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UnitedHealth Reshapes Florida WellMed Operations With TPG Deal
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Key Takeaways
UnitedHealth sold an interest in Florida WellMed clinics to TPG while keeping them in Optum's network.
TPG will add local support, technology and investment capacity to help the Florida business grow faster.
Optum Health targets margins of about 2% in 2026, 4% in 2027 and 6% in 2028 as its turnaround advances.
UnitedHealth Group Incorporated’s (UNH - Free Report) Optum recently sold an interest in its Florida WellMed clinics to private equity firm TPG and entered a strategic partnership with the firm, according to Bloomberg. The partnership is expected to strengthen clinic operations through added support, technology investments, tools and operating capabilities. The clinics under the deal will remain in Optum’s network and continue serving patients.
Management pointed out that the goal was not to raise cash; CFO Wayne DeVeydt said UnitedHealth wanted a partner that could work with the company locally. TPG’s involvement is also expected to help the Florida business grow faster while UnitedHealth continues its broader turnaround over time. Optum acquired WellMed back in 2011.
Florida remains an active growth market, with UnitedHealth opening about 15 clinics there each year. TPG adds local focus and investment capacity at a time when Optum is trying to improve clinic performance and expand. The partnership therefore links two priorities: repairing profitability and supporting growth without slowing the wider turnaround currently underway across UnitedHealth. TPG also acquired Optum UK, another UnitedHealth subsidiary, earlier in 2026.
Optum Health is still recovering from a difficult 2025, when higher medical costs and federal payment pressure pushed operating margins below zero. It generated $102 billion of revenue in 2025, down 3% year over year. Management now expects margins of about 2% in 2026, followed by roughly 4% in 2027 and 6% in 2028, backed by quicker program rollouts.
UNH is actively focusing on lowering its medical care ratio (MCR) through cost management, pricing discipline and benefit design changes. Its second quarter MCR was 86.7%, which improved 270 bps from the year-ago period.
How are Peers Placed?
Peers like Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) are both working to improve medical-cost performance, but their second-quarter 2026 ratios did not improve year over year. Humana’s Insurance segment benefit ratio rose to 91.2% from 89.9% in the second quarter of 2025, a 130-basis-point deterioration, though it was in line with management’s guidance. Elevance’s benefit expense ratio increased to 89.7% from 88.9%, worsening 80 basis points as elevated medical costs in its government businesses offset better Individual ACA performance. Both companies are emphasizing pricing, benefit design and medical-cost management, but unlike UnitedHealth’s second-quarter improvement, their reported ratios still show meaningful year-over-year pressure on underwriting profitability.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have gained 19.1% in the year-to-date period compared with the industry’s growth of 20.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.11, up from the industry average of 15.81. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying a 21.2% improvement from the year-ago period.
View the Zacks #1 Rank List
Image: Bigstock
UnitedHealth Reshapes Florida WellMed Operations With TPG Deal
Key Takeaways
UnitedHealth Group Incorporated’s (UNH - Free Report) Optum recently sold an interest in its Florida WellMed clinics to private equity firm TPG and entered a strategic partnership with the firm, according to Bloomberg. The partnership is expected to strengthen clinic operations through added support, technology investments, tools and operating capabilities. The clinics under the deal will remain in Optum’s network and continue serving patients.
Management pointed out that the goal was not to raise cash; CFO Wayne DeVeydt said UnitedHealth wanted a partner that could work with the company locally. TPG’s involvement is also expected to help the Florida business grow faster while UnitedHealth continues its broader turnaround over time. Optum acquired WellMed back in 2011.
Florida remains an active growth market, with UnitedHealth opening about 15 clinics there each year. TPG adds local focus and investment capacity at a time when Optum is trying to improve clinic performance and expand. The partnership therefore links two priorities: repairing profitability and supporting growth without slowing the wider turnaround currently underway across UnitedHealth. TPG also acquired Optum UK, another UnitedHealth subsidiary, earlier in 2026.
Optum Health is still recovering from a difficult 2025, when higher medical costs and federal payment pressure pushed operating margins below zero. It generated $102 billion of revenue in 2025, down 3% year over year. Management now expects margins of about 2% in 2026, followed by roughly 4% in 2027 and 6% in 2028, backed by quicker program rollouts.
UNH is actively focusing on lowering its medical care ratio (MCR) through cost management, pricing discipline and benefit design changes. Its second quarter MCR was 86.7%, which improved 270 bps from the year-ago period.
How are Peers Placed?
Peers like Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) are both working to improve medical-cost performance, but their second-quarter 2026 ratios did not improve year over year. Humana’s Insurance segment benefit ratio rose to 91.2% from 89.9% in the second quarter of 2025, a 130-basis-point deterioration, though it was in line with management’s guidance. Elevance’s benefit expense ratio increased to 89.7% from 88.9%, worsening 80 basis points as elevated medical costs in its government businesses offset better Individual ACA performance. Both companies are emphasizing pricing, benefit design and medical-cost management, but unlike UnitedHealth’s second-quarter improvement, their reported ratios still show meaningful year-over-year pressure on underwriting profitability.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have gained 19.1% in the year-to-date period compared with the industry’s growth of 20.3%.
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.11, up from the industry average of 15.81. UNH carries a Value Score of B.
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying a 21.2% improvement from the year-ago period.
The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.