After years of excellent numbers, some critics are starting to wonder if things are about to take a turn for the worse at UnitedHealth. Goldman Sachs analyst Matthew Borsch reiterated his underperform rating for the company this weekend. Borsch says problems at recently acquired PacifiCare, "market noise on deteriorating customer service" and questions about corporate governance are "red flags" that should not be taken lightly. Borsch notes that PacifiCare earnings in California have dropped more than 50 percent over the last quarter, according to state insurance department records. The article is by The Street.com's Melissa Davis, who has not been shy to talk about potential problems with health insurers and PBMs, while investors have largely ignored her and continued to drive those insurers stock prices higher over the past two years. Maybe this time it's different.
- see this article [1] from the Street.com
Links:
[1] http://www.thestreet.com/_tscfoc/stocks/healthcare/10273332.html