UnitedHealth Group Sells Last South American Business

NEW YORK, Nov. 30 – UnitedHealth Group has decided to sell its final South American operation, Vanmedica, to Brazilian private equity firm Patria Investments. Two sources with knowledge of the situation mentioned this on Sunday.

An agreement was finalized on Saturday, with an official announcement expected on Monday. The sources, who wished to remain anonymous, shared insights on the private negotiations.

UnitedHealth has been looking to exit the Latin American market since 2022, having already divested its operations in Brazil and Peru.

The Vanmedica sale, which primarily serves Colombia and Chile, has been in the works for nearly a year.

Unfortunately, Patria and UnitedHealth have not yet responded to media inquiries regarding the deal. As of June, VanMedica had about 1.7 million health insurance members, along with seven hospitals and 47 medical centers following its exit from Peru.

This move adds to the challenges facing Chief Executive Officer Stephen Hemsley, who is attempting to steer the company back on track. Last October, UnitedHealth raised its profit forecast for the year, expressing intentions to return to growth by 2026, with expectations for acceleration in 2027.

Hemsley, who returned as CEO in May after a hiatus, is striving to regain the confidence of investors and consumers amid a troubled period for the company. This included a tragic incident involving a top executive’s assassination and unforeseen spikes in healthcare costs, not to mention a federal investigation.

He was brought back during a management overhaul after UnitedHealth reported its first poor performance in more than ten years back in April.

Last year, UnitedHealth faced an $8.3 billion loss tied to its South American operations, approximately $7.1 billion of which stemmed from its exit from Brazil, with the remaining $1.2 billion attributed to VanMedica.