UnitedHealth Group has reported net earnings attributable to common shareholders of $4.21bn in the second quarter (Q2) of 2024, a 22.9% decrease from $5.47bn in Q2 2023.
However, the performance recovered from the previous quarter (Q1 2024), during which the company logged a $1.4bn loss mainly due to the impact of the cyberattack on its Change Healthcare unit and the sale of its Brazilian business.
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The group’s revenues for the quarter ended 30 June 2024 totalled $98.85bn, which is a 6.4% rise from $92.9bn reported in Q2 2023.
Revenue growth for the quarter was primarily driven by an expansion in number of people served domestically by Optum and UnitedHealthcare.
Optum’s revenues for Q2 2024 reached $62.87bn, an increase from $56.34bn reported in Q2 2023.
UnitedHealthcare segment’ revenues amounted to $73.86bn, up $4bn from $70.23bn in Q2 last year.
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By GlobalDataIn Q1 2024, UnitedHealth’s revenues stood at $99.79bn.
The group’s earnings from operations for Q2 2024 stood at $7.87bn, which includes $1.1bn in unfavourable effects due to cyberattack, as against $8.05bn in Q2 2023.
Adjusted earnings from operations were $8.66bn, factoring in Change Healthcare business disruption impacts and excluding direct response to cyberattack and South American impacts, which amounted to $1.28 per share for Q2 2024.
The breach affecting Change Healthcare was said to be among the most severe incidents to affect the American healthcare sector, leading to disruptions in payments to doctors and healthcare facilities.
UnitedHealthcare has since restored most of the affected Change Healthcare services.
However, some billing channels remain disrupted, Reuters reported, citing UnitedHealth chief financial officer John Rex’s statement on a conference call.
The company continues to help care providers, having offered more than $9bn in advance funding as well as interest-free loans so far.
Total cyberattack impacts for Q2 2024 were $0.92 per share, which included $0.64 per share for direct response efforts and $0.28 per share for Change Healthcare business disruption impacts.
Looking ahead, UnitedHealth estimates full-year impact for 2024 to be between $1.90 and $2.05 per share.
This includes an increase in direct response costs, now estimated at $1.30 to $1.35 per share, and business disruption impacts estimated at $0.60 to $0.70 per share.
Year-to-date, UnitedHealthcare has seen a growth in number of consumers served domestically with its commercial offerings, increasing by 2.3 million to 29.6 million.
For the first six months of 2024, UnitedHealth reported net earnings of $2.81bn and revenues of $198.65bn.
UnitedHealth Group CEO Andrew Witty said: “The diversified, durable growth across UnitedHealth stems from our colleagues’ commitment to ensuring high-quality, affordable care is available to the people we serve, and positions us well for near and long-term.”
