UnitedHealth Group Inc. (UNH) released initial findings Friday from an independent audit of its business practices, positioning the effort as a step toward transparency under new leadership. The company says it has adopted 23 ongoing action plans to address the auditors' recommendations.
It's a significant move for the healthcare giant, which has been weathering a rough stretch. Year-to-date, UnitedHealth stock has plunged around 35%, according to market data.
The company's internal audit and advisory services team will oversee implementation of the reforms. Management expects about 65% of the action items to be wrapped up by the end of 2025, with the remaining work completed by March of the following year.
Audit Arrives Amid Growing Scrutiny
The announcement comes as private insurers face intensifying criticism over coverage decisions, costs, and patient access to care. UnitedHealth owns UnitedHealthcare, the nation's largest health insurer, and has become a focal point in the debate over industry practices. While the company framed the audit as progress, it remains unclear whether the initiative will materially change public perception.
The independent review was launched in July, when UnitedHealth disclosed that two consulting firms would evaluate its policies and performance metrics. That same day, the company confirmed it was facing Department of Justice investigations related to its Medicare billing practices. The timing wasn't exactly subtle.
The audit represents one of the first major initiatives under CEO Steve Hemsley, who took over in May following the abrupt exit of Andrew Witty.
What the Auditors Found
In a letter released Friday, Hemsley said the assessments were designed to set "a new standard of transparency" and emphasized the company's responsibility to patients, providers, and the broader health system.
FTI Consulting examined UnitedHealthcare's Medicare Advantage risk assessment operations and care services management processes. The firm found UnitedHealth generally outperformed competitors across several Medicaid and Medicare measures. But it also flagged areas needing improvement, including authorization timelines, documentation practices, and responsiveness to regulatory audit findings.
Separately, the Analysis Group reviewed policies at Optum Rx, the company's pharmacy benefit manager. That review focused on how manufacturer discounts are collected and distributed. The firm identified no deficiencies requiring immediate corrective action, though it did recommend enhancements like strengthening escalation procedures for unresolved payment disputes.
UnitedHealth said additional findings will be released during the first quarter and midyear next year. Those will include a review of diagnosis coding practices and the company's approach to evidence-based medical policy.
UNH Price Action: UnitedHealth Group shares were down 0.39% at $326.14 at the time of publication on Monday, according to market data.