Virtual Healthcare Takes a Backseat as UnitedHealth Group Shuts Down Optum Virtual Care Business

UnitedHealth Group is shutting down its Optum Virtual Care telehealth business. The company announced the decision on Thursday, with some employees being informed that their last day would be in July. While virtual care is an integral part of their comprehensive care delivery model, the decline in telehealth use in 2022 prompted the decision.

In a statement, UnitedHealth Group emphasized that 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. Despite the surge in usage during the pandemic, PYMNTS Intelligence reported 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.

Amwell 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.