SSM Health and Optum Terminate Administrative Partnership: An In-depth Look

The End of a Short-lived Partnership

SSM Health and UnitedHealth Group's Optum have announced the end of their administrative partnership that revolved around inpatient care management, digital transformation, and revenue cycle management. The partnership, which was announced in late 2021 and began in early 2022, involved the employment of about 2,100 SSM employees by Optum. However, the organizations were unable to meet 'mutually agreed-upon expectations', leading to the termination of the partnership.

The Implications of the Termination

The decision to terminate the partnership was not taken lightly. As SSM Health President and CEO, Laura Kaiser, expressed, it was deemed to be in the best interest of patients, families, and team members. The focus is now on quickly reinstating hospital care management and revenue cycle management teams and services back to SSM Health. In addition, the health system plans to extend employment offers to Optum employees who were supporting SSM Health ministries.

Optum's Growth Strategy

While the termination of the partnership with SSM Health might seem like a setback, it's important to understand Optum's growth strategy. Optum's approach does not include owning inpatient care facilities. Instead, their strategy is to partner with health systems to manage administrative services. Over the years, this method has led to multiple health system partnerships and the hiring of thousands of employees from these systems.

Optum's Expanding Footprint

Despite the termination of the SSM Health partnership, Optum has seen significant growth and success in its operations. Optum's revenues have consistently grown, and the organization now employs or is affiliated with nearly 90,000 physicians and another 40,000 advanced practice clinicians. Moreover, Optum has expanded its reach by acquiring post-acute management and home health providers. This growth has allowed Optum to become a significant player in the healthcare field, providing a wide range of services to countless patients across the country.

Other Partnerships with Optum

Although the partnership with SSM Health has ended, Optum has partnerships with other hospitals and health systems, demonstrating its broad reach and the trust it has earned in the industry. These health systems include Allina Health, ProHealth Care, Bassett Healthcare Network, MarinHealth, Boulder Community Health, John Muir Health, Northern Light Health, and Owensboro Health. Each of these partnerships allows Optum to further its mission of driving better health outcomes, reducing healthcare costs, and improving the patient experience.

The Future for SSM Health and Optum

Despite the termination of their partnership, both SSM Health and Optum continue to play significant roles in healthcare. For SSM Health, the end of the partnership represents an opportunity to reassess and recalibrate their approach to delivering the best possible care to their patients. For Optum, it's business as usual as they continue to partner with health systems across the country, providing critical administrative services and driving improvements in healthcare delivery.