UnitedHealth Group Announces Leadership Changes at Optum

UnitedHealth Group, one of the largest healthcare companies in the United States, has announced significant leadership changes within its Optum division. These changes come at a time when the company faces challenges in its Medicare Advantage business and ongoing scrutiny of its pharmacy benefit management (PBM) operations.

Patrick Conway Named New Optum CEO

Effective May 6, Patrick Conway, M.D., will assume the role of Chief Executive Officer at Optum, UnitedHealth Group's health services division. Conway, who currently serves as the CEO of Optum Rx, the company's PBM unit, brings a wealth of experience from both the public and private sectors of healthcare.

Prior to joining UnitedHealth in 2020, Conway held several high-profile positions, including:

• Director of the Center for Medicare and Medicaid Innovation at the Centers for Medicare & Medicaid Services (CMS)
• CEO of Blue Cross and Blue Shield of North Carolina

Conway's appointment comes as Optum faces increased legislative and regulatory scrutiny of its PBM business, as well as the aftermath of a significant cyberattack last year. His experience in both government and private insurance is expected to be valuable as the company navigates these challenges.

Executive Reshuffling and Strategic Positioning

Conway will replace Heather Cianfrocco, who is being promoted to UnitedHealth's executive vice president of governance, compliance and information security. Cianfrocco, who has held multiple leadership roles across UnitedHealth and Optum, including CEO of Optum Rx, will leverage her decade-long experience as a lawyer to oversee the company's commitment to strong governance and ethical oversight.

UnitedHealth Group stated that these leadership changes are part of its "longstanding, intentional approach to developing an executive team with a range of experiences across its diverse portfolio of businesses." The company aims to strengthen its leadership team to address ongoing challenges and pursue growth opportunities.

Financial Performance and Industry Challenges

The leadership changes come amid a period of financial uncertainty for UnitedHealth Group. In the first quarter of 2025, the company reported results that fell below analysts' expectations, despite Optum's revenue growing by 11% year over year to $3.9 billion. UnitedHealth has also faced fluctuating performance in its health insurance division due to rising medical costs over the past year.

The healthcare giant recently cut its outlook for the year due to increasing costs, particularly in Medicare Advantage. This announcement caused a significant drop in UnitedHealth's stock price and impacted shares of other companies in the industry.

As Conway steps into his new role, he will be tasked with steering Optum through these financial challenges while also addressing the ongoing scrutiny of the PBM business and working to recover from the effects of last year's cyberattack. The company's focus on turning things around for the remainder of 2025 and into early 2026 will likely be a key priority for the new leadership team.