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Health care industry

UnitedHealth Group Under Investigation by US Department of Justice

Strategic Insights

— 1 min read

The US Department of Justice is conducting investigations into certain aspects of UnitedHealth Group's participation in the Medicare program, which the company has confirmed it is cooperating with. In a regulatory filing, UnitedHealth stated that it has a long record of responsible conduct and effective compliance, and that independent audits have confirmed the company's practices are among the most accurate in the industry. The company's shares have fallen 49% in the last 12 months, and were down 3.1% to USD283.50 in New York on Thursday morning.

Key Takeaways:

  • UnitedHealth Group is cooperating with investigations from the US Department of Justice into its participation in the Medicare program.
  • The company has stated that it has a long record of responsible conduct and effective compliance, and that independent audits have confirmed its practices are among the most accurate in the industry.
  • UnitedHealth has launched its own initiative to conduct third-party reviews of its policies, practices, and associated processes and performance metrics for risk assessment coding, managed care practices, and pharmacy services.
  • The company has been under a criminal investigation for possible fraud relating to Medicare, which was first reported by The Wall Street Journal in May.
  • UnitedHealth's shares have fallen 49% in the last 12 months, and were down 3.1% to USD283.50 in New York on Thursday morning.
  • The company's CEO, Andrew Witty, stepped down for "personal reasons" just before the investigation was reported, and the company suspended financial guidance.

Statistics:

  • 49%: the percentage fall in UnitedHealth's shares over the last 12 months.
  • USD283.50: the price of UnitedHealth shares in New York on Thursday morning, down 3.1% from the previous day.
  • 12 months: the time period over which UnitedHealth's shares have fallen 49%.
  • 3.1%: the percentage fall in UnitedHealth shares over the previous day.

Sources:

  • Alliance News, "UnitedHealth Group Inc on Thursday said it is cooperating with criminal and civil investigations from the US Department of Justice".
  • The Wall Street Journal, "UnitedHealth is under a criminal investigation for possible fraud relating to Medicare" (published in May).
  • UnitedHealth Group, regulatory filing (Thursday).

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