UnitedHealth Shares Drop on Nursing-Home Kickback Allegations

UnitedHealth Group faces serious allegations from a Guardian investigation claiming it paid nursing homes undisclosed bonuses to reduce hospital transfers, potentially endangering patient care. The program, active in about 2,200 nursing homes, allegedly incentivized facilities to limit hospital admissions by linking payments to metrics like 'admits per thousand,' pressuring staff to withhold necessary hospital transfers and share confidential patient information. UnitedHealth has denied these claims, citing a multi-year Department of Justice investigation that found significant factual inaccuracies and declined to pursue legal action. Despite this, the insurer is under heightened scrutiny, with an ongoing DOJ criminal inquiry into its Medicare billing practices, the recent abrupt resignation of CEO Andrew Witty, suspension of its 2025 financial forecast, and multiple operational challenges including a cyberattack and contract probes. The controversy has led to sharp stock declines and analyst downgrades, reflecting investor concerns about rising medical costs, regulatory pressures, and the leadership transition under the new CEO. Whistleblowers and former employees have accused UnitedHealth of prioritizing profits over patient safety, calling for accountability amid mounting negative publicity.