UnitedHealth earnings to shed first light on COVID-19’s financial effects

UnitedHealth Group will kick off the 2020 earnings season April 15 for healthcare companies, providing the first window into how COVID-19 affected the sector’s finances, according to CNBC.

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Investors will be watching what information UnitedHealth shares related to COVID-19 medical costs, including testing and hospitalizations, as well as how the cancellation of nonemergency care is reflected in the healthcare giant’s results. However, COVID-19 medical costs aren’t expected to significantly affect UnitedHealth’s first-quarter results, since COVID-19 testing and infections became much more prevalent late in the quarter in March, according to the report.

In a note to clients cited by CNBC, analysts at Piper Sandler said early data on medical claims may be unclear, as “much of the claims processing/coding teams [are] now working from home at hospitals and insurers,” which could slow normal revenue cycle processes.  

UnitedHealth is expected to report adjusted earnings of $3.63 per share on $64.4 billion in revenue for the first quarter of 2020, according to CNBC, which cites an estimate from Refinitiv. 

More articles on healthcare finance:
105 hospitals furloughing workers in response to COVID-19
Mayo Clinic projects $900M shortfall, implements cost-cutting measures
State-by-state breakdown of 354 rural hospitals at high risk of closing

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