MINNETONKA, MN - UnitedHealth Group (NYSE: NYSE:UNH) is taking steps to support individuals potentially affected by a recent cyberattack on Change Healthcare (NASDAQ:CHNG), a part of its network. The company has reported progress in restoring Change Healthcare’s services, which were disrupted by the attack.
As part of UnitedHealth's ongoing investigation, preliminary data sampling has identified files containing protected health information (PHI) and personally identifiable information (PII). However, there has been no evidence of the theft of complete medical histories or doctors' charts. UnitedHealth CEO Andrew Witty acknowledged the attack's disruptive impact and expressed the company's commitment to assist those affected.
To assist potentially impacted individuals, UnitedHealth has set up a dedicated website and call center, offering free credit monitoring and identity theft protection for two years. The call center, available at 1-866-262-5342, also provides support services from trained clinicians, but cannot yet provide specifics on individual data impact due to the complexity of the ongoing review.
The company is actively monitoring for any publication of the data on the internet and dark web. To date, 22 screenshots allegedly from the data were posted on the dark web for a week, but no further publication has been observed.
UnitedHealth is also offering to handle notifications and related administrative tasks for other stakeholders whose data may have been compromised in the cyberattack.
In terms of service restoration, Change Healthcare has nearly returned to pre-incident levels for pharmacy services, with 99% of pharmacies processing claims. Medical claims processing and payment processing are also nearing normal levels, with 86% of payment processing restored. The company is working to restore the remaining services and expects full system functionality in the coming weeks.
InvestingPro Insights
In the wake of the cyberattack on Change Healthcare, UnitedHealth Group (NYSE: UNH) has demonstrated resilience and a commitment to safeguarding customer data. This commitment is reflected in the company's strong financial performance and strategic management decisions. According to InvestingPro data, UnitedHealth boasts a robust market capitalization of $453.98 billion, underscoring its significant presence in the healthcare sector. Moreover, the company's P/E ratio stands at 20.48, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 21.89, indicating investor confidence in its earnings potential.
Notably, UnitedHealth has maintained a consistent dividend payout, increasing its dividend for 14 consecutive years, which speaks to a reliable return for shareholders. This is further enhanced by the company's recent performance, with a notable one-week price total return of 12.45% as of the date provided. Such a return is a testament to UnitedHealth's robust market position, especially considering the challenges posed by the cyberattack.
An InvestingPro Tip highlights that management has been actively repurchasing shares, a move that can signal confidence in the company's future prospects and an attempt to create shareholder value. Additionally, the company's ability to maintain dividend payments for 32 consecutive years showcases its financial stability and dedication to returning value to its shareholders.
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