UnitedHealth down after whistleblower report, downgrade
UnitedHealth is down more than 5% in early trading after a downgrade from HSBC and a report that alleged it coordinated with nursing homes to reduce hospitalizations.
On Wednesday, The Guardian reported that UnitedHealth, the nation’s largest health insurer, offered financial incentives to nursing homes for avoiding transferring patients to the hospital.
Reducing such visits lowers costs for UnitedHealth, potentially boosting its profits, but reportedly led to worse outcomes for patients.
On the same day, HSBC reduced its rating on newfound retail favorite UnitedHealth from “hold” to “reduce.” This comes after the company’s CEO stepped down, as well as reports that the Department of Justice is investigating potential Medicare fraud at the company.
Reducing such visits lowers costs for UnitedHealth, potentially boosting its profits, but reportedly led to worse outcomes for patients.
On the same day, HSBC reduced its rating on newfound retail favorite UnitedHealth from “hold” to “reduce.” This comes after the company’s CEO stepped down, as well as reports that the Department of Justice is investigating potential Medicare fraud at the company.
