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Does Results Based Medicine Mean Profits for UNH

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http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/

Does Results Based Medicine Mean Profits for UNH

United Health Group, UNH, is steadily moving towards results based payment systems and eliminating fee for service systems in dealing with doctors and hospitals. For investors, traders and options traders the questions is if results based medicine means profits for UNH. United Health Group, UNH, is a diversified managed health care company. It is ranked #14 in Forbes top 500 companies in the USA. The company has its roots in the Physicians Health Plan of Minneapolis and United Health Care emerged as its management arm in 1977. Since that time UNH has grown and evolved into a company that tracks and analyzes massive amounts of data relating to health care, methods, results and costs. Going back to its first days many physicians and their patients complain that the whole point at UNH is to pay providers less and provide fewer services to patients in order to increase the corporate bottom line. However, this company has steadily amassed data showing what approaches to patient care are the most cost effective without endangering the end result of successful prevention and treatment. The question for the options trades is this. Does results based medicine mean profits for UNH?

Time to Short UNH?

OptionsHouse is of the opinion that UNH is overpriced and in their words would be a healthy short.

Shares of healthcare services company UnitedHealth Group Inc. (NYSE:UNH) have surged after this week’s earnings results, adding to an already steep run. However, UNH stock increasingly looks overbought, and active traders and investors could consider UnitedHealth from the short side for a mean-reversion trade.

When UnitedHealth reported its fourth-quarter results on Wednesday, it beat expectations on both the top and bottom line and gave promising guidance for 2015. UNH earned $1.55 per share to beat estimates by a dime, and revenues of $33.43 billion just cleared expectations for $33.11 billion. All told, profits grew 10% year-over-year while sales improved by a respectable 7%.

And for next year, UnitedHealth is projecting earnings to come in a range of $6 to $6.25 per share of UNH stock, which is better than the consensus mark of $6.17.

Nevertheless, optionshouse thinks that on a technical basis the stock will fall. Obviously if you are an options trader and believe this you should be buying puts.
There Goes Fee for Service

The goal of UNH is to quit paying doctors and hospitals for how much they do and pay them for measurable results and for improving those results. In this vein UNH will increase value based payments doctors and hospitals by twenty percent in 2015.

“We are expecting about a 20% increase in the concentration of value-based reimbursement,” Dan Schumacher, chief financial officer of UnitedHealth’s UnitedHealthcare subsidiary,

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Does Results Based Medicine Mean Profits for UNH

  1. 1. B y w w w . O p t i o n s - T r a d i n g - E d u c a t i o n . c o m DOES RESULTS BASED MEDICINE MEAN PROFITS FOR UNH
  2. 2. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ United Health Group, UNH, is steadily moving towards results based payment systems and eliminating fee for service systems in dealing with doctors and hospitals.
  3. 3. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ For investors, traders and options traders the questions is if results based medicine means profits for UNH.
  4. 4. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com Get 12 Free Japanese Candlestick Videos Includes training for all 12 major candlestick signals. http://www.candlestickforums.com Before We Continue…
  5. 5. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ United Health Group, UNH, is a diversified managed health care company.
  6. 6. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ It is ranked #14 in Forbes top 500 companies in the USA.
  7. 7. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The company has its roots in the Physicians Health Plan of Minneapolis and United Health Care emerged as its management arm in 1977.
  8. 8. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Since that time UNH has grown and evolved into a company that tracks and analyzes massive amounts of data relating to health care, methods, results and costs.
  9. 9. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Going back to its first days many physicians and their patients complain that the whole point at UNH is to pay providers less and provide fewer services to patients in order to increase the corporate bottom line.
  10. 10. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ However, this company has steadily amassed data showing what approaches to patient care are the most cost effective without endangering the end result of successful prevention and treatment.
  11. 11. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The question for the options trades is this.
  12. 12. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Does results based medicine mean profits for UNH?
  13. 13. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Time to Short UNH?
  14. 14. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ OptionsHouse is of the opinion that UNH is overpriced and in their words would be a healthy short.
  15. 15. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Shares of healthcare services company UnitedHealth Group Inc. (NYSE:UNH) have surged after this week’s earnings results, adding to an already steep run.
  16. 16. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ However, UNH stock increasingly looks overbought, and active traders and investors could consider UnitedHealth from the short side for a mean-reversion trade.
  17. 17. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ When UnitedHealth reported its fourth-quarter results on Wednesday, it beat expectations on both the top and bottom line and gave promising guidance for 2015.
  18. 18. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ UNH earned $1.55 per share to beat estimates by a dime, and revenues of $33.43 billion just cleared expectations for $33.11 billion.
  19. 19. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ All told, profits grew 10% year-over- year while sales improved by a respectable 7%.
  20. 20. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ And for next year, UnitedHealth is projecting earnings to come in a range of $6 to $6.25 per share of UNH stock, which is better than the consensus mark of $6.17.
  21. 21. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Nevertheless, optionshouse thinks that on a technical basis the stock will fall.
  22. 22. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Obviously if you are an options trader and believe this you should be buying puts.
  23. 23. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ There Goes Fee for Service
  24. 24. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The goal of UNH is to quit paying doctors and hospitals for how much they do and pay them for measurable results and for improving those results.
  25. 25. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ In this vein UNH will increase value based payments doctors and hospitals by twenty percent in 2015.
  26. 26. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ “We are expecting about a 20% increase in the concentration of value-based reimbursement,” Dan Schumacher, chief financial officer of UnitedHealth’s UnitedHealthcare subsidiary
  27. 27. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Told Wall Street analysts on the company’s fourth-quarter and 2014 full-year earnings call earlier this week. “We ended the year at about $36 billion of spend in value- based arrangements and we’re looking to drive that north of $43 billion in 2015.”
  28. 28. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ UnitedHealth’s pronouncements are in keeping with its previously stated commitment to increase payments that are tied to value- based arrangements to $65 billion by the end of 2018.
  29. 29. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The stated goal is to improve quality and at the same time reduce cost.
  30. 30. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The company states that savings by various categories range from one to six percent due to their use of value based payment systems.
  31. 31. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Obama Care Helps the Likes of UNH
  32. 32. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The Affordable Care Act, Obamacare, has helped health insurers like UNH who own and have analyzed huge amount of data relating to health care practices, results and costs.
  33. 33. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ UnitedHealth and other health insurers have outperformed the broader stock market by a wide margin
  34. 34. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Since the Affordable Care Act, or Obamacare, was signed into law in March 2010.
  35. 35. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ The stock also beat the market last year as most of the provisions of the ACA went into effect and consumers started to receive coverage.
  36. 36. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ Simply put, greater access to health insurance has led to more customers for the insurance giants.
  37. 37. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ So, does results based medicine mean profits for UNH.
  38. 38. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ To the extent that they are fairly paid for their services and can cost effectively manage large health care systems the answer is yes.
  39. 39. http://www.options-trading-education.com/24173/does-results-based-medicine-mean-profits-for-unh/ To the extent that the government waits until the current system settles into place and start ratcheting down payments it will spell disaster for UNH and the rest.

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