In a single case, an individual suffered everlasting mind injury due to a delayed switch, The Guardian newspaper reported.
UnitedHealth has allegedly secretly paid nursing houses to cut back hospital transfers — the newest accusations in a sequence of woes going through the medical health insurance large.
The alleged motion, first reported by The Guardian newspaper on Wednesday, was a part of a sequence of cost-cutting techniques which have saved the corporate thousands and thousands, however at occasions, risked residents’ well being, the publication confirmed, citing an investigation.
The story, which cites 1000’s of paperwork and firsthand accounts of greater than 20 former staff of the healthcare firm and nursing houses, says that the insurance coverage large despatched its personal medical groups to nursing houses to push the cost-cutting measures. Consequently, sufferers who urgently wanted medical care didn’t obtain it, together with one one who now lives with everlasting mind injury after a delayed switch.
The allegations add to the litany of negatives which have harm UnitedHealth within the final a number of months, following an enormous cyberattack at its Change Healthcare unit, reviews of felony and civil investigations into the corporate’s practices, together with one for Medicare fraud and the abrupt departure of CEO Andrew Witty final week.
UnitedHealth stated in response to the story, “The US Division of Justice investigated these allegations, interviewed witnesses, and obtained 1000’s of paperwork that demonstrated the numerous factual inaccuracies within the allegations.”
The corporate additionally stated that the DOJ “declined to pursue the matter”.
Wall Road responds
Shares have stumbled all yr, shedding greater than 39 p.c in contrast with a 0.6 p.c lower for the Dow. As of midday ET (16:00 GMT), the inventory is down greater than 3.6 p.c.
“The information is just seemingly getting worse for UnitedHealth,” stated Sahak Manuelian, managing director, world fairness buying and selling at Wedbush Securities.
HSBC downgraded the inventory to “scale back” from “maintain,” and minimize the worth goal to a street-low of $270.
The brokerage stated increased medical prices, strain on drug pricing and its pharmacy profit administration unit, OptumRx, and a possible Medicaid funding minimize can upset the corporate’s restoration journey.
