UnitedHealth Reshuffles Optum Execs As CEO Hemsley Takes Charge Of $105B Division

UnitedHealth Group is making key leadership changes across its Optum health services business as Stephen Hemsley resumes his role as CEO, signaling a broader management reset following recent financial turbulence. 

The stock closed up 0.20% at $302.62 on Thursday, with shares inching higher to $302.84 in after-hours trading.

The most notable shift is the departure of Amar Desai from the role of CEO of Optum Health, UnitedHealth’s $105 billion care delivery arm that includes clinics, physician groups, and surgery centers. 

Desai had led the division since 2023.

Patrick Conway, recently named CEO of the larger Optum unit, will also take the helm of Optum Health, according to a Bloomberg report.

Desai will remain president of Optum Integrated Care and vice-chairman of Optum Health, where he’ll continue to work closely with Conway and Hemsley. 

The reshuffling comes after UnitedHealth made a surprise decision last month to withdraw its financial guidance.

Hemsley, who returned to lead the company after Andrew Witty stepped aside, hinted at organizational changes during a recent shareholder meeting, saying leadership realignments were underway to “ensure we have the right leadership in place going forward.”

At the shareholder meeting, Hemsley acknowledged the missteps. 

“We are well aware we have not fulfilled your expectations or our own,” he said. 

The financial disruption stems from higher-than-anticipated medical costs in the company’s Medicare Advantage business, which provides health insurance to seniors and individuals with disabilities. 

UnitedHealth is reassessing its approach to projecting medical cost trends and will adjust pricing on its commercial and Medicare Advantage products for 2025. 

Hemsley said UnitedHealth has already included the updated trends in forthcoming Medicare bids and is initiating a comprehensive review of operations across UnitedHealthcare and Optum.

He also hinted at structural changes, including hiring independent experts to scrutinize its business practices in areas that have been criticized, such as Medicare billing, prior authorizations, and the functioning of its pharmacy benefit manager (PBM) arm.

Additional executive moves include Krista Nelson, previously head of the company’s Medicaid business, being named chief operating officer of Optum Health. 

Jon Mahrt, a veteran of the Optum Rx pharmacy division, has been promoted to CEO of Optum Rx, succeeding Conway in that role.

The restructuring also comes amid mounting pressure on Optum Health. 

Once a major profit engine for UnitedHealth, the unit recorded a 15% decline in operating earnings in the first quarter compared to the same period last year.

The business has been affected by shifts in federal payments to Medicare Advantage plans, where Optum Health plays a key role in care delivery for millions of members.

The stock has declined 40% so far in 2025.

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