Dive Brief:
- UnitedHealth is purchasing Hospital Samaritano in Sao Paulo, Brazil, a midsize hospital in the country's largest city, described by a Deloitte consultant as a "crown jewel" hospital of the country.
- UnitedHealth has previously acquired 31 hospitals in Brazil, making it the country's third-largest hospital operator.
- The deal follows UnitedHealth's acquisition three years ago of a majority stake in Brazil's largest private health insurer and hospital operator, Amil Participacoes.
Dive Insight:
Brazil has been drawing interest from numerous U.S. companies because the country has the next-largest private health insurance market by population in the world, according to Deloitte, though about 75% of its population of 200 million utilizes the public health system.
On top of that, the country just passed a law earlier this year that allows outside ownership of its hospitals. “That’s what really has increased the interest in hospitals and clinics and providers in Brazil,” Deloitte consultant Enrico de Vettori told the Star Tribune.
UnitedHealth disclosed the deal during a recent investors conference. “We’ve been pretty actively acquiring hospitals and care delivery assets," UnitedHealth Chief Financial Officer David Wichmann was quoted by the Tribune. “We’re becoming more of a healthcare delivery business in Brazil with an insurance arm.”