UnitedHealth Group’s Optum Virtual Care Shuts Down, Reflecting Declining Telehealth Use in 2023

Optum Virtual Care, a telehealth business owned by UnitedHealth Group, has announced its closure. The decision was made on Thursday, with some employees being informed that their last day would be in July. The company 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 an essential component of UnitedHealth Group’s comprehensive care delivery model, and the company remains 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.

Although telehealth saw a 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, 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.