United Healthcare 2015 Annual Report Download - page 12

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• Distribution: This business provides sales and services through digital, phone and in-person interaction to
assist individuals in selecting and understanding their benefits. OCS provides contact center support,
multimodal software, data analysis and licensed sales agents that help clients acquire, retain and service
large populations of health care consumers.
• Financial Services: This business provides a range of health care financial products for individuals,
employers, health care professionals and payers. OCS is a leading provider of consumer health care
accounts. OCS also offers electronic claims payment services to care providers through Optum Bank, a
wholly-owned subsidiary, with more than 3.8 million accounts and $4.2 billion in assets under management
as of December 31, 2015. During 2015, Optum Bank processed more than $100 billion in medical payments
to physicians and other health care providers.
OptumInsight
OptumInsight provides services, technology and health care expertise to major participants in the health care
industry. OptumInsight’s capabilities are focused on modernizing the health system through technology,
analytics and information that help drive higher quality and greater efficiency in the health care system. Hospital
systems, physician practices, commercial health plans, government agencies, life sciences companies and other
organizations that comprise the health care system depend on OptumInsight to help them improve performance,
achieve efficiency, reduce costs, meet compliance mandates and modernize their core operating systems to meet
the changing needs of the health system.
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 with OptumInsight’s customers. OptumInsight’s aggregate backlog at December 31, 2015, was $10.4
billion, of which $5.9 billion is expected to be realized within the next 12 months. This includes $3.8 billion
related to intersegment agreements, all of which are included in the current portion of the backlog.
OptumInsight’s aggregate backlog at December 31, 2014, was $8.6 billion. 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 hospital systems), payers, governments and life sciences organizations.
Care Providers. Serving five out of six 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 brings an array of solutions to help care providers, with particular focus on clinical
performance and quality improvement, population health management, data management and analytics, revenue
management, cost containment, compliance, cloud-enabled collaboration and consumer engagement.
Payers. OptumInsight serves approximately 300 health plans by helping them improve operational and
administrative efficiency, understand and optimize growth while managing risk, deliver on clinical performance
and compliance goals and build and manage strong provider networks. OptumInsight is also helping payer clients
adapt to new market models, including health insurance exchanges, consumer-driven health care and
engagement, pay-for-value contracting and population health management.
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