Optum photoUnitedHealth Group's Optum is taking over a California health system's information technology and back office functions as part of a new model that will allow the healthcare giant to manage “all non-clinical work” for a local medical provider. Financial terms of the deal aren’t being disclosed by UnitedHealth nor its Optum health services business. But there will be a cost to Optum and UnitedHealth because about 540 John Muir Health employees, or nearly 10% of the health system’s workforce, will become part of Optum. In an era of rapid healthcare consolidation, health systems like John Muir have limited options, Optum executives reason. “This relationship with John Muir Health is an innovative new model for independent, community-based health systems across the country that want to maintain their independence while reducing cost pressures,” Optum senior vice president Nick Howell said.

Source: Forbes July 17, 2019 11:26 UTC