I am not talking about immediate cost for the company, but total cost for the industry, society and primarily patients and clients. This just shows how profound the systemic errors and holes are in the corporate world. Vital part of the system, the one which should be serving public interest/citizens in matters of health, was affected. And it all started with casual cost-cutting in one company, so C-suite and shareholders can get more money.
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If you are wondering if this will hurt UHG...this came from an article in Market Beat....UnitedHealth Group Inc.
has given up almost all of its 12-month gains in the last week after two unrelated incidents have rocked the company. At the close of trading on March 1, 2024, UNH stock had lost more than $25 billion in market value.
Yikes. You know where they will make that loss up? Be prepared for it folks.
The cost is NOT enough to put them out of business but surely hope it breaks up this abominable monopoly, as it is an antitrust issue and should not exist in its current state. At the end of the day, by the judge allowing them to acquire Change Healthcare was start of the downturn. It never ever should have been approved. UHG cheered the decision, applauded its win, laughed at the government and regulators and was completely overjoyed by the win and got the data it wanted. Don't think they are cheering anymore!
It's payback time. Every regulator will now be after them along with hundreds of class-action lawsuits, loss of customers, market share, and not to mention a declining stock price. They are and will likely be spending millions+ for penalties, fines, legal teams, cybersecurity vendors, credit monitoring, class action lawsuits, etc. etc. just to climb their way out if there is even a out for this.
This is affecting the healthcare ecosystem, and ruining the employees. It has tarnished the once amazing Change Healthcare name. This debacle may likely result in many, many more layoffs not due to cause but to cut expenses and a tremendous downsizing of this massive company.
For those of us who were riff'd in the layoffs, we are thankful to be out of the toxic, unethical environment. To those still there, run, don't walk, just get out.
Tree fiddy, bahahahaha! Bunch of money-grubbing succubi
Easily $10+ Billion
If you just focus on the impact to UHG overall it will be enormous next year and beyond. Not only will there be a number of businesses leaving UHG and switching to competitors (i.e. Elevance Health) providers and pharmacies will leave the network due to the pain that they had to deal with. Buckle up gang, this will lead to budget cuts and layoffs company-wide. I don't want to be all doom and gloom but just think of what you would do if you didn't get paid for your services.
Tree fiddy.
The company is big enough to own the regulators.