The most recent in a long line of allegations that the health insurance giant has paid allegedly to slash hospital transfers is that UnitedHealth has allegedly paid nursing homes in secret.
The Guardian newspaper reported on Wednesday that the alleged action was one of a number of cost-saving strategies that, according to the publication, occasionally put residents’ health at risk, citing an investigation.
The insurance company sent its own medical teams to nursing homes to push the cost-cutting measures, according to the story, which cites thousands of documents and firsthand accounts of more than 20 former employees of the healthcare company and nursing homes. In consequence, patients who desperately needed medical attention did not, including a patient who is currently living with permanent brain damage as a result of a delayed transfer.
The allegations add to the list of negative things that have happened to UnitedHealth in recent months, including reports of criminal and civil investigations into its practices, including those involving Medicare fraud, and Andrew Witty’s abrupt departure last week.
The US Department of Justice investigated these allegations, interviewed witnesses, and obtained thousands of documents to show the significant factual errors in the allegations, according to UnitedHealth in a response to the story.
The DOJ “declined to pursue the matter,” according to the company.
Wall Street reacts ,
All year, shares have fallen, falling by more than 39 percent, while the Dow dropped by 0.6 percent. The stock is down more than 3 % as of noon ET (16:00 GMT).
According to Sahak Manuelian, managing director, global equity trading at Wedbush Securities, “The news only seems to be getting worse for UnitedHealth.”
The stock was downgraded from “hold” to “reduce” and the price target was set at a record low of $ 270.
Source: Aljazeera
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