United Healthcare 2008 Annual Report Download - page 18

Many of our contract research services, consulting arrangements and software and related information services
are performed over an extended period of time, often several years. We maintain an order backlog to track
anticipated revenues yet to be earned for work that has not yet been performed under these long-term
arrangements. Our backlog generally consists of estimated revenue from signed contracts or other legally binding
agreements that either have not started but are anticipated to begin in the near future, or are in process and have
not been completed. Our estimated aggregate backlog at December 31, 2008 was approximately $1.8 billion,
including approximately $0.4 billion of intersegment agreements. We cannot provide any assurance that we will
be able to realize all of the revenues included in backlog due to uncertainty regarding the timing and scope of
services and the potential for cancellation or early termination of certain service arrangements.
The Ingenix companies are divided into two groups: Information Services and i3.
Information Services. Information Services’ diverse product offerings help clients strengthen health care
administration and advance health care outcomes. These products include health care utilization reporting and
analytics, physician clinical performance benchmarking, clinical data warehousing, analysis and management
responses for medical cost trend management, physician practice revenue cycle management, including
integrated electronic medical record systems, revenue cycle management for payer and health care professional
organizations, decision-support portals for evaluation of health benefits and treatment options, risk management
solutions, connectivity solutions and claims management tools to reduce administrative errors and support fraud
recovery services. Information Services uses proprietary software applications that manage clinical and
administrative data across diverse information technology environments. Information Services also uses
proprietary predictive algorithmic applications to help clients detect and act on repetitive health care patterns in
large data sets. Information Services offers comprehensive Electronic Data Interchange (EDI) services helping
health care professionals and payers decrease costs of claims transmission, payment and reimbursement through
both networked and direct connection services.
Information Services provides other services on an outsourced basis, such as verification of physician credentials,
health care professional directories, Healthcare Effectiveness Data and Information Set (HEDIS) reporting, and
fraud and abuse detection and prevention services. Information Services also offers consulting services, including
actuarial and financial advisory work through its Ingenix Consulting division and health care policy research,
implementation, strategy and management consulting through its subsidiary, The Lewin Group, as well as
product development, health care professional contracting and medical policy management. Information Services
also provides health care IT consulting for health care professionals. Information Services publishes print and
electronic media products that provide customers with information regarding medical claims coding,
reimbursement, billing and compliance issues.
i3. i3 helps to coordinate and manage clinical trials on a nationwide and international basis for products in
development for pharmaceutical and biotechnology companies. i3’s focus is to help these customers effectively
and efficiently get drug data to appropriate regulatory bodies and to improve health outcomes through integrated
information, analysis and technology. i3’s capabilities and efforts focus on the entire range of product
assessment, through commercialization of life-cycle management services – pipeline assessment, market access
and product positioning, clinical trials, economic, epidemiology and safety and outcomes research. i3’s services
include global contract research services, protocol development, investigator identification and training,
regulatory assistance, project management, data management, biostatistical analysis, quality assurance, medical
writing and staffing resource services. i3 delivers contract research services in 56 countries and is therapeutically
focused on oncology, the central nervous system, respiratory, infectious and pulmonary diseases, and
endocrinology. i3 uses comprehensive, science-based evaluation and analysis and benchmarking services to
support pharmaceutical and biotechnology development.
Prescription Solutions
Prescription Solutions offers a comprehensive suite of integrated pharmacy benefit management (PBM) services
to approximately 10 million people, delivering drug benefits through approximately 60,000 retail network
8