UnitedHealth Takes a Big Step Back from South America

UnitedHealth has made a significant move. They have agreed to sell their South American business to a private equity firm called Patria. This deal is worth a cool $1 billion. The final agreement was signed on Saturday, and the announcement is expected on Monday. Sources say this, but they want to stay anonymous because the talks were private. This isn't the first time UnitedHealth has been looking to leave Latin America. They've been trying to exit since 2022. They already sold their businesses in Brazil and Peru. The sale of Banmedica, which operates in Colombia and Chile, has been in the works for almost a year. Banmedica is a big deal. As of June, they had 1. 7 million health insurance plan members, seven hospitals, and 47 medical centers. That's a lot of people and places! This sale is part of UnitedHealth's plan to focus more on their main business. Their CEO, Stephen Hemsley, is leading this turnaround. He's trying to regain investor and consumer trust after a tough time. Last year, UnitedHealth had an $8. 3 billion loss from selling their South American operations. That's a huge chunk of money. Hemsley returned as CEO in May. He led the company from 2006 to 2017. He's working hard to make things better. UnitedHealth raised its annual profit forecast in October. They aim to return to growth in 2026 and accelerate that growth in 2027. Patria and UnitedHealth haven't commented on this yet. But it's clear that UnitedHealth is making big changes. They're focusing on their core business and leaving South America behind.