Optum Health Announces New CEO Amid UnitedHealth Group Leadership Reshuffling

Optum Health, the care delivery arm of UnitedHealth Group, has appointed Krista Nelson as its new Chief Executive Officer, effective immediately. This leadership change comes as part of a broader series of executive reshuffles within UnitedHealth Group, as the company seeks to address recent financial challenges and rebuild investor confidence.

Nelson's Appointment and Conway's New Role

Krista Nelson, previously the Chief Operating Officer of Optum Health, has been promoted to the CEO position. She replaces Dr. Patrick Conway, who will remain CEO of the broader Optum division. Nelson brings extensive experience to her new role, having worked for UnitedHealthcare, UnitedHealth's payer arm, since 2009.

Dr. Conway, who was appointed CEO of UnitedHealth's healthcare delivery unit in June, will continue to oversee the company's health services division. This move allows for a more focused leadership approach within Optum Health while maintaining continuity in the parent organization.

UnitedHealth Group's Executive Restructuring

The appointment of Nelson is part of a larger trend of leadership changes within UnitedHealth Group. The company has been actively reworking its C-suite throughout the year, with several high-profile changes occurring in rapid succession:

• Roger Connor, named CFO of Optum in May, departed the company in early November and was replaced by Ben Eklo, an Optum finance veteran.
• The CEO position of Optum Insight, UnitedHealth's data and analytics arm, has changed hands twice since May.

These changes come as UnitedHealth Group grapples with high medical costs and underperformance relative to financial expectations. The reshuffling is seen as a strategic move to bring fresh perspectives and renewed focus to key areas of the business.

Challenges and Strategic Priorities

Optum Health faced difficulties in the third quarter, underperforming investor expectations. During UnitedHealth's earnings call, Dr. Conway cited several challenges:

1. Growing pains related to rapid expansion of provider networks
2. Impact of Biden-era reimbursement cuts

The new leadership team, led by Nelson, will be tasked with addressing these issues and implementing strategic changes. Key priorities include:

• Transitioning to a direct physician employment model
• Reducing the number of unprofitable members
• Streamlining operations to improve financial performance

As UnitedHealth Group continues to navigate a complex healthcare landscape, the appointment of Krista Nelson as CEO of Optum Health represents a significant step in the company's efforts to realign its leadership and strategy for future growth and stability.