UnitedHealth Group witnessed a major leadership shake-up on Tuesday as Chief Executive Officer Andrew Witty resigned from his post with immediate effect. The company, simultaneously, announced the suspension of its annual forecast due to a sharp rise in medical costs, triggering a nearly 18% plunge in its stock — the lowest in four years.
To fill the leadership vacuum, Chairman Stephen Hemsley, 72, will step back into the CEO role, a position he previously held until stepping down in 2017. This abrupt change at the top has come at a time when the company is navigating through multiple crises, shaking investor confidence.
While the company cited “personal reasons” for Witty’s departure, it did not provide further details. His resignation follows a turbulent period during which UnitedHealth delivered its first earnings miss since the 2008 financial crisis — a major setback under his leadership. Just weeks earlier, the company had already slashed its full-year forecast.
Hemsley addressed stakeholders via a call, acknowledging the internal nature of many of the company’s obstacles. “Many of the issues standing in the way of achieving our goals as well as our opportunities are largely within our control,” he stated, signaling a possible course correction under his renewed leadership.
According to Reuters, UnitedHealth has been grappling with numerous challenges over the past year. These include a massive cyberattack on its tech unit affecting around 190 million individuals, a federal investigation into its Medicare billing practices, and a sudden rise in healthcare costs that has impacted its earnings.
Additionally, the company was thrust into public spotlight in December when Brian Thompson, CEO of its insurance division, was tragically murdered in New York shortly before a major investor conference — further compounding its troubles during Witty’s tenure.
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