Thread regarding Optum layoffs

@gf Wellmed is a child of Optum, lol! It’s interesting how clueless some people are, especially some in UHC. They have no idea how many groups Optum owns, let alone what Optum does.

@gf How would you sell a company to its own subsidiary?

If you look at finances, Optum is high margin. While it generates less revenue, it’s profitable. Why would you sell Optum? And UHC has a revenue cap to be compliant. Easy to keep more money by sending costs to Optum(which keeps the money under UHG).

Optum being sold off to buyer, Wellmed!

Interesting because they have moved a few departments back to UHC recently and it’s rumored there’s more to come.

Before the acquisition by Optum, Optum IT was known as UHG IT. The IT organization was moved under Optum because customers purchasing Optum's services were uncomfortable having their employees call "UHG IT" for technical support, whereas they were comfortable contacting "Optum IT." I can't say that was the only reason for the change, but it was the explanation given to those who asked.

Like HR and Finance, IT is a cost center. These departments are essential to running the business, but they do not directly generate revenue.

Many of you who haven't been with the company very long may not know that the Help Desk phone number spells out UHT-DESK. That's a holdover from when IT was part of United as United Health Technologies (UHT) under UHG IT. While the phone number hasn't changed, the "UHT-DESK" mnemonic is no longer advertised as a way to remember it.

@OP would not be surprised at all if they sell all of Optum Health . They are an insurance co . They can't make enough " profit" in providing care - which conflicts with paying for care . The vertical integration will be broken up for all these companies that control every aspect of care - Monopolies

They’ll likely sell the entire company. It’s on very bad shape. Lots of bad decisions, some bad acquisitions, and tons of toxicity.

Not too long ago they rolled the Optum CXDP UX design team into UHC design team, and soon after began to RIF designers from Optum. This will likely continue, as evidenced in practically no new UX Design roles being hired in the US - it's all India now. Just check the company job boards. I wouldn't be surprised if there is a sell off from parts of Optum. The care delivery side seems to really be struggling. Government is cracking down on PBMs (not to say the feds "acceptance" can't be paid for).

I think you would want to be on the side that gets sold

" want to preface everything with the fact that I have no idea if they’re actually planning to absorb minimal tech resources into UHG and then sell Optum. "

For what it's worth, Optum Tech already reports into UHG CFO, not Optum's CEO....

I have been part of the core optum workflow that has serviced providers, claims, benefits, etc for over 10 years. Any time our app was down, the business felt the pain. I was Optum everything as far as my organization went.

Well my team was officially moved to "UHC tech" (an org I didnt even know existed until this year) in January.

Make of that what you will.

@a9 you could also preface a spinoff in terms of functions instead of balance sheets.

If an insurance company has grown too tech heavy, you might say the company has lost its way and needs to return to basics.

I could see it being a thing. They’d probably keep the PBM stuff, but tech just looks like overhead on a balance sheet. I’m sure they’d also like to distance themselves from cybersecurity risks and the inevitable (albeit distant) regulation of emerging technologies such as AI and quantum computing.

IBM did something similar when they spunoff Kyndryl. All the boring stuff with minimal profit margins went with Kyndryl so that IBM looked more profitable to shareholders.

No they will not sell. Logic, IT will become expensive. And how would you meet ACA mandate of 80% spend without ability to set price on service and rx? And show profit outside of insurance to claw back as subsidiary service. While main company meets spend mandates.