CNBC — UnitedHealth shares fell in premarket trading after a Guardian report that the company made secret payments to nursing homes to reduce hospital transfers added to the troubles of the healthcare conglomerate.
The alleged action, 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 said in response that “the U.S. Department of Justice investigated these allegations, interviewed witnesses, and obtained thousands of documents that demonstrated the significant factual inaccuracies in the allegations.”
The company also said in an emailed statement that the DoJ declined to pursue the matter after reviewing all the evidence during its multi-year investigation.