Overview: What Optum Plans to Sell
Optum is moving to sell several specialty care services across New York state. The UnitedHealth Group subsidiary confirmed this to Becker’s on June 24, 2026. The company is currently in active talks with multiple large health systems in the state. Moreover, Optum has already signed or is negotiating letters of intent with interested buyers. It aims to close all transactions by the end of 2026.
This move signals a significant strategic shift for one of the country’s largest physician network operators. Furthermore, it reflects a broader effort by UnitedHealth Group to streamline Optum Health’s operations after years of aggressive expansion.
Which Specialties Are on the Table
Optum Medical Care and Crystal Run Healthcare
The specialties under consideration for sale are tied to two provider organizations: Optum Medical Care and Crystal Run Healthcare. Optum acquired Crystal Run Healthcare in 2023. At the time, this purchase expanded Optum’s footprint in the New York market considerably.
Services Being Considered for Sale
The specific specialties Optum is looking to divest include:
- Orthopedics
- General surgery
- Urology
These are high-volume, procedure-intensive specialties. As a result, large health systems in the region are likely interested in absorbing them. The transition, if completed, would shift care delivery from Optum’s ambulatory network to established hospital-affiliated systems across the state.
Optum’s Statement and Timeline
Jon Nasser, MD, CEO of Optum New York and New Jersey, addressed the matter directly. “We are in discussions with several large health systems across New York regarding the transition of certain specialty services with the goal to keep that care local,” he said in a statement shared with Becker’s.
Notably, Optum framed this not as a retreat but as a strategic realignment. The company wants care to remain accessible within local communities. Therefore, rather than simply closing practices, Optum is seeking buyers who can continue serving existing patients.
The company expects to finalize agreements and complete transactions before December 31, 2026. This compressed timeline suggests that discussions are already well advanced with several health systems.
Why Optum Is Scaling Back in New York
A Provider Network That Grew Too Large
During an October earnings call, Optum CEO Patrick Conway acknowledged that the company’s care services division had “strayed from the initial intent.” In other words, Optum expanded its provider network far beyond what its operating model could efficiently support.
A Course Correction Underway
Conway signaled that Optum planned to work with fewer providers in 2026. This New York divestiture is one of the clearest manifestations of that strategy. By shedding high-complexity surgical specialties, Optum can redirect its focus and capital toward the care settings it considers core to its model.
Additionally, this move reduces the operational burden of managing large multi-specialty groups, which carry higher overhead and regulatory complexity than primary care settings.
State Lawmaker Scrutiny
Optum’s actions in New York have not gone unnoticed by state officials. In December, New York state lawmakers urged the state health department to investigate Optum over its practice closures and network reductions. Legislators raised concerns about patient access and continuity of care when providers abruptly exit communities.
This regulatory pressure may have accelerated Optum’s decision to pursue formal sale agreements rather than simply wind down operations. Selling to established health systems helps ensure care continuity, which addresses a central concern raised by lawmakers.
What Optum Will Retain in New York
Not every service line is on the chopping block. A spokesperson confirmed that Optum will keep its focus on several key areas:
- Primary care
- Pediatrics
- Medical specialties in ambulatory settings
This retention strategy is consistent with Optum’s broader national direction. The company continues to invest in value-based primary care and outpatient settings. Surgical and procedural specialties, however, do not fit that model as cleanly. Consequently, divesting them to health systems better equipped to manage surgical volume makes strategic sense.
Key Takeaways for Health Systems
For New York health systems, this represents a genuine acquisition opportunity. Orthopedics, general surgery, and urology are high-demand service lines. Health systems that absorb these practices stand to gain both patient volume and physician talent.
However, integration carries risks. Transitioning employed physicians, contracts, and patient panels from one organization to another is complex. Health systems that move quickly and offer strong clinical integration terms will likely have an advantage in these negotiations.
From a market perspective, this divestiture reflects a broader trend: insurers and payer-owned care organizations are reassessing vertical integration strategies. After years of acquiring physician practices, many are now recalibrating in response to financial pressures and regulatory scrutiny.
