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UnitedHealth’s profit takes a $872 million hit due to Change Healthcare hack, reports ET HealthWorld



UnitedHealth takes $872 mln hit to profit from Change Healthcare hack, ET HealthWorld

UnitedHealth Group disclosed a setback of $872 million in first-quarter profit due to disruptions caused by a February cyberattack on its Change Healthcare unit. The disruptions are expected to impact profit by as much as $1.35 per share this year, leading to concerns about increased costs and delays in claim submissions for medical care providers in the United States.

The healthcare conglomerate has provided advance funding exceeding $6 billion to certain healthcare providers, and while some major services have resumed operations, many others are still grappling with the aftermath of the cyberattack. Additionally, UnitedHealth recorded a net loss of $1.53 per share, attributed to a $7 billion charge related to the sale of its Brazil unit Amil.

The company anticipates achieving a net profit of $17.60 to $18.20 per share, factoring in the impact of the Brazil sale and the estimated direct response costs of the cyberattack. As a result of this news, shares of UnitedHealth Group surged by 4.35 percent to $465.55 during premarket trading.

The cyberattack not only affected the company’s financial performance but also disrupted essential services at pharmacies, hospitals, doctors’ offices, and community health centers. This marks UnitedHealth’s first public comment on the financial consequences of the data breach, shedding light on the significant challenges faced by the healthcare industry in the wake of cybersecurity threats.

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