UnitedHealth Logs Revenue Growth, Lower Profit as Expenses Rise
October 14 2020 - 06:49AM
Dow Jones News
By Matt Grossman
UnitedHealth Group Inc. Wednesday posted revenue growth but a
slimmer profit year over year in the latest quarter as higher
expenses during the Covid-19 pandemic offset growth in some of the
company's segments.
The Minnetonka, Minn.-based health insurer logged a
third-quarter profit of $3.17 billion, or $3.30 a share, compared
with a profit of $3.54 billion, or $3.67 a share, in the same
three-month period a year earlier.
On an adjusted basis, UnitedHealth's profit was $3.51 a share.
Analysts surveyed by FactSet had forecast an adjusted profit of
$3.11 a share.
Revenue was $65.12 billion, up 7.9% from $60.35 billion in last
year's third quarter. Analysts were anticipating revenue of $63.79
billion.
The company's revenue was pushed higher by growth in its Optum
segment, as well as growth in its public-sector and senior
businesses. The company's profit was dented by financial-assistance
measures, as well as by treatment and testing costs for Covid-19,
UnitedHealth said.
Medical costs rose to $41.64 billion from $39.04 billion in the
year-ago quarter. Operating costs rose to $10.17 billion, up from
$8.96 billion in last year's third quarter.
Higher Covid-19-related expenses were partially offset by lower
overall demand for care as people delayed medical care not related
to the pandemic.
Contrary to growth in public-sector and senior programs,
commercial enrollment declined for the UnitedHealthcare subsidiary
as member attrition due to economic factors ate into the membership
base.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
October 14, 2020 06:34 ET (10:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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