Another prominent Health Care stock, Minnesota-based UnitedHealth Group (UNH, Financial), was particularly hard hit, also presenting us with a buying opportunity. UnitedHealth is the largest health insurance carrier in the U.S. with a growing market share in both private insurance and Medicare Advantage plans. It also has diversified by acquiring a prescription benefits management organization and has opened urgent care centers that the company believes it can operate with greater efficiency than the competition. A driver of future growth is the Optum division, which now represents 40% of operating income. Optum has invested in data analytic technologies to harness its vast storehouse of claims experience, prescription usage, clinical outcomes and costs to help doctors, hospitals, and health science companies implement the most effective and efficient patient care decisions and product development strategies. We remain excited about the company as UnitedHealth is strategically well positioned to be part of the solution to revamping the nation’s health care system, whatever the politics of the debate.
From Mairs and Power (Trades, Portfolio) Growth Fund's third-quarter 2019 shareholder letter.
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