UnitedHealth Group has agreed to sell its remaining South American business, Banmedica, to Brazilian private equity firm Patria Investments for $1 billion, according to sources familiar with the deal. The final agreement was signed on Saturday, with an official announcement expected on Monday.
UnitedHealth has been gradually exiting Latin America since 2022, having previously sold operations in Brazil and Peru. Banmedica, which operates in Colombia and Chile, had been in discussions for nearly a year. As of June, the company served 1.7 million health insurance plan members and operated seven hospitals and 47 medical centers.
The sale marks the final step in UnitedHealth’s efforts to reduce distractions and focus on its turnaround strategy under CEO Stephen Hemsley. Hemsley, who returned to the role in May after previously leading the company from 2006 to 2017, has been working to restore investor and consumer confidence following a challenging period that included the murder of a top executive, rising medical costs, and a federal investigation. UnitedHealth reported an $8.3 billion loss last year tied to the sale of its South American businesses, including $7.1 billion from its Brazil exit and $1.2 billion from Banmedica. The company raised its annual profit forecast in October and aims to return to growth in 2026, with acceleration expected in 2027.