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We’ll get to the numbers in a second, because for once, even with an audience of CFOs, the numbers aren’t what’s top of mind here.
That’s because we’re talking about UnitedHealth Group’s Q4 earnings results, and we have a feeling there are bigger concerns this earnings cycle.
When UnitedHealth executive Brian Thompson, who ran the company’s insurance unit, was killed in early December, it unleashed a series of debates about insurance costs, coverage denials, and corporate greed. A majority of Americans polled “believe health insurance profits and coverage denials share responsibility for the killing of UnitedHealthcare’s CEO—although not as much as the person who pulled the trigger,” according to a University of Chicago survey conducted a few weeks after the shooting.
In response to a swell of negative attention, UnitedHealth Group CEO Andrew Witty has acknowledged that the healthcare system is “flawed” and “a patchwork built over decades.”
Still, this marks the first earnings report since Thompson’s killing. In this quarter and beyond, many will be looking for signs that the company (and healthcare industry at large) is actually committed to changing its ways.
So, the numbers part first: Revenue for the quarter climbed to $100.8 billion, below analyst forecasts of $101.6+ billion. For the full year, the company posted $400.3 billion in revenue, an 8% climb from 2023.
In the company’s earnings call, Witty started by expressing his gratitude for condolences offered in light of Thompson’s killing and praising Thompson’s contributions to the company, before addressing at length some of the flaws he sees in the American healthcare system.
“Ultimately, improving healthcare means addressing the root cause of healthcare costs. Fundamentally, healthcare costs more in the US, because the price of a single procedure, visit or prescription is higher here than it is in other countries,” Witty said. “The core fact is that price, more than utilization, drives system costs higher. Tackling that problem will require all parts of the system and policymakers to come together.”
He neglected to note what his own company’s profits are sucking out of the healthcare system, but see? We told you it wasn’t really about the numbers this time.