United Health Care Swot Analysis

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From Shareholder’s point of view Company has provided a return of 16% on equity in current financial year. which indicates which is considered considerably high in health care industry which has provide a return of 7.32 % on equity.Company has a net profit margin of around 7% and has shown a increasing trend. Where as its two major competitors Tenet Health Care and Community health systems are operating at negative profit margins this shows safety of investments in UHS. In past two years company had a high leverage of 1.45 and 1.26 but it has declined to 0.93 this indicates the reduction in financial distress of company since overall debt levels has declined so united Health Services can be considered as attractive investment for investors. From Investor’s point of view United Health Services has shown a growth of around 7% in revenue but its net income has increased 28% in past two years …show more content…

One of the major challenges that would be faced by health care industry is to reduce cost due to decreased compensation simultaneously health care providers have to increase their capacity to accommodate increase in volumes. Another challenge in health care is to improve the quality of services to manage the increasing competition in health care industry. The best way to deal with current industry trends is to continuously innovate so that United Health Services could provide better quality of services at reduced cost. Vertical integration is also effective in reducing cost and beating competition. Most of the big players in health care industry are moving towards vertical integration to have control in market. Big data Analytics and Business Intelligence has provided health care industry with excellent opportunity to leverage information to gather insights in judging value of treatments and continuously improving them. Key Strategies to improve Financial