Brazilian private equity firm Patria Investments has agreed to buy Banmédica, UnitedHealth Group’s last remaining South American business, in a $1bn transaction that completes the US healthcare group’s retreat from the region, Reuters reports.

People familiar with the matter said the deal was signed on Saturday, with a formal announcement expected on Monday. The sale follows UnitedHealth’s disposals in Brazil and Peru as the company moves to streamline operations and focus on its wider turnaround plan.

Banmédica operates health insurance, hospital, and medical service businesses in Colombia and Chile. As of June, it had 1.7m plan members, seven hospitals, and 47 medical centres after the divestment of its Peruvian operations.

The exit is a key step for chief executive Stephen Hemsley, who returned to the role in May to stabilise the company after a difficult period marked by an earnings miss, rising medical costs, a federal investigation, and the murder of a senior executive. UnitedHealth raised its annual profit outlook in October and expects a return to growth in 2026 that should accelerate in 2027.

UnitedHealth recorded an $8.3bn loss last year tied to its Latin American exits, including $7.1bn from Brazil and $1.2bn from Banmédica.

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