Another healthcare system outsources administrative services to Optum


MarinHealth Medical Center is the latest health system to tap Optum for operational support, with the California-based nonprofit provider signing a 10-year contract with the health services giant on Thursday.

MarinHealth will rely on Optum to streamline its administrative processes, provide insight into its supply chain and for revenue cycle management services. Optum’s technology will also provide a simplified user experience for patients, MarinHealth said.

As part of the agreement, about 100 MarinHealth workers will transition to Optum employees, although they will continue to directly support MarinHealth operations, Optum said. Employees assigned to patient registration and accounts, coding and reimbursement, and supply chain will be transferred to the Optum side. Optum declined to comment on the financial terms of the deal.

But MarinHealth said its goal is to remain an independent health system and that outsourcing its administrative functions will allow its staff more time to focus on patient care.

“Like our partners at MarinHealth, we believe that people are best served by integrated health systems and caregivers in their local communities,” Optum Insight CEO Rick Hardy said in a press release. “This relationship is another example of Optum’s continued support of local healthcare systems across the country and we are privileged to help MarinHealth continue to provide high quality patient care as they have for years. .

The health services sector has signed similar agreements with SSM Health in St. Louis, Calif., John Muir Health and Boulder Community Health in Colorado.

Last year, Bassett Healthcare Network in New York notably agreed to outsource its administrative and IT functions to Optum, in order to avoid being acquired. As part of the deal, 500 employees transferred their jobs to Optum, which is the fastest growing arm of the UnitedHealth Group.

In 2021, Optum grew its revenue by 14% year-over-year to $155.6 billion. Its annual profits rose 19.4% to $12 billion.


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