In a single case, an individual suffered everlasting mind harm due to a delayed switch, The Guardian newspaper reported.
UnitedHealth has allegedly secretly paid nursing properties to scale back hospital transfers — the most recent accusations in a collection of woes dealing with the medical health insurance large.
The alleged motion, first reported by The Guardian newspaper on Wednesday, was a part of a collection of cost-cutting techniques which have saved the corporate hundreds of thousands, however at instances, risked residents’ well being, the publication confirmed, citing an investigation.
The story, which cites hundreds of paperwork and firsthand accounts of greater than 20 former workers of the healthcare firm and nursing properties, says that the insurance coverage large despatched its personal medical groups to nursing properties to push the cost-cutting measures. In consequence, sufferers who urgently wanted medical care didn’t obtain it, together with one one who now lives with everlasting mind harm after a delayed switch.
The allegations add to the litany of negatives which have damage UnitedHealth within the final a number of months, following an enormous cyberattack at its Change Healthcare unit, studies of legal 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 hundreds of paperwork that demonstrated the numerous factual inaccuracies within the allegations.”
The corporate additionally stated that the DOJ “declined to pursue the matter”.
Wall Avenue responds
Shares have stumbled all yr, dropping 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 barely 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 reduce the value goal to a street-low of $270.
The brokerage stated larger medical prices, stress on drug pricing and its pharmacy profit administration unit, OptumRx, and a possible Medicaid funding reduce can upset the corporate’s restoration journey.
