UnitedHealth Group has reached an agreement to divest its South American unit Banmedica to private equity group Patria Investments for $1bn (CI$831.99m), reported Reuters, citing sources.
UnitedHealth began its efforts to exit Latin America in 2022, having already divested its operations in Brazil and Peru.
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Discussions regarding the sale of Banmedica have taken place over nearly one year.
Banmedica operates in Colombia and Chile.
By June, after its withdrawal from Peru, Banmedica reported 1.7 million health insurance members, seven hospitals and 47 medical centres.
Both Patria Investments and UnitedHealth did not respond to requests for comment regarding the deal, reported Reuters.
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By GlobalDataUnitedHealth recorded a loss of $8.3bn last year, including $7.1bn relating to Brazil and $1.2bn due to Banmedica.
The divestment allows UnitedHealth to focus on other restructuring measures under CEO Stephen Hemsley.
In October, the company increased its annual profit forecast, indicating targets for growth resumption in 2026 and plans for accelerated expansion by 2027.
Hemsley resumed leadership in May, having led the company from 2006 to 2017.
He is currently overseeing management changes and efforts to stabilise the company following various issues such as a senior executive’s death, a rise in medical costs and ongoing federal investigations.
Hemsley returned after UnitedHealth experienced its first earnings shortfall in more than ten years in April.
As part of further management changes, Wayne DeVeydt was appointed as chief financial officer (CFO) in August, replacing John Rex.
Rex will now serve as a strategic adviser to the CEO, after holding the CFO position since 2016.
