UnitedHealth just called in a familiar face after a massive earnings miss—former CEO Stephen Hemsley is back at the helm, replacing Andrew Witty, who's out effective immediately, with the company citing "personal reasons" for his departure, per the Wall Street Journal. The company is turning to its longtime leader, who left in 2017, as it faces a fresh set of challenges, including an April earnings miss that shaved roughly $190 billion off its market capitalization. Since April 17, shares have dropped by more than a third, including a 22% plunge after that disappointing earnings report.
Witty's tenure since 2021 saw the company dealing with a major hack that disrupted US health care services, the high-profile shooting of an executive, and federal investigations into business practices. UnitedHealth said Witty will remain as a senior adviser. Hemsley, still serving as chairman, is credited with transforming UnitedHealth from an insurer to a diversified health conglomerate. Investors reportedly hope his operational style will steady the ship, as Hemsley previously delivered continuous profit growth.
The company now says it targets a return to growth by 2026. Given ongoing financial pressure, UnitedHealth has also suspended its previously lowered 2025 earnings guidance, blaming higher medical costs among new Medicare members and increasing care demand. NBC News notes that UnitedHealth shares were down about 10% on Tuesday morning.
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Both Witty and Hemsley offered statements on the change, per the Minnesota Star Tribune. "Leading the people of UnitedHealth Group has been a tremendous honor as they work every day to improve the health system, and they will continue to inspire me," the former noted. Hemsley said in his own remarks: "We are grateful for Andrew's stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced." (This content was created with the help of AI. Read our AI policy.)
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