May 7, 2025

Medicare Advantage patients visiting an Optum Health primary care practice receive better care at a lower total cost than those who visit hospital-based and other physician-owned practices, according to new research from UnitedHealth Group.

The research shows patients benefit from an approach that prioritizes their health through preventive services, effective management of chronic conditions, and referrals to high-quality specialists.

Not only does Optum’s value-based care model offer better quality at a lower total cost than its competitors, but it also presents a path toward significant savings for taxpayers. The results echo two previous studies, published in JAMA Network Open, that found cost and quality advantages for Optum/WellMed’s value-based care model.

A better alternative for managing the business of primary care

Optum Health and WellMed are leading the consumer-friendly shift from a transactional health system to one that prioritizes long-term preventive care that will deliver better outcomes at a lower cost.

As primary care practices seek needed partnerships that can provide administrative infrastructure and access to capital, Optum/WellMed offers a better alternative than hospital ownership by aligning the interests of patients, physicians and payers.

This is the case because hospitals that own primary care practices have conflicted incentives regarding patients’ treatment and total health care costs. While doctors may receive bonuses for keeping patients out of the hospital, hospitals can earn significantly more via inpatients and hospital-based services.

On the other hand, Optum’s primary care practices have clear incentives to:

• Keep patients healthy and lower their total costs
• Help clinicians deliver preventive services
• Manage chronic conditions
• Make referrals to high-quality specialists
• Avoid unnecessary and costly interventions
• Reduce the need for hospitalization

Staffed with dedicated physicians committed to delivering patient-centered care, Optum Health practices outperformed both hospital-based and other physician-owned practices.

Optum Health outperformed hospital-based practices by:

• 6.3% on cost
• 2.3% on quality

Optum Health outperformed other physician-owned practices by:

• 4.2% on cost
• 3.9% on quality

Check out the full research brief.