Dive Temporary:
- UnitedHealth introduced on Thursday it’ll change its CFO, one other vital govt change for the healthcare behemoth because it mounts a monetary turnaround.
- Wayne DeVeydt, most just lately a managing director and working companion at funding agency Bain Capital, will take up the CFO position on Sept. 2, based on a press launch.
- John Rex, the corporate’s CFO since 2016, will turn into a strategic advisor to CEO Stephen Hemsley, who returned to the highest job in Could after UnitedHealth’s earlier CEO stepped down.
Dive Perception:
DeVeydt will take up the job at UnitedHealth, which incorporates the nation’s largest insurer in addition to a significant pharmacy profit supervisor and enormous community of physicians, because the agency faces an array of challenges, together with rising scrutiny over its enterprise practices that elevated after the pinnacle of its medical insurance unit was killed in December.
Final month, the healthcare large confirmed it’s below federal investigation from the Division of Justice over its Medicare program.
The corporate additionally pulled its 2025 steering this spring after posting first-quarter monetary outcomes that missed investor expectations. UnitedHealth’s inventory is buying and selling about 50% lower than it was initially of the yr, and the agency was just lately downgraded by funding banks.
The shakeup comes months after Hemsley, chairman of UnitedHealth’s board of administrators and a former head of the healthcare large, changed Andrew Witty as chief govt.
Now, UnitedHealth is once more shaking up its management on the prime degree by changing Rex, who joined the agency in 2012 as CFO of its new Optum well being providers enterprise.
Earlier than working at Bain, incoming CFO DeVeydt served as chairman and CEO of surgical facility operator Surgical procedure Companions from 2018 to 2020. He’d additionally beforehand labored at insurer Anthem, now named Elevance, and consultancy PricewaterhouseCoopers, based on a press launch.
Earlier this week, UnitedHealth set new monetary steering for the yr that fell under analyst expectations. The corporate now tasks $16 in adjusted earnings per share between $445.5 billion and $448 billion in income.
Within the second quarter, the agency reported $111.6 billion in income, up 13% yr over yr, whereas revenue declined 19% to $3.4 billion.
