The U.S. Justice Department is moving to block UnitedHealth Group's $3.3 billion purchase of Amedisys Inc. over concerns the deal would harm competition in the market for home health services, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The healthcare sector is vast and includes everything from massive legacy companies including UnitedHealth Group Inc. NYSE: UNH and McKesson Corp. NYSE: MCK to tiny upstart pharmaceuticals firms. Investors looking to explore this sector thus have a choice about whether to focus on established companies with steadier business operations but, perhaps, less of a possibility of future growth, or on smaller firms that offer a higher-risk, higher-reward prospect.
Zacks.com users have recently been watching UnitedHealth (UNH) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CVS Health on Wednesday named Steve Nelson, a former UnitedHealth insurance head, to run its Aetna business, where rising medical costs in the third quarter caused the company to preannounce an earnings miss last month.
Earlier this year, Change Healthcare, a subsidiary of UnitedHealth Group (UHG) and key player in the U.S. healthcare sector, suffered a catastrophic ransomware attack attributed to the Russian-speaking group ALPHV/BlackCat. We already knew this breach stood as one of the largest in history.
Health insurer UnitedHealth Group (NYSE:UNH) just reported third-quarter earnings results that handily beat analyst expectations on the top and bottom lines, but its outlook for the rest of the year and for 2025 disappointed investors who sent UNH stock careening 8% lower.
More than 100 million individuals had private health information stolen during the ransomware attack on Change Healthcare in February, a cyberattack that caused months of unprecedented outages and widespread disruption across the U.S. healthcare sector.
The February hack at UnitedHealth's Change Healthcare unit affected the data of 100 million people, the U.S. health department's website showed, making it the largest data breach in the country.
UnitedHealth (UNH) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
On October 15, UnitedHealth Group published financial results for the third quarter of 2024, which surprised me primarily due to the sharp increase in Optum Rx revenue. Optum Rx's revenue reached about $34.2 billion in the third quarter of 2024, up 18.5% year-on-year. Overall, due to year-over-year revenue growth in UnitedHealth Group's two main divisions, Optum and UnitedHealthcare, it repurchased shares worth $1.7 billion in Q3 2024.
Looking ahead to 2025, UNH projects adjusted earnings to reach around $30 per share at the top end, which falls short of the Zacks Consensus Estimate.
The market has over-reacted to UNH's cautious FY2025 guidance, since the lower bottom-line is attributed to "CMS payment cuts, the IRA, and a mismatch between Medicaid rates and medical program." Given the recently released Star rating for 2025, we believe that the redeterminations and higher medical costs may be a new normal across the health care provider industry. For now, UNH has attempted to optimize its operations while managing the Optum therapy/ drug costs, resulting in the segment's growing profit margins and decent FY2024 guidance.