United Healthcare Group is one of the biggest players in the American healthcare industry, and is taking a tech-forward approach to the future.
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UnitedHealth Group (UHG) is a massive force in American healthcare. The broader company entails two main groups: United Healthcare, which is primarily the benefits business, and Optum, which focuses on health services. Optum Insights, which resides within the latter, is entirely focused on leveraging software, data and analytics to partner with leading payers and providers to improve the holistic clinical ecosystem, ranging from care models to financial processes.
Last week, Optum Insights announced the appointment of a new leader: Sandeep Dadlani was named CEO of the rapidly growing business, charged with bringing a renewed vision and path forward for the years to come. Dadlani is a seasoned executive with years of experience at the intersections of healthcare, digital transformation and enterprise optimization. He has three main goals for the future of Optum Insights and healthcare, more generally.
First, leveraging the best of artificial intelligence must be a key component for payers and providers alike. Despite numerous efforts across the board, Dadlani mentions that healthcare economics and workflows in general are not thriving: “friction is high and costs are high—a recipe for chaos.” Indeed, clinician burnout due to administrative tasks and non-clinical burdens is nearing all-time highs. But there is a significant opportunity for AI to introduce automation to many aspects of the clinical workflow and help ease some of these burdens.
This is one reason why the healthcare startup sector is booming: from ambient documentation technology to automation in supply chain processes, the digital health market is thriving. This is also why Dadlani is spending his time meeting startups and transformative companies to evaluate potential partnerships and opportunities to help scale useful technology.
Second, empowering the next generation of engineers and AI enabled partners is a priority. UHG and Optum have launched a massive initiative called AI Dojo to train its own internal staff on new capabilities; by doing so, it hopes to have nearly 10,000 AI-ready builders to work on actual healthcare problems and workflows.
Why is this important? Because there is a massive shift in technology and the time for upskilling has never been more appropriate. In fact, the World Economic Forum discusses how AI talent is still incredibly low and not enough attention is being given to upskilling: “Business leaders must think carefully about designing effective strategies to equip workers to unlock the potential of AI.”
Finally, undertaking a renewed approach to uplift the entire industry is crucial. Dadlani explains that one player or one party trying to solve every key issue in healthcare is not going to be enough; it is a team-effort, and since healthcare is so incredibly wide, both on the provider and payer side, it will require a cohesive approach across the board, with everyone helping each other out. This “rising tide lifts all boats” methodology is Dadlani’s goal: “UHG and Optum are among the best and fertile learning grounds for the entire industry; the problems we are tackling are similar to what other payers and providers are facing as well.” Thus, the hope is that lessons-learned can be shared across the industry so that everyone can benefit.
Needless to say, Dadlani is taking the helm at a particularly challenging time-period in healthcare. With numerous changes on the political front and legislative landscape, many questions remain regarding the future of reimbursements. Healthcare costs are also rising quickly. The American Medical Association reported that American health spending increased by 7.5% in 2023 to $4.9 trillion or $14,570 per capita; “The acceleration in 2023 was driven by higher utilization of health care goods and services as well as a historically high 92.5% insured share.” Patients are equally frustrated with healthcare affordability and often seek alternative methods, such as medical tourism abroad or worse, ignoring their healthcare needs holistically.
There are also significant attempts being made to try and improve the complicated system that has been built over decades, entailing a nuanced web of relationships between providers, payers, integrated health systems, pharmacy benefit managers for medications and the rapidly evolving regulatory landscape. But, the rise of healthcare costs is not due solely to one single factor or player; as the American Hospital Association discusses, it is a multi-factorial issue with a variety of different variables. Other reasons include rising costs of research and development which leads to rising costs of goods, a harrowing physician shortage leading to increased labor costs, a sicker population that is rapidly aging, leading to more negative health outcomes as a whole, and finally, an intricate regulatory environment.
AI and technology as a whole have promised that many of these problems can hopefully be resolved with how rapidly automation is being developed; time will tell if these will actually be lasting changes.