UnitedHealth Group signage is displayed on a monitor on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images
UnitedHealth shares fell nearly 7% on Wednesday in premarket trading after a Guardian report that the healthcare conglomerate secretly paid nursing homes thousands in bonuses to help slash hospital transfers for ailing residents.
The alleged move, 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.
UnitedHealth did not immediately respond to a Reuters request for comment.
Separately, HSBC downgraded the stock to “reduce” from “hold,” and cut the price target to a street-low of $270.
The company’s stock has taken a beating after the Wall Street Journal recently reported that the U.S. Department of Justice had begun a criminal investigation into the company for potential Medicare fraud, which followed CEO Andrew Witty’s abrupt departure and the withdrawal of its 2025 forecast last week.
