UnitedHealth Group Shuts Down Optum Virtual Care Telehealth Business Amid Decline in Telehealth Usage

UnitedHealth Group has recently announced the shutdown of its Optum Virtual Care telehealth business. On Thursday, employees were informed of the closure, with some being told that their last day would be in July. The company has stated that they will support affected team members with job placement resources and try to deploy them in open roles within the company.

Virtual care is a crucial component of UnitedHealth Group’s comprehensive care delivery model, and they are committed to providing patients with a wide network of providers for virtual urgent, primary, and specialty care options. Optum Virtual Care offers round-the-clock care through virtual visits with board-certified physicians and nationally certified nurse practitioners in all 50 states.

Telehealth usage surged during the pandemic, but recent data from PYMNTS Intelligence shows a decline in telehealth use in 2022 as people started returning to doctors’ offices. By July, consumer participation in telehealth had stabilized between 30% and 40%, with that percentage engaging in monthly telemedicine appointments. Similarly, Amwell, another telehealth provider, also noted a dip in telehealth usage in 2023, with 1.6 million visits in the fourth quarter compared to 1.7 million in the same quarter in 2022. The company attributed the decline to a milder flu season, with their CFO mentioning the absence of the early and severe flu season from the previous year.