UnitedHealth Group’s (NYSE: UNH) health services subsidiary Optum Health has picked CVS Health (NYSE: CVS) vet Dr. Amar Desai as its new CEO. The leadership change comes as Optum further focuses on behavioral health service integration and strategic M&A.
In his new role, Desai will have a significant role in health care delivery at the company. Among his tasks is figuring out how Optum’s behavioral health subsidiary, Refresh, evolves from here.
Desai comes to Optum after serving as the president of health care delivery at CVS Health.
But Desai has a long history at UnitedHealth Group. He first joined the organization in 2019 as president and CEO of Optum California, and he eventually moved to the role of CEO of Optum Pacific West. He returned to UnitedHealth Group in April as an executive-in-residence.
Desai has held leadership roles at several health care companies, including DaVita (NYSE: DVA) and Paladina Health. His resume also includes a number of appointments at large medical systems, including Keck Medicine of USC, David Geffen School of Medicine at UCLA and Stanford University School of Medicine.
“I’m thrilled to be back at Optum leading Optum Health as Chief Executive Officer, working alongside 135k+ team members and caregivers to improve the health of 103 million people across the U.S,” Desai said in a Linkedin post announcing the news. “Those of you that know me are familiar with my commitment to team, impact, and serving others. I can’t think of a more distinctive platform to make a larger difference in the health and health care of communities across the country.”
Desai is taking the reins from Dr. Wyatt Decker, who announced Wednesday that he is moving into the role of chief physician of UnitedHealth Group.
“In this new role, I’ll be focused on strengthening and deepening our value-based care capabilities and innovative clinical solutions across UnitedHealth Group and working across health care to advocate for comprehensive, equitable care that addresses a person’s whole health,” Decker said in a Linkedin post.
Decker has repeatedly touted the critical role of behavioral health integration during his time as Optum’s top executive.
“Our ability to embed behavioral health care services within our primary care and value-based care offerings has been differentiated and will continue to grow, as well as our utilization of virtual behavioral care solutions in both the home and clinic environments,” Decker said in January. “We’re pretty excited about how this is coming together.”
Optum Health has prioritized several behavioral health efforts in recent years. Notably, in 2022, the Optum announced its acquisition of outpatient behavioral health provider Refresh Mental Health.
Refresh Mental Health, which has rebranded to Optum Behavioral Health Solutions
has more than 300 locations in 37 states. Its services include treatment for substance use disorder (SUD), mental health conditions, eating disorders, couples therapy, psychiatry and more.
The Optum and Refresh teams have made it clear behavioral and physical health integration are in the cards for the future. This integration could help the organization figure out value-based care pathways for the future.
“The plan [is] for us to align that primary care capitation model over time. I think that’s really an interesting, innovative field – and one of the reasons for me and our team being really excited to join Optum. This [is an] opportunity to try some of these things out in arrangements where we don’t get burned,” Steve Gold, chief business development office at Optum Behavioral Health Solutions and former CEO of Refresh Mental Health Services, said during BHB’s INVEST conference. “We can try some different things and hopefully [see] that it works and then lower the total cost of care, improve patient experience, improve patient outcomes.”
The company has also seen a heightened need for behavioral health services. In 2022, it reported that behavioral health visits were up 130% compared to pre-pandemic levels.
In addition to behavioral health integration, Desai will also be responsible for figuring out how LHC Group, a large home health and hospice company acquired by Optum in 2022, fits into the strategic picture. He may also have to do the same with home health and hospice giant Amedisys (Nasdaq: AMED) next year, as Optum has a pending acquisition agreement with that provider as well.
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