Another healthcare system outsources its administrative services to Optum.

MarinHealth Medical Center is the latest healthcare system to bring in Optum for operational support, and the nonprofit California provider signed a 10-year contract with the healthcare giant on Thursday.
MarinHealth will rely on Optum to streamline its administrative processes, provide insights into its supply chain, and provide revenue cycle management services. Optum’s technology will also provide a simplified consumer experience for patients, MarinHealth says.
As part of the agreement, around 100 MarinHealth employees will move to work for Optum, Optum said, although they will continue to directly support MarinHealth’s operations. Employees involved in patient registration and billing, coding and reimbursement, and supply chain will move to Optum’s side. Optum declined to comment on the financial terms of the deal.
But MarinHealth said its goal is to remain an independent healthcare system and said that outsourcing its administrative functions will allow its staff to devote more time to patient care.
“Like our partners at MarinHealth, we believe that people are best served by health systems and caregivers that are integrated into their communities,” Optum Insight CEO Rick Hardy said in a press release. “This relationship is yet another example of Optum’s continued support for local health systems across the country, and we are honored to help MarinHealth continue to provide high quality patient care as they have done for many years.”
Health Services has signed similar agreements with SSM Health in St. Louis, California, John Muir Health, and Boulder Community Health, Colorado.
Last year, New York-based Bassett Healthcare Network, in particular, agreed to outsource its administrative and IT functions to Optum to avoid a takeover. As part of this transaction, 500 employees moved to Optum, the fastest growing division of the UnitedHealth Group.
In 2021, Optum’s revenue grew 14% year-over-year to $155.6 billion. Its annual profit increased by 19.4% to $12 billion.
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