- A UnitedHealth Group (NYSE:UNH) study found that paying cancer doctors a lump sum to treat patients saved 34% vs. paying the doctors for each drug or service.
- The three-year study tested the theory that percentage-based payments encouraged doctors to use treatments that were more expensive, but not necessarily most effective.
- "We expected savings but not this great," says SVP for oncology Lee Newcomer.
- UNH shares recouped much of today's losses, finishing -0.8% after a morning downgrade by Jefferies to Hold from Buy. Jefferies has a price target of $87 for the stock (closing price: $82.08).