Overview

• UnitedHealth Group allegedly paid nursing homes to limit hospital transfers, a cost-cutting measure that reportedly endangered patient safety, according to The Guardian's investigation.
• The U.S. Department of Justice reviewed these allegations and declined to pursue them, citing significant factual inaccuracies after a multi-year investigation.
• UnitedHealth’s stock fell over 6% following the report, adding to a year-to-date decline of 36%, with HSBC downgrading its rating and cutting the price target to $270.
• The Guardian's findings were based on thousands of documents, whistleblower declarations, and interviews with over 20 current and former employees, highlighting systemic issues within Medicare Advantage operations.
• The allegations compound existing challenges for UnitedHealth, including a DOJ criminal investigation into Medicare fraud, CEO Andrew Witty's recent resignation, and financial pressures from rising medical costs.