UnitedHealth Group (UNH) disclosed that an error on the hospital’s part led to a phone call that pulled a surgeon from the operating room. This incident came to the spotlight after billionaire investor Bill Ackman, CEO of Pershing Square Capital Management, criticized UNH’s practices and even offered to cover the surgeon’s legal expenses.
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Surgeon’s Complaint Leads to Controversy for UNH
In a quick background story, a surgeon at HCA Healthcare’s (HCA) St. David’s Medical Center in Austin, Texas, posted on social media that she was called out of an operating room to justify her patient’s care to UnitedHealth.
In this regard, UNH clarified that the call stemmed from a billing error at the hospital. The company stated that it had already approved the treatment costs for the patient before the call was made. Further, UnitedHealth said that the call was to the hospital regarding a separate inpatient stay request. Further, it claimed that its representative had asked to speak with a nurse, not to interrupt an ongoing surgery.
After this incident, Bill Ackman urged UnitedHealth’s board to investigate its approach to paying claims. Also, he contacted the U.S. Securities and Exchange Commission (SEC) with concerns about the company’s profitability.
The Incident Could Put UnitedHealth in Legal Crosshairs
The incident has had a major impact on UnitedHealth’s public image. It is worth noting that the company sent a defamation letter to the concerned surgeon, alleging she lied about the incident. If the surgeon can prove her statements were true, she may have a stronger case against UNH.
Moreover, if UnitedHealth’s actions interfered with the patient’s medical care, they could face legal consequences, such as a medical malpractice lawsuit or a complaint to the relevant medical board.
Overall, the incident has attracted media attention and public outrage, which could lead to increased regulatory scrutiny of UnitedHealth’s practices and policies.
Is UNH a Good Stock to Buy Right Now?
Turning to Wall Street, UNH stock has a Strong Buy consensus rating based on 20 unanimous Buys assigned in the last three months. At $644, the average UnitedHealth stock price target implies a 26.02% upside potential. Shares of the company have declined 14.6% over the past three months.
