Latest news with #ChangeHealthcare
New York Post
21-05-2025
- Business
- New York Post
Report that UnitedHealth secretly paid nursing homes to cut hospital transfers sees stock plunge
UnitedHealth shares fell more than 4% on Wednesday after the UK's Guardian newspaper reported that the company made secret payments to nursing homes to reduce hospital transfers, adding to the woes of the healthcare conglomerate. The alleged action, part of a series of cost-cutting tactics, has saved the company millions, but at times risked residents' health, the Guardian reported, citing an investigation. The allegations add to the litany of negatives that have hurt UnitedHealth in the last several months, following a massive cyberattack at its Change Healthcare unit, reports of criminal and civil investigations into the company's practices, including one for Medicare fraud and the abrupt departure of CEO Andrew Witty last week. Advertisement UnitedHealth reportedly made secret payments to nursing homes to reduce hospital transfers, adding to the healthcare conglomerate's woes. AP Shares have stumbled all year, losing more than 39%, compared with a 0.6% decrease for the Dow. UnitedHealth said in response that 'the U.S. Department of Justice investigated these allegations, interviewed witnesses, and obtained thousands of documents that demonstrated the significant factual inaccuracies in the allegations.' The company also said in an emailed statement that the DOJ declined to pursue the matter after reviewing all the evidence during its multiyear investigation. Advertisement Reuters has not independently verified the article's allegations. 'The news is only seemingly getting worse for UnitedHealth,' said Sahak Manuelian, managing director, global equity trading at Wedbush. 'This is kind of a tough situation for investors to come in and have any kind of confidence in putting money to work, so we'll have to kind of wait and see how this plays itself out, unfortunately,' Manuelian said. Advertisement Stephen Hemsley returned as UnitedHealth CEO last week. AP Separately, HSBC downgraded the stock to 'reduce' from 'hold,' and cut the price target to a street-low of $270. The brokerage said higher medical costs, pressure on drug pricing and its pharmacy benefit management unit, OptumRx, and a potential Medicaid funding cut can upset the company's recovery journey. The company is now counting on the experience of Stephen Hemsley, who returned as CEO to steer it through the current crisis. Advertisement 'We believe Hemsley has the experience and leadership attributes that the company needs to restore credibility and right the ship,' said James Harlow, senior vice president at Novare Capital Management.
Al Jazeera
21-05-2025
- Business
- Al Jazeera
Unitedhealth paid nursing homes to reduce hospital transfers, report
UnitedHealth has allegedly secretly paid nursing homes to reduce hospital transfers — the latest accusations in a series of woes facing the health insurance giant. The alleged action, first reported by The Guardian newspaper on Wednesday, was part of a series of cost-cutting tactics that have saved the company millions, but at times, risked residents' health, the publication showed, citing an investigation. The story, which cites thousands of documents and firsthand accounts of more than 20 former employees of the healthcare company and nursing homes, says that the insurance giant sent its own medical teams to nursing homes to push the cost-cutting measures. As a result, patients who urgently needed medical care did not receive it, including one person who now lives with permanent brain damage after a delayed transfer. The allegations add to the litany of negatives that have hurt UnitedHealth in the last several months, following a massive cyberattack at its Change Healthcare unit, reports of criminal and civil investigations into the company's practices, including one for Medicare fraud and the abrupt departure of CEO Andrew Witty last week. UnitedHealth said in response to the story, 'The US Department of Justice investigated these allegations, interviewed witnesses, and obtained thousands of documents that demonstrated the significant factual inaccuracies in the allegations.' The company also said that the DOJ 'declined to pursue the matter'. Shares have stumbled all year, losing more than 39 percent compared with a 0.6 percent decrease for the Dow. As of noon ET (16:00 GMT), the stock is down more than 3.6 percent. 'The news is only seemingly getting worse for UnitedHealth,' said Sahak Manuelian, managing director, global equity trading at Wedbush Securities. HSBC downgraded the stock to 'reduce' from 'hold,' and cut the price target to a street-low of $270. The brokerage said higher medical costs, pressure on drug pricing and its pharmacy benefit management unit, OptumRx, and a potential Medicaid funding cut can upset the company's recovery journey.
Daily Mail
17-05-2025
- Health
- Daily Mail
Over 276 million Americans affected by medical data breaches
A staggering 276 million patient records were compromised in 2024, experts have revealed. It suggests eight in 10 Americans had some form of medical data stolen last year. The biggest hack in 2024 was also one the largest healthcare data breaches in US history, impacting 190 million patients linked to Change Healthcare. Now, researchers at the cyber watchdog Check Point are warning of a newly uncovered healthcare cyberattack that could expose even more sensitive information than the previous year. According to the team, cybercriminals are impersonating practicing doctors to trick patients into revealing Social Security numbers, medical histories, insurance details, and other personal data. The phishing campaign has been active since March 20, and researchers estimate that 95 percent of its targets are in the US. 'In some versions of these phishing emails, cybercriminals deploy images of real, practicing doctors but pair them with fake names,' the Check Point team reported. The emails instruct recipients to contact a listed healthcare provider using a specific phone number—part of the scam. Researchers noted that Zocdoc has become a key tool in the attackers' arsenal, as it allows them to use images of real doctors while disguising their identities with fake credentials. The Check Point team noted that the data compromised in 2024 amounted to roughly 758,000 records every single day. 'Victims of medical identity theft will spend an average of 210 hours and $2,500 out-of-pocket to reclaim their identities and resolve the fallout,' the researchers said. In one case, cybercriminals created a fake profile on Zocdoc using a real doctor's image but a fake name and sent a fake pre-appointment message, booking confirmation, and additional instructions. To safeguard patients' private information and finances, healthcare organizations are urged to install advanced phishing filters, conduct regular employee cybersecurity training and mock drills, and ensure their IT teams are equipped to respond to threats quickly. In March 2025, Yale New Haven Health experienced a data breach affecting approximately 5.5 million individuals. Hackers copied the data on the day it was discovered, indicating a likely ransomware attack and exposing the fragility of the U.S. healthcare system. These breaches highlight systemic failures in the cybersecurity infrastructure of the healthcare sector. Many organizations still rely on outdated systems that lack modern security protocols, making them easy targets for cybercriminals. A recent study revealed that some medical devices—unlike smartphones or laptops—lack basic security safeguards, making them a significant entry point for hackers. By compromising devices like MRI machines, cybercriminals can gain access to entire networks and connected systems, creating widespread vulnerabilities. The financial repercussions of these breaches are staggering. UnitedHealth Group estimated the cost of the Change Healthcare breach at approximately $2.5 billion, covering response efforts, system rebuilds, and support for affected providers. 'The company has restored most of the affected Change Healthcare services while continuing to provide financial assistance to remaining healthcare providers in need,' UnitedHealth Group stated. Beyond financial damage, the cyberattack also caused severe operational disruption. For instance, delays in processing insurance claims forced some patients to pay out of pocket for medications and services. Smaller healthcare providers faced devastating revenue losses, threatening their survival. In response to the rising threat, a new set of Health Insurance Portability and Accountability Act (HIPAA) regulations was proposed in January 2025. The goal is to enhance the protection of medical records through stronger data encryption and stricter compliance checks. The proposed rule is expected to cost $9 billion in the first year and $6 billion annually over the next four years. Patients affected by data breaches are urged to monitor their financial accounts, request credit reports, and consider placing fraud alerts. 'Patients are encouraged to review statements from their healthcare providers and report any inaccuracies immediately,' said Yale New Haven Health. The exposure of 276 million patient records underscores the urgent need to reinforce cybersecurity in healthcare. As threats continue to evolve, it's critical for healthcare organizations to implement modern safeguards and conduct regular audits to stay ahead of attackers and protect sensitive patient data. Want more stories like this from the Daily Mail? Hit the follow button above for more of the news you need.
Daily Mail
15-05-2025
- Health
- Daily Mail
276m Americans' data breached in major healthcare hacks
A staggering 276 million patient records were compromised in 2024, experts have revealed. It suggests eight in 10 Americans had some form of medical data stolen last year. The biggest hack in 2024 was also one the largest healthcare data breaches in US history, impacting 190 million patients linked to Change Healthcare. Now, researchers at the cyber watchdog Check Point are warning of a newly uncovered healthcare cyberattack that could expose even more sensitive information than the previous year. According to the team, cybercriminals are impersonating practicing doctors to trick patients into revealing Social Security numbers, medical histories, insurance details, and other personal data. The phishing campaign has been active since March 20, and researchers estimate that 95 percent of its targets are in the US. 'In some versions of these phishing emails, cybercriminals deploy images of real, practicing doctors but pair them with fake names,' the Check Point team reported. The emails instruct recipients to contact a listed healthcare provider using a specific phone number—part of the scam. Researchers noted that Zocdoc has become a key tool in the attackers' arsenal, as it allows them to use images of real doctors while disguising their identities with fake credentials. The Check Point team noted that the data compromised in 2024 amounted to roughly 758,000 records every single day. 'Victims of medical identity theft will spend an average of 210 hours and $2,500 out-of-pocket to reclaim their identities and resolve the fallout,' the researchers said. In one case, cybercriminals created a fake profile on Zocdoc using a real doctor's image but a fake name and sent a fake pre-appointment message, booking confirmation, and additional instructions. To safeguard patients' private information and finances, healthcare organizations are urged to install advanced phishing filters, conduct regular employee cybersecurity training and mock drills, and ensure their IT teams are equipped to respond to threats quickly. In March 2025, Yale New Haven Health experienced a data breach affecting approximately 5.5 million individuals. Hackers copied the data on the day it was discovered, indicating a likely ransomware attack and exposing the fragility of the U.S. healthcare system. These breaches highlight systemic failures in the cybersecurity infrastructure of the healthcare sector. Many organizations still rely on outdated systems that lack modern security protocols, making them easy targets for cybercriminals. A recent study revealed that some medical devices—unlike smartphones or laptops—lack basic security safeguards, making them a significant entry point for hackers. By compromising devices like MRI machines, cybercriminals can gain access to entire networks and connected systems, creating widespread vulnerabilities. The financial repercussions of these breaches are staggering. UnitedHealth Group estimated the cost of the Change Healthcare breach at approximately $2.5 billion, covering response efforts, system rebuilds, and support for affected providers. 'The company has restored most of the affected Change Healthcare services while continuing to provide financial assistance to remaining healthcare providers in need,' UnitedHealth Group stated. Beyond financial damage, the cyberattack also caused severe operational disruption. For instance, delays in processing insurance claims forced some patients to pay out of pocket for medications and services. Smaller healthcare providers faced devastating revenue losses, threatening their survival. In response to the rising threat, a new set of Health Insurance Portability and Accountability Act (HIPAA) regulations was proposed in January 2025. The goal is to enhance the protection of medical records through stronger data encryption and stricter compliance checks. The proposed rule is expected to cost $9 billion in the first year and $6 billion annually over the next four years. Patients affected by data breaches are urged to monitor their financial accounts, request credit reports, and consider placing fraud alerts. 'Patients are encouraged to review statements from their healthcare providers and report any inaccuracies immediately,' said Yale New Haven Health. The exposure of 276 million patient records underscores the urgent need to reinforce cybersecurity in healthcare. As threats continue to evolve, it's critical for healthcare organizations to implement modern safeguards and conduct regular audits to stay ahead of attackers and protect sensitive patient data.
Forbes
15-05-2025
- Business
- Forbes
McKesson To Spin-Off Its Medical-Surgical Solutions Business
(AP Photo/Paul Sakuma, File) Deal OverviewOn May 8, 2025, McKesson Corporation (NYSE: MCK, $682.28, Market Capitalization: $85.4 billion), a diversified healthcare services company, announced its intention to separate its Medical-Surgical Solutions segment into an independent company (NewCo) (for more information, visit McKesson is committed to exploring all opportunities to execute a separation in a manner that maximizes shareholder value and anticipates providing more information as appropriate on the form and timing as the process progresses. On May 1, 2025, the Board of Directors of McKesson Corporation declared a regular dividend of 71 cents per share of common stock. The dividend will be payable on July 1, 2025, to stockholders of record on June 2, 2025. McKesson Price Performance Spin-Off Details and Top 5 Shareholders Deal Rationale McKesson's strategic focus on disciplined portfolio management involves continuous evaluation of its business segments to ensure alignment with its growth priorities and optimize capital allocation. This strategic approach has previously led to transformative actions such as the divestiture of Change Healthcare in 2020 and the divestiture of its European and Canadian retail businesses, which have unlocked considerable value for shareholders. Moreover, Change Healthcare was fully acquired by UnitedHealth in 2022. As a continuation of this strategy, McKesson has announced its intent to separate the Medical-Surgical segment into an independent company. McKesson believes a separation of the Medical-Surgical Solutions business will further enhance the strategic opportunity and operational focus of both companies and unlock value for McKesson shareholders. A separation would result in two well-capitalized, world-class companies, well-positioned to pursue their respective strategic growth priorities. The separation advances McKesson and NewCo's ability to create value for customers, partners, patients, and shareholders with increased investment and dedicated capital allocation. Post-spin-off, McKesson will continue to focus on its capital deployment priorities on opportunities that best align with its long-term enterprise strategies. McKesson will advance its portfolio to focus investment on higher growth, higher margin opportunities in Oncology and Biopharma Solutions, unlocking substantial value for stakeholders. In order to strengthen its core operations, McKesson acquired Rx Savings Solutions in late 2022 to enhance biopharma and payer connectivity with patients and formed SCRI Oncology with HCA Healthcare to expand access to cancer clinical trials. McKesson holds a 51% controlling interest in SCRI, reported under its U.S. Pharmaceutical segment. Additionally, the company announced plans to acquire a controlling stake in Core Ventures, a business services organization established by Florida Cancer Specialists, with the deal expected to close on June 2, 2025. Moreover, the Medical-Surgical Solutions segment, which represents only 3.2% of the total company's revenue, has seen sluggish growth since 2020 due to a shift in demand, lower volumes, supply chain disruption and also due to post-pandemic normalization. Post-separation, the new Medical-Surgical Solutions company (NewCo) would be a differentiated medical surgical supply and solutions company with a compelling leadership position, attractive margins, and potential for growth acceleration across all the alternate sites of care markets. With FY25 revenue of around $11.4 billion, the spin off is designed to sharpen McKesson's focus on pharmaceutical and specialty services, especially in high-growth areas like oncology, while allowing both entities to pursue tailored growth strategies. McKesson Corporation, founded in 1833, is headquartered in Irving, Texas. With a legacy spanning over 190 years, McKesson plays a critical role in delivering pharmaceuticals, medical supplies, and health IT solutions across North America and selected international markets. Under the leadership of CEO Brian S. Tyler, the company trades on the NYSE under the ticker symbol MCK. The company operates through three key business segments: U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Key Data U.S. Pharmaceutical Segment (91.3% of FY25 sales) U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter (OTC) pharmaceutical drugs, and other healthcare-related products in the United States (U.S.). This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, and alternate sites) and provides consulting, outsourcing, technological, and other services. Prescription Technology Solutions Segment (1.5% of FY25 sales) Prescription Technology Solutions (RxTS) connects patients, pharmacies, providers, health plans, pharmacy benefit managers, and biopharma companies to improve medication access across the healthcare system. Integrated with most EHRs, 50,000+ pharmacies, 950,000 providers, and supporting 650+ biopharma brands, RxTS offers end-to-end solutions from prescription to therapy. Its services include affordability support, price transparency, benefit insights, dispensing support, logistics, and distribution. In the past year, RxTS saved patients over $10 billion, prevented 12 million abandoned prescriptions, and enabled medication access over 100 million times, reinforcing its vital healthcare role. Medical-Surgical Solutions (to be spun-off) (3.2% of FY25 sales) The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centres, nursing homes, hospital reference labs, and home health care agencies. The segment offers more than 245,000 national brand medical-surgical products as well as McKesson's line of high-quality products through a network of distribution centres in the U.S. With FY25 revenue of around $11.4 billion, the spin-off is designed to sharpen McKesson's focus on pharmaceutical and specialty services, especially in high-growth areas like oncology, while allowing both entities to pursue tailored growth strategies. International segment (4.0% of FY25 sales) McKesson's International segment includes operations in Canada and Norway. McKesson Canada is one of the country's largest pharmaceutical wholesale and retail distributors, serving pharmacies, hospitals, long-term care centres, and clinics through a national distribution network. Beyond logistics, it offers automation and technology solutions to retail and hospital clients. McKesson Canada also delivers specialty health services and biopharma support, including personalized patient programs and a national network of specialty pharmacies. It operates INVIVA, Canada's first and largest accredited private infusion clinic network, and owns PDCI, the country's leading market access consultancy. These services help biopharma manufacturers introduce new products to market while enhancing patient care and access across Canada's healthcare system. Revenue 4Q25 For 4Q25, the company recorded revenues of $90.8 billion, up by 18.9% YoY compared to $76.4 billion in 4Q24, primarily driven by growth in the U.S. Pharmaceutical segment, due to increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology. Operating Income for the quarter was $1.6 billion, up by 30.8% YoY with a margin of 1.8%, up by 20 bps. Adjusted operating income was $1.5 billion, up by 23.5% YoY with a margin of 1.7%, flat as compared to the prior year. The growth in operating income benefited from growth across all operating segments, including strong oncology and other specialty provider volumes, the onboarding of a new strategic customer in 2Q, and increased demand for access solutions in the Prescription Technology Solutions segment. Net income for the period was $1.31 billion, up by 57.3% YoY, while adjusted net income was $1.27 billion, up by 56.7% YoY. Similarly, Diluted EPS on a reported basis was $10.01 per share, up by 66.3%, while adjusted diluted EPS was $10.12 per share, up by 63.8% YoY. The growth in Net income and EPS was driven by a lower effective tax rate and strong operational growth across the business. FY25 For FY25, the company recorded revenues of $359.1 billion, up by 16.2% YoY compared to $309.0 billion in FY24, driven by broad-based operational strength across the business, including the onboarding of a new strategic customer in the U.S. Pharmaceutical segment. Operating Income for the year was $4.4 billion, up by 13.1% YoY with a margin of 1.2%, down 10 bps compared to the prior year. On the other hand, the adjusted operating income was $5.6 billion, up by 14.6% YoY with a margin of 1.6%, which was flat compared to the prior year. The growth in operating income was led by a double-digit growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments and Canadian business within International. Excluding the impact of net gains related to McKesson Ventures, operating profit increased 12% YoY compared to the prior year, well above MCK's long-range target. Net income for the period was $3.3 billion, up by 9.8% YoY, while adjusted net income was $4.2 billion, up by 15.1% YoY. Similarly, diluted EPS on a reported basis was $25.72 per share, up by 14.9%, while adjusted diluted EPS was $33.05 per share, up by 20.4% YoY. Growth in Net income and EPS was driven by strong operational growth across the business and a lower share count. FY26 Outlook: McKesson has issued fiscal FY26 guidance for Adjusted Earnings per Diluted Share in the range of $36.75 to $37.55, reflecting an expected growth of 11% to 14% year-over year. Excluding net gains from McKesson Ventures' equity investments in FY25, the projected growth is expected to increase 13% to 16%. While the company does not forecast GAAP earnings per share, it has reaffirmed its long-term Adjusted EPS growth target of 12% to 14% and updated the long-term Adjusted Segment Operating Profit growth target for its U.S. Pharmaceutical segment from 5%–7% to a revised range of 6%–8%. Long-Term Growth Targets McKesson continues to strengthen its portfolio of differentiated assets and capabilities, advancing health outcomes for all. As a result of continued, consistent, strong execution against its strategic initiatives, McKesson is updating and reaffirming the following long-term growth targets: • Reaffirming long-term Adjusted Earnings per Diluted Share growth target of 12% to 14%. • Updating U.S. Pharmaceutical long-term Adjusted Segment Operating Profit growth target to 6% to 8% from the previous range of 5% to 7%. • Reaffirming Prescription Technology Solutions long-term Adjusted Segment Operating Profit growth target of 11% to 12%. Company DescriptionMcKesson Corporation (Parent) McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. The company is engaged in the distribution of pharmaceuticals and medical products, as well as providing technology enabled services that support the clinical and financial outcomes of healthcare providers and payers. McKesson operates through several business segments, including U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Its extensive distribution network and logistics capabilities serve a wide array of customers, including hospitals, pharmacies, physicians' offices, long-term care facilities, and home health agencies. McKesson's U.S. Pharmaceutical segment distributes branded, generic, and over-the-counter drugs to retail pharmacies and institutional healthcare providers. Its international segment serves healthcare markets in Canada and Europe. The company leverages advanced analytics, automation, and digital capabilities to streamline operations and enhance healthcare delivery outcomes across geographies. McKesson has operations in more than a dozen countries and employs over 45,000 people worldwide. The company continues to invest in innovative solutions and partnerships to improve patient access, support value-based care models, and reduce the total cost of care. For FY25, McKesson reported Consolidated revenues of $359.1 billion, highlighting its scale and impact in the global healthcare ecosystem. Medical-Surgical Solutions (Spin-Off) The Medical-Surgical Solutions division handles the distribution of medical-surgical supplies, logistics, and related services to various healthcare providers, such as clinics, surgical centres, elder care facilities, hospital labs, and home healthcare agencies. It delivers over 245,000 branded medical-surgical products, along with McKesson's proprietary high-quality items, through a network of U.S.-based distribution centres. On May 8, 2025, McKesson announced plans to separate this segment into a standalone company, temporarily referred to as 'NewCo.' The business generated $11.4 billion in revenue during FY25. Organization Structure
