Unitedhealth replaces the financial director in another reshuffle of leadership

Diving brief:

• Unitedhealth announced on Thursday that it would replace its CFO, another significant change in direction for the health care giant when it rises a financial turnaround.
• Wayne Deveydt, more recently Managing Director and Operational Partner of the Bain Capital Investment Company, will hold the role of CFO on September 2, according to a press release.
• John Rex, the company’s financial director since 2016, will become a strategic advisor to the CEO Stephen Hemsley, who returned to the first position in May after the previous CEO of Unitedhealth has resigned.

Diving insight:

Deveydt will hold the position with Unitedhealth, which includes the largest insurer in the country as well as a large pharmacy service manager and a large network of doctors, because the company is faced with a range of challenges, including a thorough examination on its commercial practices which increased after the head of his health insurance unit was killed in December.

Last month, the health care giant confirmed that he was under the federal investigation of the Ministry of Justice for his Medicare program.

The company also withdrew its directives in 2025 this spring after having published financial results in the first quarter which missed investors’ expectations. Unitedhealth’s shares are negotiated about 50% less than at the start of the year, and the company was recently demoted by investment banks.

The reshuffle comes from months after Hemsley, chairman of the board of directors of Unitedhealth and former head of the health giant, replaced Andrew Witty as managing director.

Now, Unitedhealth again shakes its leadership at the highest level by Replacement of Rex, who joined the company in 2012 as a financial director of its new Optum health service company.

Before working at Bain, Deveydt’s financial director was president of surgery surgery partners from surgical factories from 2018 to 2020. He had also worked at the insurer Anthem, now appointed Elevance, and the PricewaterhouseCoopers consultation, according to a press release.

Earlier this week, United Health has established new financial guidelines for the year that fell below analysts’ expectations. The company now projects $ 16 in profit adjusted by share between $ 445.5 billion and $ 448 billion in income.

In the second quarter, the company declared $ 111.6 billion in revenues, up 13% from one year to the next, while the profit decreased by $ 3.4 billion.