UNITEDHELTH group not only missed the profits, but also did something worse

The crisis was first showed in April. UHG came out of the shock of a prominent murder in Brian Thompson in December when the company issued profits in the first quarter of Wall Street’s expectations. The stock decreased, reducing more than $ 100 billion of market value within hours. A month later, CEO Andrew Wei suddenly resigned for unlimited personal reasons, and former CEO Stephen Hemsli returned to the job. The stock decreased again. the next day , Wall Street Journal She stated that the Ministry of Justice was investigating UHG due to possible criminal medical care fraud. The company said it had not been notified of any such investigation. The arrows that were back again.

In less than a month, the companies giant lost more than half of its value. “This is the stock luck at that time. “It’s amazing. It’s unimaginable.”

On July 24, five days before the issuance of profits in the second quarter of UHG, the company acknowledged that the Ministry of Justice was conducting criminal and civil investigations for the company due to the practices of invoices for medical care. You can guess what the arrow did.

Then came the second quarter profit report.

Now, months after being beaten by investors, organizers and the media, Hemsley admitted that UHG needs a comprehensive rehabilitation to Stren-a very bold goal of an organization of about 400,000 employees. It is a blatant recognition of deep and wide problems. How deep and wide? Hemsli says that UHG will change “leadership, our actions, our culture, our approaches and practices, board of directors, governance and supervision of the caliphate …”

Executive managers are now Sanat the shareholders for patience – that is, a change for four months, before the evaporation of 330 billion dollars from the maximum market. Dr. Patrick Conway, CEO of the company withOne of the two main main main investors tells, “We know that the performance of OPTUM did not meet the expectations.” “We are approaching our work with greater humility,” says Tim Noel, CEO of the other department, insurance.

Hemsley appears to make expectations low. He says he does not see an increase in profit at all this year. Next year, he sees the growth of profits “steel but moderate”. Until 2027, he did not expect “our profit growth expectations to enhance quickly.”

Even this table may not allow enough time. When Hemsley returned as an executive in June, the Board of Directors awarded him one -time prize of $ 60 million of stock options that would start after three years. This term looked long for a 73 -year -old child and his goal was to correct the ship. Now, after the last quarter and the ambitious shift he is trying, investors may wonder if three years will be enough.