UnitedHealth Shares Plummet as Too Many People Go to the Doctor

UnitedHealth Group, the parent company of UnitedHealthcare and Optum Health, saw its stock price plummet over 20% Thursday morning after the healthcare giant downgraded expected performance for the year. The company’s executives explained on a call with analysts Thursday that they had been surprised by increased use of physician and outpatient services within UnitedHealthcare’s Medicare Advantage business. UnitedHealth CEO Andrew Witty called the company’s performance “unusual and unacceptable,” while CFO John Rex said he was “extremely disappointed” to share the news of the company’s outlook with analysts. “Within UnitedHealthcare, pressure was largely contained within the senior business where we saw a sharp increase in care activities that became apparent as we closed out the quarter,” Rex said. Rex said the company would now expect adjusted earnings of $26 to $26.50 per share. As recently as January, the company was expecting adjusted earnings of $29.50 to $30, according to the ... Read full article.