
Andrew Witty resigned for personal reasons for personal reasons, the company announced on Tuesday 13 May. The company, the largest US health insurance company, is struggling with a triple crisis: increasing health costs associated with Medicare Advantage, shaken investors’ confidence after rare earnings and deep reputation damage for high profile murder at the end of last year.
“I am deeply disappointed for all parties, including employees and shareholders … And I apologize for the failures of the performance,” said Stephen Hemsley, who has now entered as CEO, the role he played from 2006 to 2017.
A turbulent east in the middle of the cost
On Tuesday, Unitedhealth also suspended its year-round 2025 forecast and quoted higher than expected treatment expenses among the new recipients of Medicare Advantage -t, who sent its shares to glide another 9% before the market opening.
Last month, the company reduced its forecast after published the first quarterly earnings in more than ten years.
“Many problems that stand in the way … They are in our ability to solve,” Hemsley said in a call with analysts, signaling the course correction under familiar leadership.
Shadow
Witty’s departure also comes less than six months after the shocking murder of Unitedhealth Brian Thompson, shot in front of the Hotel in New York. The alleged murderer, Luigi Mangione, was charged with federal accusations of murder last month.
The case quickly became the point of the flash in the media coverage and supported a public interview towards private insurance companies and lit interviews about corporate responsibility and executive security.
UnitedHealth tried to control the narrative in the middle of an onslaught online outrage and increased control of the lawmakers and consumer advocates.
From high growth to crisis mode
Witty, who joined the Unitedhealth in 2018 and became the CEO in 2021, supervised 55% of the income of more than $ 400 billion and 60% increase in stock price – until the end of last year things began to fall apart.
Since the murder of Thompson, Unitedhealth has reduced 38%and has exacerbated billions of market values and revealed vulnerability in both their public image and in the main business operations.
Next chapter UnitedHealth
Witty will remain as the head of Hemsley advisor, who also continues as Chairman of the Board of Directors. Hemsley is now facing an urgent task of rebuilding confidence on Wall Street, Capitol Hill and inside his own large labor force.
With more than 50 million Americans who rely on the insurance and care of Unitedhealth, the company’s trajectory can not only determine its financial recovery in the coming months – but also to transform public confidence into corporate health care itself.
(Tagstotranslate) Unitedhealth Group (T) Andrew Witty (T) USA for the health insurance company