UnitedHealth CEO To Testify Before US House Panel Regarding Cyberattack On Technology Unit

Author: Vandana Singh | April 22, 2024 02:35pm

UnitedHealth Group Inc (NYSE:UNH) CEO Andrew Witty is scheduled to testify before a U.S. House subcommittee on May 1 regarding a cyberattack at the company’s technology unit that impacted patients and providers. 

The hack, which targeted Change Healthcare on February 21, disrupted payments to doctors and healthcare facilities across the country for a month.

The company said the total impact from the cyberattack in the first quarter was 74 cents per share, and it expects the full-year 2024 impact to be between $1.15 and $1.35 per share.

Related: Analysts Raise Forecasts On UnitedHealth On Controlled Growth Strategy After Cyber Hack

“We look forward to learning more on what happened in the lead up to, and in the weeks following, the attack,” Reuters highlighted, citing Cathy Rodgers, energy and commerce committee chair, and Morgan Griffith, chair of the subcommittee on oversight and investigations.

“This hearing will help inform the committee as we continue working toward solutions that protect the health and well-being of all Americans.”

They added that individuals and smaller providers, in particular, have struggled financially following the cyberattack, threatening critical access for patients.

According to a report earlier this month, UnitedHealth’s chairman, Stephen Hemsley, and three senior executives garnered $101.5 million from stock sales during the months leading up to the public revelation of a federal antitrust investigation. 

The cyberattack on UnitedHealth’s Change Healthcare subsidiary has also contributed to stock concerns. This attack disrupted critical data and payment systems, impacting the healthcare industry. 

Price Action: UNH shares are down 0.94% at $496.43 at the last check Monday.

United Health CEO Photo by World Economic Forum via Flickr

Posted In: UNH