The fatal shooting of UnitedHealth chief executive Brian Thompson in New York was initially greeted by markets as an isolated tragedy.
That has changed, with shares subsequently diving as investors digested the public’s growing anger towards the healthcare giant.
Luigi Mangione, the suspect in the case, saw his X account explode from a few hundred followers to more than 420,000. Scrutiny about US healthcare practices grew after it emerged the bullets used in the killing were marked with the words “delay”, “deny” and “depose”.
Social media lit up with stories of denied insurance claims and accusations that UnitedHealth cares more about its bottom line than patients’ wellbeing. Various high-profile politicians are calling for reform of the system, and investors are clearly worried about a regulatory backlash.
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As Columbia economist Prof Laura Veldkamp cautioned, an excessive focus on shareholder value over customers can create its own risks. The falling share price, she suggested, “will help convey to shareholders that they too will lose if stakeholders aren’t taken into account”.
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