Photo: Courtesy UnitedHealth Group
UnitedHealth Group is selling its last South American business, Banmedica, to Brazilian private equity group Patria Investments for $1 billion, two sources told Reuters on Sunday. The final agreement was signed on Saturday.
The sources, who asked for anonymity, said an announcement was expected today. As of publication, neither UnitedHealth Group nor Patria had released a statement.
UnitedHealth Group bought Banmedica in Chile in 2018 for $2.8 billion as part of a plan to expand globally in South America. Banmedica is a health insurance company and also operates hospitals and clinics.
But UnitedHealth has been exiting Latin America since 2022 and had previously sold its businesses in Brazil and Peru, according to Seeking Alpha.
UnitedHealth reported an $8.3 billion loss last year related to the sale of its South American operations, $7.1 billion from the Brazil exit and $1.2 billion from Banmedica, according to the Reuters report.
WHY THIS MATTERS
During UnitedHealth Group's third quarter earnings call in October, CEO Stephen Helmsley said there was a “key sense of urgency” across the company to return to performance standards.
Hemsley has led the company since May after former CEO Andrew Witty stepped down after the company's first earnings miss in over a decade in April. Hemsley formerly served as CEO from 2006 to 2017.
UnitedHealth has faced numerous financial and other challenges. Optum Health in particular has been affected by an elevated medical cost trend, the company said.
THE LARGER TREND
UnitedHealth Group has been exploring the sale of Banmedica for close to a year. In June, UnitedHealth reportedly had four non-binding bids for Banmedica and was looking to sell for about $1 billion.
UnitedHealth completed the sale of its Brazil assets in 2024.
Banmedica has 1.7 million health-insurance members, seven hospitals and 47 medical centers.
Email the writer: SMorse@himss.org