UnitedHealth Sells Interest in Florida WellMed Clinics to TPG
UnitedHealth Group Inc. has sold an interest in some of its Optum Health operations in Florida to private equity company TPG Inc. as the health conglomerate is working to recover from a collapse in profits last year. “We didn’t need …
TPG has acquired a stake in UnitedHealth Group’s Florida WellMed clinics, partnering with the healthcare giant as it aims to boost growth within its WellMed clinic network, according to Bloomberg. This investment targets a segment of Optum’s WellMed operations in Florida, which primarily serves older patients. UnitedHealth explained that the partnership is driven by a desire for strategic expansion in the market, rather than a need for capital.
Wayne DeVeydt, UnitedHealth's CFO, emphasized that the deal is about bringing in a local partner to aid the company's market expansion while UnitedHealth undergoes a broader operational recovery. UnitedHealth currently opens approximately 15 clinics annually in Florida, with the TPG partnership having commenced within the past year.
This transaction occurs as UnitedHealth works to improve Optum Health's performance, which has seen a significant drop in profitability. The Optum Health division, including clinic operations, reported negative operating margins last year due to rising medical costs and changes in federal policy affecting reimbursement. DeVeydt forecasted an operating margin of around 2% this year, with UnitedHealth aiming for 4% by 2027 and 6% by 2028.
The Florida investment also strengthens the existing relationship between TPG and UnitedHealth. Earlier this year, TPG acquired Optum’s UK business, generating $400 million for the United Health Foundation.
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Also reported by 1 other outlet
- TPG takes stake in UnitedHealth’s Florida WellMed clinics privateequitywire.co.uk
