Wisconsin Health Analysis, Pt 1
After extensive research, we could not determine how Anthem's and UHC's media spend budget is allocated by percentage and/or by business line in Wisconsin. However, these healthcare organizations have employed various unusual efforts to promote themselves in Wisconsin, such as investments in housing, partnerships, and corporate social responsibilities. Available information has been provided in rows 3-4 of the attached spreadsheet.
UHC's Unusual Promotion Efforts
- UHC, as one of the major funders of "a new 94-unit affordable-housing community (HARMONY @Grandview Commons) for working families in the region," including Madison. UHC contributed $5.4 million in equity funding by partnering with Cinnaire and Minnesota Equity Fund.
- The CEO of UnitedHealthcare Community Plan of Wisconsin, Ellen Sexton, said that UHC will continue to partner with "other socially-minded organizations that understand the value of good health and how public-private partnerships like these can succeed in helping to make a positive impact in communities.”
Investments in Housing
- UHC has invested $12 million in housing in Wisconsin. This was aimed at redefining healthy living in Wisconsin by addressing social factors, such as access to affordable housing that can affect people's health and well-being.
- UHC and community partners worked together to convert a vacant warehouse into a 60-unit apartment, to provide affordable housing, with on-site support services for residents of Milwaukee.
Anthem's Unusual Promotion Efforts
- Anthem partnered with Matrix "to conduct mobile health clinics and in-home assessments for targeted members."
- This partnership was geared towards the provision of "convenient, comprehensive appointments that are designed to complement the care provided by Matrix' network of physicians."
Volunteerism and Corporate Social Responsibility
- Anthem hopes to achieve its vision of becoming America's valued health partner by improving its CSR programs tagged "Anthem for Good!"
- Some of these programs include volunteerism programs that reward volunteers when they support or work for their favorite nonprofit organizations.
- The selling, general, and administrative expenditure of Anthem accounted for 15.3% of its total operating revenue ($91.341 billion) in 2018.
- For UHC, its cost of product sold, which may include media expenditure, was $26.998 billion in 2018.
- UHC's advertising expenditure in 2017 was $366 million.
We began by attempting to identify the 2019 annual reports of Anthem and UnitedHealthcare, as financial details and breakdown, such as expenditure, are usually published annually. However, they are yet to publish their 2019 annual reports. The closest we could find for 2019 was their quarterly reports, of which they don't usually contain as many details as the annual reports. Moreover, the only useful expenditure data was their operating costs and/or the selling, general, and administrative costs. We also decided to review the 2018 annual reports of Anthem and UHC to understand the level of data breakdown and the sort of expenditure they do publish. Specifically, we wanted to see if they directly or indirectly provide quantitative data about its media spend, ads spend or even marketing spend but could quickly find that Anthem only publishes its selling, general, and administrative costs while UHC publishes only its operating costs and the cost of goods sold. Both healthcare organizations provided no further breakdown by state or business line allocation or any relevant breakdown. Also, they didn't provide any strategic or unusual efforts they've taken to promote themselves. Hence, it is likely that the 2019 reports, when published, will not contain the media spend and since there was no media spend data and/or unusual promotion efforts in Wisconsin in these annual reports, we changed our approach.
Next, we attempted to search through industry sources and news pages, such as Adweek, as these resources do contain expert analysis or news articles revealed by the companies or its executives/leaders. Through these resources, we focused on finding the media expenditure in Wisconsin for Anthem and UHC but there was no information on them. We also narrowed our search to target local news sites in Wisconsin, such as the Star Tribune and the Milwaukee Journal Sentinel, but found no luck, as there was hardly any useful information. The only success we found with this strategy was identifying some unusual efforts Anthem and UHC made in 2019 to promote themselves.
Continuing, we then tried to expand to the US with the aim of identifying Anthem's and UHC's media spend in the US in 2019 and then, narrow them down to Wisconsin by various proportional metrics. An approach we wanted to attempt was finding the revenue or number of customers for Wisconsin, how much it accounts for in the US, and then, using it as a proxy to triangulate an estimate, assuming that larger revenue/customer locations would require more media spending. However, this strategy wasn't successful because obtaining the relevant data points were challenging. Hence, we could not provide an analysis/explanation of how their media spend budget is allocated by percentage and by business line in Wisconsin. We entered N/A for these in the respective cells.