UnitedHealth Shares Plunge as Profits Halve Amid Regulatory Scrutiny

Healthcare behemoth UnitedHealth has rattled investors with a severe contraction in profitability, despite achieving record revenue levels. The company’s latest quarterly results reveal a stark divergence between top-line growth and bottom-line performance, compounded by a newly announced Department of Justice investigation into its Medicare billing practices.

UnitedHealth’s third-quarter financial performance presents a troubling picture for shareholders. Revenue climbed to $113.2 billion, yet the company’s operating income witnessed a dramatic decline, plummeting to $4.3 billion from $8.7 billion during the same period last year. This 50% collapse in operating earnings has triggered significant concern among market participants.

The primary driver behind this profit compression appears to be the Medical Care Read more...