In an unexpected leadership shake-up, UnitedHealth Group announced on Tuesday that CEO Andrew Witty has abruptly exited the company, prompting the healthcare giant to retract its 2025 financial forecast. This news sent shockwaves through the market, with the firm’s shares tumbling over 11% in early trading.
Taking the reins once again is longtime veteran and former CEO Stephen Hemsley, returning to lead the company he left in 2017. UnitedHealth attributed Witty’s departure to personal reasons but provided no additional detail.
The company has been navigating turbulent waters over the past year. Among the setbacks: a massive cyberattack that compromised data for roughly 190 million individuals, a federal probe into Medicare billing practices, and a steep and unexpected rise in healthcare expenditures. The situation further worsened last December when Brian Thompson, CEO of UnitedHealth’s insurance division, was tragically killed in New York, just ahead of a major investor meeting.
Witty’s tenure hit a low point this April when UnitedHealth missed earnings expectations for the first time since the 2008 financial crisis. The company lowered its outlook amid swelling medical costs and disruptive shifts within its key subsidiary, Optum.
During a call with investors on Tuesday, executives acknowledged a surge in care utilization—particularly among new members and patients with complex conditions—as a major driver of cost inflation. Nevertheless, UnitedHealth expressed confidence in a return to growth by 2026.
"Many of the barriers and opportunities ahead lie within our own sphere of influence," Hemsley said, striking a tone of cautious optimism.
Still, investor sentiment has soured. UnitedHealth’s stock has shed over 25% in the last year. "Witty’s swift departure is startling, but not entirely unexpected given the depth of UnitedHealth’s ongoing difficulties," noted Kevin Gade, COO at investment firm Bahl & Gaynor. "Ultimately, leadership accountability is unavoidable."
Broader market ripple effects followed, as shares of peer health insurers like Humana, CVS Health, and Elevance Health also slid more than 3%.
Commenting on the leadership shift, James Harlow of Novare Capital Management remarked, "It feels like a sudden move with no clear long-term plan. Hemsley’s return appears more like a temporary patch than a strategic transition."