The UnitedHealth Group CEO Andrew Witty has dramatically introduced his resignation after the agency reported a poor monetary outlook in its 2025 forecast.
Witty has overseen the healthcare large since February 2021, and managed the disaster after UnitedHealthcare CEO Brian Thompson was assassinated in Manhattan in December 2024.
Witty’s departure was introduced Tuesday as the corporate stated he was leaving for ‘private causes’, with out elaborating.
Witty’s resignation despatched the share worth of UnitedHealth down 10 %, and different well being insurers akin to Humana and Elevance down between 4 and 6 % premarket.
It comes a month after UnitedHealth posted its first earnings miss since 2008 in April and warned shareholders it was reducing its annual earnings outlook, citing ‘unanticipated adjustments’ within the healthcare {industry}.
A surge in demand for healthcare providers for Medicare recipients nationwide has reduce into earnings for a lot of suppliers.
The healthcare industry-at-large can also be nonetheless affected by a tough 2024 amid decrease authorities funds, elevated medical prices and public backlash to the sector after Thompson’s slaying.
The assassination introduced a wave of shock from disgruntled sufferers who claimed they have been undercut or damage by the insurer’s insurance policies, which triggered its inventory to nosedive on the time.
Final month, UnitedHealth shareholders launched a lawsuit in opposition to the corporate for allegedly concealing how backlash from the killing damage its enterprise and earnings.
The UnitedHealth Group CEO Andrew Witty has dramatically introduced his resignation
Witty has overseen the healthcare large since February 2021, and managed the disaster after UnitedHealthcare CEO Brian Thompson (pictured) was assassinated in Manhattan in December 2024
After Witty introduced his resignation on Tuesday, the agency’s former CEO Chris Hemsley, who has been with the healthcare conglomerate for 28 years, was returning to the highest function.
Kevin Gade, chief working officer at Bahl and Gaynor, advised Reuters that the resignation was solely shocking in its abruptness, though the struggles that UnitedHealth has confronted have been well-known within the {industry}.
‘The abruptness (of Witty’s exit) definitely is a shock however nobody ought to be stunned given the distinctive struggles of UNH versus friends,’ he stated.
‘At a sure level, management have to be held accountable.’
Earlier than Thompson’s assassination, UnitedHealth was additionally dealing with scrutiny after it was the goal of a cyberattack at its tech unit that shut down its healthcare processing techniques utilized by 200 million Individuals.
Witty beforehand got here below the highlight following Thompson’s capturing, as he was tasked with holding the corporate afloat amid widespread backlash to its practices.
Within the aftermath of the capturing, many expressed on-line outrage over the corporate’s historical past of rejecting crucial remedy – particularly below Thompson – as they praised alleged gunman Luigi Mangione for his actions.
Witty, seen testifying to Congress in Might 2024 after a cyberattack on UnitedHealth’s databases, was thrust into the limelight following Thompson’s assassination
Within the aftermath of the capturing, many expressed on-line outrage over the corporate’s historical past of rejecting crucial remedy as they praised alleged gunman Luigi Mangione (seen throughout his perp stroll in December 2024) for his actions
In response, Witty was seen in a leaked video to workers insisting that he was happy with ‘what this firm does on behalf of individuals in want throughout the nation.’
He even claimed few folks ‘within the historical past of the US healthcare {industry} [have] had a greatest impact on American healthcare than Brian.’
Amid the fallout from Thompson’s slaying, a brand new lawsuit filed final month by UnitedHealth Group shareholders claimed it hid the impression that public backlash was having on its enterprise.
In a proposed class motion filed in Manhattan federal court docket, shareholders stated the insurer defrauded them after the December 4 capturing of Thompson by shifting away from methods that led to higher-than-average claims denials, with out revealing the impression on profitability.
UnitedHealth shares fell 22.4% on April 17, wiping out about $119 billion of market worth, after the insurer reduce its 2025 forecast for adjusted revenue per share to between $26 and $26.50 from between $29.50 and $30.
The insurer cited greater prices in its Medicare enterprise. It had issued the previous forecast sooner or later earlier than Thompson’s dying.
Shareholders stated UnitedHealth had beforehand inflated its inventory worth by recklessly sticking with its previous forecast, whilst mounting public anger and an October 17 U.S. Senate report on claims denials triggered it to turn into extra patient-friendly.
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