Medicare Advantage patients visiting an Optum Health primary care practice receive better care at a lower total cost than those who visit hospital-based and other physician-owned practices, according to new research from UnitedHealth Group.
The research shows patients benefit from an approach that prioritizes their health through preventive services, effective management of chronic conditions, and referrals to high-quality specialists.
Staffed with dedicated physicians committed to delivering patient-centered care, Optum Health practices outperformed both hospital-based and other physician-owned practices.
Optum Health outperformed hospital-based practices by:
- 6.3% on cost
- 2.3% on quality
Optum Health outperformed other physician-owned practices by:
- 4.2% on cost
- 3.9% on quality
Not only does Optum’s value-based care model offer better quality at a lower total cost than its competitors, but it also presents a path toward significant savings for taxpayers – with each percentage point reduction in total cost of care across the Medicare program representing $150 billion in potential 10-year savings. For example, a 4% reduction in costs – the difference between Optum and other physician-owned practices – for half the country’s Medicare population during this period would yield $300 billion in taxpayer savings.
Paving the way in value-based care
Optum Health, which serves more than 4.7 million patients in value-based care arrangements and works with more than 100 health plan partners, is leading the consumer-friendly shift from a transactional health system to one that prioritizes long-term preventive, holistic care that will deliver better outcomes at a lower cost.
“Medicare beneficiaries deserve a health system where care providers and payers are fully aligned to deliver more coordinated, seamless care. As this research shows, we’re leading a transformation toward an outcomes-based system that puts patients first and delivers higher-quality care while reducing costs.”
Dr. Wyatt Decker | executive vice president and chief physician for value-based care and innovation, UnitedHealth Group
Primary care practice structure
As primary care practices seek needed partnerships that can provide administrative infrastructure and access to capital, Optum offers a better alternative than hospital ownership by aligning the interests of patients, physicians and payers.
This is the case because hospitals that own primary care practices have conflicted incentives regarding patients’ treatment and total health care costs. Even if a hospital-based primary care practice earns bonuses by reducing the need for hospitalization, the hospital can earn significantly more through inpatient admissions and referrals to expensive hospital-based services.
Optum’s primary care practices have clear incentives to:
- Keep patients healthy and lower their total costs
- Help clinicians deliver preventive services
- Manage chronic conditions
- Make referrals to high-quality specialists
- Avoid unnecessary and costly interventions
- Reduce the need for hospitalization
Read more about Optum’s primary care services and value-based care ambition, and check out the full reasearch brief.
Share This Story