UnitedHealth Group has reached an settlement to divest its South American unit Banmedica to personal fairness group Patria Investments for $1bn (CI$831.99m), reported Reuters, citing sources.
UnitedHealth started its efforts to exit Latin America in 2022, having already divested its operations in Brazil and Peru.
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Discussions concerning the sale of Banmedica have taken place over almost one yr.
Banmedica operates in Colombia and Chile.
By June, after its withdrawal from Peru, Banmedica reported 1.7 million medical insurance members, seven hospitals and 47 medical centres.
Each Patria Investments and UnitedHealth didn’t reply to requests for remark concerning the deal, reported Reuters.
UnitedHealth recorded a lack of $8.3bn final yr, together with $7.1bn referring to Brazil and $1.2bn on account of Banmedica.
The divestment permits UnitedHealth to concentrate on different restructuring measures beneath CEO Stephen Hemsley.
In October, the corporate elevated its annual revenue forecast, indicating targets for development resumption in 2026 and plans for accelerated enlargement by 2027.
Hemsley resumed management in Might, having led the corporate from 2006 to 2017.
He’s at present overseeing administration modifications and efforts to stabilise the corporate following numerous points reminiscent of a senior govt’s demise, an increase in medical prices and ongoing federal investigations.
Hemsley returned after UnitedHealth skilled its first earnings shortfall in additional than ten years in April.
As a part of additional administration modifications, Wayne DeVeydt was appointed as chief monetary officer (CFO) in August, changing John Rex.
Rex will now function a strategic adviser to the CEO, after holding the CFO place since 2016.
