UnitedHealth Group reported a first-quarter loss of $1.4 billion due to the sale of its Brazilian business, as well as costs from a cyberattack on its Change Healthcare unit. The cyberattack is estimated to cost the company between $1.35 billion and $1.6 billion in 2024. Despite these setbacks, the company remains optimistic about its financial goals for the year, with revenues rising by nearly 9% in the first quarter to $99.8 billion.
UnitedHealth CEO Andrew Witty emphasized the company’s commitment to delivering improved experiences for its customers while addressing the cyberattack on Change Healthcare. The company’s earnings from operations in the first quarter were nearly $8 billion, showing that despite the challenges, UnitedHealth’s core business remains strong. The attack on Change Healthcare disrupted the billing and payment system, leaving medical providers without the ability to get insurance approval for patient services.
The fallout from the cyberattack has had a significant impact on healthcare providers across the country, with many reporting lost revenue from unpaid claims. UnitedHealth has provided over $6 billion in advance funding and interest-free loans to support care providers affected by the attack. The company expects the cyberattack to cost between $1.35 billion and $1.6 billion in 2024, leading to a net loss in the first quarter of $1.4 billion.
UnitedHealth has updated its full-year net earnings outlook to reflect the impacts of the cyberattack and the sale of its Brazilian business. The company maintained its adjusted net earnings outlook and excluded the impacts of the cyberattack and business disruption from its guidance. Despite the challenges faced by the company, UnitedHealth remains focused on delivering balanced growth and improving experiences for the people it serves.
The cyberattack on Change Healthcare continues to have ripple effects across the healthcare industry, with thousands of doctor practices reporting financial strain. The American Medical Association conducted a survey that found 80% of physicians have experienced lost revenue from unpaid claims, and more than half have had to use personal funds to cover practice expenses. The attack on Change Healthcare has threatened the viability of physician practices, underscoring the urgent need for improved cybersecurity measures in the healthcare sector.
UnitedHealth’s ability to navigate the challenges posed by the cyberattack and sale of its Brazilian business will be closely monitored in the coming quarters. The company’s commitment to supporting healthcare providers and delivering balanced growth will be key to overcoming these challenges and maintaining its position as a leader in the healthcare industry. The impact of the cyberattack serves as a reminder of the importance of cybersecurity in the healthcare sector and the need for stronger measures to protect patient data and ensure uninterrupted care delivery.
