The new chief executive of UnitedHealth Group expressed optimism Wednesday over pandemic trends while telling investors they should not expect big changes in strategic direction at the Minnetonka-based health care company.
Andrew Witty was named chief executive at the company last month in a sudden shift with the retirement of previous CEO David Wichmann.
As the pandemic surged last spring, Witty took a seven-month leave to help the World Health Organization’s program to develop and distribute coronavirus vaccines before returning to the company in December. He started at UnitedHealth Group in March 2018, leading the fast-growing Optum division for health care services.
“As I sit here today, while there could be things like extreme mutant variants which might change the course, I think I’m more optimistic now than I have been for a very, very long time in terms of what’s happening in terms of the pandemic …,” Witty said at the Barclays Global Health Care Conference.
“By the middle of the year, I think there’s no reason why the more advanced countries which have had access to large numbers of vaccines won’t be in a position to start to bring this thing very much under control. It won’t go completely — there’s still risk of kind of, a difficult surprise,” he said. “But all else equal, I think we’re in a much better position and the question then becomes how quickly can really the broader global population get into safe harbor. That will be important for all of us.”
UnitedHealth Group operates the nation’s largest health insurer, UnitedHealthcare, as well as Optum, which has divisions for patient care, health care data and pharmaceutical benefits management.
Witty said that he will continue the company’s drive for “synergy” between UnitedHealthcare and Optum, while also developing data products for health care providers digital tools for health care consumers.
“Don’t expect any sharp rights or sharp lefts in terms of strategic direction of United,” he said. “I think we have a very clear strategy of where we want to take this company.”
Over the past decade, UnitedHealth Group has become a large health care provider in South America. That includes a large insurance, hospital and clinic business in Brazil, which is currently struggling with a surge of pandemic illnesses.
Witty did not specifically mention the Brazil business at the investor conference on Wednesday, but said he thinks global governments in the coming years might turn to Optum for help providing health care that’s high quality and also efficient. In the wake of the pandemic, those governments will be facing increased pressure to control deficits, Witty added.
“I think we’re extremely careful about going beyond the U.S. kind of mother-ship space, because there’s such a big job to do in the U.S. and there is so much value that we can deliver for our clients as well as our shareholders,” Witty said. “But we are definitely looking internationally and I would hope and expect that you’d see us maybe demonstrate that over the next year or two.”
UnitedHealth Group shares were hovering around $350.90 in morning trading, little changed from Tuesday’s close.
Before coming to UnitedHealth Group, Witty was chief executive and director of pharmaceutical giant GlaxoSmithKline, which is based in the United Kingdom.
From April to December 2020, he served as a global envoy for the World Health Organization’s COVID-19 efforts while also advising the U.K. Government Vaccine Taskforce.
This is a developing story. Check back for updates.
Christopher Snowbeck • 612-673-4744
Twitter: @chrissnowbeck