HCMFPX5314_TrueloveElizabeth_Assessment2-2

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Jan 9, 2024

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Alignment of a Health Organization Structure Elizabeth P. Truelove HCM-FPX5314 Capella University Dr. John Gaze December 6th, 2023

Evaluation of Internal Structure A critical component of developing effective strategies is having a solid understanding of the internal structure of the organization. UnitedHealth Group, or UHG, is a vertically integrated, global healthcare company focused on helping people live healthier lives through two distinct, complimentary businesses: UnitedHealthcare and Optum. UnitedHealthcare, or UHC, provides a range of health benefits to enable affordable healthcare coverage, simplify the care experience, and deliver access to high-quality care. Optum focuses on care delivery by the use of technology and data which provides their providers and partners the tools needed to achieve better health outcomes (UnitedHealth Group, 2022) . UHG operates multiple business segments, consisting of various leadership teams to allow for a more focused approach to each area and the respectable strategic initiatives. While dedicated teams with focus on specific areas is crucial, it can also pose barriers to overall organizational success due to the complexity of keeping various teams aligned. Access Providing adequate access to care is a high priority and a key strategic initiative for UHG. Various barriers can pose risk to developing strategies around access. UHG and Optum have set out to provide telehealth alternatives for members that may not have easy access to direct care. While this is effective in increasing access to care, it can also be a barrier as not all members have the ability to utilize technology for care. Additional barriers to access include lack of coverage, coverage gaps, and costly coverage plans. UHG is working to fight barriers to access by providing universal coverage, continuing coverage for those currently insured, expanding Medicaid coverage, and providing more affordable healthcare options (UnitedHealth Group, 2022) . Quality Quality of care is another high priority for UHG across all business segments. The organization contracts with multiple hospitals and health systems across the United States that have voluntarily come together to provide high quality, coordinated care to the patients they serve (CMS, 2023) . One barrier to quality is the availability of identified Accountable Care Organizations. Unfortunately, not all hospitals or healthcare facilities desire to participate as an Accountable Care Organization and therefore the availability of the high quality facilities may be limited to some members depending upon geographical location. Cost Effectiveness Cost effectiveness of plans and coverage remain a high priority for UHG. Contracting with Accountable Care Organizations is one strategy to improve cost effectiveness of healthcare for their members. However, despite the efforts of lowering the overall cost of healthcare, various barriers exist. The rising cost of healthcare impacts the ability to provide lower cost health plans to members. Additionally, UHG is in a very competitive marketplace with various other payers that offer similar plans and benefits potentially at a lower cost. Organizational Impact from a Strategic Perspective UHG places sustainability as an integral component of their culture, mission, and business strategy which contributes to overall organizational success. According to the company’s 2021 sustainability report, “as a payer, provider and technology company, we are

uniquely positioned to bring greater transparency and quality to the marketplace” (UnitedHealth Group, 2022) . It remains a critical component of the organization’s strategy to analyze the internal framework in order to implement effective strategies across the organization. Remaining in touch with internal structure is key to developing optimal strategies for long term success. Leadership and Human Resources UHG is comprised of various departments to ensure organizational success. At the core of the organization is leadership. The top leadership of UHG consists of the Chief Executive Officer (CEO), Andrew Witty, and the Chief Sustainability Officer (CSO), Patricia L. Lewis (UnitedHealth Group, 2023) . The CEO and CSO lead the organization in strategic initiatives by aligning with the mission, vision, and values of the company. Another important component of the internal organization is the Human Resources department. This sector is crucial as it is responsible for bringing in talented individuals to fill the needs of the numerous departments in UHG that help to deliver the organization’s strategic initiatives. Service Delivery Service delivery is a broad internal component of UHG. Each sector has a dedicated team of service delivery specialists focusing on ensuring members and consumers receive any necessary support and guidance that may be needed. Service delivery for UHG includes assistance in obtaining benefits, technology support, finding appropriate care, and general customer service support. This component of the internal structure is an integral part of the organization as it is directly tied to customer experience and satisfaction. Marketing The marketing division of UHG is another vital component of the internal organizational structure. UHG has made a commitment to ethical marketing by applying the mission and values to drive honest, transparent, and ethical marketing across the business (UnitedHealth Group, 2023). This approach allows members to make better, more informed decisions surrounding their healthcare. The organization maintains strong brand awareness from the innovative efforts the marketing team utilizes. Operations The operations of UHG are delivered by the multifaceted business sectors of the organization. Each area of business maintains personnel directly responsible for carrying out the operations in their division. The operations vary upon department, but consist of budgetary management, project management, implementation of strategic initiatives, and oversight of day to day operations. Organizational Impact from an Operational Perspective Operational goals and targets are set in each area of business for the organization. Meeting the operational goals helps to achieve the strategic goals that have been set. In order to accomplish such goals, the operations of the organization should be consistently evaluated. Each department has key operations and functions to help achieve the overall organizational goals. Operational goals such as achieving a 4.5 STAR rating for Medicare plans help the organization

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attain strategic goals such as lowering healthcare costs while offering additional benefits at no cost to the member. The organizational structure has a direct impact on achieving successful results from strategic initiatives. Leadership, Human Resources, Marketing, and Operations, among other departments, play a key role in effective strategies. In addition, the collaboration and integration between UnitedHealth Group, UnitedHealthcare, and Optum drives positive outcomes and contributes to the overall organizational success and achievement of strategic goals. Recommendations While UHG remains distinguished in the marketplace, it is critical to remain strategic and aware of internal and external factors that can impact the overall strategy. UHG has a plethora of internal resources which aids in effective analysis, formulation, and implementation of strategies. In an effort to maintain the successful placement in the industry, UHG should invest in their sustainability team to maximize the resources available for strategic planning. UHG should also partner with health systems and consumers to gain insight on what is fragmented and what enhancements would be beneficial to improving patient care and health outcomes. In addition to maintaining focus on external resources and partnership, it is critical for the organization to keep a pulse on the internal structure to best align with strategic initiatives. Conclusion In conclusion, UnitedHealth Group focuses the organizations strategic initiatives around providing high-quality, affordable, accessible care to its consumers. While various barriers do exist, UHG remains innovative and competitive to overcome potential risks associated with implementing strategic initiatives. UHG’s strategy focuses on affordability and value of their products while also differentiating themselves from others in the industry. This strategy has proven to be successful for the organization as they have achieved the top ranked company in the insurance and managed care industry for the last 12 years (UnitedHealth Group, 2022) . UHG’s mission statement of “helping people live healthier lives and helping make the health system work better for everyone” remains at the center of the organization’s business and corporate strategies (UnitedHealth Group, 2022) .

References CMS. (2023). Accountable Care Organiations (ACOs): General information . Retrieved from CMS.gov: https://www.cms.gov/priorities/innovation/innovation-models/ACO National Association of ACOS. (2023). NAACOS is the resource for Accountable Care Organizations (ACOs) dedicated to its members' success . Retrieved from NAACOS: https://www.naacos.com/#:~:text=As%20a%20market%2Dbased%20solution,serving%20over %2011%20million%20beneficiaries. UnitedHealth Group. (2022). Who We Are . Retrieved from UnitedHealth Group: https://www.unitedhealthgroup.com/who-we-are.html UnitedHealth Group. (2022). A Path Forward to a Modern, High-Performing Health System. UnitedHealth Group. (2022). Our Mission in Action: 2021 Sustainability Report. UnitedHealth Group. (2023). Our mission in action: 2022 sustainability report.

HCMFPX5314_TrueloveElizabeth_Assessment2-2

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