UnitedHealth Plunges 4.72 on $9.6B Ninth-High Volume Amid Leadership Shakeup and Scrutiny

On August 1, 2025, UnitedHealth (UNH) closed with a 4.72% decline, marking a trading volume of $9.60 billion—the ninth-highest on the day. The stock’s sharp drop follows a series of leadership and operational overhauls as the healthcare giant navigates mounting challenges.

UnitedHealth announced the appointment of Wayne DeVeydt as its new CFO, replacing John Rex, who transitioned to a strategic advisory role. This move comes amid broader management reshuffles after CEO Stephen Hemsley resumed the top position in May following the abrupt departure of Andrew Witty. The transition aligns with Rex’s 2016 contract terms and reflects the company’s ongoing restructuring efforts to address financial and operational pressures.

The insurer reported its highest-ever medical loss ratio (MLR) of 89.4% in its latest earnings release, exceeding the Affordable Care Act’s 85% threshold for efficient management. While revenue of $111.6 billion outpaced estimates, earnings per share fell short at $4.08 versus $4.59 expected. The company also faces a federal investigation into potential fraudulent billing practices in its Medicare Advantage program, compounding investor concerns.

Hemsley emphasized "extensive management and operational changes" during the earnings call, signaling further adjustments to leadership, business practices, and governance. The leadership shifts, coupled with cost pressures and regulatory scrutiny, highlight UnitedHealth’s struggle to restore confidence after a 50% year-to-date decline in its stock price.

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