NEW YORK, June 26 (Reuters) - UnitedHealth Group's ( UNH )

health services segment, Optum Health, will be led by

Patrick Conway, according to an internal company memo.

A spokesperson for UnitedHealth ( UNH ) said Conway's experience in

value-based care, where payment is generated from keeping

patients healthy, drove the health insurer's new appointment.

"Leadership changes are consistent with the company's

longstanding, intentional approach to develop an executive team

with a range of experiences across its diverse portfolio of

businesses," the spokesperson said.

The company named former Optum Health CEO Amar Desai as

vice-chairman of the unit. UnitedHealth Group ( UNH ) named a new

company-wide CEO, veteran Stephen Hemsley, to steer the

healthcare giant following its first earnings miss since 2008.

Conway in April was appointed CEO of UnitedHealth's ( UNH ) Optum

segment, which operates its Optum Health unit, and previously

ran its Optum Rx pharmacy benefit manager. Optum Health, which

operates medical clinics and offers nursing services, serves as

UnitedHealth's ( UNH ) healthcare delivery arm.

In a first-quarter earnings call, UnitedHealth ( UNH ) detailed

underperforming revenue at Optum Health, citing reduced

engagement from Medicare Advantage patients. A May Wall Street

Journal report detailed a criminal probe by the Department of

Justice on UnitedHealth's billing practices, related to in-home

visits it conducts within Optum Health.

Hemsley in a June shareholder meeting said that the company

was undertaking a review of practices across its business,

apologizing for recent underperformance in earnings.