UnitedHealth CEO abruptly quits, predecessor returns in major shakeup

Core Insights - UnitedHealth Group has undergone a significant leadership change, with Stephen Hemsley returning as CEO following the resignation of Andrew Witty, who stepped down for personal reasons [1][2][6] - The company is facing multiple crises, including a tragic incident involving the murder of Brian Thompson, CEO of its insurance subsidiary, UnitedHealthcare, and a severe cyberattack [7][12] - UnitedHealth's stock has plummeted over 35% this year, with a notable 22% drop in a single day last month, leading to a loss of nearly $190 billion in market value [4][10] Leadership Changes - Stephen Hemsley, who previously served as CEO from 2006 to 2017, is expected to stabilize the company during this tumultuous period [1][6] - Hemsley aims to return the company to its long-term growth objective of 13 to 16 percent [4] Financial Performance - UnitedHealth has suspended its revised 2025 earnings outlook due to unexpectedly high medical costs and increased care utilization, lowering its full-year adjusted earnings guidance to a range of$26 to $26.50 per share from a previous forecast of$29.50 to $30.00 [8][10] - The company is facing a shareholder lawsuit alleging it misled investors about the financial impacts of its strategic shift following Thompson's murder [13][14] Market Position - Competitors like CVS Health and Humana have not reported similar pressures in their Medicare Advantage segments, isolating UnitedHealth in the current market environment [12] - The company is under heightened regulatory scrutiny, including multiple investigations by the Justice Department [7]