored
to meet the specific needs of individuals and their families with limited
economic resources and who are often underserved.
-- People served by the company's state-based community offerings declined
by 700,000 due to the ongoing Medicaid eligibility redetermination
process. The UnitedHealthcare team remains actively engaged with the
individuals impacted and continues with its comprehensive outreach to
help families maintain, reinstate or find other affordable coverage.
Optum’s health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance by optimizing care quality, reducing care costs and improving the consumer experience.
Quarterly and Annual Financial Performance
Three Months Ended Year Ended
------------------------------------------- ------------------------------
December 31, December 31, September 30, December 31, December 31,
2023 2022 2023 2023 2022
------------- ------------- ------------- -------------- --------------
Revenues $59.5 billion $47.9 billion $56.7 billion $226.6 billion $182.8 billion
Earnings
from
Operations $4.6 billion $4.0 billion $3.9 billion $15.9 billion $14.1 billion
Operating
Margin 7.7% 8.3% 6.9% 7.0% 7.7%
------------- ------------- ------------- ------------- -------------- --------------
-- Optum full year revenues of $226.6 billion grew $43.9 billion or 24%
year-over-year and operating earnings increased 13.4% to $15.9 billion.
-- Optum Health revenue increased 33.9% over last year, driven by growth
in patients served under value-based arrangements and continued expansion
of the types and levels of care provided. The operating results reflect
previously noted higher care activity and continued investments to
improve patient health outcomes. The number of patients served under
value-based arrangements grew by nearly 900,000 to more than 4.1
million.
-- Optum Insight revenue increased 29.8% due to the addition of Change
Healthcare and growth in its technology-enabled offerings, which serve
health systems, care providers, health plans and life sciences
organizations. Optum Insight continues to build and invest in advanced
data capabilities to meet the rising needs of customers. The revenue
backlog increased by more than $2 billion to over $32 billion.
-- Optum Rx revenue increased 16.4% in 2023 due to growth in serving new
clients, expanded relationships with existing clients and continued
advancement in the comprehensive scope of pharmacy services offered,
including specialty and community-based pharmacies. Adjusted scripts grew
to 1.54 billion compared to 1.44 billion last year.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at and follow UnitedHealth Group on LinkedIn.
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