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UnitedHealth Falls After Report It Secretly Paid Nursing Homes to Reduce Hospital Transfers

  • In May 2025, UnitedHealth Group's stock value dropped significantly after a Guardian investigation revealed the company secretly compensated nursing home staff with bonuses aimed at lowering the number of hospital admissions.
  • The allegations surfaced amid a multiyear Department of Justice investigation into Medicare fraud claims and congressional whistleblower statements targeting UnitedHealth's Medicare Advantage program.
  • Internal records showed UnitedHealth offered financial bonuses tied to hospitalization rates, incentivizing nursing home staff to delay or deny hospital care, sometimes causing severe patient harm and permanent brain damage.
  • UnitedHealth’s stock dropped by 17% last Thursday, lost about $63 billion in market value within a month, and HSBC downgraded its shares citing a "kitchen sinking opportunity" amid halted 2025 financial guidance.
  • The combined impact of these events suggests prolonged challenges for UnitedHealth, with continued investor skepticism and uncertainties over regulatory and financial recovery ahead.
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Finbold broke the news in on Monday, May 19, 2025.
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