The suddenly-struggling company is hoping to regain internal and external confidence during a tumultuous stretch.
Amid mounting financial pressures and continued backlash, UnitedHealth Group is eyeing a significant move out of international markets as it works to reestablish its core U.S. business.
The health insurance giant has four nonbinding bids for Banmedica, its subsidiary operating in Colombia and Chile, for roughly $1 billion, according to a report by Reuters, which cited two people with direct knowledge of the matter.
The bids are from Washington, D.C.-based private equity firm Acon Investments, Sao Paulo-based private equity firm Patria Investments, Texas nonprofit health firm Christus Health, and Lima-based healthcare and insurance provider Auna, the report stated. Binding proposals are expected by July.
This latest potential step in UnitedHealth’s international unwind reflects the broader recalibration at the company, which has faced a confluence of challenges over the past year. Since the murder of UnitedHealthcare CEO Brian Thompson in December, UnitedHealth has seen shares plummet while it’s made headlines for all the wrong reasons.
Around the time CEO Andrew Witty stepped down from the role for personal reasons in May, The Wall Street Journal reported that UnitedHealth is under investigation by the Department of Justice for possible criminal Medicare fraud.
Following the news and the release of a disappointing earnings report, new CEO Stephen Hemsley acknowledged UnitedHealth’s recent struggles at the company’s annual shareholder meeting earlier this month.
“We are well aware we have not fulfilled your expectations or our own,” Hemsley said. “We apologize for that performance and we are humbly determined to earn back your trust and your confidence.”
By divesting Banmedica, bought for $2.8 billion in 2018, UnitedHealth is expected to refocus its efforts in the U.S. market as it attempts to steady itself.
The company recorded a loss of $1.2 billion last year from its operations in Banmedica, which serves more than 2.1 million consumers through its health insurance programs and has around four million patient visits annually across its network of 13 hospitals and 143 medical centers, Reuters reported.
UnitedHealth also suffered a $7.1 billion loss in 2024 from the sale of its Brazilian health insurance business, Amil. That divestiture in 2023 was followed by the company’s exit from Peru in March.
Stepping back from markets where scale and long-term strategic synergy are lacking can allow UnitedHealth to send a message to its stakeholders that stabilization and focus on core businesses will be the priority to weather the current turbulence.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
UnitedHealth is exploring four bids worth around $1B for its Banmedica operations in Colombia and Chile, continuing its exit from international markets amid major financial losses.
The company is facing scrutiny, with leadership changes, a criminal investigation into Medicare fraud, and a sharp stock decline shaking investor confidence.
Divesting Banmedica signals a strategic refocus on stabilizing U.S. operations as UnitedHealth looks to rebuild trust and realign with core priorities.