UnitedHealth forms ‘public responsibility committee’ to improve its reputation
UnitedHealth Group said it’s formed a new “public responsibility committee” within the organization, tasked with increasing the board of directors’ oversight of pricing and regulatory compliance.
The new group was announced in a filing with the U.S. Securities and Exchange Commission (SEC), and its seats will be filled with current members of the healthcare giant's board, including Charles Baker, Timothy Flynn and Paul Garcia, with Michele Hooper acting as chair.
"The creation of the public responsibility committee is part of the company’s continuing commitment to a mission-driven culture of responsibility, integrity and performance," UnitedHealth wrote. "It will provide an additional layer of governance, including enhanced oversight of pricing, operational, regulatory and reputational risks."
The company revealed more details on its website, outlining the committee’s rules and responsibilities. Within its scope is monitoring prior authorization policies—including appeals—and the business practices of Optum Rx, the pharmacy benefit manager (PBM) unit of UnitedHealthcare.
Policies such as how the company deploys artificial intelligence (AI) will also be under review by the committee as it looks to mitigate damage to “public perception and reputation.” Risk assessments include how shareholders, as well as the general public, perceive the organization.
Notably, the company’s practices around using AI to automatically deny medical claims have been subject to public and regulatory scrutiny, with UnitedHealthcare facing a lawsuit over such policies.
The changes come as it faces another lawsuit—filed by its investors and shareholders—over its alleged shift to a more consumer-friendly business model in the wake of the murder of the former CEO of its insurance arm, Brian Thompson.
Thompson was shot and killed in what is alleged to be a politically motivated assassination outside his hotel in New York City, as he walked to an annual investor meeting. The man accused of murdering Thompson is 27-year-old Luigi Mangione, who is awaiting trial and state and federal charges stemming from the incident.
UnitedHealth Group has undergone a leadership shakeup this year, with Andrew Witty stepping down as CEO in May. He was replaced by company veteran and former CEO, Stephen J. Hemsley.
Its stock is down nearly 40%, year to date.
Media scrutiny and lawsuits add pressure for reform
A new committee may not be the only way UnitedHealth intends to boost its reputation. In July, the New York Times released a report detailing how the company is suing media outlets and social media users over allegations of defamation.
Defendants include the Guardian over its reporting that accused the company of manipulating hospital transfers at nursing homes, as well as a plastic surgeon in Texas who posted a viral video detailing an incident where she said a patient was denied coverage mid-surgery.
UnitedHealth is also currently being investigated by the U.S. Department of Justice, related to its Medicare Advantage billing practices. However, no charges have been filed in that case, per a July report from the Wall Street Journal.
The new public responsibility committee will meet four times a year and report to the CEO and board of directors, the company confirmed. The committee was established effective immediately.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.