UnitedHealth Stock Drops After Report Insurer Paid Nursing Homes to Curb Hospital Transfers

UnitedHealth Group (UNH) shares fell Wednesday after an investigation from The Guardian accused the insurer of paying nursing homes to reduce hospital transfers. 

The company allegedly paid under-the-table bonuses to nursing homes in order to reduce hospital transfers for residents, helping UnitedHealth lower costs,The Guardian reported.

In a statement Wednesday, UnitedHealth said the U.S. Department of Justice has “investigated these allegations, interviewed witnesses, and obtained thousands of documents that demonstrated the significant factual inaccuracies in the allegations. After reviewing all the evidence during its multi-year investigation, the Department of Justice declined to pursue the matter.”

Shares were down close to 5% in recent trading, after hitting a five-year low last week amid reports the Justice Department is investigating the health-care giant for possible Medicare fraud. Also last week, the company announced CEO Andrew Witty was stepping down after four years in the role and the company withdrew its full-year guidance.

Shares of UnitedHealth have plunged by roughly a third since mid-April.