Up to now, 2025 has been something however clean for UnitedHealth Group.
The healthcare large introduced Tuesday that Andrew Witty will step down as CEO as a result of “private causes.” He’s being changed by Stephen J. Hemsley, who served as the corporate’s CEO from 2006 to 2017. Hemsley will stay as UHG’s chairman of the Board of Administrators, and Witty can be senior advisor to Hemsley.
“Main the individuals of UnitedHealth Group has been an amazing honor as they work each day to enhance the well being system, and they’re going to proceed to encourage me,” Witty stated in an announcement.
The corporate additionally introduced that it has suspended its 2025 outlook “as care exercise continued to speed up whereas additionally broadening to extra forms of profit choices than seen within the first quarter, and the medical prices of many Medicare Benefit beneficiaries new to UnitedHealthcare remained increased than anticipated.” UHG stated it anticipates to return to progress in 2026.
UnitedHealth Group declined MedCity Information’ request to remark additional.
Following the announcement, the corporate’s inventory dropped by almost 18%. This comes simply weeks after the corporate lowered its annual forecast as a result of a disappointing first-quarter efficiency, and solely months after UnitedHealthcare CEO Brian Thompson was shot and killed in December.
How is social media reacting to the CEO’s departure and the inventory drop? It may be boiled down to a few buckets:
Is it actually for private causes?
Some individuals are questioning what leaving for “private causes” actually means.
“Whereas ‘private causes’ is the explanation provided for Andrew Witty’s departure, the suspension of steerage would counsel his departure is extra to do with the private causes of the board reasonably than the boss,” stated Dylan Jones, managing companion of Boldsquare, a enterprise administration guide, on LinkedIn.
Jones added that those that have been a part of the “Witty-era management bench” could now be questioning their very own future on the firm.
Jones isn’t alone in suspecting that Witty was possible pushed out reasonably than stepping down voluntarily.
“Right here’s how one can get fired from the most important healthcare firm on this planet:
- 9% inventory value because you assumed the position
- 47% inventory value in a single month,” stated Preston Alexander, creator of the The Healthcare Breakdown, a healthcare publication, on LinkedIn.
A shopping for alternative
UnitedHealth Group is undoubtedly going through challenges within the short-term as a result of its main cyberattack, missed earnings and regulatory scrutiny. Nevertheless, one individual on X believes these points are momentary and views this as a shopping for alternative.
“Primarily based on each mannequin and datapoint I’ve reviewed — nothing suggests this can be a completely damaged enterprise. … I could also be early. The inventory may fall additional within the brief time period. However I’m not making an attempt to time the underside. I’m making an attempt to purchase high quality companies after they’re hated and undervalued. This looks like a kind of instances. I’m shopping for shares immediately,” stated @dividendology, who has a substack on investing.
One other investor known as UnitedHealth among the best healthcare shares.
“All its short-term incidents up to now will quickly get pale,” stated @GoodwillTrader on X. “An excellent inventory will at all times get better. I’ve 100% confidence on this funding long-term. 39% under-valued and touching month-to-month assist with time-cycled.”
Is that this deserved?
Whereas some are viewing this as a shopping for alternative, others are arguing that UnitedHealth Group is deserving of its struggles.
“I hope UnitedHealth continues to go beneath. Terrible firm. Their denial fee is 2x that of the trade common. Complete rip-off of an organization,” argued TeeDee144 on Reddit.
TeeDee144 isn’t the one one to suppose this.
“My firm makes use of UHC and they’re absolutely the worst medical health insurance I’ve ever handled,” stated lion27 on Reddit. “Except you’re making a fee, all the pieces is as troublesome as potential and so they deny EVERYTHING. I switched to a household plan with Aetna by way of my spouse’s firm when our first child was born and so they have been fantastic. Undecided if they only look nice in comparison with UHC, however for the primary time I don’t violently hate my insurance coverage firm.”
Picture: filo, Getty Photographs
