United Healthcare 2014 Annual Report Download - page 12

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• Specialty Networks.Within specialty networks, OptumHealth serves more than 57 million people by
offering them access to proprietary networks of provider specialists in the areas of behavioral health
management (e.g., mental health, substance abuse), chiropractic, physical therapy, transplant, infertility,
kidney and end stage renal disease.
• Distribution: This business provides health exchange capabilities to help payers, market aggregators and
employers meet the needs of the consumers they serve. OptumHealth provides call center support, multi-
modal communications software, data analysis and trained nurses that help clients acquire, retain and
service large populations of health care consumers.
• Financial Services: This business serves the health financial needs of individuals, employers, health care
professionals and payers. OptumHealth is a leading provider of consumer health care accounts.
OptumHealth also offers electronic payment solutions to manage compliance and improve the
administrative efficiency of electronic claim payments. As of December 31, 2014, Financial Services and its
wholly owned subsidiary, Optum Bank, had $2.8 billion in customer assets under management and during
2014 processed $85 billion in medical payments to physicians and other health care providers.
OptumInsight
OptumInsight provides technology, operational and consulting services to participants in the health care industry.
Hospital systems, physician practices, commercial health plans, government agencies, life sciences companies
and other organizations that constitute the health care system use OptumInsight to help them reduce costs, meet
compliance mandates, improve clinical performance, achieve efficiency and modernize their core operating
systems to meet the changing needs of the health system landscape.
Many of OptumInsight’s software and information products, advisory consulting arrangements and outsourcing
contracts are delivered over an extended period, often several years. OptumInsight maintains an order backlog to
track unearned revenues under these long-term arrangements. The backlog consists of estimated revenue from
signed contracts, other legally binding agreements and anticipated contract renewals based on historical
experience that either have not started but are anticipated to begin in the near future, or are in process and have
not been completed. OptumInsight’s aggregate backlog at December 31, 2014, was $8.6 billion, of which $4.8
billion is expected to be realized within the next 12 months. This includes $2.9 billion related to intersegment
agreements, all of which are included in the current portion of the backlog. OptumInsight’s aggregate backlog at
December 31, 2013, adjusted for the January 1, 2014 business realignment discussed in Note 13 of Notes to
Consolidated Financial Statements included in Part II, Item 8, “Financial Statements,” was $7.5 billion including
$2.7 billion related to intersegment agreements. The increase in 2014 backlog was attributable to a revenue
management services acquisition and general business growth, partially offset by services performed on existing
contracts. OptumInsight cannot provide any assurance that it will be able to realize all of the revenues included in
the backlog due to uncertainties with regard to the timing and scope of services and the potential for cancellation,
non-renewal or early termination of service arrangements.
OptumInsight’s products and services are sold primarily through a direct sales force. OptumInsight’s products
are also supported and distributed through an array of alliances and business partnerships with other technology
vendors, who integrate and interface OptumInsight’s products with their applications.
OptumInsight provides capabilities targeted to the needs of four primary market segments: care providers (e.g.,
physician practices and hospitals), payers, governments and life sciences organizations.
Care Providers. Serving four out of five U.S. hospitals and tens of thousands of physician practices,
OptumInsight provides capabilities that help drive financial performance, meet compliance requirements and
deliver health intelligence. OptumInsight’s offerings in clinical workflow software, revenue management tools
and services, health IT and analytics help hospitals and physician practices improve patient outcomes, strengthen
financial performance and meet quality measurement and compliance requirements, as well as transition to new
collaborative and value based business models.
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