Overview

• UnitedHealth's stock dropped over 5% following a Guardian report alleging secret bonuses to nursing homes to limit hospital transfers, raising patient safety concerns.
• The Department of Justice investigated the allegations, ultimately declining to pursue the matter due to what it described as significant factual inaccuracies.
• The Guardian investigation cited whistleblower accounts and internal documents, highlighting cases of delayed care, including one resulting in permanent brain damage.
• UnitedHealth's challenges include ongoing DOJ probes into potential Medicare fraud, the abrupt resignation of CEO Andrew Witty, and the withdrawal of 2025 financial guidance.
• HSBC downgraded UnitedHealth's stock to 'Reduce,' cutting its price target to $270, citing operational risks and delayed recovery in Medicare Advantage and Medicaid segments.