UnitedHealth Reports $0.3 Billion Hit from Change Healthcare Ransomware Attack
Healthcare Finance News
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Contributed by: Drex DeFord
Summary
UnitedHealth Group's third-quarter earnings report indicates a notable financial impact from the February ransomware attack on Change Healthcare, with $0.3 billion affecting earnings from operations of $8.7 billion. Adjusted earnings amounted to $9 billion, despite disruptions related to the cybersecurity incident. Following the report, the company's stock fell over 9%, reflecting investor apprehension about ongoing challenges. UnitedHealth Group maintained its adjusted net earnings outlook for the year, while the medical cost ratio increased from 82.3% to 85.2%, attributed to various factors including hospital coding practices and Medicaid rate adjustments, as noted by CFO John Rex.
