UnitedHealth Group announced Tuesday that CEO Andrew Witty has stepped down, deepening concerns in an already difficult year for the health care giant and the wider industry.
The company said Witty resigned for “personal reasons.” He was immediately replaced by Stephen J. Hemsley, the former CEO and current chairman of the board. UnitedHealth declined to provide more details about the leadership change.
The surprise move comes at a time of mounting frustration with the U.S. health care system. Protesters recently gathered at UnitedHealthcare’s offices in Minnetonka, Minnesota, criticizing the company over denied care.
UnitedHealth shares dropped more than 16% by late Tuesday morning, reflecting growing investor concerns.
The company is one of the largest in the world and owns Change Healthcare, a major payments processor for hospitals, doctors, and pharmacies. Last year, a major cyberattack on Change Healthcare disrupted services across the U.S. health care system, affecting an estimated 100 million people.
The attack has contributed to a cascade of problems for UnitedHealth, adding to public distrust and operational challenges across the industry.
