For years, UnitedHealth Group was the envy of the healthcare industry—a vertically integrated behemoth that controlled the insurer, the doctor, the pharmacy and the software connecting them. That structure fueled years of dominance and outsize growth. But now, what made UnitedHealth so formidable is becoming a liability. As medical costs surge, regulations tighten, and political scrutiny intensifies, the very integration that once gave UnitedHealth an edge is making it vulnerable. Its stock is down nearly 40% this year. Its chief executive, Andrew Witty, is out. And the strategy once seen as the future of healthcare—and emulated by peers—now faces its toughest test.
Read the full article: UnitedHealth Built a Giant. Now Its Model Is Faltering. //
Source: https://www.wsj.com/health/healthcare/unitedhealth-business-model-struggles-c7238dc4