On Tuesday, UnitedHealth Group announced that Andrew Witty, its CEO, had resigned from his position. The resignation happened immediately due to personal reasons. Stephen Hemsley, the former CEO and chairman of the company’s board, will take over as CEO once more.
Witty, who has been in charge of the healthcare conglomerate for the last four years, will continue to work for the company in a limited role as Hemsley’s senior adviser. The organization is under significant internal and external pressure with Witty departing.
UnitedHealth CEO steps down
Hemsley was extremely grateful for Witty’s leadership. Hemsley said Witty took on “some of the most challenging times any company has ever faced.” In a formal statement, Hemsley wished Witty and his family well and praised him for his leadership and kindness.
During Witty’s tenure, previous CEO Brian Thompson was shot dead outside a New York hotel last year. Witty was instrumental in steering UnitedHealth Group through the fallout as its CEO. The incident led to widespread criticism of the insurance and healthcare industries.
In a New York Times op-ed, Witty admitted that insurance decisions are frequently misinterpreted and acknowledged the public’s mounting dissatisfaction with the American healthcare system. He acknowledged that UnitedHealthcare is partially to blame for this lack of openness while defending the company.
UnitedHealth Group has suspended its financial guidance for the remainder of the year in addition to the leadership change. Although it predicted a return to growth in 2026, the company blamed the pause on higher-than-expected costs in its Medicare Advantage program.
Concerns about the company’s trajectory were also expressed in Witty’s recent comments during an earnings call. Prior to a historic 20% decline in stock value—the company’s steepest single-day decline in almost 30 years—he made the rare and candid admission that UnitedHealth’s recent performance was “unusual and unacceptable.”
UnitedHealth’s stock continued to decline after Witty’s resignation was announced, dropping almost 11% in premarket trading on Tuesday.
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