April 16 (Reuters) - UnitedHealth Group ( UNH ) took a
hit of $872 million to first-quarter profit from disruptions
caused by the February cyberattack at its Change Healthcare
unit.
The disruptions are expected to impact profit by as much as
$1.35 per share this year, the company said in a statement.
This is the healthcare conglomerate's first public comment
on the financial cost of the data breach, which disrupted
services at pharmacies, hospitals, doctors offices and other
providers as well as at community health centers in the United
States.
Health insurers had to relax or remove prior authorization
processes for some claims following the hack, stoking concerns
of an increase in costs. At the same time, there were delays in
claim submissions as medical care providers struggled with
paperwork.
UnitedHealth ( UNH ) has so far provided advance funding worth more
than $6 billion to certain healthcare providers, and while
several major of its major services have resumed operations,
there are many more that continue to reel from the impact of the
outage.
The healthcare conglomerate recorded a net loss of $1.53
per share due to a $7 billion charge related to the sale of its
Brazil unit Amil to businessman Jose Seripieri Filho, the
founder and former chief executive of health insurance firm
Qualicorp.
The company said it was expecting net profit of $17.60 to
$18.20 per share to reflect the Brazil sale and the estimated
direct response costs of the cyberattack.
Shares of the company rose 4.35% to $465.55 in premarket
trading.
(Reporting by Leroy Leo and Sriparna Roy in Bengaluru; Editing
by Anil D'Silva)