UnitedHealth Group has agreed to sell its last South American business, Banmedica, to Brazilian private equity group Patria Investmentos for $1 billion, two sources with knowledge of the matter said on Sunday.
The final agreement was signed on Saturday (29) and an announcement is expected on Monday (1st), the sources added, requesting anonymity to disclose private conversations.
UnitedHealth has been trying to exit Latin America since 2022 and had previously sold its businesses in Brazil and Peru.
The sale of Banmedica, which currently operates in Colombia and Chile, has been discussed for almost a year.
Patria and UnitedHealth did not immediately respond to requests for comment Sunday. Banmedica had 1.7 million health plan members, seven hospitals and 47 medical centers as of June, following its divestment in Peru.
The region’s exit reduces yet another distraction from the recovery efforts led by Chief Executive Stephen Hemsley. UnitedHealth raised its annual profit forecast in October and said it aims to return to growth in 2026, which should accelerate in 2027.
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Hemsley returned to the role of chief executive in May after leading the company from 2006 to 2017, and has worked to regain investor and consumer confidence after a difficult period for UnitedHealth that included the assassination of a top executive, an unexpected rise in medical costs and a federal investigation.
UnitedHealth recorded a loss of US$8.3 billion last year related to the sale of its operations in South America, with US$7.1 billion resulting from the exit from Brazil and US$1.2 billion from Banmedica.
