UnitedHealth Group Reports First Quarter 2024 Results

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UnitedHealth Group Reports First Quarter 2024 Results

2024-04-16 17:56 Last Updated At：18:00

--(BUSINESS WIRE)--Apr 16, 2024--

UnitedHealth Group (NYSE: UNH) reported first quarter 2024 results reflecting broad-based growth at Optum and UnitedHealthcare, medical care activity consistent with expectations and the impact of the recent cyberattack on Change Healthcare.

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“The core story at UnitedHealth Group remains our colleagues delivering improved experiences for the people we serve and driving balanced growth even while swiftly and effectively addressing the attack on Change Healthcare,” said Andrew Witty, chief executive officer of UnitedHealth Group.

The company continues to make significant progress in restoring the affected Change Healthcare services while providing financial support to impacted health care providers. To date, the company has provided over $6 billion in advance funding and interest-free loans to support care providers in need.

Total cyberattack impacts in the first quarter amounted to $0.74 per share and the company estimates full year 2024 impacts of $1.15 to $1.35 per share. In the first quarter, this included $0.49 per share to support direct response efforts such as the Change Healthcare clearinghouse platform restoration and increased medical care expenditures as the company suspended some care management activities to help care providers with their workflow processes. The company estimates direct response costs of $0.85 to $0.95 per share for full year 2024. Direct response costs are included in net earnings and excluded from adjusted earnings per share. Additionally, Change Healthcare business disruption impacts, reflecting lost revenue and the costs of maintaining full readiness of the affected Change Healthcare services, were $0.25 per share in the first quarter. The company currently estimates $0.30 to $0.40 per share business disruption impact for full year 2024. These business disruption impacts are included in both net earnings and adjusted earnings per share.

As reported previously, the company recorded an approximately $7 billion charge in the quarter due to the sale of its Brazil operations, the majority of which was noncash and due to the cumulative impact of foreign currency translation losses.

The company updated its full year 2024 net earnings outlook to $17.60 to $18.20 per share to reflect the Brazil sale and the estimated direct response costs of the cyberattack. The company maintained its adjusted net earnings outlook of $27.50 to $28.00 per share. This adjusted earnings per share outlook excludes the impacts of the direct response costs and Brazil sale, while including the estimated $0.30 to $0.40 per share of business disruption impacts for the affected Change Healthcare services.

UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience and reducing the total cost of care.

Optum’s health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance by optimizing care quality, reducing care costs and improving the consumer experience.

About UnitedHealth Group

UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow UnitedHealth Group on LinkedIn.

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss the company’s results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company’s website ( www.unitedhealthgroup.com ). Following the call, a webcast replay will be on the Investor Relations page and at https://uhg.com/Replay through April 30, 2024. This earnings release and the Form 8-K dated April 16, 2024, can also be accessed from the Investor Relations page of the company’s website.

Non-GAAP Financial Information

This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Forward-Looking Statements

The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements which are intended to take advantage of the “safe harbor” provisions of the federal securities laws. The words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; the DOJ’s legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to maintain or increase our market share; changes in or challenges to our public sector contract awards; failure to achieve targeted operating cost productivity improvements; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; the impact of potential changes in tax laws and regulations; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to complete, manage or integrate strategic transactions; risks associated with public health crises arising from large-scale medical emergencies, pandemics, natural disasters and other extreme events; failure to attract, develop, retain, and manage the succession of key employees and executives; our investment portfolio performance; impairment of our goodwill and intangible assets; failure to protect proprietary rights to our databases, software and related products; downgrades in our credit ratings; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, reinvest in our business, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock.

This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations, more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.

Columbia University begins suspending Israel-Hamas war protesters after ultimatum to disband camp

2024-04-30 07:28 Last Updated At：07:31

NEW YORK (AP) — Colleges around the U.S. implored pro-Palestinian student protesters to clear out tent encampments with rising levels of urgency Monday as police arrested more demonstrators at the University of Texas and Columbia University said it was beginning to suspend students who defied an ultimatum to disband the encampment there.

Dozens of law enforcement officers, many in riot gear, confronted protesters who returned to the University of Texas at Austin on Monday. They quickly arrested six demonstrators and took others into custody one by one. Officers used pepper spray after a group of protesters blocked the path of a police van carrying demonstrators who were arrested. The crowd backed away but continued to block the exit from campus. Officers then used two flash bang explosives to clear a path so the van could leave.

Republican Gov. Greg Abbott reposted on social media video of troopers arriving on the 50,000-student campus. “No encampments will be allowed," Abbott said. Just last week, hundreds of police pushed into protesters at the university, arresting 34 people.

At Columbia, student activists defied a 2 p.m. deadline to leave an encampment of around 120 tents on the school’s Manhattan campus. Instead, hundreds of protesters marched around the quad, clapping, chanting and weaving around piles of temporary flooring and green carpeting meant for graduation ceremonies that are supposed to begin next week.

A handful of counter-demonstrators waved Israeli flags, and one held a sign reading, “Where are the anti-Hamas chants?”

The university didn’t call police to roust the demonstrators. But three hours after the deadline passed, school spokesperson Ben Chang said Columbia had begun suspending students. He didn’t indicate how many students were involved. He also didn't say how the suspensions would be carried out or whether suspended students would be ejected from the campus.

Chang said that while the university appreciated the free speech rights of students, the encampment was a “noisy distraction” that was interfering with teaching and preparation for for final exams. The protests also made some Jewish students deeply uncomfortable, he said.

Protest organizers said they were not aware of any suspensions as of Monday evening.

The notice sent to protesters earlier Monday said if they left by the deadline and signed a form committing to abide by university policies through June 2025, they could finish the semester in good standing. If not, the letter said, they would be suspended, pending further investigation.

Early protests at Columbia sparked similar pro-Palestinian protest encampments at schools across the U.S. Students and others have been sparring over the Israel-Hamas war and its mounting death toll. Many students are demanding their universities cut financial ties with Israel. The number of arrests at campuses nationwide is approaching 1,000. The protests have even spread to Europe, with French police removing dozens of students from the Sorbonne university after pro-Palestinian protesters occupied the main courtyard.

College classes are wrapping up for the semester, and campuses are preparing for graduation ceremonies, giving schools an extra incentive to clear encampments. The University of Southern California canceled its main graduation ceremony.

But students dug in their heels at some high-profile universities, with standoffs also continuing at Harvard, the University of Pennsylvania, Yale and others.

Protesters at Yale set up a new camp with dozens of tents Sunday, nearly a week after police arrested nearly 50 and cleared a similar one nearby. They were notified by a Yale official that they could face discipline, including suspension, and possible arrest if they continued.

Yale said in a statement Monday that while it supports peaceful protests and freedom of speech, it does not tolerate policy violations such as the encampment. School officials said that the protest is near residential colleges where many students are studying for final exams, and that permission must be granted for groups to hold events and put up structures on campus.

In a rare case, Northwestern University said it reached an agreement with students and faculty who represent the majority of protesters on its campus near Chicago. It allows peaceful demonstrations through the June 1 end of spring classes, requires removal of all tents except one for aid, and restricts the demonstration area to allow only students, faculty and staff unless the university approves otherwise.

At Brown University in Rhode Island, school President Christina H. Paxton offered protest leaders the chance to meet with officials to discuss their arguments for divestment from Israel-linked companies in exchange for ending an encampment.

In the letter to student protesters at Columbia, school officials noted that exams are beginning and graduation is upcoming.

“We urge you to remove the encampment so that we do not deprive your fellow students, their families and friends of this momentous occasion,” the letter said.

The demonstrations have led Columbia to hold remote classes. The school said in an email to students that bringing back police “at this time” would be counterproductive. The university said it will offer an alternative venue for the protests after exams and graduation.

Columbia's handling of the protests has prompted federal complaints.

A class-action lawsuit on behalf of Jewish students alleges a breach of contract by Columbia, claiming the university failed to maintain a safe learning environment, despite policies and promises. It also challenges the move away from in-person classes and seeks quick court action requiring Columbia to provide security for the students.

Meanwhile, a legal group representing pro-Palestinian students is urging the U.S. Department of Education's civil rights office to investigate Columbia's compliance with the Civil Rights Act of 1964 for how they have been treated.

A university spokesperson declined to comment on the complaints.

The plight of students who have been arrested has become a central part of protests, with the students and a growing number of faculty demanding amnesty for protesters. At issue is whether the suspensions and legal records will follow students through their adult lives.

Demonstrators on other campuses, meanwhile, said they would stand firm. Jacob Ginn, a second-year University of North Carolina sociology graduate student, said he had been protesting at the encampment for four days, including negotiations with administrators Friday.

“We are prepared for everything and we will remain here until the university meets our demands and we will remain steadfast and strong in the face of any brutality and repression that they try to attack us with,” Ginn said in reference to a potential police sweep of the encampment.

Mattise reported from Nashville, Tennessee. Associated Press journalists around the country contributed to this report, including Jim Vertuno in Austin, Texas; Sarah Brumfield in Silver Spring, Maryland; Christopher Weber in Los Angeles; Carolyn Thompson in Buffalo, New York; David Collins in Hartford, Connecticut; Makiya Seminera in Chapel Hill, North Carolina; and Corey Williams in Detroit.