(TJV NEWS) UnitedHealth Group stock plunged as much as 7.5% in premarket trading Wednesday after The Guardian published a bombshell investigation alleging that the healthcare giant paid financial incentives to nursing homes for limiting hospital transfers—even when those decisions endangered lives.

The Guardian report, built on thousands of internal documents, confidential patient records, whistleblower declarations, and interviews with nearly two dozen UnitedHealth insiders and nursing home staff, lays out a disturbing pattern: the company systematically rewarded facilities for keeping frail, elderly patients out of hospitals—regardless of medical need.

According to The Guardian, UnitedHealth deployed its own medical teams into nearly 2,000 nursing homes across the U.S., where it manages Medicare Advantage plans for more than 55,000 long-term residents. These teams were incentivized through performance-based bonuses labeled “Premium Dividends” and “Shared Savings”—rewards tied directly to reduced hospital admissions.

Key revelations from The Guardian’s investigation include:

• Facilities were monitored using hospitalization quotas, or “admits per thousand” (APK). Those exceeding the unofficial limit were denied financial rewards.

• In several documented cases, patients were harmed—some permanently—after urgent hospital care was delayed or denied, including one who suffered permanent brain damage.

• Whistleblowers allege a systemic effort to hide these harms, with internal culture minimizing patient suffering as an inevitable part of old age.

• Nurse practitioners were pressured to obtain “Do Not Resuscitate” (DNR) orders, sometimes overriding patients’ clearly stated wishes for full treatment.

• UnitedHealth offered financial incentives for nursing homes to enroll residents in special Medicare Advantage plans, sometimes using leaked patient data to bypass families and sell directly to residents.

One current nurse practitioner told The Guardian:

“No one is truly investigating when a patient suffers harm. Absolutely no one. These incidents are hidden, downplayed and minimized.”

A former UnitedHealth executive was even more direct, saying:

“APK drove everything. You gain profitability by denying care.”

Despite The Guardian’s detailed findings, UnitedHealth has denied the accusations, claiming its employees do not block hospital transfers.

The fallout has been immediate. UnitedHealth’s already shaky stock—rattled last week by Wall Street Journal reporting of a DOJ criminal investigation into its Medicare practices—saw its steepest drop since 1998. The company has suspended its 2025 outlook, and its CEO has abruptly stepped down.

Notably, nearly all Wall Street analysts remained bullish on UnitedHealth—except for CFRA’s Paige Meyer, who had issued a lone “Sell” rating earlier this year. That skepticism now appears prescient.

As The Guardian continues to uncover the inner workings of one of America’s most powerful insurers, the report is being hailed by watchdogs as a turning point in public scrutiny over how Medicare Advantage programs are operated—and monetized—by private companies.