Share of United health group ,Uhhh 0.20%, Fall in May, to the month 26.6%. Came as a fall S&P 500 ,^GSPC 0.55%, 5.5% and received Nasdac Composite ,^Ixic 0.63%, 7.9%received.
Worried Health insurance legend Facked a series of fraud and misconduct allegations after the sudden departure of his CEO.
CEO gets out
In May, the then CEO of the United Health, Andrew Viti announced that he was stepping down citing “personal reasons”. The sudden loss of its CEO sent shockwaves through the company and indicated to investors the depth and scale of the ongoing issues of the United Health.
The resignation came at the same time when the company told the investors that it was suspending guidance to 2025 due to an increase in medical cost.
United Health is facing a DOJ investigation
The United Health was already facing an inquiry from the Department of Justice in a civil case, but in May, it was discovered that DOJ’s health care fraudforce unit is conducting a criminal investigation in the company for Medicare Fraud. Although this came out last month, the company is clearly subject to criminal investigation for a year.
Image Source: Getty Image.
More suspicious practices
Doj revelation exactly a week after, Mentor Told that United Health is paying secret bonuses in nursing homes to keep sick residents out of hospitals and save money. The report also claimed that the company staffed the nursing home with their own medical teams, who intervened to keep the residents several times, who required hospital care by receiving it.
A former United Health Executive told Mentor,
Exactly a year after killing the CEO of the company in New York City, the company is still on its heels, in which the problem is increasing. James Harlo, senior vice president of Novare Capital Management, said, “It doesn’t seem that he has a plan.”
All this has shook the trust of investors, since the most severe fall for an S&P 100 company in April and May Netflix According to Dow Jones Market data, 54% fell in May 2022.
At this time there are many issues facing the United Health, which has no clear picture of imminent changes. It looks away from it at this time, and I will stay away from stock.
Johnny Rice There is no situation in any shares mentioned. The micle flower has a Netflix position and is recommended. Motley Flowers recommended the United Health Group. Motley is near the flower Disclosure policy,
