UnitedHealth Sells Florida-Based Optum Health Operations to TPG
UnitedHealth Group Inc. (NYSE:UNH) has made significant moves to improve profitability in its Optum Health operations, which have been struggling due to rising healthcare costs and restrictive federal payment policies.
The health conglomerate sold an interest in some Florida-based Optum Health operations to private equity firm TPG Inc. (NASDAQ:TPG), allowing UnitedHealth to focus on operational improvement and invest in the unit's success.
According to CFO Wayne DeVeydt, 'We didn't need the dollars; we have the dollars to invest, but we needed the focus and somebody that could actually work with us locally.'
The deal is part of UnitedHealth's restructuring plan, which aims to improve Optum Health's operating margins from 2% this year to 6% by next year.