UnitedHealth Group’s (NYSE: UNH) CEO Andrew Witty has announced his plans to step down after leading the health care giant through a period of turmoil, citing “personal reasons.”

The company’s former CEO, Stephen Hemsley, will return to the role effective immediately. In addition to his leadership role, Hemsley will remain the chairman of UnitedHealth Group’s board of directors. Hemsley previously served as the CEO from 2006 to 2017.

This transition comes amid a time of turbulence at the health care conglomerate. The organization has faced significant public scrutiny over the last few months for its denial practices following the tragic death of Brian Thompson, CEO of its insurance arm, UnitedHealthcare. Additionally, in February of 2024, the company’s subsidiary Change Healthcare was hit with a ransomware attack.

Announced at the same time as the CEO transition, the company suspended its 2025 forecast due partly to higher-than-expected medical spending in its Medicare Advantage arm. The company’s stock is down more than 15% after the announcement.

Hemsley noted that the performance setbacks are due to both internal and external challenges. As for the future, he hinted that value-based care could play a key role in the company’s future.

“The announcement this morning regarding our guidance …enables us to focus even more closely on the actions essential for our success in the months and quarters and years to come ahead,” Hemsley said on an investor call this morning. “Our strategy and structure are the right ones for this era; they are designed to help more people more comprehensively through value-based care approaches that are integrated and holistic in response to a health system that can be frustratingly disconnected, inconsistent in its quality and inequitable in access. We have made meaningful progress through value based care approaches to overcome these issues and intend to execute far more urgently and precisely along this path moving forward.”

Value-based care could be particularly useful in managing populations with greater health needs and historic utilization trends, according to Hemsley. As UnitedHealth Group continues to service patients with more acute medical needs, value-based care could be an important tool in managing costs.

A growing number of behavioral health providers are exploring value-based care contracting.

Still, movement towards alternative payment contracting has been slow. A whopping 65% of behavioral health providers said that none of their organization’s revenue is derived from value-based care arrangements, according to a Behavioral Health Business survey.

Behavioral health is a hot topic among payers as utilization rates continue to soar following the COVID-19 pandemic.

“Over the past 5 years, talking about mental health and admitting when you’re not okay has become more normal,” Trevor Porath, vice president of behavioral health solutions for UnitedHealthcare Employer & Individual, said in a recent report. “As a result, utilization patterns have changed. More people are seeking behavioral health care, and that is a good thing, but now our biggest challenge is helping them access the right support.”

While not mentioned in the CEO transition call, behavioral health could be a prime spot for payers to grow their value-based care offerings.