Surgical Care Affiliates, Inc, a part of UnitedHealth Group, Inc’s UNH Optum unit, recently partnered with Western Connecticut Orthopedic Surgery Center (“WCOSC”) by making an equity investment in the latter. The transaction came into effect on May 1, 2017.
UnitedHealth’s health service business, Optum is becoming increasingly valuable through its diversification strategy. Its primary growth drivers are pharmacy care services, care delivery, technology, government services and international. Through several partnerships and alliances, the company has strengthed its growth potential. Shareholders have always appreciated Optum’s inorganic strategies.
Over the last one year, UnitedHealth’s stock has rallied 29%, outperforming the Zacks categorized Health Maintenance Organization (HMO) industry’s gain of 27%.
In line with Optum’s strategies, Surgical Care also kept inking deals with health plans, medical groups and health systems across the country to develop and optimize surgical facilities. With more than 200 surgical facilities, it has become a leader in the outpatient surgery industry. The agreement with WCOSC has resulted in a network of seven surgery centers operated by Surgical Affiliates in Connecticut.
WCOSC is a multi-specialty surgery center in Danbury, CT, operating primarily with 14 physician partners that specialize in orthopedics, spine and pain management. With WCOSC in its suite, management at Surgical Affiliates is hopeful of gaining leadership in affordable and innovative premium quality orthopedic surgical care in Connecticut. WCOSC to looks forward to capitalize on Surgical Care’s past success history.
Zacks Rank & Other Stocks to Consider
UnitedHealth presently sports a Zacks Rank #'2 (Buy). Other stocks that warrant a look include Align Technology, Inc. ALGN, Nobilis Health Corp. HLTH and Inogen Inc. INGN. All these stocks also flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology (ALGN), a medical dental supplies company, topped estimates in all the last four quarters with an average beat of 59.23%.
Nobilis Health, an HMO behemoth, surpassed expectations in two of the last four quarters with an average positive surprise of 100.2%
Inogen is a medical instruments seller which delivered positive surprises in each of the last four quarters with an average beat of 82.42%.
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