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February 11, 2025 | 2-minute read
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:
Optum Health outperformed other physician-owned practices by:
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.
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.
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:
Read more about Optum’s primary care services and value-based care ambition, and check out the full reasearch brief.
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