Virtual Care Shutdown: UnitedHealth Group Closes Optum Virtual Care Business Amidst Decline in Telehealth Usage

UnitedHealth Group has recently announced the shutdown of its Optum Virtual Care telehealth business. The decision was made on Thursday, with some employees being informed that their last day would be in July. Despite the closure, the company remains committed to providing virtual care as part of their comprehensive care delivery model.

The decision to close Optum Virtual Care was based on market demand and competition in the telehealth industry. While telehealth saw a surge in usage during the pandemic, recent reports have shown 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.

Other telehealth providers have also noted a dip in telehealth usage, including Amwell. In the fourth quarter of 2023, Amwell reported 1.6 million visits compared to 1.7 million in the same quarter in 2022. The decline was attributed to factors such as a milder flu season and the absence of an early and severe flu season from the previous year.

Despite the closure of Optum Virtual Care, UnitedHealth Group remains dedicated to providing patients with access to virtual care options through their other offerings. They continue to invest heavily in technology and innovation to improve healthcare outcomes for patients across the country.