UnitedHealth (UNH) to Roll Out Medical Claims Software Soon
UnitedHealth Group UNH recently announced that it is making progress to reduce the harsh impact of cyberattacks on providers and consumers. It will continue to offer financial aid to providers who are unable to get reimbursed for their medical costs. UNH’s revenues and payment cycle management subsidiary, Change Healthcare, was the victim of a cyberattack last month. The healthcare industry has been facing a formidable challenge following the incident.
UNH is testing its medial claims preparation software to be made available for use to customers in the future. The distribution of this software highlights the resumption of complete services to its customers. Per The American Hospital Association, disruption due to the attack made it difficult for hospitals to submit insurance claims, provide care and get reimbursed. The company met its target to roll out the medical claims processing software by Mar 18, which bodes well for the company.
UNH restored Change Healthcare’s electronic payments platform and 99% of pharmacy network services on Mar 15 and Mar 7, 2024, respectively. UnitedHealth has assisted care providers by advancing more than $2 billion through several initiatives. The company is aiming to restore the remaining services through its ongoing phases of activation.
The cyberattack impacted the healthcare services providers operating at a low scale due to the high level of fragmentation. UNH continues to extend funding assistance to enable the providers to function smoothly without reimbursement concerns. UnitedHealth has also suspended prior authorizations for the majority of outpatient services and utilization reviews for Medicare Advantageplans inpatient admissions.
Shares of UnitedHealth Group have gained 2.5% in the past year compared with the industry’s 5.7% growth. UNH currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Medical space are Organon & Co. OGN, The Ensign Group, Inc. ENSG and The Cigna Group CI. While Organon currently sports a Zacks Rank #1 (Strong Buy), Ensign Group and Cigna carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Organon’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the mark twice, the average surprise being 5%. The Zacks Consensus Estimate for OGN’s earnings indicates a rise of 3.6%, while the consensus mark for revenues suggests an improvement of 1% from the corresponding year-ago reported figures.
The consensus estimate for OGN’s 2024 earnings has moved 1.2% north in the past 30 days.
Ensign Group’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.7%. The Zacks Consensus Estimate for ENSG’s 2024 earnings indicates a rise of 12.2% from the year-ago reported figure. The consensus mark for revenues indicates growth of 11.2% from the year-ago reported figure.
The consensus estimate for ENSG’s 2024 earnings has moved 0.6% north in the past 30 days.
Cigna’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.9%. The Zacks Consensus Estimate for CI’s 2024 earnings indicates a rise of 13%, while the consensus mark for revenues suggests an improvement of 20.4% from the corresponding year-ago reported figures.
The Zacks Consensus Estimate for CI’s 2024 earnings has moved 0.3% north in the past 60 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Cigna Group (CI) : Free Stock Analysis Report
The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
Organon & Co. (OGN) : Free Stock Analysis Report
