(Reuters) -UnitedHealth shares fell nearly 7% on Wednesday in premarket trading after a Guardian report that the healthcare conglomerate secretly paid nursing homes thousands in bonuses to help slash hospital transfers for ailing residents.
The alleged move, part of a series of cost-cutting tactics, has saved the company millions, but at times risked residents’ health, the Guardian reported, citing an investigation.
UnitedHealth did not immediately respond to a Reuters request for comment.
Separately, HSBC downgraded the stock to “reduce” from “hold,” and cut the price target to a street-low of $270.
The company’s stock has taken a beating after the Wall Street Journal recently reported that the U.S. Department of Justice had begun a criminal investigation into the company for potential Medicare fraud, which followed CEO Andrew Witty’s abrupt departure and the withdrawal of its 2025 forecast last week.
(Reporting by Sriparna Roy in Bengaluru; Editing by Anil D’Silva)
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