UnitedHealth Group Inc. (NYSE: UNH) has sold an interest in some Florida-based Optum Health operations to private equity firm TPG Inc. (NASDAQ: TPG) as part of a broader effort to improve the unit's profitability. The health conglomerate executed this financial transaction to successfully bounce back from last year’s significant profit downturn.

UnitedHealth CFO Wayne DeVeydt stated in a Bloomberg interview that the company did not require the capital from the deal. “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,” DeVeydt explained.

The restructuring comes after Optum Health’s medical clinic division faced failures that fueled an unexpected financial decline. Last year, rapidly escalating healthcare costs and restrictive federal payment policies pushed Optum Health’s operating margins into negative territory. In response, UnitedHealth leadership replaced its chief executive officer and other key corporate leaders to address the weak operational performance.

Optum Health CEO Krista Nelson confirmed the TPG transaction at the Wells Fargo & Co. (NYSE: WFC) healthcare investor conference on Wednesday morning. She emphasized that the partnership aligns with Optum’s previously disclosed restructuring plan and that the enterprise is executing similar strategic investments across several additional healthcare markets.

Regarding future financial targets, DeVeydt indicated that Optum Health margins will reach approximately 2% this year. He projected operating margins to climb to about 4% in 2027 and hit 6% the subsequent year. The affected Florida facilities belong to Optum’s WellMed division, which provides healthcare services to senior citizens.

UnitedHealth confirmed that this strategic divestiture follows an earlier transaction where TPG acquired a separate subsidiary, Optum U.K., earlier this year. That previous deal successfully generated $400 million for the UnitedHealth Foundation.

UnitedHealth shares were down 2.74% to $390.54 at the time of publication on Friday, according to Benzinga Pro data.