Billions of Profits to Healthcare Providers

The five largest for profit health insurers each were in the top 100 companies in Fortune Magazines 2017 Fortune 500 list.  These five companies, together with their ranking and 2016 profits, in billions   are:

 

Company and Ranking Profits in Billions of Dollars – 2016
No. 6 – UnitedHealth Group $ 7
No. 29 Anthem $ 2.47
No. 43 – Aetna $ 2.47
No. 53 – Humana  $ .562
No. 70 Cigna $ 1.867

 

UnitedHealth’s 2016 revenue totaled $184.8 billion, up 17.6% year over year. Net income was $7.3 billion, up 23.3% over 2015.   Its CEO Stephen Hemsley made $17.8 million in total compensation in 2016 for running the nation’s largest health insurance company. Hemsley’s compensation grew by 22.4% over 2015.   His base salary totaled $1.3 million, while his bonus was roughly $1.66 million.  Hemsley also received stock and options awards with a fair value of $6.5 million and $8.7 million, respectively. But those are not yet vested. Hemsley’s actual realized 2016 compensation, taking into consideration stock vested and options exercised, totaled $33.4 million, up 66.1% over 2015.

 

The six largest medical device companies also are big business with the following list from  the 2017 Fortune 500 Ranking:

#134: Abbott Laboratories   4.423  Billions

#185: Baxter International 2.012 Billions

#300: Stryker 1.647 Billion

#338: Becton Dickinson     .695 Billion

#378: Boston Scientific       -.239 Billion     (7.249 Billions  Revenues)

#466: St. Jude Medical       .734 Billion

  Hospitals

The largest percentage of health care costs are in Hospitals .  The largest hospital chain,  Hospital Corporation of America,  is No. 63 of the Fortune list with 2016 profit of $ 2.890 Billion.

 

 

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