UnitedHealth Group saw its third-quarter profit surge beyond the $4 billion mark as company executives provided a cautiously optimistic outlook that financial hits from COVID-19 should moderate next year.
Investors cheered the results Thursday by pushing up by 4% the stock price at the Minnetonka-based health care giant.
All the twists and turns with the pandemic over the past 20 months call for an outlook that's "respectful of the fact that the current situation is without precedent," John Rex, the company's chief financial officer, said during a call with investors.
While the pandemic-related impacts remain difficult to predict, he said UnitedHealthcare, the nation's largest health insurance business, and the company's fast-growing Optum health care services division are both growing and operating well.
Given current trends, UnitedHealth Group expects to see less of a negative impact from COVID-19, Rex said, and will provide more details on the outlook at an investor conference later this year.
As part of its Thursday earnings release, UnitedHealth Group did not change its forecast for COVID-19 costs for 2021. Previously, company executives said they expected pandemic costs of $1.80 per share, due to everything from deferred health care and broader economic impacts to the expense of COVID-19 testing and treatment.
A late-summer surge of COVID-19 illnesses resulted in the company's UnitedHealthcare insurance division paying for hospital treatments for about 60,000 health plan members during the third quarter, Rex said. The peak came in August, when the insurer paid for about 30,000 hospitalizations related to COVID-19.
As of Thursday, about 5,000 pandemic patients covered by the health insurer were receiving hospital care, Rex said, adding that the tally was a little more than half of the daily totals during the August peak. Hospital use by COVID-19 patients in many states has slowed with an easing of cases across the country since early September.