Healthcare giant UnitedHealth has confirmed rumors of its virtual healthcare arm, Optum Virtual Care Business, closing down. According to news sources, employees were informed of the business' closure on April 18, with some employees' contracts extending until July. The company has yet to make an official announcement.

In addition, Harrison Frist will resign from his role at Optum Home & Community and the Care Transitions business this summer but will temporarily serve in an advisory role. Heather Jarrett, senior vice president of government clinical programs at UnitedHealth Group, has been selected as his replacement.

UnitedHealth’s care-at-home medical division, offered under Landmark Health, has also been downsized across the 37 states it operates in. While exact numbers have not been disclosed, upwards of 370 employees, including health service directors, senior operations managers, ambassadors, and care coordinators, have been laid off from Landmark Health. 

Analyst QuickTake: Recently, UnitedHealth Group has had several issues that have likely significantly contributed to the downsizing initiative. In an earnings call this week, the Group announced a loss of USD 1.4 billion for Q1 2024 , primarily driven by foreign exchange charges (amounting to USD 7 billion ) associated with the sale of the company’s Brazilian operations and the impact of the company’s cyber-attack. While the cyber-attack only targeted UnitedHealth’s Change Healthcare, which provides revenue and payment cycle management solutions, the entire group and providers felt the effects.