Interesting information:
Market reaction:
After a critical article by The Guardian on $UNH (+2.8%) hospital audits, the share price fell sharply. JPMorgan considers the reaction to be exaggerated and media-driven.
Defense of UNH:
According to JPMorgan, the use of "Admissions per 1,000 (APK)" is common practice in the healthcare sector. Value-based contracts are also common in the industry.
Historical context:
Most of the incidents date back to 2019, when the Department of Justice (DOJ) declined to bring charges.
Media risk:
The article is part of a possible series of critical reports against $UNH (+2.8%) JPMorgan but sees no evidence of systematic misconduct.
Analyst sentiment:
Despite recent volatility, JPMorgan now sees attractive valuation levels and remains fundamentally positive.
Comment:
UNH's focus on APK is not surprising. There are no indications of inappropriate behavior; DOJ has already waived charges. The current price movement is exaggerated.
