UnitedHealth Group’s (NYSE: UNH) Chairman and President Stephen J. Hemsley will become the insurance and health care giant’s CEO, effective immediately.
Previous CEO Andrew Witty stepped down on Tuesday for personal reasons, according to a statement from UnitedHealth Group. The company is the third largest hospice provider in the nation, primarily through its subsidiary Optum, according to research by Hospice News. This was achieved largely through the company’s 2023 acquisition of LHC Group for $5.4 billion.
“We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced,” Hemsley said in a statement. “The Board and I have greatly valued his leadership and compassion as chief executive and as a director and wish him and his family the best.”
This will be Hemsley’s second stint as UnitedHealth Group’s CEO. He previously served in the role from 2006 to 2017. He will remain chairman of the company’s board of directors, and Witty will become a senior advisor to Hemsley.
The move follows leadership changes at Optum on May 1, in which Dr. Patrick Conway became the subsidiary’s CEO.
The transition follows a rough quarter for UnitedHealth Group. Government funding reductions, transitions to a new Medicare Advantage risk adjustment model and heightened care activity led UnitedHealth Group to reduce its 2025 performance outlook to $24.65 to $25.15 earnings per share, down from a previously anticipated $26 to $26.50. The company has now suspended its 2025 outlook.
Optum’s $3.3 billion purchase of Amedisys (Nasdaq: AMED) is currently pending a court decision following antitrust concerns raised by the U.S. Department of Justice.
Hemsley has pledged that the company will “return to growth” in 2026, according to the company’s statement.
“UnitedHealth Group has tremendous opportunities to grow as we continue to help improve health care and to perform to our potential — and, in so doing, return to our long-term growth objective of 13 to 16%,” Hemsley said.
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