How sick is UnitedHealth Group? After a few decidedly strange weeks this spring, investors, competitors, regulators, and, yes, some patients are wondering what kind of trouble is going on inside the biggest, most powerful, most aggressive, most successful company in the U.S. health care sector. Some severe industry-wide trend? A run of bad luck? Plain poor management? Or, just maybe, some of each?
What’s certain is that in April, CEO Andrew Witty delivered first-quarter results so alarming that the stock plunged, knocking 22% off the company’s share price within hours. Twenty-six days later, on May 13, the company sent out an early morning statement announcing Witty had resigned for unspecified personal reasons, and Stephen Hemsley, the board chairman and a previous CEO, would be CEO once more. The stock plunged again. The next day, the Wall Street Journal reported that the Department of Justice is investigating UHG for possible criminal Medicare fraud. The company said it hadn’t been notified of any such investigation, but the stock plunged yet again.
