UnitedHealth Partners with TPG to Boost Optum Health Expansion

UnitedHealth Group has sold a stake in its Florida Optum Health operations to private equity firm TPG, as part of the insurer's turnaround efforts. The deal includes WellMed clinics that primarily serve older adults and is aimed at letting the network invest and expand faster than if UnitedHealth ran everything alone.

The move follows earlier restructuring efforts by Optum Health, which was pushed into negative territory last year due to higher medical costs and changes in federal payments. UnitedHealth Chief Financial Officer Wayne DeVeydt said the company was not primarily looking for cash, but rather needed a partner that could work locally with them.

The partnership will enable UnitedHealth to open about 15 clinics a year in Florida, accelerating its expansion plans. This deal is part of TPG's growing portfolio, which includes UnitedHealth's Optum UK business acquired earlier this year.