A patient lawsuit is moving forward in the U.S. District Court of Minnesota where plaintiffs allege UnitedHealthcare has used a faulty artificial intelligence program to deny coverage for post-acute care needed by Medicare patients. UnitedHealth says the lawsuit is based on unfounded allegations and mischaracterizes the work of its clinicians.
Hemsley opened his annual meeting remarks by apologizing for the company’s recent financial performance and pledging to shareholders that UnitedHealth would “earn back your trust and your confidence.”
The company had a stellar reputation on Wall Street for growth and profitability during Hemsley’s first stint as CEO, from 2006 through 2017. At that point, he graduated to the position of board chairman, a job he still holds today.
Going forward, the most immediate area of focus is “pricing discipline,” Hemsley said.
“Clearly we have gotten things wrong,” he said. “We underestimated care activity and cost trends and generated outsized growth. We are intensively examining our approaches and have already begun to make improvements, including, most notably, a significant retooling of our efforts to ensure more precise and more accurate forecasting of both care and financial activity.”
Last month, UnitedHealth Group suspended financial guidance for the year due in part to unexpected costs in Medicare Advantage as well as the company’s Optum Health clinics that care for seniors. Hemsley said the company would issue new guidance with the release of second quarter results on July 29.